About this RepoRt. Copyright. ISSn: ISBn:

Transcription

1 AnnuAl RepoRt

2 About this RepoRt The annual report provides a concise picture of the operations of the Civil Aviation Safety Authority (CASA), and reviews our performance against the corporate goals identified in the CASA Corporate Plan to , for the year ending on 30 June CASA Annual Report The report also provides a detailed description of CASA s operations during the year; financial statements for ; and a glimpse of our plans for meeting challenges in the year ahead. The report was prepared in accordance with the Commonwealth Authorities and Companies Act 1997 and Orders made under that Act, and with the Civil Aviation Act CASA is accountable to the Minister, the Parliament and the Australian people. Reporting is an important element of the responsibility that CASA has to the wider aviation community. CASA s intention is to provide a transparent, easy-to-read report of its performance. We invite readers to use the feedback link [email protected] to provide constructive comments on this report and suggest ways to improve our future reporting practices. This report and other CASA publications can be downloaded from Printed copies may be obtained by contacting: Manager, Governance Systems Civil Aviation Safety Authority GPO Box 2005 Canberra ACT 2601 AuSTRAlIA Phone: Fax: [email protected] Copyright ISSn: ISBn: Commonwealth of Australia 2011 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General s Department, National Circuit, Barton ACT 2600 or posted at

3 HigHLigHts Goal: Enhanced focus on regulating aviation safety A new suite of maintenance Civil Aviation Safety Regulations (CASR Parts 42, 66, 145 and 147) was made on 8 December 2010 and came into effect on 27 June All regular public transport Air Operator s Certificate holders are being transitioned to the new regulations and more than 7,000 Aircraft Maintenance Engineer licences have been transitioned from Civil Aviation Regulation 31 to the new CASR Part 66. New regulatory standards were promulgated to support the use of low-visibility landing procedures at major Australian airports. CASA provided targeted education to the aviation industry by delivering more than 160 faceto-face courses and programs, developing more than 60 courses, training more than 3,100 participants and presenting more than 120 AvSafety seminars in locations around Australia. Goal: Enhanced governance and operational efficiency Efficiencies and benefits were delivered through organisational refinement and realignment, particularly in relation to the establishment of the Safety Systems Office. A total of 87 per cent of CASA staff voluntarily participated in the staff engagement survey, which showed positive and improved results. The Strategic Workforce Plan was developed to proactively manage the challenges of an ageing workforce, scarce specialist skills and diversity gaps in certain sectors. CASA was rated as one of the highest performing Commonwealth agencies with respect to risk management practices. Goal: Enhanced relationships with key aviation participants CASA s Twitter account provided an additional avenue to deliver a wide range of aviation information to the public. CASA s contribution, through cooperation with other Australian aviation agencies, enabled Australia to maintain its status as a Member State of Chief Importance at the International Civil Aviation Organization. CASA s flagship aviation safety publication, Flight Safety Australia, was awarded the Cecil A Brownlow Award for 2010 by the Flight Safety Foundation. Other significant high points CASA executed timely and appropriate management of the risk to aviation safety caused by a volcanic eruption in Chile. CASA successfully managed the safety aspects of the return to service of the Qantas A380 fleet following an in-flight occurrence over Indonesia in November CASA successfully prepared for important investments in information technology, including the replacement of CASA s human resources management and financial management information systems, and the selection of a replacement for the Aviation Industry Regulatory System. 1 Introduction

4 Letter of transmittal 2 CASA Annual Report CHAIR CASA BOARD Trim Ref: EF09/ October 2011 The Hon Anthony Albanese MP Minister for Infrastructure and Transport Parliament House CANBERRA ACT 2600 Dear Minister On behalf of the Civil Aviation Safety Authority (CASA), I present to you the Annual Report for the reporting year 1 July 2010 to 30 June The report has been prepared in accordance with the Commonwealth Authorities and Companies Act 1997 and the associated Orders made under the Act, and in accordance with the Civil Aviation Act The report provides a detailed description of CASA s operations during the year as well as financial statements and the Auditor-General s report on those financial statements, as required under the Commonwealth Authorities and Companies Act In accordance with section 9 of the Commonwealth Authorities and Companies Act 1997, I certify that the directors are responsible for the preparation and content of the report of operations in accordance with the Finance Minister s Orders. Yours sincerely Allan Hawke Chair of the Board

5 interesting facts in At 30 June 2011: 14,362 aircraft were registered on the Australian Civil Aircraft Register. 851 Air Operators Certificates and 736 Certificates of Approval were current in Australia. CASA conducted the regulatory oversight of more than 80 air operators from 27 different countries as a means of ensuring the safety standards of foreign operators flying into Australia. 3 Introduction CASA issued 25,259 medical certificates and 7,884 aeroplane flight crew licences. CASA conducted 10,645 alcohol tests and 7,927 drug tests. CASA conducted the regulatory oversight of more than 300 certified and registered airports around Australia 12 in capital cities and the others in regional Australia. CASA processed approximately 90,000 applications for regulatory services. CASA s Service Centre received 82,078 phone calls. A total of 20,660 candidates sat for flight crew licensing examinations. There were 33,815 visits to CASA s elearning system through the CASA website. Flight Safety Australia magazine celebrated 15 years of publication since its commencement in 1995, when it succeeded the popular Aviation Safety Digest ( ).

6 the civil aviation safety authority 4 CASA Annual Report CASA, Australia s air safety regulator, was established on 6 July 1995 as an independent statutory authority under the Civil Aviation Act Key role CASA s key role is to conduct the safety regulation of civil air operations in Australian territory and the operation of Australian aircraft outside Australian territory. CASA is also responsible for ensuring that Australian airspace is administered and used safely. Vision Safe skies for all Mission To enhance and promote aviation safety through effective safety regulation and by encouraging industry to deliver high standards of safety. Values Commitment to CASA s vision Achieve results, show initiative and innovation Stakeholder focus and influence Integrity and professionalism Flexibility and good judgement Teamwork and leadership. Corporate goals Enhanced focus on regulating aviation safety Enhanced governance and operational efficiency Enhanced relationships with key aviation participants. CASA s values and corporate goals have been revised and reinforced in the new CASA Corporate Plan to , which sets out our future direction.

7 Operating environment CASA has a direct regulatory relationship with approximately: 34,300 pilots 14,360 owners of aircraft 850 Air Operator s Certificate holders 7,000 licensed Aircraft Maintenance Engineers 700 maintenance organisations 900 air traffic controllers 300 operators of certified and registered aerodromes 22 aerodrome rescue and firefighting service providers. CASA is also indirectly connected with more than 100,000 people who are involved in the Australian aviation industry, and with the many millions of passengers whose safety is CASA s primary concern. People At 30 June 2011, CASA employed 786 ongoing and non-ongoing employees in offices around Australia (see 168). Financial result CASA recorded an operating deficit of $1.2 million in, compared with a $1.8 million deficit in (see 22). 5 Introduction Key indicator ($m) ($m) Change (%) Operating revenue Operating expenses Operating surplus (deficit) (1.8) (1.2) 33.3

8 Key corporate statistics Five-year summary of CASA resources Financial management More information Total operating income ($m) Part 1 6 CASA Annual Report Total operating expenses ($m) Part 1 Surplus/(Deficit) ($m) (1.8) (1.2) Part 1 Total assets ($m) Part 1 Total liabilities ($m) Part 1 Total equity ($m) Part 1 Human resources Total staff numbers Table C.1 Average absenteeism (days/ employee/year) Part 3 Operations Aircraft registered at 30 June 12,718 13,270 13,510 13,907 14,362 Table B.5 Air Operator s Certificates current at 30 June General aviation Air Operator s Certificates current at 30 June Airline operations Certificates of Approval current at 30 June General aviation Certificates of Approval current at 30 June Airline operations Table B Table B a Table B Table B.2 Flight crew licences issued 7,551 7,681 7,580 7,345 7,884 Table B.10 Flight crew licences current at 30 June Australian flight crew licensing examinations 33,272 35,021 35,323 33,867 34,308 Table B.10 18,841 22,840 23,678 22,006 20,660 Table B.11 Medical certificates issued 39,441 47,254 41,781 33,957 25,259 Table B.12 Aircraft Maintenance Engineer examinations Aircraft Maintenance Engineer licences current at 30 June 7,415 8,113 6,805 5,907 6,355 Table B.13 6,403 6,474 6,613 6,796 7,076 Table B.14 a CASA s information management system no longer separates current Certificates of Approval into the GA and AO categories. From, the number of current certificates is the total of all current certificates.

9 contents Part 1: Overview 09 Provides highlights for, an introduction by the Chair of the Board, and a review of CASA s performance in and way forward to by the Director of Aviation Safety of CASA. Also summarises financial outcomes. Part 2: Performance reporting 31 Provides a detailed performance assessment of CASA s activities during the year, and how they contributed to achieving the CASA s authority s corporate goals and portfolio outcome. Also presents a glimpse of CASA s approach to enhancing and promoting higher standards of aviation safety in future. Part 3: Management arrangements and accountability reporting Explains CASA s approach to corporate governance, how CASA is structured, how CASA supports its people, and CASA s extensive engagement with the aviation community. Also includes CASA s arrangements for external scrutiny and reports on the accountability of the organisation Introduction Part 4: Statutory reporting 97 Fulfils CASA s obligations to report on such matters as significant events, decisions by outside bodies, freedom of information, advertising and market research, consultancy services, insurance and indemnities, and ecological sustainability. Part 5: Financial statements 105 Contains a complete set of CASA s audited financial statements for the year ended 30 June Part 6: Appendices and references 153 Contains additional detailed information that supports the operational and performance reporting in the body of the report, a list of abbreviations, a compliance index and an alphabetical index.

10 trends in australian aviation safety 8 CASA Annual Report In 1995, Australia s population was 17.1 million by 2010, it had grown to 22.5 million (an increase of 31.6 per cent). Air travel in Australia is growing faster than the population. Passenger numbers carried by high-capacity regular public transport aircraft the major airlines almost doubled between 1995 and 2008, from 23.4 million to 44.0 million (an increase of 88.0 per cent). The number of hours flown by high-capacity regular public transport aircraft showed a similar pattern, rising from 666,000 in 1995 to 1.2 million in 2008 (an increase of 80.2 per cent). General aviation is also growing, but more slowly. In 1995, 1.76 million hours were flown by general aviation aircraft; this rose to more than 1.86 million in 2010 (an increase of 5.7 per cent). Over the years from 1995 to 2009, high-capacity regular public transport aircraft had an average of 1.9 accidents per year, none of them fatal. Throughout the early 2000s, Australia was one of very few countries that could claim a fatal accident rate close to zero. Private and business general aviation operations resulted in an average of 69.2 accidents per year, many of them fatal, between 1995 and However, there was a trend towards improvement in general aviation: the average number of accidents was 54.8 per year from 2005 to 2009, down from 81.5 per year from 1995 to 2000 (a decrease of 32.8 per cent). Source: Fifteen years of aviation safety, Flight Safety Australia, November December 2010, p. 9.

11 01 overview 9 OVERVIEW PART 1 This part of the annual report provides an overview of the people, projects and resources involved in regulating aviation safety in Australia and progressing CASA s vision of Safe skies for all. CASA s key achievements in are identified, along with some of the initiatives and challenges that lie ahead for the organisation. In this part Message from the Chair of the Board 10 Review by the Director of Aviation Safety 12 Financial summary 22

12 message from the chair of the Board 10 CASA Annual Report The year was a year of steady progress for Australia s Civil Aviation Safety Authority (CASA). CASA continued to deliver world-leading aviation safety regulation and education while also meeting the expectations of the Government and wider aviation community by substantially progressing new initiatives. The Government allocated additional funding to CASA in for a range of new initiatives. The additional funding means that CASA is now adequately funded to meet the challenges it faces and deliver the performance expected of it. CASA allocates priorities in accordance with the Government s policy that safety is the principal consideration in all aviation decisionmaking. This policy, as well as the need for efficiency, transparency and accountability, is central to the Board s oversight of CASA s strategic planning, governance, and delivery of aviation safety outcomes. In the year covered by this report, CASA continued to focus on effective and appropriate stakeholder engagement, and worked closely with other government agencies to strengthen the aviation industry s awareness of its safety obligations. Important decisions were made, including to replace the now outdated Aviation Industry Regulatory System (AIRS) and to further refine organisational accountabilities. In there was particularly strong performance in advancing the regulatory reform program; continuing to implement the objectives stated in the 2009 National Aviation Policy White Paper, Flight Path to the Future, and in the Australian Airspace Policy Statement 2010; further developing bilateral aviation safety agreements; and maintaining a capable and motivated workforce in a period of industry growth. Where there has been a delay in achieving aspects of this demanding agenda, the Board is satisfied that the targets set in the Corporate Plan have been managed appropriately. Next year CASA will continue to pursue a challenging agenda across the spectrum of activities related to aviation safety. While there will be a strong focus on the further development and implementation of the regulatory reform program, CASA will also confidently build on the organisational changes and strong investment in its people that had their foundations in.

13 11 CASA s continued success relies on the skill and professionalism of its people, and the Board wishes to recognise and thank CASA s dedicated staff for their contribution to the achievements detailed in this report. OVERVIEW Overview PART 1 Allan Hawke AC Chair of the Board

14 review By the director of aviation safety 12 CASA Annual Report Everyone in aviation understands that safety is not static. The Australian aviation community must continually strive for improvement in order to meet safety challenges, today and in the future. That is why CASA, as Australia s aviation safety regulator, needs to create a living safety regulation environment that continuously monitors, checks and improves safety performance. CASA is a relatively small organisation with just under 790 staff. We have been working on ways to be smarter in how we use this small but talented pool of people. Everyone in CASA can take pride in the achievements of the past year. looking back on, I can see that many programs, initiatives and activities have been successfully conducted, benefitting both aviation safety and the performance of CASA. Examples include: delivering the suite of maintenance regulations strengthening our safety oversight of key sectors providing targeted education to the aviation industry further refining our organisational structure to deliver efficiencies and enhance accountability processing approximately 90,000 applications for regulatory services introducing online learning for the aviation industry. Enhanced focus on regulating aviation safety New safety regulations A major milestone in the revision of Australia s aviation safety regulations was reached in with the making of a new and improved set of safety standards for the aviation maintenance industry under the Civil Aviation Safety Regulations (CASR). The regulations in the new maintenance suite cover continuing airworthiness requirements (CASR Part 42), maintenance personnel licensing (CASR Part 66), approved maintenance organisations (CASR Part 145) and maintenance training organisations (CASR Part 147). The regulations will deliver a clearer focus on safety outcomes, while allowing maintenance organisations flexibility in the way they conduct their operations. Maintenance organisations will now work to a set of rules more closely aligned with those of other leading aviation nations. The rules covering continuing airworthiness and maintenance organisations presently apply only to regular public transport aircraft and associated aeronautical products, and are being phased in over two years. Revised maintenance regulations for other sectors of aviation, such as charter, aerial work and private operations, will be developed at a later date, after wide consultation with participants in these sectors.

15 13 CASA conducted a comprehensive information and education campaign early in 2011 to ensure that the aviation industry was ready for the new regulations well before the commencement date. More than 7,000 licensed Aircraft Maintenance Engineers (lames) have been issued with new licences under Part 66 of the regulations. Eligible lames have retained their existing rights to work on aircraft and CASA has undertaken a rigorous transition process to make sure that the new licences accurately reflect their privileges. Air operators and maintenance organisations required to move to the new maintenance regulations will be given a high level of support from CASA. In total, about 200 aviation maintenance organisations and 32 air operators will be moving to the new maintenance requirements set out in CASR Parts 42 and 145 over the next two years. It is expected that CASA will spend more than 11,000 days working with air operators and maintenance organisations that are moving to the new rules. Within CASA, there will be a strong emphasis on ensuring that a consistent and standard approach is taken to the transition. Strong safety oversight CASA s safety oversight of the aviation industry is being strengthened by a new focus on areas where aviation activity is growing. Our resources covering South Australia, Western Australia, North Queensland and the Northern Territory will be more effectively organised. The changes will mean improved oversight of aviation operations supporting the mining industry, including the expanding helicopter sector, particularly in the north-west of Western Australia. Relative to other sectors of the aviation industry, helicopters have a higher rate of accidents. Recent statistics show that helicopters make up 12 per cent of the aircraft fleet while accounting for 25 per cent of the accidents. CASA will subject Australia s helicopter industry to an increased level of safety surveillance, and will focus on helicopter flying training to achieve higher standards for the next generation of pilots. This year, we introduced a new way of working in all our regional offices to provide a more standardised approach to safety oversight and the delivery of regulatory services across both general aviation and air transport operations. New, multidisciplinary teams (Certificate Management Teams) are being formed in each office, to manage the oversight of air operators, maintenance organisations and other certificate holders, working to standard processes. The new approach will allow CASA to move further towards effective risk-based safety oversight. OVERVIEW PART 1

16 14 CASA Annual Report Enforcement is a critical component of CASA s regulatory responsibility. In, a total of 135 infringement notices were issued by CASA for breaches of the aviation safety regulations. Of the 32 matters referred by CASA to the Commonwealth Director of Public Prosecutions for prosecution, there were 11 convictions and one acquittal. CASA also issued 39 Show Cause Notices and suspended or cancelled 35 licences and certificates over the course of the financial year. CASA took timely and appropriate action to manage the risk to aviation safety caused by a cloud of ash expelled by a volcanic eruption in Chile in June CASA established a mechanism permitting the reclassification of airspace in emergency circumstances, which allowed for the continuation of air traffic control services for aircraft avoiding ash-affected airspace. CASA also updated its detailed advice to the aviation industry on operations during volcanic ash events. A new airworthiness bulletin provides an overview of CASA s recommendations on operations in or near airspace known to be, or suspected of being, contaminated by volcanic ash, or at aerodromes with runways contaminated by ash. On 1 July 2011, CASA took action to suspend the Air Operator s Certificate of Tiger Airways Australia Pty ltd under the serious and imminent risks to air safety provisions of the Civil Aviation Act. I am pleased to say the vast majority of people have supported CASA s actions, although some people have been disappointed and inconvenienced by disruption of their travel plans. Taking this action did not give CASA any pleasure, as it is our desire to see a safe and vibrant aviation industry at all times. However, in the interests of the travelling public and the general community, stern action was required to ensure that essential safety standards within the airline were maintained. State Safety Program A milestone in Australian aviation safety was reached in with the publication of Australia s first State Safety Program under the Convention on International Civil Aviation (Chicago Convention). The program sets out the legislative and organisational framework of aviation safety in Australia, in terms of four key components of the continuous improvement of aviation safety: policy and objectives, risk management, safety assurance and safety promotion. The new State Safety Program is the result of work by a range of Australian Government agencies, including the Department of Infrastructure and Transport, Airservices Australia, the Australian Transport Safety Bureau, the Department of Defence, the Bureau of Meteorology, the Australian Maritime Safety Authority and CASA. Safety education and training Providing education and training to help ensure that the aviation industry maintains high safety standards is one of CASA s central roles, as clearly stated in the Civil Aviation Act CASA analyses data to identify risks and develops education and training programs to combat these risks, using an effective mix of face-to-face communication, written materials, online information, interactive web tools and audiovisual productions.

17 The quality of our safety education and training products is vital better safety information equals better safety outcomes. For this reason I am pleased that CASA s Flight Safety Australia magazine received the 2010 Cecil A Brownlow Award from the international Flight Safety Foundation. I am very proud of our magazine, which is now recognised as a world leader in aviation safety communication and education. Having CASA staff fully trained is a strategic priority that is of particular importance to me. In, we put extra effort into making sure that our technical staff have the up-to-date expertise and regulatory skills that they need to continue to support a world-leading aviation safety regime. CASA has done some excellent work in bringing together a comprehensive and structured training program for all inspectors, covering both classroom and on-the-job training. I would like to thank the development specialists and subject matter experts who have been involved in this work. The material they have produced is of the highest quality and will serve CASA well into the future. CASA s first intake of university graduates commenced in the middle of Six people with undergraduate qualifications in aviation management and engineering will work with CASA for two years as part of a new graduate development program. The program will bring fresh ideas and talent into our organisation and help to build capability for the wider aviation community. Enhanced governance and operational efficiency Accountability CASA welcomes the Government s clear endorsement of the principles of open government, accountability and transparency. We are answerable to the Minister and to the Parliament, and work to ensure that our accountability mechanisms are accessible and effective. Therefore, I am pleased to note that CASA s Annual Report for received the Silver Award in the 2011 Australasian Reporting Awards. Organisational changes As described in last year s annual report, in we undertook a substantial restructure of CASA to better align resources to CASA s core function of regulating aviation safety. In, we continued to fine-tune our organisation to improve the way we work. A number of changes came into effect from 1 July 2011, including: a reorganisation of some of our regional offices a series of appointments to key positions in the Operations Division the strengthening and streamlining of safety oversight and analysis the establishment of a task force to look at a range of general and recreational aviation issues the introduction of the Certificate Management Teams approach in all regional offices. As part of the ongoing process to ensure that CASA is properly structured to meet its organisational goals effectively and efficiently, a new Program Management Branch was established in the Office of the Director of Aviation Safety. 15 OVERVIEW PART 1

18 16 CASA Annual Report Policies and procedures In, CASA made excellent progress in its ongoing project to align policies and procedures across the organisation. This process is steadily improving consistency in the way CASA operates. Internal consistency means more consistent regulatory advice and decision-making for the aviation industry, which is essential to achieving the best possible safety results. I have been impressed by the efforts of CASA staff to bring processes together towards our goals of standardisation and consistency. The rollout of the Certificate of Approval Manual in, along with appropriate training for staff in regional offices, was a great step forward in standardising our processes nationally. Work on the Air Operator s Certificate Manual is continuing. The Industry Complaints Commissioner has been working with other government aviation complaints handlers Airservices Australia, the Aircraft Noise Ombudsman, the Office of Transport Security and the Australian Safety Transport Bureau to improve both access to complaints channels and the experience of complainants. In particular, the members of the group have been collaborating to ensure that, where appropriate, a complainant receives a whole of government response to any issues raised that involve more than one agency. A new online Delegate Management Notification System was launched during the year, to accurately track the work being done by people in the aviation industry who hold airworthiness delegations from CASA. The new system means that CASA can build a comprehensive and timely picture of the work undertaken by airworthiness delegates, which will allow CASA to better support the people who hold delegations and to improve safety monitoring. Staff engagement A total of 87 per cent of CASA staff voluntarily participated in the staff engagement survey in There was very strong support for CASA s mission and objectives as Australia s aviation safety regulator. Overall, the staff survey indicated steady progress across a number of areas, when compared to the equivalent results obtained in the 2008 staff survey. Information technology In, CASA successfully prepared for several important investments in information technology, including the replacement of CASA s human resources management and financial management information systems, and the assessment and selection of a replacement for the Aviation Industry Regulatory System (AIRS). A new data management tool, EMPIC-EAP, was purchased to replace a number of CASA systems which have become increasingly difficult and expensive to support. Progressively EMPIC-EAP will be integrated into CASA s information technology environment to achieve a level of inter-application communication and data sharing that was not previously possible. This will reduce the cost and effort required for maintenance, upgrades and training, and provide standardised business processes. Enhanced relationships with key aviation participants Communications Keeping the aviation industry and the travelling public informed about aviation safety is one of CASA s functions. Because CASA s audience is very diverse and widely dispersed, we use many different communication channels, such as:

19 our flagship safety publication, Flight Safety Australia magazine, and our industry newsletter, The CASA Briefing, both distributed in hard copy and available online a comprehensive website and targeted notifications a wide range of information products, including paper-based publications, videos, CDs, DVDs and posters face-to-face meetings, seminars and conferences. In May 2011 we took our communication efforts a step further by moving onto the online social media channel Twitter. Interested observers anywhere in the world can be promptly informed of CASA activities and regulatory developments through our Major changes were made to CASA s website in. A large number of quick links, as well as search functions for the Australian Civil Aircraft Register and Air Operator s Certificates, were added. The area for CASA s latest news items was increased, making it easier to see quickly the newest updates to the website. A new front was developed in response to feedback from website users. Industry consultation Consultation with the aviation industry on safety and safety regulation is an important part of CASA s business. As required by the Civil Aviation Act, we strive to conduct full and effective consultation and communication with all interested parties on aviation safety issues. Over the years this has been achieved in a number of ways, including through continuous dialogue, meetings, working groups and formal consultative bodies. We have decided to widen the range of our formal consultative groups by creating two new bodies. One will focus on the high-capacity passengercarrying sector, while the other will look at general aviation issues. These will be standing consultative groups which will usually meet twice each year. I expect to form the passenger-carrying consultative group in and the general aviation body in International cooperation CASA s contribution through cooperation with other Australian aviation agencies enabled Australia to maintain its status as a Member State of Chief Importance at the International Civil Aviation Organization (ICAO). Other Member States of Chief Importance include the united States, the united Kingdom, China, Brazil and France. Financial management CASA recorded an operating deficit of $1.2 million in, after recording a $1.8 million deficit in The Government has allocated an additional $89.9 million over four years ( to ) to fund additional aviation safety activities. This is achieved through an increase in the aviation fuel excise rate of cents per litre from cents per litre to cents per litre. CASA is budgeting for an operating deficit in of $4.5 million. At the same time, however, CASA is budgeting for small operating surpluses in the forward years , and OVERVIEW PART 1

20 18 CASA Annual Report Our way forward The CASA Corporate Plan to presents CASA s direction and priorities for the next three years. It was developed by the Board and CASA staff to continue to deliver the Government s aviation policy agenda as principally set out in the 2009 National Aviation Policy White Paper and the Australian Airspace Policy Statement The plan expresses what we have set out to achieve, and how we will measure our performance, in delivering the Government s program to continuously improve aviation safety. The direction in which CASA is heading will further strengthen an already strong and cohesive CASA, and enhance our reputation among our key stakeholders and the wider community. The plan will ensure that the vision we have today accords with what tomorrow s environment will require. CASA has seen many positive changes in recent years, and I am confident that CASA will be an even more effective organisation in years to come. The new Corporate Plan presents a well-structured approach to our long-term commitment of making CASA an organisation that: provides comprehensive, consistent and effective regulation to enhance aviation safety strives for continuous improvement and good governance endeavours to form effective and appropriate relationships with the wider aviation community. These goals are reflected in our organisational goals and a series of specific initiatives that will drive the achievement of higher levels of aviation safety. While striving to continuously improve all areas of the organisation, we will focus on five major deliverables: standardisation, consistency and efficiency continuing to build the skills of our staff delivery of regulatory services to a growing aviation industry successful implementation of the new maintenance regulations and effective planning for the delivery of the suite of operational regulations ongoing surveillance of the Australian aviation industry. I expect everyone, from our frontline inspectors to the people who perform support functions, to play an important role in achieving the objectives set out in the Corporate Plan. Appreciation The many accomplishments I have described were achieved on top of CASA s day-to-day operations to ensure the continued safe operation of the Australian aviation system. The tens of millions of people who fly safely in Australia every year do not need to think about our proud aviation safety record. That quiet confidence is the best testament to the hard work that we all do at CASA, and to the commitment to maintaining high safety standards that is demonstrated by most people in the aviation industry.

21 19 OVERVIEW Overview PART 1 I am very proud of the tremendous progress made by CASA this year, and thank everyone for their efforts in making CASA an even more effective aviation safety regulator. John F. McCormick Director of Aviation Safety

22 Key moments of casa s History 20 CASA Annual Report March 1910 The first flight of a powered aircraft in Australia took place. October 1919 The International Convention Relating to Air Navigation (Paris Convention) was signed the convention entered into force in Australia on 1 June March 1921 The Civil Aviation Branch of the Department of Defence, Australia s first Commonwealth agency with responsibility for civil aviation, was established. November 1938 The Department of Civil Aviation, Australia s first Commonwealth department dedicated to civil aviation, was established. December 1944 The Convention on International Civil Aviation (Chicago Convention) was signed the convention entered into force in Australia on 4 April July 1988 The Civil Aviation Authority, Australia s first statutory authority with responsibility for civil aviation, was established under the Civil Aviation Act July 1995 The Civil Aviation Legislation Amendment Act 1995 and the Air Services Act 1995 replaced the Civil Aviation Authority with two separate organisations: the Civil Aviation Safety Authority (CASA) and Airservices Australia. July 1998 The Civil Aviation Amendment Bill 1998 was introduced, providing a basis for, among other things, implementation of the Regulatory Framework Reform Program. June 1999 CASA announced a reform program, including rewriting of the aviation regulations, and established a new Aviation Safety Standards division. October 2003 The Civil Aviation Amendment Bill 2003 was introduced to implement, among other things, governance reforms including the abolition of the CASA Board. November 2004 CASA promulgated a new policy placing its greatest safety focus on high-capacity regular public transport flights. February 2006 CASA expanded its operational facilities based in the Brisbane office, locating a significant number of safety inspectors in new positions near key city airports.

23 July 2007 The Airspace Act 2007, Airspace Regulations 2007 and Australian Airspace Policy Statement 2007 were introduced, giving CASA sole carriage of the regulation of all Australian-administered airspace. 21 OVERVIEW Overview PART 1 September 2008 Provisions came into effect, under Part 99 of the Civil Aviation Safety Regulations 1998, requiring air operators to establish drug and alcohol management plans, and empowering CASA to test personnel who undertake safety-sensitive aviation activities for alcohol and other drugs. March 2009 The Civil Aviation Amendment Act 2009 made significant governance and enforcement-related changes to CASA, including re-establishing the Board (from July 2009). The Transport Safety Investigation Amendment Act 2009 established the Australian Transport Safety Bureau as an independent agency (from July 2009). July 2009 The new CASA Board took office pursuant to the governance changes introduced earlier in the year. December 2009 National Aviation Policy White Paper, Flight Path to the Future was released. June 2011 A new suite of regulations for maintenance and engineer licensing (Civil Aviation Safety Regulations Parts 42, 66,145 and 147) came into effect.

24 financial summary 22 CASA Annual Report Outcomes in CASA recorded an operating deficit of $1.2 million in, compared with a $1.8 million deficit in The difference of $0.6 million reflects the overall result of an increase in income of $15.3 million and an increase in expenses of $14.7 million. This is mainly due to an increase in aviation safety funding for new measures to strengthen CASA s capacity to maintain and enhance aviation safety not being matched with the respective expenses: for example, employee expenses were underspent due to delays in recruiting personnel. In, CASA s operating result was $1.8 million less than the revised estimate as published in the Portfolio Budget Statements. The actual operating deficit was $1.2 million, compared to an estimated operating surplus of $0.6 million. The variance to the estimate was primarily due to an uninsured contingent expense claim that was not anticipated in the budget estimate. A shortfall in sales of goods and rendering of services revenue also contributed to the variance. Table 1 compares the actual audited results for to actual audited results for and to the budget estimates. Table 1 Comparison of actual results for and and actual results for and budget estimates Actual $m Actual $m Variance $m Actual $m Estimated Actual a $m Variance $m Income (1.0) Expenses Surplus/(Deficit) (1.2) (1.8) 0.6 (1.2) 0.6 (1.8) a Budget figures are estimated actuals based on the figures published in the Portfolio Budget Statements.

25 Income The increase in income was primarily associated with an increase in aviation fuel excise revenue. The Government increased aviation safety funding through an increase in aviation fuel excise with effect from 1 July 2010, from cents per litre to cents per litre, an increase of cents per litre. The impact of the increase in fuel excise rate in was $20.6 million in additional revenue. Figure 1 shows the change in income from to and compares actual results to budget estimates for. Figure 2 Sources of income, Sale of goods and rendering of services 8% Interest and other revenues 3% 23 OVERVIEW PART 1 In, approximately 63 per cent of CASA s income was from aviation fuel excise (compared to 52 per cent in ) and around 26 per cent was from government appropriations (compared to 33 per cent in ). The remainder of income was derived from the sale of goods and rendering of services, interest and other minor sundry revenue (see Figure 2). Revenue from Government 26% Aviation fuel excise 63% Figure 1 Actual revenue for and budget estimates and actual results for Interest & other revenues Sale of goods and rendering of services Actual Budget Actual Revenue from Government Aviation fuel excise $ million Note: Budget figures are estimated actuals based on the figures published in the Portfolio Budget Statements.

26 24 CASA Annual Report Expenses Total expenses increased by $14.7 million in compared to This is primarily attributable to the additional staffing levels required to meet CASA s new measures announced in the budget estimate, as well as an increase in salaries and wages remuneration. The need to support these new measures was also reflected in the increase in supplier expenses. A one-off expense related to an uninsured contingent claim also contributed to the overall increase in expenses. Figure 3 shows the change in expenses from to and compares actual results to budget estimates. In, CASA spent approximately 56 per cent of total expenditure on employee costs (the same percentage was reported in ) and approximately 35 per cent on suppliers (compared to 36 per cent in ). The remainder largely comprised depreciation and amortisation expense (see Figure 4). Figure 4 Expenditure, Write-down and impairment of assets 1% Depreciation and amortisation 6% Finance costs, net loss from disposal of assets and other expenses 2% Supplier expenses 35% Employee benefits 56% Figure 3 Actual expenses for and budget estimates and actual results for Finance costs, net loss from disposal of assets and other expenses Write-down and impairment of assets Depreciation and amortisation Actual Budget Actual Supplier expenses Employee benefits $ million Note: Budget figures are estimated actuals based on the figures published in the Portfolio Budget Statements.

27 Cash flow CASA s cash balance (including short-term investments) at 30 June 2011 was $63.5 million (compared to $57.5 million in ). The increase in the cash balance is represented by net cash generated from operating activities ($13.1 million), offset by cash used by investing activities ($7.1 million), mainly attributable to purchases of property, plant and equipment and intangibles. The cash balance provides funding for CASA s capital replacement program, in line with its capital management plan. The cash balance also provides for the estimated future payments to be made in respect of services provided by employees (that is, employee provisions for leave entitlements). Financial position Key indicators of the health of CASA s financial position are its ability to sustain its asset base, the ability to pay debts as they fall due in the short term and the maintenance of prudent levels of long-term liabilities. The ability of CASA to sustain its asset base is indicated by changes in net assets. The increase in total liabilities in was primarily due to an increase in supplier payables and other provisions, which was offset by a comparable increase in cash and cash equivalents and receivables. Figure 5 shows that CASA maintains a sustainable net assets level in relation to and forward estimates. 25 OVERVIEW PART 1 Figure 5 Financial position, to Forward Estimate Forward Estimate Forward Estimate Total Liabilities Total Assets Net Assets Budget Actual Actual Note: Budget figures are estimated actuals based on the figures published in the Portfolio Budget Statements.

28 26 CASA Annual Report Outlook The Government has allocated an additional $89.9 million over four years ( to ) to fund additional aviation safety activities. This is achieved through an increase in the aviation fuel excise rate of cents per litre from cents per litre to cents per litre. CASA is budgeting for an operating deficit in of $4.5 million. This mainly reflects the expenditure of $3.7 million relating to the Budget measure Aviation Safety CASA funding strategy, originally provided in the year. CASA is budgeting for small operating surpluses in the forward years , and CASA s total forecast income for is $175.7 million, and is derived as follows: $42.7 million from government appropriations $111.9 million from the aviation industry through the collection of excise revenue on aviation fuel used in domestic air travel $15.0 million from regulatory services provided to the aviation industry $3.4 million from the sale of goods and services and other sundry income $2.0 million from interest from investment and cash deposits $0.7 million in payments from the Department of Infrastructure and Transport in support for the Indonesian Transport Safety Assistance Package. CASA s balance sheet projection shows a steady increase in net assets in the forward years except in CASA s strong financial position indicates its capacity to deal with financial pressures. CASA s cash and cash equivalents balance including investments is budgeted to remain above $50.0 million in the next four years. It is forecasted that cash outflows will exceed inflows in and , followed by net cash increases in and This reflects progressive growth in revenue projections through the increase in aviation fuel excise collection. More cash is expected to be utilised in the next two years for capital assets acquisition compared to and Retained surplus is budgeted to drop to $48.7 million in , due to a forecasted operating deficit of $4.5 million, but is expected to improve in the following years as a result of operating surpluses.

29 case study NEW RulES FOR A BETTER AVIATION MAINTENANCE INDuSTRY Australia s aviation maintenance industry has a new and improved set of safety standards. The new suite of maintenance Civil Aviation Safety Regulations (CASR) came into effect on 27 June The regulations in the new maintenance suite cover continuing airworthiness requirements (CASR Part 42), maintenance personnel licensing (CASR Part 66), approved maintenance organisations (CASR Part 145) and maintenance training organisations (CASR Part 147). The regulations deliver a clearer focus on safety outcomes, while allowing maintenance organisations flexibility in the way they conduct important aspects of their operations. Maintenance organisations will now work to a set of rules more closely aligned with those of other leading aviation nations. The outcome-based approach of the new regulations means that there is a clear focus on safety outcomes at all times, and allows maintenance providers and affiliated organisations to respond positively to innovation and technological developments. This can reduce the complexities of doing business in the international aviation market, improving Australia s competitive edge in the world air transport industry. CASA conducted a comprehensive information and education campaign early in 2011 to ensure that the aviation industry was ready for the new regulations well before the commencement date. More than 7,000 licensed Aircraft Maintenance Engineers (lames) have been issued with new licences under Part 66 of the regulations. Eligible lames have retained their existing rights to work on aircraft and CASA has undertaken a rigorous transition process to make sure that the new licences accurately show their privileges. The rules covering continuing airworthiness and maintenance organisations currently apply only to regular public transport aircraft and associated aeronautical products, and are being phased in over two years. Revised maintenance regulations for other sectors of aviation, such as charter, aerial work and private operations, will be developed at a later date, after wide consultation with all relevant stakeholders. 27 CASE STUDY

30 casa enhancing aviation safety By: 28 CASA Annual Report Conducting entry control assessments, regulatory surveillance and oversight, providing regulatory services, and taking appropriate enforcement actions when necessary. Conducting regulatory oversight and surveillance of aviation manufacturing activities, cabin safety, dangerous goods, ground operations and the management of foreign operators in Australia. Developing aviation safety standards and guidance material, and implementing regulatory changes. Regulating Australianadministered airspace, registered and certificated aerodromes, airport rescue and firefighting services and air traffic control services, and overseeing designers of instrument approach procedures. Issuing licences, certificates, authorisations, approvals and other permissions required by persons undertaking a range of aviation-related activities in Australia.

31 Providing advice and support to delegates and authorised persons in the aviation industry, and administering medical standards applicable to licence holders. Conducting regulatory oversight of operators drug and alcohol management plans, conducting alcohol and drug testing, and carrying out certain aviation security assessment functions. Providing an immediate response service to authorities requiring protected airspace at short notice. Fostering awareness in industry and the wider aviation community of the importance of aviation safety and compliance with the civil aviation legislation. Reviewing and analysing data and providing advice and recommendations in relation to the safety performance of the Australian aviation industry. Providing regulatory and technical training for CASA and industry. 29 OVERVIEW PART 1

32 30 CASA Annual Report A new approach to safety oversight will make CASA an even more effective safety regulator.

33 02 Performance PART 31 reporting This part of the annual report provides a detailed performance assessment of CASA s activities during the year, and how they contributed to achieving the authority s corporate goals and portfolio outcome. CASA measures its performance in using three corporate goals and a range of objectives, initiatives and performance measures set out in the CASA Corporate Plan to The elements of the Corporate Plan are clearly aligned with the strategic direction, outcomes and performance information set out for CASA in the Portfolio Budget Statements. Performan ce reporting PART 2 The performance report: summarises key achievements in provides an update on the status of all initiatives in presents a glimpse of CASA s approach to enhancing and promoting higher standards of aviation safety in future. In this part Reporting approach 32 Portfolio outcome in 33 Performance in 35

34 Reporting approach CASA reports on its performance in achieving its portfolio outcome and delivering the strategic direction and objectives articulated in its Corporate Plan. Figure 6 shows the alignment between the Portfolio Budget Statements outcome and program structure and the Corporate Plan in. Figure 6 Alignment of the Portfolio Budget Statements and the CASA Corporate Plan to CASA Annual Report Portfolio Budget Statements Outcome 1 Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training Program 1.1 Civil Aviation Safety Authority Program objective: Develop and maintain a quality safety regulatory framework and oversight its application through effective entry control, surveillance, education and enforcement to maintain, enhance and promote civil aviation safety Program key performance indicators: Number of accidents per hours flown, by industry sector Number of incidents per hours flown, by industry sector CASA Corporate Plan to Corporate goals/ Program deliverables Enhanced focus on regulating aviation safety Objectives to enhance oversight and surveillance of the aviation industry to provide targeted training to improve workforce capability to complete the Regulatory Reform Program in a timely manner to encourage greater industry acceptance of its responsibilities for aviation safety to identify and address the most significant safety-related trends and risk factors in the system of civil aviation safety in Australia to enhance effective enforcement to enhance the regulatory regime of the airspace administered by Australia Enhanced governance and operational efficiency Objectives to strengthen governance across CASA to increase overall efficiency through continuous improvements in CASA services, systems, processes and procedures Enhanced relationships with key aviation participants Objectives to maintain constructive working relationships with the government and portfolio agencies to foster strong working relationships with the international aviation community to deliver effective communication to the Australian aviation industry Initiatives and performance measures

35 Portfolio outcome In, CASA was responsible for a single portfolio outcome: Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training. CASA s portfolio outcome for was set out in the Portfolio Budget Statements for the Infrastructure, Transport, Regional Development and local Government portfolio. Table 2 Results against Portfolio Budget Statements key performance indicators for Key performance indicator Number of accidents per hours flown, by industry sector Target Reducing trend Result On 14 September 2010, under a change to the Administrative Arrangements Order, the Infrastructure, Transport, Regional Development and local Government portfolio became the Infrastructure and Transport portfolio (the regional development and local government functions were transferred to a new department within the Prime Minister and Cabinet portfolio). CASA became part of the Infrastructure and Transport portfolio. CASA s portfolio outcome and other performance information for were not altered. CASA s results against its two portfolio-level performance indicators are shown in Table 2. General aviation operations continue to have a fatal accident rate per million departures that is about 4.3 times higher than for air transport. The general aviation accident rate per million departures is about three times higher than air transport. No fatal accidents were recorded in high capacity air transport between 2001 and During 2010, there was one fatal accident in low capacity air transport, and charter operations recorded no fatal accidents. Between 2001 and 2010, most fatal accidents in air transport were in charter operations. Charter aeroplanes and helicopters have a similar accident and fatal accident rate. In air transport, charter operations offer the best potential target for safety improvement. a 33 Performance Reporting PART 2 Number of incidents per hours flown, by industry sector Reducing trend An increase in serious incidents was observed from about 2003 onwards. However, the number of serious incidents dropped from about 45 (2007 and 2008) to 26 in 2009, but rose to 33 in A general increase has been observed in the total number of incidents reported to the ATSB by VH-registered high capacity aircraft... Taking into account the increase in high capacity departures, the rate of incidents reported has actually been steadily reducing from b ATSB = Australian Transport Safety Bureau a ATSB, Aviation occurrence statistics 2001 to 2010, 20 May 2011, p. v. b ATSB, Aviation occurrence statistics 2001 to 2010, 20 May 2011, p. 14. The increase in number of incidents reported may be attributed to the introduction of the Transport Safety Investigation Regulations 2003, which provide a prescriptive list of the types of occurrences that are required to be reported to the ATSB. This increase may also reflect a better reporting culture. More incidents were reported in 2010 than in any other year between 2001 and 2010.

36 case study GREATER SAFETY OVERSIGHT DuRING VOlCANIC ASH ClOuD 34 CASE STUDY Australia s aviation operations were under heightened safety scrutiny during the passage of volcanic ash clouds in June CASA was among other frontline government agencies that worked closely with the aviation industry to facilitate safe air travel during the period when the volcanic ash cloud passed over Australia. CASA followed appropriate international practices for the management of aviation during volcanic ash clouds, by requiring each airline to use its approved Safety Management System to determine which flights should go ahead. Further, CASA established a mechanism permitting the reclassification of airspace in emergency circumstances, which allows for the continuation of air traffic control services for aircraft avoiding ash-affected airspace. Volcanic ash clouds have always been a factor to consider when planning airline operations. Australia is located in a region with a large number of active volcanoes, and the majority of international routes to and from Australia traverse regions of high volcanic activity. The presence of few monitoring facilities in the region limits the ability to determine the size and density of ash cloud events in a timely manner. CASA is continuing its active participation in international forums such as the International Civil Aviation Organization s International Volcanic Ash Task Force to develop global policies and procedures for dealing with volcanic ash events.

37 Performance in This section presents a detailed review of CASA s performance in against the performance measures set out in the CASA Corporate Plan to a summary of key achievements in a detailed report on performance against the initiatives in the Corporate Plan, including a snapshot assessment against each measure, using the following keys: üüü Ongoing/on track/completed üü Some delay/issues being managed 35 ü Delayed/may not meet the target a description of CASA s approach to achieving the goal in future years. Performance Reporting PART 2

38 Corporate goal: Enhanced focus on regulating aviation safety LooKing BacK achievements in 36 CASA Annual Report» A new suite of maintenance Civil Aviation Safety Regulations (CASR Parts 42, 66, 145 and 147) was made on 8 December 2010 and came into effect on 27 June A number of guidance documents were published to support the new maintenance suite.» The maintenance regulations communications campaign included 39 seminars, reaching 1,650 people, mostly engineers, in 12 locations around Australia over seven weeks.» All regular public transport Air Operator s Certificate holders are being transitioned to the new regulations. More than 7,000 Aircraft Maintenance Engineer licences from Civil Aviation Regulation 31 have been transitioned to the new CASR Part 66.» Progress was made on the Operations and Flight Crew Licensing regulations. Industry consultation is continuing on draft CASR Parts 61, 64, 91, 119, 132, 133, 135, 138, 141 and 142.» In the Budget, CASA received an additional $89.9 million over four years to recruit additional surveillance and subject matter staff. CASA has filled 91 per cent of the new positions.» The establishment of an Unmanned Aircraft System capability has strengthened CASA s capacity to regulate this new component of the aviation industry.» A new program was established for improving the safety effectiveness of the self-administering organisations in the sport aviation sector. It includes better governance arrangements and the introduction of Safety Management Systems.» A Certificate Management Team trial was completed successfully, setting a precedent as an efficient and multidisciplinary approach to workforce planning and resource allocation. Application of this methodology will significantly change CASA s approach to the regulatory oversight conducted by its field offices.» Following more than three years of research and consultation, new regulatory standards were promulgated to support the use of low-visibility landing procedures at major Australian airports.» Following detailed risk assessment and industry consultation, airspace was reclassified and air traffic control tower services were established at Broome and Karratha (Western Australia). These services will enhance the safety and efficiency of growing air traffic levels in these areas.» OnTrack, an interactive, online flight-planning tool, was developed to help general aviation pilots to plan and rehearse their approaches and departures to and from Australia s major general aviation airports.» During the volcanic ash event in June 2011, CASA established a mechanism permitting the reclassification of airspace in emergency circumstances, which allows for the continuation of air traffic control services for aircraft avoiding ash-affected airspace.» CASA s graduate program commenced with the employment of six graduates. This program encourages talented and motivated people to choose a career with the safety regulator.» CASA continued to run the highly successful Professional Development Programs for Approved Testing Officers. These programs provide greater assurance to CASA that Approved Testing Officers have the knowledge required to exercise their delegations effectively.» CASA made a significant contribution in providing targeted education to the aviation industry by delivering more than 160 face-to-face courses and programs, developing more than 60 courses, training more than 3,100 participants and presenting more than 120 AvSafety seminars in locations around Australia.» The Enforcement Manual was refined to clarify processes and the accountability of CASA officers.

39 Initiatives Initiative Strengthening CASA s specialist surveillance staff to oversee: the increased number of carriers and locations used by passenger carrying operators the helicopter industry sector safety risks associated with foreign operators the operation of unmanned aerial vehicles aircraft maintenance undertaken outside Australia Measure Delivering a more streamlined operational resource allocation and management framework through the Operations Enhancement Program Result The Operations Enhancement Program is designed to improve the consistency of governance, policy and processes, the skills of staff, and regulatory reform in üüü accordance with the priorities identified in the Corporate Plan. As a part of the program, the Operations Division regional network will adopt the Certificate Management Team approach to provide efficient and multidisciplinary workforces for planning and resource allocation that ensures quality outcomes for both the organisation and the aviation industry. The approach was successfully trialled during. Measure Deploying additional specialised resources to monitor low-cost operations in Australia and the offshore maintenance of some Australian-registered aircraft by December 2010 Result As intelligence reveals high-risk areas, CASA allocates resources for audits and operational surveillance in those areas. üü Progress continued towards establishing a risk-based surveillance methodology that will allow appropriate resources to be targeted at higher risk areas. Measure Aligning helicopter and foreign operator oversight more closely with standardised CASA processes as redefined through the Operations Enhancement Program Result Policies, processes and procedures for helicopter and foreign operators are being reviewed and rewritten to provide standardisation. The procedures are included üüü in the revised Air Operator s Certificate Manual and handbook to be completed in December Measure Expanding helicopter surveillance capability by December 2010 Result Recruiting the required number of helicopter Flying Operations Inspectors (FOIs) to strengthen CASA s helicopter surveillance capability has been a challenge, because üü of an industry-wide shortage of specialists in this expanding industry sector. CASA has taken the necessary steps to develop longer term alternative recruitment practices designed to attract and engage more helicopter FOIs. At 30 June 2011, the recruitment process was well advanced and new helicopter FOIs were being trained to enhance CASA s regulatory capabilities. Measure Enhancing en-route surveillance of foreign operators by December 2010 Result CASA has increased en-route surveillance and ramp inspections of foreign operators where information has been received from the International Civil Aviation üüü Organization or another relevant body regarding the oversight capability of a foreign state (for example, the Philippines or Papua New Guinea). International Operations Inspectors completed outstanding ramp inspections, achieving 100 per cent en-route surveillance of foreign operators. 37 Performance Reporting PART 2

40 38 CASA Annual Report Measure Result üüü Measure Result üüü Increasing focus on Australia s regional airline sector, giving attention to the adequacy of the ageing fleet s airworthiness programs The surveillance/audit plans of CASA s Operations Division are scoped to adequately focus on the airworthiness of the ageing fleet in the regional airline sector. CASA s Ageing Aircraft Management Plan is scoped to identify issues related to ageing aircraft in Australia and identify strategies to ensure that these aircraft continue to operate safely. Strengthening CASA s capability to regulate the unmanned aerial vehicles sector A permanent unmanned Aircraft System (uas) specialist was employed to engage industry and take responsibility for policy formulation, standards setting and maintenance; entry control coordination; surveillance; and regulatory service functions. CASA continues to develop a national uas qualification within the Australian Quality Training Framework, new licensing and flying standards, and the uas Operator s Certificate manual. Industry workshops were conducted covering CASR Part 101 (unmanned aircraft and rocket operations) post-implementation review, training, human factors, manufacturing, certification and maintenance. Initiative Improving the regulation of dangerous good transportation by air Measure Strengthening of dangerous goods oversight Result To strengthen the oversight of the transport of dangerous goods by air, CASA appointed a team leader in Brisbane and an additional dangerous goods inspector üüü in Sydney. CASA continues to develop improved guidance and information regarding the carriage of dangerous goods by air in Australia. Safety promotion programs commenced, to raise passenger awareness of dangerous goods. Six CASA inspectors completed dangerous goods training conducted by the International Civil Aviation Organization. Measure Conducting post-implementation review of Civil Aviation Safety Regulations Part 92 and implementing action items Result A Notice of Proposed Rule Making is being drafted as a result of the postimplementation review, which identified the need for changes to dangerous goods üüü transport legislation. Two advisory circulars were published: AC 92A-01(0), an overview of the dangerous goods legislative framework, published in March 2011; and AC 92-05(0) use of Compressed Oxygen: Carriage and Consignment of live Aquatic Animals for Transport by Air, published in May 2011.

41 Initiative Introducing a strategic framework for safety within the sport aviation sector Measure Creating a Sport Aviation Office to oversee the sport aviation sector Result A sport aviation office, the Self-Administering Sport Aviation Organisations Section, was established within CASA. üüü The Enhanced Self-Administration Project was established to improve the safety effectiveness of the self-administering organisations in the sport aviation sector. It includes better governance arrangements and the introduction of Safety Management Systems. Measure Introducing a safety forum to assist information exchange within the sport aviation sector, and between it and CASA Result The Sport Aviation Forum, established in , continued to facilitate communication and consultation with the sport aviation industry. üüü The future direction of the sector was discussed, along with key topics for the enhancement of organisational governance and the future of the Aviation Safety Network and the Enhanced Self-Administration Project. CASA outlined future directions and discussed the notion of an approved organisation model for future self-administration of the sport aviation industry. Initiative Actively managing CASA delegates and authorised persons to ensure ongoing competence and compliance Measure Publishing and implementing a new CASA Technical Delegates and Authorised Persons Policy by June 2010 Result The CASA Technical Delegates and Authorised Persons Policy was reviewed and published. üüü Several initiatives were implemented to manage delegates. Examples include the Delegate Management Notification System, an industry advisory panel, audits, instrument reviews, and an update of the Industry Delegates Management Manual. Measure Developing surveillance strategies for CASA delegates and authorised persons Result CASA continued to run the highly successful Professional Development Programs for Approved Testing Officers (ATOs), focusing on oral questioning technique. A new üü initiative aimed at improving safety standards among this important cohort of CASA delegates was introduced. CASA also introduced a development program for all ATOs to improve consistency and competency. Training programs for Civil Aviation Regulations 42M (system of maintenance) and 37 (minimum equipment list) have been developed and implemented. 39 Performance Reporting PART 2

42 40 CASA Annual Report Initiative Creating new work bases for CASA s air safety inspectors in northern Australia and strengthening current offices in Townsville, Cairns and Darwin Measure Establishing CASA satellite offices at Gove, Horn Island, Kununurra and Broome Result The satellite offices, opened in , continued to provide a strengthened regulatory presence to industry in remote Australia. üüü CASA staff use the offices as work bases for audits, safety surveillance of operations, and education and training. As well as allowing CASA inspectors and other staff to work more efficiently and effectively, the offices provide a location for meetings with people from the aviation industry. Measure Reviewing the oversight management at Darwin, Cairns and Townsville to better align with aviation risk levels Result CASA initiated a review of regional boundaries with a view to reallocating certificates on a geographical basis and providing more local oversight, to ensure that CASA s üü structure is effectively meeting regulatory needs. Initiative Providing necessary technical training to CASA specialists to be up to date with technological advancements and deploying CASA staff where they are most needed Measure Delivering a training framework which is premised on needs analysis and competency standards Result A training framework for entry-level Flying Operations Inspectors and Airworthiness Inspectors was completed and implemented in Training frameworks for üüü other inspectorate groups progressed through formal analysis during ; implementation of these additional frameworks will commence in CASA completed and commenced implementing the findings of training needs analyses for leadership and management, corporate generalists, corporate specialists, regulatory roles and executive management. An AvSafety on-site visit tool was developed, to enable Aviation Safety Advisors to collect data from field visits that will contribute to the analysis of trends and the identification of safety areas requiring educational and promotional material. Measure Delivering a learning management system Result CASA implemented a learning management system with increased capability, using CASA s online learning provider learning Seat, with no additional set-up üüü or running costs. Initiative Establishing a workforce that understands whole-of-casa imperatives, accountability, flexibility and the focus on CASA s regulatory outcomes Measure Engaging staff through the Performance Assessment Communication Scheme to communicate the planning, reporting and performance management framework Result CASA continued to use the Performance Assessment Communication Scheme to engage staff with the performance management framework and inform staff of their üüü performance goals. CASA commenced the process of updating the system, taking into account feedback from the 2010 staff engagement survey.

43 Initiative Taking a proactive approach to address the shortage of skilled staff Measure Developing, promoting and delivering Industry Career Guides Result Industry career guides for pilots and engineers were developed in June üüü Measure Result üüü Measure Result üüü Awarding scholarships for apprentice licensed Aircraft Maintenance Engineers Six scholarships were awarded in The successful applicants are located in Merimbula, Port Macquarie, Armidale, South River and Dubbo. Developing a Graduate and Internship Program CASA s Graduate Program commenced in, with the employment of six graduates. Further intake of graduates is scheduled for Initiative Positioning CASA as an organisation that attracts and retains qualified, highperforming and engaged staff Measure updating the Remuneration and Benefits Strategy to ensure CASA attracts and retains quality staff Result A suite of revised human resources policies and guidelines was developed and implemented. The Senior Manager Employment Policy was updated, and will be üüü formalised in New Staff Selection Guidelines were released in January 2011, providing guidance to selection panels and interviewers to assist them to work more effectively, enabling a faster turnaround of recruitment actions. The second national recruitment campaign for the Operations Division was implemented in July and August Measure Negotiating a new enterprise agreement that provides fair wages and conditions for existing and prospective employees Result The CASA Enterprise Agreement came into effect on 2 June 2010 for an 18-month period. Staff covered by the terms of the agreement received the specified üüü salary increase of 3 per cent from the first pay period after 2 June 2010 and a further 1.5 per cent increase from the first pay period after 30 November Negotiations for a new enterprise agreement commenced in February 2011 in anticipation of a ballot for employees in November Performance Reporting PART 2 Initiative Developing leadership capability across CASA Measure Making executive coaching available to Executive Managers Result Executive coaching provides one-on-one, tailored and contextualised development support for executive managers. Five executive managers completed executive üüü coaching in. Measure Making New leaders at CASA program available to new staff and staff promoted into leadership roles Result CASA s first New leaders at CASA program was delivered to newly recruited or promoted senior managers, section heads, team leaders and senior supervisors. üüü The program was made available throughout.

44 42 CASA Annual Report Initiative Timely completion of the Regulatory Reform Program Measure Finalising Maintenance Regulations by June 2010 Result The new suite of maintenance Civil Aviation Safety Regulations (CASR Parts 42, 66, 145 and 147) was made on 8 December 2010 and came into effect on 27 June üüü The finalisation of the new maintenance regulations was a major achievement for CASA as part of the work program to complete regulatory reform. Measure Finalising Operational and licensing Regulations by December 2010 Result The Aviation Safety Regulatory Development Taskforce, comprising staff from CASA and the Office of legislative Drafting and Publishing, continued to work well towards ü the timely completion of the Regulatory Reform Program. The operations and licensing regulations included in the reform package are expected to be finalised by the end of Industry consultation occurred on finalised drafts for CASR Parts 61, 64, 91, 119, 132, 138, 141 and 142, and finalised drafts were available for industry consultation for CASR Parts 133 and 135 at the end of June See tables A.1 and A.2 (s ) for details of regulatory instruments and publications issued and new legislative projects undertaken during. Measure Finalising the remainder of the CASA Regulatory Reform Program by December 2011 Result Priority was assigned to the passenger-carrying regulations, which have involved an intensive and extensive body of drafting work. The aerial work, sport and recreation, üü and other outstanding CASR Parts will be finalised in Initiative Transitioning individuals and companies to the new rules Measure Commencing transition to the new maintenance regulations in November 2010 phase 1 completed November 2012 Result Transition to the new maintenance regulations commenced on 27 June 2011 when the new regulations came into effect, after a concentrated period of preparation for üü CASA and the industry. During the first phase of transition, between 27 June 2011 and 26 June 2013, CASA is transitioning regular public transport Air Operator s Certificate holders and the maintenance providers associated with those operators to the new arrangements under CASR Parts 42 and 145. More than 7,000 Aircraft Maintenance Engineers previously licensed under Civil Aviation Regulation 31 received their new CASR Part 66 licences prior to 27 June Maintenance training organisations will be transitioning to the new maintenance regulations under CASR Part 147 in the two years to 26 June Initiative Reviewing new regulations Measure Commencing post-implementation review within two years of each Civil Aviation Safety Regulations Part commencement Result Post-implementation reviews have commenced for CASR Parts 45, 47, 92, 101 and 137. Planning is underway to commence a post-implementation review of üüü CASR Parts 67 and 99.

45 Initiative Assisting the aviation industry to develop and implement effective Safety Management Systems Measure Identifying training and advisory requirements and developing appropriate educational response Result Training needs analysis was completed for assessing and approving Safety Management Systems, and assessing and approving human factors and nontechnical skills for industry. üüü A new safety management course that incorporates basic safety concepts, system safety, safety risk management, human factors, Safety Management Systems and CASA safety oversight was developed and implemented. All regular public transport Air Operator s Certificate holders successfully transitioned to the new regulations for human factors and non-technical skills training by the June 2011 deadline. The requirement for Safety Management Systems training for maintenance organisations was introduced with the new maintenance regulations in December Measure Transitioning the industry to Safety Management Systems in accordance with timescales specified in the regulations Result The transition of regular public transport operators to Safety Management Systems was completed on schedule with the transition of low-capacity üü and high-capacity operators. The introduction of Safety Management Systems for maintenance organisations forms part of the maintenance regulation implementation process. 43 Performance Reporting PART 2 Initiative Determining key aviation safety risks through analysis of safety data and identifying the educational needs Measure using safety communication and education programs to raise awareness of key safety issues Result CASA identified significant safety-related trends and risk factors in the aviation industry and addressed them by providing proactive education and promotional üüü material. Campaign subjects included wildlife strike, dangerous goods, and flight planning for low-hour visual flight rules pilots. The OnTrack interactive, online flightplanning tool was developed. CASA made a significant contribution in providing targeted education to the aviation industry, developing more than 60 courses, delivering more than 160 face-to-face courses and programs, training more than 3,100 participants and presenting 120 AvSafety seminars in locations around Australia. CASA also participated in 14 industry events and conducted in excess of 1,350 on-site visits. More than 33,000 visits were made to CASA elearning through the CASA website. The AvSafety on-site visit tool was produced to collate data to enable the analysis of trends and the identification of safety areas requiring educational and promotional material. The Joint Agencies Safety Analysis Group was established to deliver cross-agency collaboration on safety data and analysis sharing. The group is composed of CASA, Air Transport Safety Bureau, Airservices Australia and Department of Defence safety analysis representatives who are using their collective resources to identify key aviation safety risks in Australia.

46 Initiative Establishing safety value indicators to measure success in improving aviation safety across Australia Measure Defining a set of safety value indicators to enable informed management decisions Result CASA is continuing to participate in the Safety Management International Collaboration Group, which will help to develop safety performance indicators üü that are agreed between authorities and aligned with International Civil Aviation Organization standards. CASA is developing an initial set of indicators for consideration. 44 CASA Annual Report Initiative Contributing to an overarching state safety program to cover all aspects of CASA s responsibilities in relation to Australia s aviation safety obligations Measure Meeting CASA s commitment to contribute to the development of the State Safety Program with other portfolio agencies by December 2010 Result The State Safety Program was published on 8 February The crossagency team that developed the program will reconvene to determine ongoing üüü improvements to the document and establish an implementation plan. At 30 June 2011, the CASA Safety Program was at the consultation stage. Initiative Developing and refining effective and appropriate enforcement strategies Measure Assessing the effectiveness of these strategies on the basis of relevant contemporary methodologies, having regard to meaningful measures of recidivism and CASA s demonstrable performance as a fair, firm and consistent regulator Result Amendments to the Enforcement Manual were prepared to provide clearer processes and accountability of CASA officers in enforcement processes üüü and outcomes. A considerable effort was expended on the coordinated enforcement process, and training was provided to operational managers, technical staff and administrative officers. Initiative Improving safer means of managing flight approaches to aerodromes Measure Overseeing the implementation of approach with vertical guidance (APV) in Australia Result CASA continued to work with other aviation portfolio agencies to implement APV in Australia. Partial implementation of APV through barometric vertical navigation is the üüü only option available in the absence of adequate weather station infrastructure and a Space Based Augmentation System. A proposed new Civil Aviation Order that provides the regulatory framework for the implementation of APV (CAO Navigation Authorisations) has been drafted and will be released for public comment early in Airservices Australia has recruited additional resources for the project, and has drafted BARO/VNAV APV procedures for 18 locations. The procedures will be flight validated by CASA in See Table B.8 ( 164) for numbers of certified and registered aerodromes from to.

47 Initiative Continuing to implement airspace reform initiatives as identified in the Australian Airspace Policy Statement Measure Developing a prioritised program to support the Australian Airspace Policy Statement Result The Airspace Reform Work Program was delivered on time to the Minister in March An updated version was supplied to the Minister in February üüü Initiative Supporting the safe and timely implementation of the Government s airspace reform program implementing Class D airspace at all General Aviation Aerodrome Procedures aerodromes Measure Result üüü Maintaining a work program that delivers on the airspace reform program The current Airspace Reform Work Program was provided to the Minister in February An acquittal against the program was provided on a quarterly basis. Transition of aerodromes operating under General Aviation Aerodrome Procedures and Class D procedures to new Class D procedures took place 3 June A post-implementation review of the transition was completed and published on the CASA website, inviting industry feedback. Looking ahead enhanced focus on regulating aviation safety CASA will continue a series of key initiatives that will drive the achievement of higher levels of aviation safety. These are: 45 Performance Reporting PART 2» successfully implementing the new maintenance regulations and effectively planning for the delivery of the suite of operational regulations» further strengthening CASA s specialist surveillance capability and providing greater safety oversight in rapidly expanding regions across Australia» building the skills of CASA staff» ensuring timely delivery of regulatory services to a growing aviation industry» implementing airspace reform initiatives as identified in the Australian Airspace Policy Statement» developing proactive promotional and educational programs based on identified key aviation safety risks and trends» ensuring that CASA has effective and appropriate enforcement powers and procedures.

48 Corporate goal: Enhanced governance and operational efficiency LooKing BacK achievements in 46 CASA Annual Report» The CASA organisation structure, which was realigned in 2009 to directly link CASA s activities to the requirements of the Civil Aviation Act 1988, was further refined to gain efficiencies by establishing the Safety Systems Office.» A total of 87 per cent of CASA staff voluntarily participated in the staff engagement survey. Overall, the results were positive in key areas. The findings and recommendations were incorporated into organisation improvements to be implemented in » Like many organisations, CASA faces the challenges of an ageing workforce, scarce specialist skills and diversity gaps in certain sectors. The Strategic Workforce Plan was developed to manage these challenges.» A governance framework was developed, creating a central repository of the overarching governance arrangements in CASA, including policy, processes and procedures with which CASA personnel are expected to comply when performing their duties.» The review of key CASA policies was completed, and the policy notices authorised by the Director of Aviation Safety were published on the intranet for easy access. Other key policies were reviewed at the divisional level to ensure standardisation and consistency across CASA.»» The Delegate Management Notification System, which allows industry delegates to provide useful standardised details to CASA about their activities, was implemented.»» In accordance with the Single Service Centre methodology, CASA incorporated all Certificate of Approval applications into the Permissions Application Centre, in conjunction with the rollout of the Certificate of Approval Manual. This provides a standardised approach and builds on efficiencies previously achieved.»» Internal audit providers undertook 17 internal audit reviews, emphasising CASA s key operational and business risk exposures.»» CASA s Risk Management Policy and Framework were reviewed and updated in accordance with the international risk management standard AS/NZS ISO 31000:2009 and applicable better practice guides.»» CASA was rated as one of the highest performing Commonwealth agencies with respect to risk management practices.»» A review of CASA service level standards was not achieved, because of the implementation of the Update/Replace Existing Systems program. However, as part of that major initiative, a new data management tool (EMPIC-EAP) was purchased to replace a number of CASA systems which have become increasingly difficult and expensive to support.

49 Initiatives Initiative Establishing a strong governance and accountability framework Measure Developing a governance manual that sets out the scope of CASA s activities and allocates roles, responsibilities and accountability for all CASA activities Result A governance framework was developed, and terms of reference for all committees were reviewed and updated. üü Initiative Establishing a strategic policy platform Measure Completing the review of all CASA policies Result The review of key CASA policies (related to section 9 of the Civil Aviation Act 1988) was completed. The policy notices authorised by the Director of Aviation Safety üüü were published on the intranet for easy access. Other key policies were reviewed at the divisional level to ensure standardisation and consistency across CASA. Measure Completing documented and up-to-date procedures and manuals Result All CASA divisions progressed with reviewing and updating manuals. This includes absorbing former Chief Executive Officer Policies and Senior Management üü Instructions into manuals. updated procedures and manuals are submitted to legal Services for review prior to finalisation and publication. Initiative Aligning CASA functions with the Civil Aviation Act, Australia s obligations under the Chicago Convention and the International Civil Aviation Organization s standards and recommended practices Measure Completing and continuously assessing the effectiveness of CASA s realignment Result The CASA organisation structure was realigned to directly link CASA s activities to the requirements of the Civil Aviation Act üüü The structure was further refined to gain efficiencies by establishing the Safety Systems Office. A total of 87 per cent of CASA staff voluntarily participated in the staff engagement survey. Overall, the results were positive in key areas. The findings and recommendations were incorporated into organisation improvements to be implemented in Performance Reporting PART 2

50 48 CASA Annual Report Initiative Establishing clear roles and responsibilities across CASA, particularly in the aviation safety context Measure Developing and communicating CASA workforce plan annually Result like many organisations, CASA faces the challenges of an ageing workforce, industry growth, scarce specialist skills and diversity gaps in certain sectors. üüü The Strategic Workforce Plan was developed to strengthen CASA s workforce capability to achieve current and future business goals. The key activities incorporated into the Strategic Workforce Plan will build a more comprehensive understanding of workforce trends and demographics. The implementation of the Strategic Workforce Plan will result in a stronger and more flexible workforce that has an enhanced capacity to deliver CASA s programs and meet CASA s obligations. Measure updating position descriptions with staff and their managers throughout CASA Result Human Resources staff liaised extensively with staff from CASA business areas to provide guidance on proposed changes to the business structure and content of üüü position descriptions, to ensure consistency across the organisation. CASA achieved standardisation and consistency of terminology and classification of job roles. Particular focus and support were given to areas within the organisation that resource major projects, new operational initiatives and high-focus/high-impact work programs. Measure Conducting divisional workshops to develop cooperation and understanding Result Human Resources staff conducted a number of tailored programs and workshops with business areas during the year. These covered resource planning, job design, üüü business models, performance and broader human resources matters. Initiative Eliminating cross-area duplication and other activities not directly contributing to CASA safety functions Measure Finalising the merger of the previous Air Transport, General Aviation and Manufacturing groups Result The Manufacturing Section was transferred to the Safety Oversight Branch. üüü The Eastern Region Air Transport and General Aviation offices were co-located and now report directly through one manager. Melbourne Air Transport staff and Moorabbin General Aviation staff were relocated to new premises to create the consolidated Southern Region office under one manager. Measure Providing a more flexible administrative structure within the Operations Division which reduces duplication and provides greater coverage capability Result The Business Support Branch was established to provide a centralised approach to the coordination of administrative and business needs for the Operations Division. üüü

51 Initiative Establishing an information and knowledge management system that allows CASA and industry quick and easy access to the right information they need, and places value on the knowledge present within CASA Measure Establishing knowledge management capability Result Knowledge and Information Management Services (KIMS) was established to develop and maintain governance, policies and procedures that pertain to üüü information management. Preliminary discussions are underway with regard to knowledge identification and capture of knowledge from departing staff. Potential knowledge management tools have been identified and will be trialled in Measure Making management decisions based on consistent data, information and knowledge throughout CASA Result The Information Technology Branch is expanding the data warehouse and business intelligence capability within CASA. üüü Revised business intelligence reports and data sets are being delivered to key business areas such as Safety Systems. KIMS has commenced work to facilitate exchange of data with other government agencies. Data quality frameworks are being developed to support better-informed decision-making. Measure Developing an information-based surveillance system premised upon risk management principles Result The Air Operator s Certificate, Certificate of Approval and Surveillance Process manuals are being reviewed as part of the Operations Enhancement Program. üü Evaluation of a nationally standardised, risk-based surveillance methodology has commenced. 49 Performance Reporting PART 2 Initiative Maintaining the ongoing business improvement program Completing a review of CASA service level standards and establishing a new reporting Measure structure for service monitoring and analysis by June 2010 Specific regulatory services have been identified for a detailed review to inform the new Single Service Centre approach. Trending analysis is being evaluated to inform the design of a new reporting template with updated delivery targets. A reporting structure was established and refinements are underway. The review of service standards was not achieved in. The task is included Result in the Industry Permissions Division s business and risk management plan for ü

52 50 CASA Annual Report Initiative Establishing a single CASA service centre to create a uniform and consistent point of contact for aviation industry participants Measure Progressively deploying all regulatory services processing through the single entry point of the Permission Application Centre, from June 2010 to June 2012 Result The Service Point Program ceased in 2010 due to the implementation of the upgrade/replace Existing Systems (ures) program. The new Single Service üü Centre project was established, incorporating the Single Service Centre and ServicelOG projects. Work continues to progressively deploy regulatory services processing through the Single Service Centre. Initiative Improving information technology infrastructure, business processes and systems Measure Completing the current capital replacement project by June 2010 to appropriately maintain a modern suite of IT infrastructure equipment to support CASA operations Result The capital replacement project closed on time, within budget and to scope. üüü Measure Completing the financial year Capital Replacement Plan by June 2010 Result The Capital Replacement Plan was submitted on 30 June üüü Measure Completing the Medical Aviation Regulatory Processing System by June 2010 Result The Medical Records System (MRS) online project, including training workshops for Designated Aviation Medical Examiners (DAMEs), is complete. üüü MRS modifications are in production and being promoted to DAMEs. At 30 June 2011, 530 DAMEs were registered on the new system. CASA has purchased off-the-shelf software, EMPIC-EAP, to replace a number of existing systems, including the Aviation Industry Regulatory System, the flight crew examination system (CyberExams), and elements of the MRS. EMPIC-EAP will form the core of CASA s regulatory administration system. Measure Completing the Regulatory Services Workflow Implementation Project by December 2010 Result The ServicelOG project was closed by the Service Point Program Board after a decision to progress with the EMPIC-EAP product. New workflow software is under üü consideration by the IT Branch, awaiting the creation of new IT environment. CASA s Service Catalogue was completed in March The catalogue integrates online information on CASA s regulatory services with forms, guidelines and fees and is internally linked with procedures and support tools. Initiative Developing a sustainable long-term funding strategy for CASA that aligns with the Corporate Plan and government requirements Measure Developing a sustainable funding strategy that supports CASA s strategic direction, the needs of the industry and growth of aviation in Australia Result CASA s long-term funding strategy was completed and was accepted by the Australian Government. This was reflected in CASA s Portfolio Budget üüü Statements. The increase in the aviation fuel excise rate to fund CASA s new policy proposal was approved by the Parliament.

53 Initiative Promoting a single, consistent risk management framework and enhancing risk management practices throughout CASA Measure Delivering, promoting and providing training on the single risk management framework to be consistently applied to enterprise and operational risks throughout CASA Result A training module, Fundamentals of Risk Management, was developed and is now included in CASA s annual learning and development training calendar. This training üüü is available for delivery to all divisions as required. CASA s Risk Management Policy and Framework were reviewed and updated in accordance with the international risk management standard AS/NZS ISO 31000:2009. Work has commenced on developing protocols to ensure that all significant external or industry risks are captured as a standard component of CASA s risk management. Initiative Reviewing Airworthiness Directives to cancel unnecessary directives Measure Reviewing all Airworthiness Directives for aircraft below 5,700kg Result A total of 3,510 Airworthiness Directives for aircraft below 5,700kg were reviewed, resulting in 2,042 cancellations. This part of the project was substantially completed üüü by August During, another 12 cancellations and one amendment were made as the result of the review team receiving information about anomalies in Australian Airworthiness Directives. The review is complete. See Table B.7 (164) for a list of Airworthiness Directives and bulletins from to. Measure Reviewing all Airworthiness Directives for aircraft above 5,700kg Result Approximately 845 Australian Airworthiness Directives for aircraft above 5,700kg were reviewed; 27 individual Australian Airworthiness Directives were cancelled and üüü one was substantially amended. See Table B.7 ( 164) for a list of Airworthiness Directives and bulletins from to. 51 Performance Reporting PART 2 Looking ahead enhanced governance and operational efficiency» CASA is striving to achieve continuous improvement across all areas of the organisation, with a focus on standardisation, consistency and efficiency.» CASA has a number of control systems to monitor governance arrangements and continues to improve its consistent and efficient delivery of operational activities, regulatory services and support functions.» A new data management tool, EMPIC-EAP, has been purchased to replace a number of CASA systems which have become increasingly difficult and expensive to support. EMPIC- EAP was developed in Germany, with input from a number of civil aviation authorities, specifically to meet the needs of aviation regulators. It is used by 16 civil aviation authorities and two defence force authorities in Europe.» In the coming months, EMPIC-EAP will be integrated into CASA s IT environment to achieve a level of inter-application communication and data sharing that was not previously possible. This will reduce the cost and effort required for maintenance, upgrades and training, and improve and standardise business processes.

54 Corporate goal: Enhanced relationships with key aviation participants LooKing BacK achievements in 52 CASA Annual Report» CASA maintained healthy relationships with government, commercial, industrial, consumer and other relevant bodies and representative organisations in performing its functions.» CASA s Twitter account delivered a wide range of aviation information to the public. Twitter is an additional avenue used by CASA to alert the public about information such as new publications, new content on the website, seminars and workshops, safety promotions and new videos and CDs, as well as important decisions and activities.» CASA s contribution through cooperation with other Australian aviation agencies enabled Australia to maintain its status as a Member State of Chief Importance at the International Civil Aviation Organization.» CASA maintained strong relationships with overseas regulators by hosting visiting delegations from Canada, Indonesia, Japan, New Zealand, Papua New Guinea, Singapore, the United Kingdom and the United States.» CASA maintained aviation safety arrangements with other national aviation authorities, including the United States Federal Aviation Administration, the National Civil Aviation Agency of Brazil, the New Zealand Civil Aviation Authority, Transport Canada and the Korean Office of Civil Aviation.» CASA played an active role in the Standards Consultative Committee, the Regional Aviation Safety Forum and the Sport Aviation Safety Forum, which bring together representatives from a diverse range of aviation industry groups to work with CASA on important regulatory matters.» The airspace consultative processes continued to develop through the use of face-to-face briefings and online consultation. A new Regional Airspace and Procedures Advisory Committee was established in Kununurra to support the growing aviation activity in the north of Western Australia.» The Delegate Advisory Panel was established to enhance CASA s interaction with industry delegates and authorised persons. CASA developed a dedicated website for delegates and authorised persons, which provides extensive information, such as procedures, forms and guidance material, and allows for direct feedback to CASA.» CASA s flagship aviation safety publication, Flight Safety Australia, was awarded the Cecil A Brownlow Award for 2010 from the Flight Safety Foundation, an international body devoted to aviation safety. The magazine, which celebrated 15 years of publication in 2010, has a circulation of approximately 90,000 copies every two months.

55 Initiatives Initiative Establishing an aviation community engagement framework Measure Building and maintaining effective relationships with key aviation participants Result CASA consulted with government, commercial, industrial and other relevant bodies and representative organisations in performing its functions. üüü CASA continued to play an active role with the Standards Consultative Committee, the Regional Aviation Safety Forum and the Sport Aviation Safety Forum, which bring together representatives from a diverse range of aviation industry groups to work with CASA on variety of important regulatory matters. In addition to discussions around bilateral arrangements, CASA hosted a number of international delegations to build and maintain effective relationships with key international aviation participants. The delegations were from Canada, Japan, Indonesia, New Zealand, Papua New Guinea, Singapore, the united Kingdom and the united States. CASA s flagship aviation safety publication, Flight Safety Australia, had an audited circulation of 87,558 copies every two months, reaching a diverse range of members of the aviation community. Initiative Maintaining sound working relationships with the Minister for Infrastructure and Transport, the Department of Infrastructure and Transport, the Department of Defence and other portfolio agencies Measure Result üüü Measure Result üüü Providing accurate information and advice CASA continued to work in a close and cooperative manner with the Minister for Infrastructure and Transport and his department. Cooperation and understanding were facilitated by regular weekly briefings on CASA activities; high-level meetings with departmental officers; accurate and timely responses to requests for information; and constant communication on key issues. Enhancing mutual understanding between government agencies on safety issues CASA supported intra-governmental engagement through active participation in high-level groups such as the Aviation Policy Group and the Aviation Implementation Group, important forums for identifying cross-agency aviation issues and maintaining regular communication between aviation agencies. 53 Performance Reporting PART 2 Initiative Developing enhanced protocols for a strong working relationship with the Australian Transport Safety Bureau Measure Completing the memorandum of understanding to cover recommendations of the Miller Review to enhance the collaborative working relationship with the Australian Transport Safety Bureau Result In addition to meeting its obligations under the Transport Safety Investigation Act 2003 and the Civil Aviation Act 1988, CASA is committed to cooperating with üüü the Australian Transport Safety Bureau in accordance with the memorandum of understanding established in February 2010.

56 54 CASA Annual Report Initiative Advocating aviation safety objectives through active membership of the International Civil Aviation Organization Measure Continuing to maintain Australia s status as an International Civil Aviation Organization Member State of Chief Importance in Air Transport Result CASA continued its close cooperation with international aviation agencies to provide advice and technical assistance to the Australian representatives to the International üüü Civil Aviation Organization (ICAO). This close working relationship is facilitated by monthly meetings and telephone conferences. CASA continued to coordinate its representation on ICAO panels and relevant working groups. CASA s contribution through cooperation with other Australian aviation agencies enabled Australia to maintain its status as a Member State of Chief Importance at ICAO. Initiative Continuing to progress the establishment of bilateral aviation safety arrangements with other countries Measure Demonstrating progress in the development of bilateral arrangements with key international partners Result Amendments to the Implementation Procedures for Airworthiness (IPA) attached to the Australia united States Bilateral Aviation Safety Agreement were referred üüü to a public hearing of the Joint Standing Committee on Treaties. The Department of Infrastructure and Transport is working to bring the revised IPA into effect as a binding treaty-level document. CASA continued to conduct discussions with the Korean Office of Civil Aviation regarding the progress of a draft working arrangement on airworthiness certification. CASA is working to prioritise negotiations on treaty-level agreements and working arrangements with regulators (and agencies) overseas, including in Canada, China, Europe and Singapore. Initiative Assisting Australia s regional counterparts to build aviation regulatory capacity Measure Providing assistance to Pacific island nations where appropriate Result CASA continued to be involved in providing assistance to the Pacific Aviation Safety Office (PASO). This included attending the office s annual general meeting in May üüü 2011 as technical adviser to the Australian member of the PASO Council. CASA continued to provide assistance to Civil Aviation Safety Authority of Papua New Guinea to improve aviation safety, including delivering an AusAID funded inspector training and mentoring project, and arranging supplementary training on dangerous goods for two Papua New Guinea officers. CASA hosted a 12-week work placement for a recipient of the Prime Minister s Pacific Australia Award from Tonga s Ministry of Civil Aviation. CASA completed and executed two agreements for the provision of aviation safety advice and assistance to the Civil Aviation Authority of Fiji and the PASO.

57 Measure Result üüü Providing targeted assistance to Indonesia in support of the Indonesian Transport Safety Assistance Package objectives CASA continued to provide practical assistance to enable improved aviation safety oversight in Indonesia. Activities included delivering workshops on a range of topical safety issues; facilitating Indonesian Directorate General of Civil Aviation attendance at safety conferences; assisting with the drafting of staff instructions; and conducting audits of the aerodrome rescue and fire fighting services and Aerodrome Emergency Plan at Soekarno Hatta International Airport in Jakarta. CASA actively engaged with other Australian Government agencies involved in the activities covered under the Indonesian Transport Safety Assistance Package (ITSAP). Given that a significantly reduced amount of funding is available under ITSAP Phase 2, CASA redesigned the Foreign Agencies Program to deliver the greatest benefit possible for Indonesia. The program works closely with the Directorate General of Civil Aviation to design activities which address key safety oversight issues within the Indonesian context. Initiative Improving the industry consultation process for changes to standards Measure Improving processes contained within the Standards Development Manual Result The Standards Development Manual was updated during the year. üüü The Standards Consultative Committee Charter was finalised in May 2011 and was made available to committee members. 55 Performance Reporting PART 2 Initiative Working together with the Regional Aviation Safety Forum and the Sport Aviation Safety Forum Measure Fostering effective working relationships on issues of mutual interest Result The Regional Aviation Safety Forum met twice in to exchange information on issues of mutual interest. Topics discussed included general airspace issues, üüü communications in remote areas, English language proficiency, unmanned aerial systems, ageing aircraft, new maintenance regulations, wind farm structures, plumes and runway width. The Sport Aviation Forum, established in , continued to facilitate communication and consultation with the sport aviation industry. The forum brings together all the recreational aviation administration organisations as a common group and provides a single communication point for CASA. Initiative Further improving aviation safety communication by optimising CASA business areas usage and understanding of the website content Measure Implementing further enhancements to the web content management system Result A web content audit was completed. CASA developed a matrix to identify owners and approvers of the web content, and released new web publishing guidelines. üüü An accessibility review of CASA s external website was completed, and accessibility requirements and information architecture for the external website were developed.

58 56 CASA Annual Report Looking ahead enhanced relationships with key aviation participants» CASA maintains a constructive working relationship with the Australian Government and promotes effective consultation and communication with the wider aviation community, in Australia and overseas. Through its educational efforts and promotional campaigns, CASA is encouraging the Australian aviation industry to understand its safety obligations and contribute to achieving improved safety outcomes.» At a high level, CASA currently has three formal consultative groups with members from various sectors of the aviation industry. The Regional Aviation Safety Forum brings together a cross-section of people and organisations who have a direct interest in operations in regional Australia. The Sport Aviation Forum focuses on the diverse range of sporting aviation activities. In addition, there is the Standards Consultative Committee, which has members from both CASA and industry who work on the development of new regulations.» looking ahead, CASA plans to expand the number of consultative forums by setting up two new bodies made up of representatives from the high-capacity passenger-carrying sector and the general aviation sector, to further improve positive communication with people from all sectors of aviation.

59 03 management arrangements and accountability reporting CASA has a range of measures in place to ensure that it meets its commitment to being publically accountable for its actions, and provides a safe and rewarding work environment for its staff, while achieving its vision of Safe skies for all. This part of the annual report provides details of: CASA s corporate governance arrangements, including its organisational structure and risk management arrangements how CASA ensured that its workforce was motivated and capable of delivering CASA s programs and meeting CASA s objectives CASA s occupational health and safety record initiatives undertaken by CASA to engage effectively with the wider aviation community scrutiny of CASA s performance by external agencies. In this part PART 57 MANAGEMENT ARRANGEMENTS NTS and AND accountability ACCO reporting PART 3 Corporate governance 58 People management 81 Occupational health and safety 83 External engagement 88 External scrutiny 93

60 58 CASA Annual Report Corporate governance CASA s governance framework provides the context within which the organisation operates to achieve its objectives, ensuring transparent, ethical and accountable evidence-based decision-making, and effectively managing risk and key stakeholder relationships. CASA s governance system is firmly aligned with the Civil Aviation Act 1988 and fully reflects all Commonwealth legislation and policies directly affecting CASA. The governance system incorporates CASA s governing and management arrangements; policy setting; internal and external communication; risk management and auditing arrangements; quality assurances; and appointment and management of delegates and authorised persons. Enabling legislation CASA was established on 6 July 1995 as an independent statutory authority by an amendment to the Civil Aviation Act. under section 9 of the Civil Aviation Act, CASA s primary function is to regulate the safety of civil air operations in Australia and the operation of Australian aircraft overseas. CASA s other safety-related functions include encouraging a greater acceptance by the aviation industry of its obligation to maintain high standards of aviation safety, by providing comprehensive safety education and training programs and accurate and timely advice, and by fostering awareness of the importance of aviation safety and compliance with relevant legislation. CASA also has the functions of cooperating with the Australian Transport Safety Bureau, implementing aspects of the Australia New Zealand mutual recognition agreements, and administering elements of the insurance and financial arrangements required under the Civil Aviation (Carriers Liability) Act CASA exercises its powers under the Civil Aviation Act, and through the Civil Aviation Regulations 1988, the Civil Aviation Safety Regulations 1998, the Civil Aviation Orders and Manuals of Standards. CASA also publishes a variety of advisory and guidance materials related to air safety. CASA has specified obligations under the Airspace Act 2007, the Transport Safety Investigation Act 2003 and the Aviation Transport Security Act As a statutory authority, CASA s activities are governed by the Commonwealth Authorities and Companies Act 1997 (CAC Act) and by other Commonwealth legislation pertaining to freedom of information, privacy, the review of decisions, the management of records and audit. Portfolio structure and responsible minister CASA is a statutory authority within the Infrastructure and Transport portfolio. Throughout, the Hon Anthony Albanese MP was the minister responsible for the portfolio. From July to August 2010, the Minister was assisted by the then Parliamentary Secretary for Infrastructure, Transport, Regional Development and local Government, the Hon Maxine McKew MP. Since September 2010, when the portfolio was restructured, the Minister has been assisted by the Parliamentary Secretary for Infrastructure and Transport, the Hon Catherine King MP.

61 Ministerial directions On 2 May 2011, the Minister for Infrastructure and Transport gave the CASA Board a notice of strategic direction under section 12A of the Civil Aviation Act. This notice was a Statement of Expectations for the Board of the Civil Aviation Safety Authority for the period from 1 July 2011 to 30 June The notice was the formal, written expression of the Minister s expectations concerning the operations and performance of CASA for a two-year period. In response to the Statement of Expectations, the Board provided a Statement of Intent presenting its high-level expression of direction and priorities for CASA in the period to 30 June The detail relating to the Statement of Intent was fully embedded in the CASA Corporate Plan to under paragraph 16(1)(c) of the CAC Act, CASA must give the Finance Minister reports, documents and information on its operations as required by the Finance Minister. CASA has complied with Finance Circular 2008/05 and provided to the Finance Minister, through the Secretary of the Department of Finance and Deregulation, and to the Minister for Infrastructure and Transport, CASA s annual Compliance Report on its legislative compliance and financial sustainability. Since July 2008, section 28 of the CAC Act has required CASA to comply with any General Policy Order made by the Finance Minister, to the extent that the order applies to CASA. No General Policy Orders that apply to CASA were made by the Finance Minister between July 2008 and 30 June CASA Board The CASA Board is established under Part VII of the Civil Aviation Act. The Board consists of the Director of Aviation Safety and four members, including the Chair and Deputy Chair. In accordance with the Civil Aviation Act, the functions of the Board are to: decide CASA s objectives, strategies and policies ensure that CASA performs its functions in a proper, efficient and effective manner ensure that CASA complies with specified ministerial directions. After consulting the Minister, the Board appoints the Director of Aviation Safety for a period of five years (subject to possible reappointment). In accordance with the policies of the Board, and subject to its general directions, the Director is responsible for overseeing the dayto-day management of CASA and ensuring that CASA performs its regulatory, safety-related and other functions in accordance with Civil Aviation Act. Board members Board members are appointed by the Minister, on a part-time basis for a term of three years (subject to possible reappointment). In appointing Board members the Minister must ensure that there is an appropriate balance of professional expertise, but need not ensure that particular sectors of the aviation industry are represented. The current members of the CASA Board were appointed on 1 July Table 3 provides details of their experience and expertise. 59 Management arrangements and accountability reporting PART 3

62 60 CASA Annual Report The Board consists of the Director of Aviation Safety and four members, including the Chair and Deputy Chair. Left to right: John McCormick, Helen Gillies, Allan Hawke, David Gray and Trevor Danos

63 Table 3 CASA Board members at 30 June 2011 Dr Allan Hawke AC Chair Mr David Gray Deputy Chair Ms Helen Gillies Mr Trevor Danos Dr Allan Hawke has a Bachelor of Science (Hons) and a Doctor of Philosophy. He joined the Commonwealth Public Service in 1974 and rose through the ranks to be Secretary of the departments of Veterans Affairs, Transport and Regional Services, and Defence. Dr Hawke was appointed as High Commissioner to New Zealand in 2003, and in 2006 was installed as Chancellor of the Australian National University. In recognition of his outstanding contribution to public service, Dr Hawke was awarded a Fellow of the Australian Institute of Public Administration in 1998 and a Fellow of the Australian Institute of Management in In 2001 he became a Fellow of the Australian Institute of Company Directors. Also in 2001, AFR Boss magazine named him as one of Australia s top 30 true leaders. In June 2010 Dr Hawke was made a Companion in the General Division of the Order of Australia for eminent service to public administration, particularly through the formulation and implementation of policy in the areas of transport, defence and education, and to the strengthening of bilateral relations with New Zealand. Mr David Gray has an honorary doctorate from the Queensland University of Technology and is a member of the Australian Institute of Company Directors and a Fellow of the Royal Aeronautical Society. Mr Gray was Managing Director of Boeing Australia for 11 years until Previously, he was Managing Director of GEC Marconi and a divisional chief executive of GEC (Australia) Heavy Engineering. In 2003 Mr Gray was awarded a Centenary Medal for services to the aviation industry, business and commerce. He is currently Chairman of the Queensland Cyber Infrastructure Foundation, Chairman of the Australian Research Council for Aviation Automation, a Director of Brisbane Airport Corporation, and a Director of Collection House Limited. Ms Helen Gillies has a Bachelor of Commerce and a Bachelor of Laws (Hons) from the University of Queensland, a Master of Business Administration from the University of Sydney, and a Master of Construction Law from the University of Melbourne. Ms Gillies has been practising law for 20 years and is currently Corporate Counsel and General Manager of Risk and Compliance with Sinclair Knight Merz. She won the Australian Corporate Lawyers Association award for Australian Corporate Lawyer of the Year in 2008, and has been admitted as a solicitor of the Supreme Court of Queensland, the Supreme Court of New South Wales and the Supreme Court of England and Wales. Mr Trevor Danos has a Bachelor of Economics and a Bachelor of Laws from the University of Sydney and is a member of the New South Wales Law Society, the Law Council of Australia and the New South Wales Society of Notaries. Mr Danos has practised law for more than 30 years and specialises in the areas of banking and finance as well as federal and state government procurement. He is currently a Partner with Corrs Chambers Westgarth. Mr Danos s current directorships include positions on the boards of TransGrid and the Sydney Local Health District. He is immediate past president of the Science Foundation for Physics and an honorary adviser to the Human Research Ethics Committee (University of Sydney). He is a trustee of the Cure for Life Foundation and the Adolph Basser Foundation, and a member of the Cooperative Research Centres Committee. Mr Danos was appointed as the Chair of CASA s Board Audit Committee in February Management arrangements and accountability reporting PART 3 Mr John F. McCormick Director of Aviation Safety Mr John F. McCormick was appointed Director of Aviation Safety on 1 March He holds a Master of Aviation Management and is a Fellow of the Royal Aeronautical Society, a Fellow of the Australian Institute of Management, and a graduate of the Australian Institute of Company Directors. Mr McCormick began his flying career in the Royal Australian Air Force in In 1984 he joined Qantas, where he flew B747s on international operations. He joined Cathay Pacific Airways in 1987 and from 1999 to 2002 was chief pilot of Cathay Pacific s Boeing fleet. From 2002 to 2006, Mr McCormick was based in Hong Kong as General Manager Operations, a role that included responsibility for Cathay Pacific s air operators certificates and all applicable regulatory matters. Mr McCormick has more than 10,000 hours as pilot in command, and has been a type rating examiner on the L1011, B777, B747, A330 and A340 aircraft. Note: All members were appointed to the Board on 1 July 2009.

64 Board meetings Eight meetings of the CASA Board were held during the financial year, on 30 July, 27 August, 15 October and 3 December 2010, and 11 February, 25 March, 13 May and 24 June Table 4 sets out attendance at the meetings. Table 4 Attendance at Board meetings, 62 Board member Meetings eligible to attend Meetings attended Allan Hawke (Chair) 8 8 CASA Annual Report David Gray (Deputy Chair) 8 7 Helen Gillies 8 8 Trevor Danos 8 8 John McCormick 8 8 Board Audit Committee As required by section 32 of the CAC Act, the CASA Board appoints and maintains an Audit Committee. The committee s role is to provide independent assurance and assistance to the Board on CASA s risk framework, control framework and compliance framework and CASA s external accountability responsibilities. Five meetings of the Board Audit Committee were held during the year, on 23 August and 15 November 2010, and 21 February, 18 April and 20 June Table 5 sets out attendance at the meetings. The Board has appointed a Board member to chair the Audit Committee and three external experts to serve as Audit Committee members, as described in Table 6. Table 5 Attendance at Board Audit Committee meetings, Committee member Meetings eligible to attend Meetings attended Trevor Danos (Chair) 5 5 Barbara Yeoh (Deputy Chair) 5 5 Rod Alfredson 5 5 Michael Roche 5 5

65 63 Left to right: Michael Roche, Barbara Yeoh, Trevor Danos and Rod Alfredson Table 6 Board Audit Committee members at 30 June 2011 Mr Trevor Danos Chair Ms Barbara Yeoh Deputy Chair Mr Rod Alfredson Mr Michael Roche Mr Trevor Danos is a member of the CASA Board. He has practised law for more than 30 years and is currently a Partner with Corrs Chambers Westgarth. His current directorships include positions on the boards of TransGrid and the Sydney Local Health District. He is immediate past president of the Science Foundation for Physics and an honorary adviser to the Human Research Ethics Committee (University of Sydney). He is a trustee of the Cure for Life Foundation and the Adolph Basser Foundation, and a member of the Cooperative Research Centres Committee. Ms Barbara Yeoh is a principal consultant in management and financial services. Prior to the establishment of the Board Audit Committee she was Chair of CASA s Audit and Risk Committee. Ms Yeoh is currently Chair of Southern Health (Victoria), a Director of the State Emergency Service (Victoria), a member of the Lotteries and Gambling Licences Review Panel (Victoria), a member of the Commonwealth Statutory Fishing Rights Allocation Review Panel and a Principal Associate of PhillipsKPA. Mr Rod Alfredson has extensive public sector experience in evaluation and audit, major technology implementation, change management and financial management. He has served in senior appointments in the Australian National Audit Office, the Department of Finance and Deregulation, and agencies in the Indigenous portfolios. He is a member of two professional accounting bodies and serves as an independent member on a number of audit committees. Mr Michael Roche has accounting and information technology qualifications. Mr Roche has had broad public sector experience at a senior executive level, and currently chairs the Pharmaceutical Benefits Pricing Authority. He is the director of two not-for-profit companies as well as a member of a number of audit committees and governance boards. Management arrangements and accountability reporting PART 3

66 Figure 7 Organisational structure as at 30 June 2011 CASA Board Dr Allan Hawke (Chair), the Director of Aviation Safety, and three other members sets CASA s strategic direction. Board Secretary Brian Calder 64 CASA Annual Report Director of Aviation Safety John McCormick Responsible for ensuring that CASA performs its regulatory, safety-related and other functions in accordance with the Civil Aviation Act Deputy Director of Aviation Safety Terry Farquharson Provides strategic and operational advice and support to the Director of Aviation Safety. Is responsible for the Safety Systems. Managers: Accident Liaison and Investigation Richard White Office of the Director of Aviation Safety Associate Director of Aviation Safety Dr Jonathan Aleck Provides advice on govenance, corporate communications, international relations and program management. Managers: Corporate Relations Carolyn Hutton a Governance Systems Ross Barnes Program Oversight Lauren Grant a Self Administering Sport Aviation Organisations Lee Ungermann Industry Complaints Commissioner Elizabeth Hampton Divisions and management teams Are responsible for key operational and support functions. Operations Executive Manager: Greg Hood Managers: Operations Strategy Gerard Campbell Safety Oversight Peter Lloyd Flying Standards Roger Weeks Business Support Sharon Oxenbridge Regional office managers: Southern region Max McGregor Northern region Owen Richards Eastern region Peter John Sydney Jim Marcolin Bankstown Roger Chambers a Western region Des Byfield Safety Analysis, Education and Promotion Executive Manager: Mark Sinclair Managers: Safety Promotion Gail Sambidge-Mitchell Safety Education Mike Lillehagen Safety Performance Analysis Dinh Nguyen Standards Development and Future Technology Executive Manager: Peter Boyd Managers: Standards Development Grant Mazowita Standards Implementation Wayne Jones Airworthiness and Engineering Rick Leeds Future Technology and Regulatory Trends Jim Coyne Legal Services Chief Legal Officer and Executive Manager: Adam Anastasi Managers: Legal Joe Rule a Legislative Drafting Ebenezer Banful Investigations Craig Virtue

67 Organisational structure CASA s structure is closely aligned with the Civil Aviation Act. This ensures that resources are appropriately directed to core functions with optimal accountability and clear lines of reporting. A number of changes were made to CASA s structure in, to enable more effective and efficient operations. The Southern Region General Aviation Office and Southern Region Air Transport Office were amalgamated into a single Southern Region Operations Office. The Program Management Branch was created in the Office of the Director of Aviation Safety, to better oversee the governance of CASA projects. Remaining within the Office of the Director of Aviation Safety, the Foreign Corporate Services Executive Manager: Gary Harbor Finance office Chief Financial Officer Craig Jordan Managers: Financial Services and Reporting Simon Frawley Funding Strategies and External Reporting Lloyd Petty Contracts and Procurement Ian Lonsdale Property and Security Peter Callow Information Technology Chief Information Officer Tim Mackey a Managers: IT Operations Damien Hart IT Projects vacant Knowledge and Information Doug Melville Agency Programs Branch was moved into the Corporate Relations Branch. The Business Change and Process functions were moved from the Information Technology Branch of the Corporate Services Division into the new Program Management Branch. The Sport Aviation function was moved from the Standards Development and Future Technology Division to the newly created Self Administering Sport Aviation Organisations Section in the Office of the Director of Aviation Safety. The Human Factors function was moved from the Safety Analysis, Education and Promotion Division to the Aviation Medicine Branch in the Industry Permissions Division. Figure 7 shows the elements and relationships of CASA s organisational structure at 30 June Airspace and Aerodrome Regulation Executive Manager: Peter Cromarty Managers: Operations Graeme Rogers Airspace Change Cheryl Allman Airways and Aerodromes Malcolm McGregor Industry Permissions Executive Manager: Peter Fereday Managers: Permission Application Roger Crosthwaite Aviation Medicine Dr Pooshan Navathe Delegate Management Mark Taylor 65 Management and arrangements accountability and accountability reporting reporting PART 3 People and Performance People and Performance Brian Keech Managers: Strategic Projects Mike Whitfield a Acting managers

68 case study ADVICE TO REDuCE THE RISKS OF DANGEROuS GOODS 66 CASE STUDY Dangerous goods have the potential to jeopardise the safety of any aircraft that can carry them into the sky. Recognising this, in 2011 CASA published comprehensive new advisory material on the carriage of dangerous goods on aircraft. The advisory circular AC 92.A-01(0), published in March 2011, provides an overview of the legislative framework and procedures for the carriage of dangerous goods on all aircraft. Individuals, companies and air operators wishing to consign or carry dangerous goods within Australia or overseas will find this information valuable. Both international and domestic experience shows that undeclared materials, often in passengers baggage, cause the majority of dangerous goods incidents involving leakage of hazardous materials. A recent CASA safety promotion campaign alerts air travellers to the risks that dangerous goods pose to safety in the sky. The colourful and informative brochures and posters reinforce the key message: If in doubt, ASK!. CASA is also working with the International Civil Aviation Organization s Dangerous Goods Panel and other regulators to identify safety education needs in relation to the increase in dangerous goods incidents involving lithium batteries. It is vital to report all dangerous goods incidents (and other safety-critical incidents) to CASA and other appropriate authorities, such as the Australian Transport Safety Bureau. The information gathered allows trends and deficiencies to be identified and action to be taken to rectify them to prevent future occurrences of similar accidents or incidents.

69 Managers and divisions Chief Financial Officer Ms Fiona Johnstone left CASA, and was replaced by Mr Craig Jordan, in. CASA s senior management team was enhanced by the appointment of the following senior managers during the year: Mr Terry Farquharson was appointed as Deputy Director of Aviation Safety. Dr Jonathan Aleck was appointed as Associate Director of Aviation Safety. Mr Adam Anastasi was appointed as Chief legal Officer and Executive Manager, legal Services Division. Mr Brian Keech was appointed as Head of People and Performance. Mr Max McGregor was appointed as Manager Southern Region Operations. Mr Des Byfield was appointed as Manager Western Region Operations. Mr Gerard Campbell was appointed as Senior Manager Operations Strategy. Mr Mark Taylor was appointed as Manager Delegate Management. Mr Ross Barnes was appointed as Manager Governance Systems. The following sections provide details of CASA s senior managers and their areas of responsibility in. 67 Management arrangements and accountability reporting PART 3

70 68 CASA Annual Report Profile Mr Terry Farquharson joined CASA in 1999 and held a number of senior management positions prior to being appointed as Deputy Director of Aviation Safety in He holds Bachelor of Business and Master of Business Administration degrees and is a Fellow of the Royal Aeronautical Society, a Member of the Australian Institute of Management and a Member of the Society of Experimental Test Pilots. Mr Farquharson began flying in In 1966 he commenced a career in the Royal Australian Air Force, during which he graduated from the Empire Test Pilot School and was a qualified flying instructor on a number of training and strike aircraft. In 1979, Mr Farquharson joined Cathay Pacific Airways, where he was responsible for managing the conduct of the company s ongoing airworthiness flight test program and the acceptance and certification of flight simulators. Mr Farquharson has held command ratings on B707, l1011, B747 and A340 aircraft. He also has experience in corporate jet operations. Deputy Director of Aviation Safety Terry Farquharson Deputy Director of Aviation Safety Phone: [email protected] Role The Deputy Director provides strategic support and advice to the Director of Aviation Safety across the range of CASA s activities. When required, the Deputy Director assumes responsibility for specific projects or initiatives which are managed on behalf of the Director. The Deputy Director also acts for the Director in his absences and represents CASA at government and international meetings as required.

71 Manager profile Dr Jonathan Aleck joined what was then the Civil Aviation Authority as a legal officer in Since that time he has held senior management positions of increasing responsibility in legal, operational and policy roles at CASA. Prior to his appointment as Associate Director of Aviation Safety, he was Chief legal Officer and Executive Manager of the legal Services Division. Between 1998 and 2003, Dr Aleck served as Australia s Representative on the Council of the International Civil Aviation Organization. Dr Aleck has taught in the faculties of law, politics and public policy at universities in Australia, Canada, Papua New Guinea and the united States. He also worked as an independent legal consultant and specialist advisor for many years in the united States. Dr Aleck has a Juris Doctor degree from loyola Marymount university; a Bachelor of Arts degree in psychology and a Master of Arts degree in political science, both from the university of Oregon; and a Doctor of Philosophy in law from the Australian National university. Office of the Director of Aviation Safety Jonathan Aleck Associate Director of Aviation Safety Phone: [email protected] Role The role of the Office of the Director of Aviation Safety encompasses CASA s governance systems, risk management, oversight of CASA s regulatory policy, internal audit, quality assurance, strategic planning and reporting, corporate communications, corporate correspondence management, ministerial advice, foreign agency programs, international relations, and program management. It also incorporates the functions of the Industry Complaints Commissioner and the oversight of self-administering sport aviation organisations. Working through the Program Management Branch, the office is also responsible for CASA s program management function and provides a central point of coordination between organisational strategy and program implementation, with a focus on governance and accountability, in the implementation of CASA s program of work. 69 Management arrangements and accountability reporting PART 3

72 70 CASA Annual Report Manager profile Mr Greg Hood commenced his career as an air traffic controller in the Royal Australian Air Force. His nine years in the military included postings across Australia, and he served with the Australian contingent to the Multinational Force and Observers in the Sinai Desert. From 1990, Mr Hood spent 17 years with Airservices Australia, in roles including Manager of the Melbourne Air Traffic Control Centre, Manager National Towers and Manager Regional Services. In 2007, Mr Hood joined CASA as Group General Manager for Personnel licensing Education and Training, prior to moving to Brisbane to lead the General Aviation Group. In 2009, he was appointed Executive Manager of the Operations Division. Mr Hood is a glider and fixed-wing private pilot. Operations Greg Hood Executive Manager Phone: [email protected] Role Operations oversights aviation operations, including flying operations, airworthiness and manufacturing. Its functions include entry control assessment, regulatory service activities, surveillance, responsibility for the flying standards of the flying training industry, and development of initiatives that make a contribution to aviation safety.

73 Manager profile Mr Peter Boyd has a Bachelor of Mechanical Engineering (Hons) and is a member of the Institution of Professional Engineers New Zealand. He started his professional life designing mechanical systems, then managed a mechanical and electrical testing facility. While working for Telarc limited, New Zealand s largest management system auditing organisation, Mr Boyd fulfilled systems auditing and management roles, including the development and assessment of safety management systems, and held the position of Deputy Chief Executive Officer. Since joining CASA in 1999, Mr Boyd has held a number of management positions, including Manager Compliance Practices and Procedures; Manager International Operations; Executive Manager CASA Improvement Program; Head of Planning and Governance; and Executive Manager Standards Development and Future Technology Division. Standards Development and Future Technology Peter Boyd Executive Manager Phone: [email protected] Role Standards Development and Future Technology s role encompasses the development of aviation safety standards and guidance material; the implementation of regulatory changes; the carriage of CASA s initial and continuing airworthiness functions; and the maintenance of a watching brief on future technology and regulatory trends. 71 Management arrangements and accountability reporting PART 3

74 72 CASA Annual Report Manager profile Mr Peter Cromarty has nearly 40 years experience in the aviation industry. He started his career as an area radar controller in the united Kingdom, then worked as a pilot in the united States before returning to air traffic control in the Middle East. Following a period of work as an air traffic control instructor, Mr Cromarty occupied various roles in the regulation of air traffic services with the united Kingdom Civil Aviation Authority (uk CAA). During this period, he undertook safety-related visits to locations including the British Virgin Islands, the Cayman Islands, Finland, Ghana and Mauritius. For three years, Mr Cromarty was a senior manager at Air Safety Support International, a subsidiary of the uk CAA, where he was responsible for the creation and rollout of a complete regulatory system for the British Overseas Territories. After joining the Civil Aviation Safety Authority in June 2007, Mr Cromarty established the Office of Airspace Regulation and took over responsibility for the Airways and Aerodromes Branch to create the Airspace and Aerodrome Regulation Division. Airspace and Aerodrome Regulation Peter Cromarty Executive Manager Phone: [email protected] Role Airspace and Aerodrome Regulation is responsible for the regulation of Australianadministered airspace. The Division is also responsible for certification and oversight of providers of communication, navigation, surveillance and air traffic management services; oversight of instrument approach development and certification; and registration and oversight of aerodromes.

75 Manager profile Mr Mark Sinclair began his aircraft engineering career in the Royal Australian Air Force. His deployments included service in the Middle East. Between 1988 and 1995 he was a licensed Aircraft Maintenance Engineer working on general aviation aircraft and large regular public transport aircraft flying with international carriers. During the period between 1995 and 2003, Mr Sinclair moved into senior engineering management positions with Hazelton Airlines, including that of Airline Maintenance Controller, then joined General Electric Aircraft Engines. From 2003 to 2008, Mr Sinclair worked for Virgin Blue (now Virgin Australia) in various senior engineering management roles including Head of Aircraft Airworthiness and Maintenance Control and airline Maintenance Controller, before joining CASA as Group General Manager Airworthiness Engineering Group. In 2009, Mr Sinclair was appointed Executive Manager of the Safety Analysis, Education and Promotion Division. Safety Analysis, Education and Promotion Mark Sinclair Executive Manager Phone: [email protected] Role Safety Analysis, Education and Promotion aims to encourage a greater acceptance by industry of its safety-related obligations, and to foster awareness in industry and the wider community of the importance of aviation safety and compliance with the civil aviation legislation. The Division is responsible for reviewing and analysing data and providing advice and recommendations in relation to the safety performance of the Australian aviation industry. It uses a range of professional communications and marketing approaches to develop and deliver safety promotion campaigns and products. The Division is also responsible for the provision of regulatory and technical training for CASA and industry, as well as professional development for CASA staff. 73 Management arrangements and accountability reporting PART 3

76 74 Industry Permissions CASA Annual Report Manager profile Mr Peter Fereday has been a quality management practitioner since the early 1990s, when he developed and maintained quality management systems for two government business enterprises and CASA, each of which achieved and maintained third-party certification. From 1998 to 2000, Mr Fereday led and participated in large national audits at CASA with the Quality and Internal Audit Branch. He joined the service centre establishment project in late 2000 and managed the development of the CASA Workflow Management System, which received multiple awards, including the Microsoft Global Award for best use of workflow in Peter Fereday Executive Manager Phone: [email protected] Role Industry Permissions is responsible for the delivery, management, tracking and monitoring of aviation certificates, licences, registrations and permits. The Division offers one entry point for regulatory services through the Permission Application Centre. This centre processes applications, provides information to applicants, and receives payments. The Division also provides advice and support to delegates and authorised persons in the aviation industry and is responsible for the administration of medical standards applicable to licence holders and for the implementation and maintenance of drug and alcohol management plans. Mr Fereday has been Manager of the CASA Service Centre, and was seconded in May 2009 to participate in the CASA realignment and change program which resulted in the introduction of the new CASA organisational structure in July He is Chairman of the Aerospace Industry Management Systems Network.

77 Manager profile Mr Adam Anastasi holds a Master of laws degree from the university of Sydney, and was admitted as a Solicitor of the Supreme Court of New South Wales in Prior to joining CASA, he worked as a solicitor for the Australian Government Solicitor, the Australian Federal Police, the Australian Capital Territory Government Solicitor and the New South Wales Crown Solicitor s Office. Mr Anastasi joined CASA in 2000 and was the Manager legal Branch from 2005 to In 2011, he was appointed Executive Manager of the legal Services Division. Legal Services Adam Anastasi Chief legal Officer and Executive Manager Phone: [email protected] Role legal Services provides legal advice on a broad range of issues to CASA officers and managers, and maintains oversight and control of CASA s relations with all external legal service providers. The Division is also responsible for managing CASA s enforcement strategies and practices; conducting CASA s involvement in Administrative Appeals Tribunal proceedings, Federal Court proceedings, coronial inquiries and other legal proceedings; and overseeing CASA s obligations under the Freedom of Information Act 1982 and the Privacy Act It also drafts Civil Aviation Orders and other legislative and legal instruments, ensuring that they comply with applicable requirements. 75 Management arrangements and accountability reporting PART 3

78 76 CASA Annual Report Manager profile Mr Gary Harbor has a Bachelor of Arts, a Bachelor of Economics and a Master of Business Administration. Mr Harbor has an extensive private sector background in human resources management. He has been a personnel manager for Toyota; General Manager Human Resources for Metals; and Head of Human Resources for the pharmaceutical firm Sigma Company. Mr Harbor joined CASA in 2005 and was Head of Human Resources until 2009, when he was appointed Executive Manager of the Corporate Services Division. Corporate Services Gary Harbor Executive Manager Phone: [email protected] Role Corporate Services undertakes the corporate support functions that enable operational divisions to function efficiently and effectively. This includes managing finance, human resources and information technology. The Division s Finance office is responsible for the full range of financial management and procurement services in CASA, as well as property, security and asset management functions. The People and Performance Branch develops and implements staff and industrial relations policies, including conditions of service, payroll, occupational health and safety, and equity and diversity. The Information Technology Branch provides appropriate information and communications technology solutions to CASA and is responsible for knowledge and information management activities across the organisation. Note: Mr Harbor left CASA in September 2011.

79 Risk management CASA systematically identifies and analyses a wide range of issues and risks to ensure that all decisions made are well informed and evidence based and contribute to its vision of Safe skies for all. All aviation activity involves a degree of risk, and it is critical that CASA understands the nature and full dimensions of the risks it oversees. In undertaking its regulatory function, CASA faces a variety of possible risks, such as the failure to detect breaches of safety and maintenance standards; incorrect or inconsistent application of regulatory standards; and failure to properly carry out statutory responsibilities. The identification and management of risk, in conjunction with other management functions, is integral to achieving CASA s corporate goals. CASA manages its risks in accordance with current best practice and adheres to the principles outlined in the Australian and New Zealand International Standards Organisation Risk Management Principles and Guidelines (AS/NZS ISO31000:2009). During, CASA s fully integrated business and risk management planning processes were enhanced to ensure the ongoing effectiveness of the existing practices. Risk management training modules were incorporated into CASA s annual training calendar and delivered to all divisions as required. Detailed risk workshops were conducted throughout the year, across a wide range of issues, ensuring that any subsequent decisions were fully informed and supported by clear evidence and a strong risk-based methodology. Key achievements A continuing focus on risk, and a clear understanding and increasing application of risk management principles and practices throughout the organisation, have enabled CASA to deliver: more effective strategic and business planning better cost control systematic and thorough decision-making openness and transparency in decision-making increased identification of opportunities greater knowledge and understanding of risk exposures more proactive responses to identified risks full compliance with relevant legislation and statutory obligations. CASA continued to utilise the Comcover Risk Management Benchmarking Program s annual survey as an independent measure of its risk management practices and a means to identify areas to target for further improvement. For, CASA was awarded a rating of 8.8 out of 10. This was an increase from the score of 8.4 achieved in and resulted in a 9 per cent discount on CASA s insurance premium for. This reaffirmed CASA s approach and continued the trend of a steady and continual improvement in risk management practices in CASA. It also maintained the organisation s position as one of the highest performing Commonwealth agencies with respect to risk management. 77 Management arrangements and accountability reporting PART 3

80 78 CASA Annual Report Looking ahead In there will be ongoing consolidation of existing better practices and targeted enhancements in the areas of risk management identified in the Comcover benchmarking survey. This is expected to include a further roll-out of specific risk management training modules; an expanded quality assurance capability incorporated into the risk management and internal audit functional area; an increased integration of risk management principles and practices into project management; and fully updated business continuity plans in all CASA offices. Internal audit arrangements CASA continued its arrangement of outsourcing internal audit service provision to external audit providers. The Risk Management and Quality Assurance Section within the Governance Systems Branch continued to develop, coordinate and oversight the services. In, prior to the completion of the existing internal audit service provision contract, an external review was undertaken of the outsourced internal audit model used by CASA. The review endorsed the model. A full tender process was subsequently conducted, and a new contract for the provision of internal audit services commenced with three external audit organisations. The audit function has continued to benefit from the expertise and independence of auditors external to CASA. Key achievements The main emphasis of the internal audit program in was to target CASA s key operational and business risk exposures. Business and risk management plans from CASA s divisions, strategic risk workshops, and individual interviews with senior executives, internal and external auditors, and members of the Board Audit Committee and the Board were used to identify priorities and inform the ongoing CASA-wide internal audit program. A number of initiatives were implemented to ensure that audit recommendations were acted on appropriately and in a timely manner; this resulted in a significant reduction in the number of outstanding audit recommendations. A program to monitor the implementation of audit recommendations, including post-audit implementation reviews conducted internally and externally, continued to work well. It was backed by the maintenance of a comprehensive database for the collation, monitoring and review of all audit information. The internal audit reviews completed during addressed CASA s core operational and business functions, processes and systems. Seventeen audits were completed during the year, namely: CASA website server CASA exit processes Compliance with statutory obligations Operations Enhancement Program Service Point Program Occupational health and safety review Cost recovery practices Credit card review Audit processes for CASA regulatory review of Airservices Australia Review of post-audit implementation server system Field office compliance Enforcement procedures Aviation medicine Sport aviation business process review Aviation Security Identification Card (ASIC) contract performance review upgrade/replace Existing Systems (ures) Project Expenditure review.

81 Looking ahead For the internal audit function has scheduled 18 audits which will address operational and business risks and key control systems, and maintain the rolling compliance audit program. Given the significance and size of major projects being undertaken in , the internal audit function will closely monitor the control processes in place for these projects. Probity measures CASA employs a number of measures to facilitate probity of practice. These include: a confidential third-party protected disclosure arrangement a well-publicised code of conduct a robust fraud control process. Whistleblower policy CASA has internal and external protected disclosure (whistleblower) arrangements to enable confidential reporting of fraud and matters relating to organisational corruption. During, one matter was raised via the external protected disclosure arrangements, but was not sustained by the evidence. One anonymous external allegation of fraudulent activity by CASA employees was received through another channel; this matter was referred for an external investigation, which reported no significant findings to support the allegation. Code of conduct All CASA staff must comply with a comprehensive code of conduct as a condition of their employment or engagement. The CASA Code of Conduct reflects the values and behaviours expected of CASA employees at any time when they are at work or otherwise representing CASA. Fraud control CASA implements its Fraud Control Framework both to support effective governance and to reduce the risk of exposure to the potential for fraudulent activities. In, there were no fraud matters that required referral to external authorities. There were no proven matters relating to fraudulent activities. Conflict of interest To assist employees to better understand their interaction with industry, a definitive conflict of interest policy is available to guide all CASA employees and contractors. The policy recognises that, while many CASA professionals have longstanding personal links within the industry, it is important that those interactions be managed to reduce the risk that CASA s activities could be compromised by allegations or the perception of bias. There were no unresolved conflicts of interest in. 79 Management arrangements and accountability reporting PART 3

82 case study NEW GRADuATE DEVElOPMENT PROGRAM 80 CASE STUDY Interested university graduates can now add CASA to their list of preferred employers, following the launch of a new graduate development program. The program will provide graduates with a development framework, career pathway and ongoing support as they move from a university or other tertiary education setting into the workforce. further source of highly qualified and motivated employees. The two-year program focuses on practical, on-the-job training and coaching, providing a foundation of knowledge and skills to complement the graduates education. The program provides graduates with a range of interesting rotations and encourages them to consider a career with the safety regulator. The graduate development program aims to establish CASA as a desirable career option for graduates as well as providing CASA with a The first intake of six graduates commenced in mid For more information, visit the CASA website or [email protected].

83 People management CASA implements a range of human resource strategies and initiatives to strengthen workforce capability and to achieve its corporate goals. A strategic workforce plan has been introduced to drive the development of a stronger and more flexible workforce that has an enhanced capacity to deliver CASA s programs and meet CASA s obligations. Staffing On 30 June 2011, CASA had a total of 786 employees, which included 72 temporary staff and 10 staff managed as inoperative. Staff managed as inoperative included those on long-term leave for maternity or paternity reasons or on long-term unpaid leave due to illness. Tables C.1 to C.5 (s ) show a detailed year-end breakdown of employee numbers by division and category, by classification and region, and by classification and age group. They also show permanent and temporary employees by classification and gender and workplace diversity data by classification and gender. Unplanned absences CASA had an average of days unplanned absence per employee in. This was higher than the 9.21 days reported in unplanned absence includes sick leave, carer s leave and compassionate leave. Staff training and development During : the Regulatory and Technical Training Section delivered 29 different regulatory and technical training courses and programs to CASA regulatory staff, industry delegates and industry personnel; in total, 901 people received such training 29 different professional development courses and programs were delivered to CASA staff; in total (including individuals who participated in more than one activity), 899 people participated in face-to-face learning and 1,315 people participated through online learning. Workplace agreements CASA staff are employed under the powers vested in the Director of Aviation Safety by the Civil Aviation Act. The terms and conditions of most staff are prescribed in the CASA Enterprise Agreement, which came into effect on 2 June At 30 June 2011 approximately 90 per cent of CASA staff were employed under the CASA Enterprise Agreement, and 10 per cent were employed under individual agreements. CASA also had a number of service contractors and individuals temporarily engaged through contracted employment agencies. This included some short-term project staff and people engaged to oversee licensing examinations. 81 Management arrangements and accountability reporting PART 3 Staff turnover In, CASA s rate of staff turnover for permanent staff was per cent, a reduction from the per cent reported in Turnover is calculated as the number of permanent staff who have left the organisation as a percentage of the number of permanent staff in the organisation at the time.

84 82 CASA Annual Report Recognition of high performance In, CASA continued its recognition scheme for high-performing staff, which is designed to reinforce CASA s values and behaviours. Employees are nominated for recognition under the scheme by their managers or colleagues. Table 7 Recipients of CASA awards for performance, The Employee of the Month award recognised staff whose work displayed a level of service that met or exceeded CASA s standards for excellence, while the Above and Beyond award recognised individuals or teams who demonstrated outstanding and exceptional work or work on projects of special importance to CASA. The award recipients are listed in Table 7. CASA also uses a recognition scheme to honour the achievements and service of employees who have completed 10, 15, 20, 25, 30 or 40 years of service. Date Employee of Above and Beyond the Month July 2010 Don Campbell August 2010 Adrian Rowland Pauline McCann Noni Waterhouse September 2010 Andrew Wells Katherine Allen October 2010 Barbara Eitzen Gary Arnold, Malcolm Campbell, Brenda Cattle, David Chadbourne, Roger Chambers, Bill Cox, Kane Dubois, Kevin Gardiner, Grahame Murray, Clinton Piadasa, Joe Rule, Paul Simpson, Roger Weeks, Graeme White, Greg Worthington Wayne Abbott, Peter Callow, Debbie Griffin, Greg Lemass, Murray McQueen, Jan Moy, Peter Newham, Steve Saillard, Sam Sambasivam November 2010 Carolyn Dempster Duncan Grant Susan Rice December 2010 Adele Crawley Michael Urquhart January 2011 Greg Lemass Jason Butterfield, Mark Roberts, Brad Wells February 2011 Carolyn Buckingham Leonard Yates March 2011 Russell Cunningham Darren Angelo Phil Presgrave April 2011 Robert Wilson David Farquharson, Graeme Taberner Stephen Guerin, Rob Wight May 2011 Sam Palaskonis Grant Howard Max McRae June 2011 Gail Mason Richard Allen, Fiona Bender, Darren Morris, Robert Park

85 Occupational health and safety CASA strives to provide a work environment and systems of work that are safe. CASA has implemented systems that provide early identification of risks, and actively works to minimise the impact of risks on the health, safety and wellbeing of CASA employees. The maintenance of a comprehensive health and safety management system to prevent the onset and impact of workplace injury and illness is a key strategy in the CASA People and Performance Business and Risk Management Plan. In January 2010, the Workplace Safety and Environment Section was expanded to encompass the travel function. This realignment of resources ensured that previous measures to maintain and improve the welfare and wellbeing of staff were enhanced, to ensure the safety and welfare of CASA officers and others travelling on behalf of CASA. The designated work group (DWG) structure facilitates local communication and consultation on occupational health and safety (OHS) matters. Every DWG has an elected Health and Safety Representative (HSR), Deputy Health and Safety Representative (DHSR), and DWG Manager appointed by the Director of Aviation Safety. DWGs have the capacity to refer matters to the National OHS Committee, which is composed of four management representatives and four employee representatives, and chaired by the Head of People and Performance. Outcomes from the National OHS Committee are reported to the Executive Manager Corporate Services for reporting to the monthly Executive Managers meeting. Five meetings were held by the National OHS Committee, in July, October and December 2010 and February and June Health and safety management arrangements CASA s Health and Safety Management Arrangements (HSMAs) nominally expired in October 2010 and were reviewed in consultation with employees. A comprehensive communication and consultation plan was developed to facilitate the conduct of the review and the implementation of the new arrangements that were released on 1 November CASA s HSMAs set out the: arrangements for a corporate OHS policy, and statement of commitment key elements of CASA s OHS management system, to provide access for all employees to OHS initiatives, policies, procedures and reporting (including details of the management structure and areas of responsibility) identified OHS training for new employees and employees with specific OHS responsibilities, and task-specific OHS training communication and consultation mechanisms available for employees, and the processes to resolve health and safety issues role and functions of the National OHS Committee and local consultative committees details of election procedures, terms of office, support, facilities and training for HSRs and DHSRs process to establish DWGs and consultation processes to vary a DWG in accordance with the Occupational Health and Safety Act 1991 (OHS Act) risk management approach for health and safety issues process to review and consult with employees for the ongoing development and future reviews of the HSMAs. 83 Management arrangements and accountability reporting PART 3

86 84 CASA Annual Report In, the following actions were taken as part of the HSMAs: HSRs and DHSRs who were elected in received training from a Comcareaccredited training provider in July Support was provided to establish a local consultative committee for the Canberra DWG. The Occupational Health and Safety Policy was reviewed in October By-elections for new representative vacancies were conducted in March Five meetings were held by the National OHS Committee, in July, October and December 2010 and February and June The National OHS Committee is composed of four management representatives and four employee representatives. Measures Table 8 describes the specific measures undertaken by CASA to ensure the wellbeing at work of its staff and contractors in. Outcomes The following elements were measured to provide CASA with indicators of OHS performance: A total of 35 employees accessed the employee assistance program, representing an annual usage rate of 5 per cent. Approximately 10 per cent of employees received an individual workstation assessment. A total of 75 employees received early intervention assistance for non-compensable injuries and illnesses, to facilitate a safe and timely return to work or capacity to stay at work. Activities included occupational rehabilitation, health assessments and individual assessments. Managers were provided with workplace counselling to assist them to respond to injuries and illnesses with the potential to affect an employee s attendance, work performance or capacity to fulfil normal duties. A total of 233 employees (35 per cent) participated in the national vaccination campaign for seasonal influenza. Through online learning» 93 per cent of new employees completed OHS training on CASA s policy and processes for incident and hazard reporting, communication and consultation mechanisms, and risk assessment approach; preventing occupational overuse syndrome; and drug and alcohol awareness» 93 per cent of new employees completed equity and diversity training, which included a section on preventing behaviours that can lead to bullying, harassment and discrimination. A total of 75 new starters completed corporate orientation programs that included information on CASA s health and safety management system and key processes and contact sources for reporting and resolving issues. A total of 146 travellers were provided with relevant health, safety and security advice and risk mitigation strategies, covering 295 trips to 35 countries. OHS training, induction and orientation measures provided an avenue for increased awareness and participation in prevention and early intervention to reduce both the frequency of injury and illness and the time lost. Early intervention also provides an opportunity for an employee to remain at work safely in spite of an injury or illness.

87 Table 8 Measures undertaken in to ensure the health, safety and welfare at work of employees and contractors Type Measures Audits, risk assessments OHS audits undertaken in the Western, Northern and Southern and reviews regional offices. Information and training Consultation Health services Hazard identification and risk assessment for the handling, storage and transportation of dangerous goods and hazardous substances at the Brisbane site. Hazard identification, risk assessments and risk mitigation plans arising from causal factors contributing to workplace incidents. An audit of the certification, training and equipment of First Aid Officers and Deputy First Aid Officers, to ensure currency and compliance. Review of the flexible work location arrangements to ensure that employees are continuing to work in a safe and functional environment. Health, safety and security advice and assistance for overseas travellers, including detailed risk assessments for high-risk destinations and updated safety and security alerts in response to natural disasters and heightened security threats. Publication of health and safety information sheets in response to community health issues or potential risks associated with travelling to remote locations or high-risk overseas destinations. Expansion of the SOS International contract services to provide additional coverage of international travel issues and security alerts, to ensure that staff travelling overseas are provided with up-to-date information on country-specific issues. Online training on OHS (including drug and alcohol awareness) and equity and diversity awareness, for all new employees. Ongoing management of First Aid Officer, Equity and Diversity Contact Officer and Health and Safety Representative networks to maintain communication and consultation on key matters. Ongoing consultation and advice to anticipate and plan for potential health and safety issues arising from relocation of offices and major refurbishment plans, and to respond to hazard reports. The 2011 Seasonal Influenza Vaccination program. 85 Management arrangements and accountability reporting PART 3 Equipment Alcohol and drug screening for employees commencing work in aviation safety sensitive work environments. The trial placement, assessment and selection of a standard chair for allocation to CASA staff.

88 86 CASA Annual Report Lost-time occurrence incidence rate At 30 June 2011, CASA s annualised lost time occurrence incidence rate was 1.02 with an average of 4.25 days per lost time occurrence. This is an increase compared to the result for (lost time occurrence incidence rate of 0.29 with an average of 3.00 days). Claims for workers compensation Seven claims for workers compensation were accepted by Comcare in, compared to one claim in The majority of claims were short term, resulting in minimal or no lost time. There were no apparent common causal factors contributing to the increase in the number of claims. Workers compensation premium CASA s workers compensation premium rate for was CASA s lowest in the past five years, as a result of good performance for the previous four years of claims history. The estimated premium rate for was 0.60 per cent, half the average Commonwealth premium rate of 1.20 per cent for the same period. This was a significant reduction from CASA s revised premium rate of 0.97 per cent for A number of factors contributed to the positive effect on the premium rate, over a number of years. They included responsive case management and increased training and staff awareness to facilitate early reporting of injuries, potential causes of injury and personal issues that may impact at the workplace and potentially result in aggravation of an existing condition or a work-related injury or illness. Accidents or dangerous occurrences During, one dangerous occurrence was reported to Comcare as prescribed by section 68 of the OHS Act. CASA responded by implementing an action plan to prevent a recurrence. Investigations conducted by Comcare During, there were no provisional improvement notices (section 29), prohibition notices (section 46) or improvement notices (section 47) issued or investigations undertaken by Comcare arising out of CASA s undertakings as an employer in accordance with the OHS Act. Disability reporting In previous annual reports, CASA reported on its performance against the objectives of the Commonwealth Disability Strategy. In , reporting on the employer role defined under the strategy was transferred to the Australian Public Service Commission s State of the Service Report and the APS Statistical Bulletin. These reports are available from the commission s website, at In, the Commonwealth Disability Strategy was overtaken by the new National Disability Strategy. Progress against the new strategy will be tracked in a separate high-level report to the Council of Australian Governments. This mechanism replaces the practice of Commonwealth agencies reporting on disability-related functions in their annual reports.

89 case study INTERNATIONAl AWARDS Cecil A Brownlow Award CASA s Flight Safety Australia magazine received the 2010 Cecil A Brownlow Award for making an outstanding contribution to aviation safety awareness. The prestigious international award has a 30-year history, and is presented by the Flight Safety Foundation, which has a membership across 150 nations. The 2010 award was accepted by the editor of Flight Safety Australia magazine, Ms Margo Marchbank, who was applauded for regularly presenting a wide range of issues of interest to corporate, airline and general aviation personnel. Flight Safety Australia magazine is a widely respected aviation safety publication in Australia and throughout the world. This award is testimony to the leading role that CASA plays in international aviation, and reflects the leadership that CASA demonstrates in international aviation safety in many areas. Flight Safety Australia is published six times a year and distributed at no charge to around 90,000 people. It is freely available for viewing via CASA s website. Catherine Fargeon Award In recognition of his commitment and contribution to the field of unmanned Aircraft Systems (uass), Mr Jim Coyne, CASA s Manager Future Technology and Regulatory Trends, was selected by unmanned Vehicle Systems International (uvs International) to receive the 2011 Catherine Fargeon Award. uvs International is a European organisation which represents manufacturers of uass, as well as companies supplying services for government, research organisations and academia. A uas consists of an unmanned aircraft, the associated ground station and the data link that allows communication between the two. uass can be used for military purposes as well as many civilian applications, such as weather research and monitoring, coast and border surveillance, and bushfire monitoring. CASA is a world leader in uass, having published the world s first set of operational regulations for uass in Australia has a large amount of uncongested airspace that can safely be made available for uas operations. 87 CASE STUDY

90 88 CASA Annual Report External engagement Consultation and communication with the aviation industry and the wider aviation community, in Australia and overseas, is both a requirement of the Civil Aviation Act and an essential part of CASA s work. Community engagement under sections 9 and 13 of the Civil Aviation Act, CASA is required to promote full and effective consultation and communication with all interested parties on aviation safety issues. CASA achieves this through information provision and a range of forums and day-to-day dealings with people and organisations in the wider aviation community, including formal meetings, working groups, and consultation committees. Feedback The front of CASA s website features a prominent link inviting people to send feedback on aviation safety issues to the Director of Aviation Safety. During, 182 feedback forms were submitted; all received a response, usually within a week. The feedback covered a wide range of issues. The majority came from members of the aviation industry, and related to issues such as airspace changes, regulatory reform and new maintenance regulations. Feedback from the flying public included both positive and negative comments about the suspension of Tiger Airways. Newsletter CASA produces a monthly newsletter, The CASA Briefing, which is distributed by to more than 10,000 subscribers. While most subscribers are people working in the aviation industry, there are also subscribers who have a general interest in aviation, such as members of the media. Each edition features stories on CASA s activities and decisions in areas such as regulatory reform, safety education and advice, consultation with industry, airspace reviews (see Table B.9 on 164 for the number of airspace reviews conducted each year from to ), continuing airworthiness, and seminars and workshops. Industry engagement CASA s ability to develop and enforce appropriate safety standards relies on effective engagement with the aviation industry. CASA participates in consultative forums and supports specialist expert panels to facilitate industry engagement. Standards Consultative Committee CASA established the Standards Consultative Committee (SCC) as the focal point for regulatory consultations with the aviation community, in accordance with CASA s obligations under the Civil Aviation Act and the Legislative Instruments Act The SCC is a joint industry CASA forum that brings together representatives from a diverse range of aviation industry and other groups, to make recommendations to CASA on the development of regulations, standards and associated advisory material. More than 200 participants are involved in the SCC and its six subcommittees. CASA is committed to, and highly values, the consultation with the aviation industry that is achieved through the SCC. The key regulatory proposals considered in included: CASR Parts 42, 66, 145 and 147 (the new suite of maintenance regulations) and related Manuals of Standards a discussion paper outlining a proposed strategy and regulatory plan in support of the Australian Government s National Aviation Policy White Paper proposals for mandating certain flight crew training in simulators CASR Part 90, relating to additional airworthiness requirements.

91 A charter to formalise the role and working arrangements of the SCC was finalised in and work is underway to publish the charter in Further information about the SCC (including its membership, subcommittees, meetings and activities) is provided on CASA s website. Regional Aviation Safety Forum The Regional Aviation Safety Forum (RASF) brings together a cross-section of people and organisations who have a direct interest in aviation operations in regional Australia. The forum provides feedback to CASA, allows industry to bring forward concerns and issues, and allows CASA to explain its policies and actions. The RASF is chaired by the Director of Aviation Safety, and membership is drawn from operators and associations with an interest in regional operations. RASF met on 13 August 2010 in Brisbane and again on 30 March 2011 in Sydney. Members have indicated that participation in RASF is a useful way to exchange information on issues of mutual interest. Sport Aviation Forum The Sport Aviation Forum, established in , continued to facilitate communication and consultation with the sport aviation industry. The forum brings all the recreational aviation administration organisations (RAAOs) together as a group and provides a single communication point for CASA. The forum is an annual opportunity for RAAOs to discuss ways to improve the oversight of sport aviation, share information and establish benchmarks. The third forum was held in June The strategic future direction of the sector was discussed, along with key topics for the enhancement of organisational governance and the future of the Aviation Safety Network and the Enhanced Self-Administration Project. Expert Panel on Aircraft Air Quality An independent Expert Panel on Aircraft Air Quality was convened by CASA in 2007, consisting of members with expertise in both safety and occupational health matters. The panel provided its report on contamination of aircraft cabin air to CASA in early CASA, along with other government agencies, is considering its response to the recommendations. Flying Training Panel CASA supports the Flying Training Panel, an industry-led group which provides strategic advice on flying training sector matters. The panel s activities in included providing input into the development of guidance material for flying instructor training, and planning for the 2011 National Chief Flying Instructor Conference. Intra-governmental engagement Cooperation between Australian Government agencies that have an interest in the aviation sector helps to reduce duplication and fragmentation of government policies, regulations and services. Aviation Policy Group The Aviation Policy Group is a high-level interagency group that consists of the CASA Director of Aviation Safety, the Chief Executive Officer of Airservices Australia, the Chief of Air Force and the Secretary of the Department of Infrastructure and Transport. Although the group is not a decision-making body, it provides a forum for effective interagency policy coordination and for working through air traffic management and other aviation issues at a strategic level. The Aviation Policy Group met four times during. 89 Management arrangements and accountability reporting PART 3

92 90 CASA Annual Report Aviation Implementation Group The Aviation Implementation Group is an interagency forum, chaired by the Department of Infrastructure and Transport, that involves high-level representation from CASA, Airservices Australia and the Royal Australian Air Force. It is an important forum for identifying cross-agency aviation issues and maintaining regular communication between the four agencies. The Aviation Implementation Group supports the Aviation Policy Group in implementing cross-agency strategies. The group met eight times during. Australian Transport Safety Bureau The Australian Transport Safety Bureau (ATSB) and CASA continue to cement their relationship, as documented in a memorandum of understanding in , and have agreed to a schedule of meetings to exchange views and liaise with each other. The two agencies met once in with further meetings scheduled for The agencies cooperate on important research projects and discuss the use of data to improve flight safety in Australia. During the year, the ATSB took part in an accident simulation exercise at Sydney Airport and CASA took the opportunity to exercise its Critical Occurrence Response Plan. This plan is in place to guide CASA s actions in the event of a critical accident or incident in which the two agencies may be involved. The exercise proved to be a good opportunity to finetune CASA s emergency response and to confirm the liaison and information-sharing methodologies. The working relationship between the two agencies continues to mature. Protocols have been developed in the areas of information sharing and education, with staff attending both CASA and ATSB training courses. The Accident liaison and Investigation unit and the newly formed Safety Systems Office are working closely with the ATSB to further the State Safety Program as envisaged by the International Civil Aviation Organization, and develop appropriate ways to use the information held by the two agencies to improve air safety in Australia. International engagement Engagement with the global aviation industry, and with aviation safety regulators in other countries, is a vital part of CASA s role. CASA achieves this through participation in international forums, particularly the International Civil Aviation Organization (ICAO), and through direct discussions and arrangements with overseas agencies. International Civil Aviation Organization Australia is a signatory to the 1944 Convention on International Civil Aviation (Chicago Convention), which provides for the safe and orderly development of international civil aviation. The Chicago Convention established ICAO to develop international standards and recommended practices through international panels and working groups. Australia s participation in ICAO is shared among CASA, Airservices Australia and the Department of Infrastructure and Transport, under a tripartite agreement to ensure a coordinated and consistent approach. The ICAO Assembly, comprising representatives from all ICAO Contracting States, is the sovereign body of ICAO. It meets every three years to review the work of ICAO and to set policy and budgets for the coming triennium. The thirty-seventh session of the ICAO Assembly was held in Montreal, Canada, from 28 September to 8 October Delegates from CASA, the ATSB, Airservices Australia and the Department of Infrastructure and Transport attended. The participation of CASA officials ensured that Australia had a voice on any proposals which may have implications for Australia s future aviation work.

93 Among the key outcomes of the assembly was the re-election of Australia as a Member State of Chief Importance in air transport. The Americas During, CASA liaised with Brazil, Canada and the united States regarding the progress and finalisation of a number of treatylevel agreements and working arrangements. Brazil In August 2010, CASA formalised an agreement with the National Civil Aviation Agency of Brazil to establish a working arrangement for the mutual acceptance of airworthiness procedures and processes. Canada An existing arrangement between CASA and Transport Canada was further developed in. Initial discussions regarding a mutual arrangement relating to maintenance indicated that the two organisations rules, systems and processes were sufficiently compatible to proceed. The arrangement will be further expanded in United States In May 2010, Australia and the united States signed an agreement to amend the Implementation Procedures for Airworthiness (IPA), which form part of the Australia united States Bilateral Aviation Safety Agreement. This amendment enhances export opportunities for Australian manufacturers by facilitating recognition by the united States Federal Aviation Administration (FAA) of CASA s aircraft parts manufacturing approvals. Australia has around 40 manufacturing companies with the potential to benefit under this agreement. In May 2011, the Joint Standing Committee on Treaties recommended that binding treaty action be taken to ratify the amended IPA. Discussion between CASA and the FAA is underway to progress the second revision to the agreement, which may also include mutual acceptance of supplementary type certificates for rotorcraft and large aircraft, as the current agreement applies to general aviation aircraft only. In April 2011, CASA met with officials from the FAA to discuss these proposed amendments to the existing IPA. Asia Pacific region During, CASA continued to engage with stakeholders in the Asia Pacific region. Directors General of Civil Aviation Conference The forty-seventh Directors General of Civil Aviation Conference was held in Macau, China from 25 to 29 October The purpose of the conference is to annually bring together the directors general of civil aviation in the Asia Pacific region in order to build consensus on improving aviation safety through coordinated action. The Director of Aviation Safety led Australia s delegation, which included representatives from CASA, Airservices Australia and the Department of Infrastructure and Transport. The conference provided an opportunity to discuss important issues affecting the Asia Pacific region and to conduct informal discussions with international regulatory counterparts. The conference covered topics including air navigation and planning, aviation safety, aviation security and the environment, and technical and regional cooperation. Pacific Aviation Safety Office CASA continued to support the Council of the Pacific Aviation Safety Office (PASO) throughout, under the auspices of the working arrangement regarding the provision of advice and assistance on matters relating to civil aviation safety. CASA also provided technical advice and access to CASA training courses for PASO staff. A CASA representative attended the PASO Annual General Meeting in May Management arrangements and accountability reporting PART 3

94 92 CASA Annual Report Fiji In May 2011, CASA and the Civil Aviation Authority Fiji signed a new working arrangement for the provision of advice and assistance on matters relating to civil aviation safety. Indonesia On 15 December 2010, Australia and Indonesia signed a new arrangement on the Indonesian Transport Safety Assistance Package (ITSAP), which the Australian Government will fund until The purpose of ITSAP is to assist Indonesia to regulate and promote transport safety in accordance with applicable international standards and contemporary safety management practices, consistent with the priorities of the Indonesian Government. ITSAP is funded by AusAID and managed by the Department of Infrastructure and Transport. Over the life of this second phase of ITSAP, CASA may access up to $2.96 million to undertake activities to build safety oversight capacity with its Indonesian counterparts. Throughout, CASA provided assistance to the Indonesian Directorate General of Civil Aviation on a range of safety oversight issues, including the provision of training, safety promotion, mentoring and joint audits. Korea CASA is involved in ongoing discussions with the Korean Office of Civil Aviation regarding the progress of a draft working arrangement on airworthiness certification. Korea approached CASA during the April 2011 FAA Asia Pacific Bilateral Partners meeting to further discuss the potential for a technical arrangement on airworthiness. CASA undertook a familiarisation visit in August The Korean Office of Civil Aviation will follow up with a visit to Australia in October Should both agencies determine that their respective certification systems are acceptable, the working arrangement will be progressed with the aim of finalising it by the end of New Zealand CASA officials met with their counterparts from the New Zealand Civil Aviation Authority in November The meetings provide a forum for high-level discussion and information exchange regarding general policy issues and matters such as mutual recognition, and the exchange of safety-related information. Papua New Guinea CASA participates in meetings of the Papua New Guinea Interagency Transport Cooperation Working Group, with the Department of Infrastructure and Transport, AusAID, Airservices Australia and the ATSB. The working group was set up to coordinate activities under a memorandum of understanding on cooperation in the transport sector between the Governments of Australia and Papua New Guinea (PNG). In November 2010, CASA officials attended the Transport Senior Officials Meeting to discuss strategic objectives towards capacity building in PNG with senior PNG transport officials. under the auspices of the memorandum, CASA undertakes capacity-building activities in PNG. New capacity-building initiatives delivered in included a mentoring project focused on flight operations and airworthiness inspectors in PNG, and facilitation of access to international-standard training in the transport of dangerous goods for CASA staff in PNG. Europe CASA is working with the European Aviation Safety Agency and European Commission to progress a proposed safety agreement between the two organisations. In June 2011, CASA officials met with agency officials to discuss the proposed agreement.

95 External scrutiny As a Commonwealth statutory agency, CASA is subject to scrutiny by the Australian Parliament. CASA s activities may be subject to investigation or consideration by administrative agencies or the courts. In addition, CASA receives informal feedback on its performance through media coverage and through complaints received from industry or members of the public. CASA welcomes external scrutiny as a means to confirm what it is doing well, and to identify ways to better meet its statutory obligations and achieve its vision in future. Parliamentary scrutiny In October 2010, February 2011 and May 2011, CASA appeared before the Senate Rural Affairs and Transport Estimates Committee. Topics covered during these appearances included: sport aviation, fatigue risk management, liaison with the ATSB, the regulatory development program, airspace issues, the CASA Board, and CASA s Industry Complaints Commissioner. On 18 February 2011, CASA appeared before the Parliamentary Joint Committee on law Enforcement s inquiry into the adequacy of aviation and maritime security measures to combat serious and organised crime. On 25 February, 18 March and 27 May 2011, CASA appeared before the Senate Standing Committee on Rural Affairs and Transport s inquiry into pilot training and airline safety, including consideration of the Transport Safety Investigation Amendment (Incident Reports) Bill On 29 March 2011, CASA appeared before the Senate Standing Committee on Foreign Affairs, Defence and Trade s inquiry into the Department of Defence s request for tender for aviation contracts. The appearance gave CASA an opportunity to explain the Foreign Aircraft Air Operator s Certificate regime and issues of concern related to the activities of some charter brokers. The committee did not make any recommendations relating to CASA or its functions. On 19 May and 1 June 2011, CASA appeared before the Standing Committee on Infrastructure and Communications s inquiry into the ratio of cabin crew members to passengers on aircraft. During the reporting period, CASA took action on: 68 ministerial responses 44 parliamentary questions. Administrative scrutiny Reports by the Auditor-General In, the Australian National Audit Office tabled the reports of two performance audits involving CASA that were conducted during The reports were: Audit Report No. 13, Implementation and Administration of the Civil Aviation Safety Authority s Safety Management System Approach for Aircraft Operators Audit Report No. 14, Capitalisation of Software. CASA acknowledged the findings from each audit report and undertook to implement all applicable recommendations. Investigations by the Commonwealth Ombudsman The Commonwealth Ombudsman commenced investigations into five matters involving CASA during. One matter remained outstanding at the end of the year and one matter relating to an investigation commenced by the Ombudsman s office in the preceding financial year remained unresolved. 93 Management arrangements and accountability reporting PART 3

96 case study STAFF COOPERATION TO HElP FlOOD-AFFECTED QuEENSlAND 94 CASE STUDY From late December 2010 through to early January 2011, widespread flooding caused havoc across Queensland. South-east Queensland recorded the worst flooding in 37 years, with extensive damage to homes and property. Staff from all CASA offices around Australia rallied to raise money for flood victims in Rockhampton and throughout south-east Queensland. In Canberra, CASA staff organised a Flood Furniture Appeal. Staff members volunteered their time and services to collect surplus furniture donated by CASA staff from Canberra and surrounding areas. The mezzanine level of CASA s national headquarters was converted to a central drop-off point, where staff worked together to organise and pack the donated furniture. As a result of the appeal, a 20ft container was sent to Brisbane filled to the brim with lounge suites, dining suites, beds and cupboards. These gestures brought relief to people in need during those challenging times, and demonstrated the willingness of CASA staff to contribute their efforts and resources to support a worthy joint project.

97 The investigations related to a range of issues, including the management of a complaint of a regulatory breach and the alleged conflicts of interest within the aviation industry, the licensing of Aircraft Maintenance Engineers, and an allegation of a lack of procedural fairness in relation to CASA s consideration of the airworthiness of an aircraft. CASA ran a proactive information campaign to inform the aviation industry about the introduction of the new suite of maintenance regulations. Media releases targeted aviation magazines and other media; regularly updated information was posted to the CASA website; and regular items were run in The CASA Briefing. Reviews of regulatory decisions Certain types of regulatory decisions made by CASA are subject to merits review by the Administrative Appeals Tribunal. Merits review involves the reconsideration of an administrative decision. On the facts before it, the tribunal decides whether the correct decision (or, in a discretionary area, the preferable decision) has been made in accordance with the applicable law. A person who is the subject of a CASA decision may apply directly to the Federal Court for a review of the decision under the Administrative Decisions (Judicial Review) Act In some cases, a decision of the Administrative Appeals Tribunal may be reviewed in the Federal Court. Tables C.6 to C.8 (s ) show Administrative Appeals Tribunal merits reviews of regulatory decisions from to , the categories of CASA decisions appealed to the tribunal in, and applications to Federal Court for judicial review of regulatory decisions from to. Media scrutiny CASA was mentioned in 1,411 media stories during. Of those stories, 45 per cent were in newspapers, 15 per cent were on television and 40 per cent were on radio. A CASA spokesperson or media release was quoted in 60 per cent of stories. Media analysis shows that 90 per cent of stories were neutral in tone towards CASA, while 2 per cent were positive and 8 per cent were negative. CASA published 92 media releases and 12 editions of its newsletter, The CASA Briefing, during the year. The number of subscribers to The CASA Briefing rose to more than 10,000. Complaints Complaints-handling mechanisms The Industry Complaints Commissioner (ICC) offers industry a transparent and accessible mechanism for making complaints about the conduct of CASA officers. The ICC operates within terms of reference that support a complaint-handling process aimed at resolving problems between members of industry and CASA officers and ensuring that any deficiencies in CASA s processes and procedures that are identified are rectified. In addition to the ICC, the Ethics and Conduct Committee reviews serious complaints involving possible contraventions of key CASA policies, including the CASA Code of Conduct, Conflict of Interest and Fraud policies. While the committee often refers matters to others (such as the Head of People and Performance or the ICC) for investigation, it provides an additional, senior level of oversight in relation to more serious matters and ensures that existing processes for managing complaints and contraventions of CASA s policies operate fairly. The ICC has been working with other government aviation complaints handlers Airservices Australia, the Aircraft Noise Ombudsman, the Office of Transport Security and the ATSB to improve access to complaints channels and the experience of complainants. In particular, the members of the group have been collaborating to ensure that, where appropriate, a complainant receives a whole of government response to any issues raised that involve more than one agency. 95 Management arrangements and accountability reporting PART 3

98 96 CASA Annual Report The members of the group recognise the difficulties that members of the aviation community sometimes have in identifying the correct agency to which they should complain. To overcome some of those difficulties, the group has agreed to develop a shared web that directs complainants to the most appropriate agency. In, the group put in place processes and implemented a shared complaint form to facilitate the transfer of complaints between the agencies. In addition, the efficiency and consistency of complaints handling have been improved through the sharing of policy and procedural documentation by the group. Complaints in During, the ICC investigated complaints from 80 complainants about the conduct of CASA officers. In addition, the ICC received 189 complaints about the aviation industry and 18 requests for information. As Figure 8 shows, most of the complaints related to the actions of officers within the Operations and Industry Permissions divisions. Those divisions are the areas in CASA that have the highest levels of interaction with members of the industry. Figure 8 Complaints by division in Safety Analysis, Education and Promotion, 1, 1% Industry Permissions, 34, 43% Office of the Director of Aviation Safety, 8, 10% Airspace and Aerodrome Regulation 1, 1% Operations, 31, 39% Standard Development and Future Technology 5, 6% The ICC took responsibility for the management of a number of complaints from some members of the public who were absorbing a disproportionate amount of the resources of CASA by repeatedly raising the same issue. The strategies employed in these circumstances were consistent with the new policy and guidance material associated with managing unreasonable behaviour from members of the wider aviation community. The policy and procedures are intended to assist officers in managing a range of difficult behaviours, such as unreasonable persistence, unreasonable demands, unreasonable lack of cooperation, unreasonable arguments, and unreasonable behaviour, including aggression and threats of harm.

99 04 stat utory reporting As an Australian Government entity, CASA is accountable to the Minister, the Parliament and the Australian people. This part of the annual report provides information to satisfy statutory reporting requirements. 97 Statutory reporting PART 4 In this part Significant events 98 Decisions by outside bodies 98 Freedom of information 100 Enforcement actions 102 Ecologically sustainable development 103 Purchasing 104 Advertising and market research 104 Consultancy services 104 Insurance and indemnities 104

100 98 CASA Annual Report Significant events under section 15 of the Commonwealth Authorities and Companies Act 1997, CASA must notify the Minister for Infrastructure and Transport of significant events as defined in the Act. A significant event is defined as any proposal to: form a company or participate in the formation of a company participate in a significant partnership, trust, unincorporated joint venture or similar arrangement acquire or dispose of a significant shareholding in a company acquire or dispose of a significant business commence or cease a significant business activity make a significant change in the nature or extent of an interest in a significant partnership, trust, unincorporated joint venture or similar arrangement. CASA experienced no significant events within the meaning of section 15 in. under clause 10 of the Commonwealth Authorities and Companies (Report of Operations) Orders 2008, CASA s annual report must include information on any: significant changes in the authority s state of affairs or principal activities that have occurred during the financial year developments since the end of the financial year, giving particulars of any matter or circumstance that has arisen and has significantly affected or may significantly affect» the authority s operations in future financial years» the results of those operations in future years, or» the authority s state of affairs in future financial years. For, CASA has no changes or developments to report against these requirements. Decisions by outside bodies under clause 11 of the Commonwealth Authorities and Companies (Report of Operations) Orders 2008, CASA must report judicial decisions and decisions of administrative tribunals that have had, or may have, an impact on CASA s operations. In, decisions involving CASA were handed down by the Administrative Appeals Tribunal (AAT) and the Federal Court of Australia. CASA applied to the Federal Court for one prohibition order during the year. Administrative Appeals Tribunal The AAT gave its decision in Avtex Air Services Pty Ltd and Civil Aviation Safety Authority [2011] AATA 61 on 4 February This matter was the first AAT review of a decision made by CASA under the serious and imminent risk provisions contained in section 30DI of the Civil Aviation Act On 23 July 2010, CASA suspended Air Operator s Certificates (AOCs) each held by Avtex Air Services Pty ltd (Avtex) and Skymaster Air Services Pty ltd, under section 30DC of the Civil Aviation Act, on the basis that both companies had engaged in, were engaging in, or were likely to engage in, conduct which constituted, contributed to or resulted in a serious and imminent risk to air safety. On 20 August 2010, CASA cancelled the AOCs of both companies under section 30DI of the Act. Avtex immediately applied to the AAT for a review of CASA s decision, and, in the interim, sought a stay of the decision

101 pending determination by the AAT of its review application. The stay application was refused following a hearing held on 27 August The hearing of Avtex s substantive application was conducted over 16 hearing days in September, October and November The AAT made a decision on 4 February 2011, affirming CASA s decision to cancel Avtex s AOC. The tribunal was satisfied that multiple serious deficiencies in Avtex s systems and procedures and many serious documented failures by the company, its senior management and key personnel to conduct its activities in compliance with the requirements of the aviation legislation gave rise to a serious and imminent risk to air safety which required the cancellation of the AOC. Federal Court The Hon Justice Shane Marshall of the Federal Court gave his decision in Jones v Civil Aviation Safety Authority and Anor [2011] FCA 632 on 6 June This case involved the first judicial challenge to a warrant issued to a CASA investigator pursuant to Part IIIA of the Civil Aviation Act. On 1 March 2011, a CASA investigator obtained a warrant under section 32AF of the Act from a Magistrate in Melbourne, authorising the inspector to enter the offices of lawyers acting for the company that produced the Channel 10 television series Keeping up with the Joneses, featuring the applicant, Mr Milton Stanley Knight Jones, and his family. The warrant authorised the investigator to seize DVDs containing raw footage shot during the production of the television series, which the investigator suspected may depict Mr Jones committing offences against the aviation legislation. On the same day, Mr Jones commenced proceedings in the Federal Court under section 39B of the Judiciary Act 1903, seeking to have the warrant set aside, ultimately on the basis that the sworn material put before the Magistrate by the CASA investigator was not sufficient to enable the Magistrate to be satisfied (as required under section 32AF of the Civil Aviation Act) that there were reasonable grounds for suspecting that the material specified in the warrant may afford evidence of the commission of an offence against the aviation legislation. Mr Jones s application was heard on 27 May On 6 June 2011, Justice Marshall handed down a judgment in which he dismissed Mr Jones s application and found that the material put before the Magistrate by the CASA investigator was sufficient to allow the Magistrate to form the satisfaction required under section 32AF. This matter is now on appeal to the Full Federal Court. In accordance with the Civil Aviation Act, CASA may suspend a civil aviation authorisation where there is a serious and imminent safety risk. Such suspensions cease after five business days unless CASA applies to the Federal Court for a prohibition order before the expiry of the five-day period. CASA made one application to the Federal Court for a prohibition order during. On 3 August 2010, the Federal Court made an order prohibiting Avtex Air Services Pty ltd and Skymaster Air Services Pty ltd from doing anything authorised by the Air Operator s Certificates each of them held. Coronial inquiries Coroners have the authority to investigate deaths, identify other injuries and make recommendations which may prevent deaths and non-fatal injuries. Coroners findings vary from brief descriptions about the place of death, the identity of the deceased and the cause of death, through to detailed descriptions of the circumstances leading to death and detailed recommendations concerning what could be done to prevent similar deaths and injuries. Such recommendations may deal with the administration of aviation safety by CASA. Table D.4 ( 173) shows the number of coronial inquiries that involved CASA in each year from to. 99 Statutory reporting PART 4

102 100 CASA Annual Report Freedom of information Prior to May 2011, the Freedom of Information Act 1982 (FOI Act) required Australian Government agencies to publish in their annual reports certain information prescribed in section 8 of the Act. under changes to the FOI Act that took effect from 1 May 2011, agencies subject to the Act are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. An agency plan showing what information is published in accordance with the IPS requirements is accessible from CASA s website. Section 8 statement As part of the establishment of the IPS, section 8 of the FOI Act was amended with effect from 1 May The following is CASA s section 8 statement relevant to the period from 1 July 2010 to 1 May Particulars of the organisation The functions and decision-making powers of CASA are set out in Part II of the Civil Aviation Act. A summary of CASA s role, organisation, vision and values is provided on 4 of this annual report. Details of how CASA performed its functions in are provided throughout the report, particularly in Part 2. Other organisational information about CASA, including its structure and corporate governance arrangements, is set out in Part 3. Arrangements for participation CASA seeks and highly values consultation and communication with the aviation industry and the wider aviation community, in Australia and overseas. The External engagement section in Part 4 of the annual report describes the mechanisms that enabled persons and bodies outside CASA to participate in CASA s work in. Freedom of information procedures and contact point under section 15 of the FOI Act, any person is entitled to apply for access to documents that fall within the scope of the Act. A request under the FOI Act should be in writing. For a quick response, the applicant should give as much information as possible about the documents sought. It is advisable also to include a telephone number in case clarification is necessary. Facilities for the inspection of documents, and preparation of copies if required, are provided or arranged by CASA s Freedom of Information Coordinator. The coordinator can help applicants to identify particular documents being sought. Requests under the FOI Act for access to documents in CASA s possession, or enquiries about access, should be directed to: Freedom of Information Coordinator legal Services Division Civil Aviation Safety Authority GPO Box 2005 Canberra ACT 2601 Phone: (local call) Fax: [email protected]

103 Categories of documents The categories of documents (including internal administration papers and records, working drafts, statistical records, and copies of s, telexes, cables and faxes) that CASA holds comprise: human and financial resource management records ministerial, interagency and general correspondence and papers policy documents, including recommendations and decisions, media releases and position papers papers relating to new and amended legislation, drafting instructions and draft legislation reports prepared for the Director of Aviation Safety and CASA Board papers and records relating to» certification, registration, manufacture, maintenance and operation of aircraft» licensing of flight crew and maintenance personnel, and certification of air service operators, maintenance organisations and other organisations involved in aviation activities» licensing, maintenance and operation of aerodromes» development of aviation safety standards» aviation safety education documents relating to aviation industry surveillance. In accordance with section 9 of the FOI Act, CASA maintains a list of manuals and other documents that CASA officers use as a guide to the procedures and practices to be followed when making decisions or recommendations that affect the public. Many of these materials are publicly available. Many CASA publications can be accessed electronically via the CASA website. Documents available in hard copy can be purchased from the CASA online store on the website. For further information about CASA documents, contact: Document Control Officer Civil Aviation Safety Authority GPO Box 2005 Canberra ACT 2601 Phone: (local call) [email protected] Freedom of information requests during the year CASA received 66 new requests for access to documents under the FOI Act in. Tables D.1 to D.3 (s ) show details of freedom of information requests, the time taken to make decisions on freedom of information matters, and internal reviews of CASA freedom of information decisions, from to. Administrative review of freedom of information decisions In, the AAT reviewed two decisions made by CASA under the FOI Act. 101 Statutory reporting PART 4

104 102 CASA Annual Report Vasta and Anor and Civil Aviation Safety Authority [2010] AATA 499 Mr Michael McKinnon and Mr Wayne Vasta sought review of CASA s decisions not to release documents related to the maintenance of aircraft operated by Qantas Airways ltd (Qantas) and Australian aircraft overseas and CASA s audits of Qantas and certain overseas organisations carrying out such maintenance. On 6 July 2010, the AAT made a decision that: some of the documents were not exempt from disclosure some of the documents were exempt from disclosure the issue of whether CASA had disclosed all documents in response to Mr McKinnon s request was remitted to CASA for re-consideration. Snell and Civil Aviation Safety Authority [2010] AATA 984 Mr lindsay Snell sought review of two decisions of CASA not to release documents and to release edited versions of other documents related to a complaint made about him and an investigation of that complaint by CASA. On 8 December 2010, the AAT made a decision that: access be granted to two documents only parts of one document were exempt CASA s decisions under review were otherwise affirmed. Enforcement actions CASA s coordinated enforcement process may result in a variety of compliance-related and enforcement actions, including criminal proceedings or an administrative response to breaches of the aviation legislation, or a mixture of both. Such actions may include the issuing of aviation infringement notices or referral of matters to the Commonwealth Director of Public Prosecutions. They may also include administrative action where a civil aviation authorisation, or some other form of licence or permission, is cancelled, varied or suspended (including a suspension under section 30DC of the Civil Aviation Act where there is a serious and imminent risk to safety, or under the Civil Aviation Regulations and Civil Aviation Safety Regulations while an examination is undertaken). CASA may also accept Enforceable Voluntary undertakings (EVus) from, or counsel, individuals or companies in breach of the aviation legislation. In, CASA entered into one EVu with the holder of a civil aviation authorisation. Tables D.5 to D.7 (s ) show medical certificate action, licence and certificate action and infringement notices and prosecutions from to.

105 Ecologically sustainable development As a Commonwealth agency, CASA reports on its environmental performance as required by the Environment Protection and Biodiversity Act Principles of ecologically sustainable development CASA has developed an environmental management system (EMS) consistent with Australian/New Zealand Standard AS/NZS ISO 14001:2004. The EMS is a tool designed to improve the organisation s environmental performance and reduce the environmental impact of CASA s operations. The EMS documentation and structure that CASA has put in place provide a sound framework for environmental management. CASA s Environmental Management Policy is a key element of the EMS. The policy formalises CASA s commitment to environmental protection and provides a framework for achieving continuous improvement in environmental performance. During, CASA issued a revised Environmental Management Policy and Manual. Measures taken to minimise the impact of activities on the environment CASA continues to strive to achieve best practice environmental standards in office management and general operations. Strategies and projects are being implemented to reduce the environmental impact of CASA s operations. Objectives, targets and action plans are set out clearly and responsibilities and timeframes have been established. Each year, CASA reviews its environmental performance and updates its environmental action plans accordingly. Achievements during included: the release of the revised policy and manual, and an energy management plan the establishment of environmental management committees in the major offices in Canberra and Brisbane improved results in reducing the waste directed to landfill out of the major tenancy at Aviation House in Canberra, and Australian Capital Territory Government accreditation of the waste collection system at Aviation House reductions in the proliferation of printers and other electrical equipment, as part of a refit of the offices, in Aviation House the sale of the workstation screens and loose furniture made obsolete by the refit of Aviation House to a buyer who was able to refurbish the items and install them into new fit-outs elsewhere. In, CASA was not involved in any actions likely to have a significant impact on matters of national environmental significance on Commonwealth land. 103 Statutory reporting PART 4

106 104 CASA Annual Report Purchasing CASA s procurement framework is consistent with the Commonwealth Procurement Guidelines and reflects the core principle governing Australian Government procurement: value for money. CASA applies the guidelines to its activities through a policy notice by the Director of Aviation Safety and supporting operational procedures. CASA s procurement policies help to ensure that the agency undertakes competitive, nondiscriminatory procurement processes; uses its resources efficiently, effectively and ethically; and makes decisions in an accountable and transparent manner. CASA has standard tendering and contracting documentation to ensure that consistent procurement practices are employed across the agency. As part of those arrangements, CASA has standard access clauses included in tender documents and in contracts that provide CASA and the Auditor-General with access to the contractor s premises. Advertising and market research In accordance with amendments to the Commonwealth Electoral Act 1918, all Australian Government departments and authorities are required to set out, in their annual reports, details of amounts paid by or on behalf of them during the year to advertising agencies, market research organisations, media advertising organisations and direct mail organisations. The amounts CASA paid during are detailed in Tables D.8 to D.10 (s ). Consultancy services All consultant costs for are detailed in Table D.12 ( 176). CASA s legal costs are detailed in Table D.11 ( 175). Insurance and indemnities The following information about CASA s Commonwealth and commercial indemnities and insurance is provided in accordance with clause 16 of the Commonwealth Authorities and Companies (Report of Operations) Orders The Commonwealth indemnified CASA in relation to liabilities associated with acts or omissions that occurred before the expiry of two deeds of indemnity in July and August Since then, commercial insurance has been arranged to cover those risks. In CASA held aviation and general liability, professional indemnity, directors and officers liability, and a range of other corporate insurance. Aviation and general liability Aviation and general liability insurance provides coverage for injuries caused to third parties or to the property of third parties as a result of negligence arising out of the performance of CASA s functions under the Civil Aviation Act, the Civil Aviation (Carriers Liability) Act 1959 and other applicable legislation. Professional indemnity CASA s professional indemnity insurance covers claims arising from breaches of duty by a CASA officer. Directors and officers liability In, CASA held insurance protecting directors and officers from liability for the consequences of wrongful acts as defined in the policy.

107 05 L financia statements This part of the annual report provides the entirety of CASA s financial statements, audit opinion and explanatory notes for. The Australian National Audit Office has performed an independent audit of, and expressed an unqualified opinion on, the financial statements. In this part Independent auditor s report 107 Statement by the Chair of the Board, Director of Aviation Safety and Chief Financial Officer 109 Statement of comprehensive income 110 Balance sheet 111 Statement of changes in equity 112 Cash flow statement 113 Schedule of commitments 114 Schedule of contingencies 116 Schedule of asset additions 117 Notes to and forming part of the financial statements 118

108 106 CASA Annual Report

109 107 Financial statements PART 5

110 108 CASA Annual Report

111 109 Financial statements PART 5

112 CIVIL AVIATION SAFETY AUTHORITY STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June CASA Annual Report Notes EXPENSES Employee benefits 3A 93,359 85,008 Suppliers 3B 59,028 55,194 Depreciation and amortisation 3C 10,950 10,329 Finance costs 3D Write-down and impairment of assets 3E 1,032 2,146 Net loss from disposal of assets 3F Other expenses 3G 3,200 - TOTAL EXPENSES 167, ,906 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 4A 14,059 18,302 Interest 4B 3,329 2,401 Other revenues 4C Total own-source revenue 18,236 21,566 TOTAL OWN-SOURCE INCOME 18,236 21,566 NET COST OF SERVICES (149,391) (131,340) Revenue from Government 4D 42,779 50,125 Aviation fuel excise 4E 105,383 79,406 SURPLUS / (DEFICIT) ATTRIBUTABLE TO THE AUSTRALIAN GOVERNMENT (1,229) (1,809) OTHER COMPREHENSIVE INCOME Changes in asset revaluation reserves (1,045) 3,048 TOTAL OTHER COMPREHENSIVE INCOME (1,045) 3,048 TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE AUSTRALIAN GOVERNMENT (2,274) 1,239 The above statement should be read in conjunction with the accompanying notes.

113 CIVIL AVIATION SAFETY AUTHORITY BALANCE SHEET as at 30 June 2011 Notes ASSETS Financial assets Cash and cash equivalents 5A 63,539 57,505 Trade and other receivables 5B 11,567 1,767 Accrued revenue 5C 1,463 1,014 Total financial assets 76,569 60,286 Non-financial assets Buildings 6A,D 1,530 1,593 Property, plant and equipment 6B,D 20,700 20,815 Intangibles 6C,E 20,951 21,364 Inventories 6F Other non-financial assets 6G 1,454 1,411 Total non-financial assets 44,756 45, Financial statements PART 5 TOTAL ASSETS 121, ,640 LIABILITIES Payables Suppliers 7A 14,006 10,154 Other payables 7B 9,837 9,285 Total payables 23,843 19,439 Provisions Employee provisions 8A 22,477 22,099 Other provisions 8B 14,403 1,226 Total provisions 36,880 23,325 TOTAL LIABILITIES 60,723 42,764 NET ASSETS 60,602 62,876 EQUITY Contributed equity 3,295 3,295 Asset revaluation reserve 5,819 6,864 Retained surplus 51,488 52,717 TOTAL EQUITY 60,602 62,876 The above statement should be read in conjunction with the accompanying notes.

114 CIVIL AVIATION SAFETY AUTHORITY STATEMENT OF CHANGES IN EQUITY as at 30 June CASA Annual Report Retained Earnings Asset Revaluation Reserve Contributed Equity / Capital Total Equity Balance carried forward from previous period 52,717 54,526 6,864 3,816 3,295 3,195 62,876 61,537 Opening Balance 52,717 54,526 6,864 3,816 3,295 3,195 62,876 61,537 Comprehensive income Other comprehensive income - - (1,045) 3, (1,045) 3,048 Surplus (Deficit) for the period (1,229) (1,809) (1,229) (1,809) Total comprehensive income (1,229) (1,809) (1,045) 3, (2,274) 1,239 Contributions by Owners Appropriation (equity injection) Transactions with Owners Closing balance attributable to the Australian Government 51,488 52,717 5,819 6,864 3,295 3,295 60,602 62,876 The above statement should be read in conjunction with the accompanying notes.

115 CIVIL AVIATION SAFETY AUTHORITY CASH FLOW STATEMENT as at 30 June Notes OPERATING ACTIVITIES Cash received Receipts from Government 42,779 50,125 Aviation fuel excise 104,975 80,666 Sale of goods and rendering of services 15,431 19,280 Interest 3,288 2,277 Net GST received from ATO 6,237 4,834 Total cash received 172, ,182 Cash used Employees (91,964) (81,675) Suppliers (67,654) (58,951) Total cash used (159,618) (140,626) Net cash from (used by) operating activities 9 13,092 16, Financial statements PART 5 INVESTING ACTIVITIES Cash received Proceeds from sale of property, plant and equipment Total cash received Cash used Purchase of property, plant and equipment and intangibles (7,086) (7,220) Total cash used (7,086) (7,220) Net cash from (used by) investing activities (7,058) (7,177) FINANCING ACTIVITIES Cash received Contributed equity Total cash received Net cash from (used by) financing activities Net increase / (decrease) in cash held 6,034 9,479 Cash and cash equivalents at the beginning of the reporting period 57,505 48,026 Cash and cash equivalents at the end of the reporting period 9 63,539 57,505 The above statement should be read in conjunction with the accompanying notes.

116 CIVIL AVIATION SAFETY AUTHORITY SCHEDULE OF COMMITMENTS as at 30 June CASA Annual Report BY TYPE Commitments receivable Sublease rental income Net GST recoverable on commitments 8,019 8,368 Total commitments receivable 8,552 8,770 Capital commitments payable Property, plant and equipment Intangibles ,733 Total capital commitments 953 1,970 Other commitments payable Operating leases 4 74,759 72,005 Other commitments 5 13,032 18,071 Total other commitments payable 87,791 90,076 Net commitments by type 80,192 83,276 BY MATURITY Commitments receivable One year or less 2,003 2,156 From one to five years 3,448 4,039 Over five years 3,101 2,575 Total commitments receivable 8,552 8,770 Capital commitments payable One year or less From one to five years Over five years - - Total capital commitments payable 953 1,970 Operating lease commitments payable One year or less 9,190 8,167 From one to five years 31,462 35,515 Over five years 34,107 28,323 Total operating lease commitments payable 74,759 72,005 Other commitments payable One year or less 10,295 13,681 From one to five years 2,737 4,390 Over five years - - Total other commitments payable 13,032 18,071 Net commitments by maturity 80,192 83,276 The above schedule should be read in conjunction with the accompanying notes.

117 CIVIL AVIATION SAFETY AUTHORITY SCHEDULE OF COMMITMENTS as at 30 June 2011 Note: Commitments are GST inclusive where relevant. 1 This represents the sub-lease rental income on a CASA leased premise. 2 Property, plant and equipment commitments mainly represents outstanding payments for fitout under construction. 3 As at 30 June 2011, intangible commitments comprise contracts for the acquisition and configuration of software for new business processes and systems Operating leases included are effectively non-cancellable and comprise: Nature of Lease Lease for office accommodation Lease of motor vehicles 5 As at 30 June 2011, other commitments primarily comprise contracts for services. General Description of Leasing Arrangements Lease payments may be subject to annual increase with upward movements in Consumer Price Index and/or market review. The initial period of office accommodation leases (majority) are still current and each may be renewed for anywhere up to 10 years at CASA s, or the landlord s option, following a once-off adjustment of rentals to current market levels. Leases are for motor vehicles for general employee usage in carrying out work duties. There are no purchase options available to CASA for these vehicles. Financial statements PART 5

118 CIVIL AVIATION SAFETY AUTHORITY SCHEDULE OF CONTINGENCIES as at 30 June CASA Annual Report Contingent assets Guarantees - - Total contingent assets - - Contingent liabilities Guarantees - - Total contingent liabilities - - Net contingent assets (liabilities) - - Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 10: Contingent assets and liabilities.

119 CIVIL AVIATION SAFETY AUTHORITY SCHEDULE OF ASSET ADDITIONS For the year ended 30 June 2011 The following non-financial non-current assets were added in : Buildings Other property, plant and equipment Intangibles Total By purchase - Government funding - 5,601 6,881 12,482 Total additions - 5,601 6,881 12,482 The following non-financial non-current assets were added in : Buildings Other property, plant and equipment Intangibles Total By purchase - Government funding - 4,649 2,995 7,644 Total additions - 4,649 2,995 7, Financial statements PART 5

120 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Note 1: Note 2: Note 3: Note 4: Summary of significant accounting policies Events after the reporting period Expenses Own-source income CASA Annual Report Note 5: Note 6: Note 7: Note 8: Note 9: Note 10: Note 11: Financial assets Non-financial assets Payables Provisions Cash flow reconciliation Contingent assets and liabilities Directors remuneration Note 12: Note 13: Note 14: Note 15: Note 16: Note 17: Related party disclosures Senior executive remuneration Remuneration of auditors Financial instruments Compensation and debt relief Reporting of outcomes

121 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 1: Summary of significant accounting policies 1.1 Objective of the Civil Aviation Safety Authority (CASA) CASA is an Australian Government controlled entity. The objective of CASA is to enhance and promote aviation safety through effective safety regulation and by encouraging industry to deliver high standards of safety. CASA is structured to meet a sole outcome, Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training. The continued existence of the Civil Aviation Safety Authority (CASA), in its present form and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for CASA s administration and program. 1.2 Basis of Preparation of the Financial Statements The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are general purpose financial statements. 119 Financial statements PART 5 The financial statements have been prepared in accordance with: Finance Minister s Orders (FMOs) for reporting periods ending on or after 1 July 2010; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements have been presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Schedule of Contingencies. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

122 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Significant Accounting Judgements and Estimates In the process of applying the accounting policies listed in this note, CASA has made the following judgements that have the most significant impact on the amounts recorded in the financial statements: 120 CASA Annual Report The fair value of buildings has been taken to be the market value of similar properties as determined by an independent valuer. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period. 1.4 New Australian Accounting Standards Adoption of new Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards, revised standards, interpretations and amending standards, were issued prior to the signing of the Statement by the Chairman of the Board, Director of Aviation Safety and Chief Financial Officer. These were applicable to the current reporting period but had no financial impact on CASA: AASB 117 Leases, AASB Leases and amendments to Australian Accounting Standards arising from the Annual Improvements Project No longer a presumption that the lease of land (including land under buildings) is an operating lease. Land components will be subject to the same risk and rewards approach as any other leased asset. It is possible that long term land leases may have to be reclassified as finance leases. These changes have been considered in the preparation of CASA s financial statements. Other new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the Statement by the Chairman of the Board, Director of Aviation Safety and Chief Financial Officer, and are applicable to the current reporting period did not have a financial impact, and are not expected to have a material future financial impact on CASA. Future Australian Accounting Standard requirements The following new standards, revised standards, interpretations and amending standards were issued by the Australian Accounting Standards Board prior to the signing of the Statement by the Chairman of the Board, Director of Aviation Safety and Chief Financial Officer, which are expected to have a financial impact on the Authority for future reporting periods: Interpretation 14 - AASB 119 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, AASB Amendments to Australian Interpretation -Prepayments of a Minimum Funding Requirements. Entities can now recognise an asset for future year contributions prepaid under a minimum funding requirement.

123 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 AASB 7 Financial Instruments: Disclosures, AASB Futher Amendments to Australian Accounting Standards Arising from the Annual Improvements Project and AASB Futher Amendments to Australian Accounting Standards - Disclosures on Transfers of Financial Assets propose a number of changes in disclosure requirements. AASB 9 Financial Instruments, AASB Amendments to Australian Accounting Standards arising from AASB 9 and AASB Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) proposes to replace AASB 139 Financial Instruments; Recognition and Measurement. AASB 1053 Application of Tiers of Australian Accounting Standards implements a two-tiered reporting framework for general purpose financial reporting by Australian reporting entities. Entities including all government-controlled entities, may report in accordance with Tier 1 or Tier 2, where permitted by their respective regulators. Other new standards, revised standards, interpretations and amending standards that were issued prior to the signing of the Statement by the Chairman of the Board, Director of Aviation Safety and Chief Financial Officer and are applicable to the future reporting period are not expected to have a future financial impact on CASA. 1.5 Revenue Revenue from the sale of goods and rendering of services Revenue from the sale of goods is recognised when: 121 Financial statements PART 5 The risks and rewards of ownership have been transferred to the buyer; The Authority retains no managerial involvement or effective control over the goods; The revenue and transaction costs incurred can be reliably measured; and It is probable that the economic benefits associated with the transaction will flow to the Authority. Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when: The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and The probable economic benefits associated with the transaction will flow to the Authority. The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is continually reviewed. Allowances are made when collectability of the debt is no longer probable. Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

124 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Revenues from Government Funding received or receivable from agencies (appropriated to the agency as a CAC Act body payment item for payment to CASA) is recognised as Revenue from Government unless they are in the nature of an equity injection or a loan. 122 CASA Annual Report Parental Leave Payments Scheme Amount received under the Parental Leave Payments Scheme by the Authority not yet paid to employees were presented gross as cash and a liability (payable). 1.6 Gains Sale of Assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 1.7 Transactions with the Government as Owner Equity injections Amounts that are designated as equity injections for a year are recognised directly in contributed equity in that year. Other distributions to owners The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. 1.8 Employee Benefits Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of CASA is estimated to be less than the annual entitlement for sick leave.

125 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 The leave liabilities are calculated on the basis of employees remuneration at the estimated salary rates that will be applied at the time the leave is taken. An ancillary on-cost liability, based on actuarial assessment, has been recognised in the balance sheet for employer superannuation contributions payable on accrued annual leave and long service leave as at the end of the financial year. Employer superannuation contributions are payable on leave benefits that are taken during service, but are not payable on leave benefits paid out on termination. The liability for long service leave as at 30 June 2011 has been determined by reference to the work of an actuary. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and Redundancy Provision is made for separation and redundancy benefit payments. CASA recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. Superannuation The Public Sector Superannuation Accumulation Plan (PSSap) is the CASA nominated employee default fund for persons employed under the Civil Aviation Act Some CASA staff remain eligible to be members of closed Commonwealth defined benefits schemes. The schemes are the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) and the AvSuper defined benefits scheme. 123 Financial statements PART 5 The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. AvSuper provides for both defined benefits and defined contributions. The liability for the CSS, PSS and AvSuper defined benefits is recognised in the financial statements of the Australian Government and are settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation, as an administered item. CASA makes employer contributions to the employees superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. CASA accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. 1.9 Leases A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

126 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. 124 CASA Annual Report The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. CASA did not have any finance leases during the current or immediately preceding financial year. Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets Borrowing Costs All borrowing costs are expensed as incurred Cash Cash and cash equivalents includes cash on hand and demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amounts Financial assets CASA classifies its financial assets into the following categories: held-to-maturity investments; and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

127 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that CASA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis. Held-to-maturity investments comprise term deposits and bills of exchange held with an approved bank. Held-to-maturity investments are initially recognised at fair value and are subsequently measured at amortised cost. Loans and Receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate. Loans and receivables primarily comprise receivables for goods and services and accrued revenue. Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost. Loans and receivables are non-interest bearing and their fair values approximate their carrying values. 125 Financial statements PART 5 Impairment of Financial Assets Financial assets held at amortised cost are assessed for impairment at each balance date. If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the asset s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income Financial Liabilities CASA classifies its financial liabilities as other financial liabilities and does not recognise any financial liabilities at fair value through profit or loss, that are subsequently measured at fair value. Financial liabilities are recognised and derecognised upon trade date. Other Financial Liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

128 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. 126 Other financial liabilities incorporate finance leases for certain information technology equipment. These are recognised at the amounts at which they expect to be settled. CASA Annual Report Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Supplier and other payables represent trade creditors and accruals and are recognised at the amounts at which they expect to be settled. Supplier and other payables are non-interest bearing and their fair values approximate their carrying values Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote Acquisition of assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor entity s accounts immediately prior to the restructuring.

129 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Inventories Inventories held for sale are valued at the lower of cost and net realisable value. Inventories held for distribution are valued at cost, adjusted for any loss of service potential. Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows: raw materials and stores - purchase cost on a weighted average cost basis; and finished goods and work-in-progress - weighted average cost of direct materials and labour plus attributable costs that are capable of being allocated on a reasonable basis. Inventories acquired at no cost or nominal consideration are initially measured at replacement cost at the date of acquisition Property, Plant and Equipment Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). 127 Financial statements PART 5 The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to makegood provisions in property leases taken up by CASA where there exists an obligation to restore the property to its original condition. These costs are included in the value of CASA s leasehold improvements with a corresponding provision for the makegood recognised. Revaluations Fair values for each class of asset are determined as shown below: Asset Class Fair value measured at: Buildings Market selling price * Leasehold improvements Depreciated replacement cost Other property, plant and equipment Market selling price or depreciated replacement cost * In the absence of market based evidence, depreciated replacement cost is used. Following initial recognition at cost, property plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted annually to ensure that the carrying amounts of assets do not differ materially from the assets fair values as at the reporting date.

130 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to CASA, using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: Asset Class Buildings Life of tenancy Life of tenancy Leasehold improvements The lower of lease term or useful life The lower of lease term or useful life Other property, plant and equipment 1 to 25 years 1 to 25 years Impairment All assets were assessed for impairment at 30 June Where indications of impairment exist, the asset s recoverable amount is estimated and an impairment adjustment is made if the asset s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset s ability to generate future cash flows, and the asset would be replaced if CASA were deprived of the asset, its value in use is taken to be its depreciated replacement cost. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

131 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Intangibles CASA s intangibles comprise internally developed software and externally acquired software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of CASA s software are 3 to 10 years ( : 3 to 10 years). 129 All software assets were assessed for indications of impairment as at 30 June Provisions The Authority recognises a provision where there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation Taxation CASA is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST). Financial statements PART 5 Revenues, expenses and assets are recognised net of GST, except: where the amount of GST incurred is not recoverable from the Australian Taxation Office; and for receivables and payables Insurance CASA has insured for risks through the Government s insurable risk managed fund, called Comcover. Workers compensation is insured through Comcare Australia. Note 2: Events after the reporting period On 24 August 2011 the Queensland Supreme Court heard an application for CASA to be joined to proceedings concerning a claim for damages as a result of an aircraft accident in August The case is in an early stage and it is not yet possible to estimate CASA s potential liability in relation to this claim. No other events have occurred after the reporting period that require disclosure in the financial statements.

132 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 3: Expenses Note 3A: Employee benefits Wages and salaries 72,931 64,795 Superannuation: Defined contribution plans 4,460 3,848 Defined benefit plans 7,257 6,249 Leave and other entitlements 7,679 8,711 Separation and redundancies Other employee benefits Total employee benefits 93,359 85,008 Note 3B: Suppliers Goods and services Consultancies and service contracts 15,793 14,232 Information technology and telephone charges 8,852 9,080 Travel and transport 8,848 8,128 Administrative 5,525 5,823 Training costs 5,146 3,540 Other goods and services 6,293 6,050 Total goods and services 50,457 46,853 Goods and services are made up of: Provision of goods - external parties 3,940 3,704 Rendering of services - related entities 4,888 2,878 Rendering of services - external parties 41,629 40,271 Total goods and services 50,457 46,853 Other supplier expenses Operating lease rentals - external parties: Minimum lease payments 8,053 7,695 Workers compensation premiums Total other supplier expenses 8,571 8,341 Total suppliers 59,028 55,194

133 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Note 3C: Depreciation and amortisation Depreciation: Property, plant and equipment 4,652 3,890 Buildings Total depreciation 4,744 3,980 Amortisation: Intangibles - Computer software 6,206 6,349 Total amortisation 6,206 6,349 Total depreciation and amortisation 10,950 10,329 Note 3D: Finance costs Unwinding of discounts Total finance costs Financial statements PART 5 Note 3E: Write-down and impairment of assets Financial assets: Bad and doubtful debts 3 20 Non-financial assets: Property, plant and equipment revaluation (increment) / decrement * (96) 102 Property, plant, equipment, intangibles and inventories - write-down and impairment of intangible assets 1,125 2,024 Total write-down and impairment of assets 1,032 2,146 * The revaluation increment in comprises increments associated with revaluation of existing assets, makegood and recognition of assets at fair value on acquisition. Note 3F: Net loss from disposal of assets Property, plant and equipment: Proceeds from sale (28) (43) Carrying value of assets sold Selling expenses 8 1 Total net loss from disposal of assets Note 3G: Other expenses Uninsured expense claims 3,200 - Total other expenses 3,200 -

134 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 4: Own-source income Own-source revenue Note 4A: Sale of goods and rendering of services Civil Aviation (Fees) Regulations ,378 13,326 Rendering of services - related parties 681 4,976 Total sale of goods and rendering of services 14,059 18,302 Note 4B: Interest Cash at bank and deposits at call Investments - bank bills and term deposits 3,183 2,278 Total interest 3,329 2,401 Note 4C: Other revenues Sale of forms and documents Advertising in Flight Safety Magazine Administrative fines Property rent Reimbursement of property services Other sundry revenue Total other revenues Revenue from Government Note 4D: Revenue from Government Department of Infrastructure and Transport: CAC Act body payment item 42,779 50,125 Total revenue from Government 42,779 50,125 Note 4E: Aviation fuel excise Department of Infrastructure and Transport: CAC Act body payment item Aviation Fuel Revenues (Special Appropriation) Act ,383 79,406 Total aviation fuel excise 105,383 79,406

135 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Note 5: Financial assets Note 5A: Cash and cash equivalents Cash on hand 6 8 Deposits at call 7,533 4,997 Term deposits - investments under s18 of the CAC Act 56,000 52,500 Total cash and cash equivalents 63,539 57,505 Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues. Temporary surplus funds, mainly from fortnightly draw downs of appropriation and aviation fuel excise claims are placed on deposit at call with CASA s banker. Interest is earned on the daily balance at the prevailing rate for cash at bank and money on call and is paid at the beginning of the following month. Note 5B: Trade and other receivables Goods and services: Goods and services - external parties Goods and services - related entities 1 10, Total goods and services 10, Financial statements PART 5 Other receivables: Net GST receivable from the Australian Taxation Office 804 1,257 Total other receivables 804 1,257 Total trade and other receivables (gross) 11,591 1,900 Less: impairment allowance account (goods and services) (24) (133) Total trade and other receivables (net) 11,567 1,767 All receivables are current assets.

136 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Receivables are aged as follows: Not overdue 11,511 1,727 Overdue by: 0 to 30 days to 60 days to 90 days 5 3 More than 90 days Total receivables (gross) 11,591 1,900 The impairment allowance account is aged as follows: Not overdue 0 0 Overdue by: 0 to 30 days to 60 days to 90 days 0 (3) More than 90 days (24) (130) Total impairment allowance account (24) (133) 1 Receivables for Goods & Services Credit terms are up front payment prior to service delivery or due within 28 days of invoice date. Reconciliation of the impairment allowance account (goods and services) Opening balance (133) (114) Amounts written off Amounts recovered and reversed - - Increase / decrease recognised in net surplus (4) (20) Closing balance (24) (133)

137 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 6: Non-financial assets Note 6A: Buildings Buildings at fair value 1,530 1,593 Accumulated depreciation - - Total buildings 1,530 1,593 As at the reporting date, no indicators of impairment were found for buildings. No buildings are expected to be sold or disposed of within the next 12 months Note 5C: Accrued revenue Accrued appropriation revenue 1, Accrued interest Miscellaneous Total accrued revenue 1,463 1, Financial statements PART 5 Note 6B: Property, plant and equipment Technical equipment gross carrying value (at fair value) 3,274 3,938 Technical equipment gross carrying value (work-in-progress) Accumulated depreciation (4) (53) Total technical equipment 3,270 4,041 Office furniture and equipment gross carrying value (at fair value) 2,737 1,885 Accumulated depreciation (96) (9) Total office furniture and equipment 2,641 1,876 Office fitout at fair value 15,516 14,019 Office fitout work in progress 41 1,225 Accumulated depreciation (768) (346) Total office fitout 14,789 14,898 Total property, plant and equipment (non-current) 20,700 20,815

138 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 All revaluations are conducted in accordance with the revaluation policy stated in Note 1 and were conducted by an independent valuer. 136 CASA Annual Report Revaluation increment of $30,023 for buildings (2010: increment of $46,303), revaluation increment of $22,187 for technical equipment (2010: decrement of $17,571), and a revaluation decrement of $1,097,521 for office fit-out (2010: increment of $3,993,193), were debited / credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet. Revaluation increment of $62,647 (2010: decrement of $55,109) for office equipment and revaluation increment of $28,906 (2010:decrement of $28,906) for technical equipment were recognised in the Statement of Comprehensive Income. As at 30 June 2010, a number of workstations reported within office fitout were found to be impaired due to their failure to meet the new space guidelines and accommodate additional workstations for new resources. This has resulted in an impairment loss of $973,723 being recognised in other comprehensive income against the revaluation surplus for office fitout. No other indicators of impairment were found for infrastructure, plant and equipment. Property, plant and equipment expected to be sold or disposed of within the next 12 months includes some items of equipment and furniture resulting from office refits and asset replacement Note 6C: Intangibles Computer software at cost: Internally developed - work in progress (non-current) Internally developed - in use (non-current) 33,140 32,696 Accumulated amortisation (23,344) (19,217) Total internally developed computer software 10,310 14,422 Purchased - work in progress (non-current) 5,602 2,053 Purchased - in use (non-current) 9,904 7,675 Accumulated amortisation (4,865) (2,786) Total purchased computer software 10,641 6,942 Total intangibles (non-current) 20,951 21,364 As at the reporting date, no indicators of impairment were found for intangibles. No intangibles are expected to be sold or disposed of within the next 12 months.

139 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 6D: Analysis of Property, Plant and Equipment (as at 30 June 2011) TABLE A - Reconciliation of the opening and closing balances of property, plant and equipment Item Buildings Other Infrastructure, plant and equipment TOTAL As at 1 July 2010 Gross book value 1,593 21,223 22,816 Accumulated depreciation/amortisation - (408) (408) Net Book Value 1 July ,593 20,815 22,408 Additions: By purchase - 5,601 5,601 Revaluations and impairments recognised in other comprehensive income: Gross Value - Revaluation (63) (5,028) (5,091) Accumulated depreciation 92 4,045 4,137 Disposals: Gross value of disposals - (50) (50) Accumulated depreciation on disposals Write-down of assets: Gross Value - (178) (178) Accumulated depreciation Financial statements PART 5 Depreciation/amortisation charge for the year (92) (4,652) (4,744) Net Book Value 30 June ,530 20,700 22,230 Net Book Value as of 30 June 2011 represented by: Gross book value 1,530 21,568 23,098 Accumulated depreciation/amortisation - (868) (868) 1,530 20,700 22,230 Buildings: The class of buildings includes 2 buildings, which are located on Federal Airports. CASA does not have legal title to the land upon which the buildings are constructed. Note 6D: Analysis of Property, Plant and Equipment (as at 30 June 2010) TABLE B - Reconciliation of the opening and closing balances of property, plant and equipment Item Buildings Other Infrastructure, plant and equipment TOTAL As at 1 July 2009 Gross book value 1,636 17,646 19,282 Accumulated depreciation/amortisation - (273) (273) Net Book Value 1 July ,636 17,373 19,009 Additions: By purchase - 4,649 4,649 Revaluations and impairments recognised in other comprehensive income: Gross Value - Impairment - (973) (973) Gross Value - Revaluation (43) Accumulated depreciation 90 3,678 3,768 Disposals: Gross value of disposals - (226) (226) Accumulated depreciation on disposals Write-down of assets: Gross Value - (88) (88) Accumulated depreciation Depreciation/amortisation charge for the year (90) (3,890) (3,980) Net Book Value 30 June ,593 20,815 22,408 Net Book Value as of 30 June 2010 represented by: Gross book value 1,593 21,223 22,816 Accumulated depreciation/amortisation - (408) (408) 1,593 20,815 22,408 Buildings: The class of buildings includes 2 buildings, which are located on Federal Airports. CASA does not have legal title to the land upon which the buildings are constructed.

140 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 6E: Analysis of Intangibles (as at 30 June 2011) TABLE A - Reconciliation of the opening and closing balances of intangibles 138 CASA Annual Report Item As at 1 July 2010 Computer software internally developed Computer software purchased Gross book value 33,639 9,728 43,367 Accumulated amortisation (19,217) (2,786) (22,003) Net Book Value 1 July ,422 6,942 21,364 Additions: By purchase/internally developed 443 2,229 2,672 Assets under construction 400 3,809 4,209 Write-downs and impairment recognised in the operating result: Gross Value (828) (260) (1,088) Accumulated amortisation TOTAL Amortisation expense (4,127) (2,079) (6,206) Net Book Value 30 June ,310 10,641 20,951 Net Book Value as of 30 June 2011 represented by: Gross book value 33,654 15,506 49,160 Accumulated amortisation (23,344) (4,865) (28,209) 10,310 10,641 20,951 Note 6E: Analysis of Intangibles (as at 30 June 2010) TABLE B - Reconciliation of the opening and closing balances of intangibles Item Computer software internally developed Computer software purchased As at 1 July 2009 Gross book value 34,263 8,212 42,475 Accumulated amortisation (14,350) (1,411) (15,761) Net Book Value 1 July ,913 6,801 26,714 TOTAL Additions: By purchase/internally developed 985 1,015 2,000 Assets under construction Write-downs and impairment recognised in the operating result: Gross Value (1,996) (107) (2,103) Accumulated amortisation Amortisation expense (4,867) (1,482) (6,349) Net Book Value 30 June ,422 6,942 21,364 Net Book Value as of 30 June 2010 represented by: Gross book value 33,639 9,728 43,367 Accumulated amortisation (19,217) (2,786) (22,003) 14,422 6,942 21,364

141 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June Note 6F: Inventories Inventories held for sale (finished goods) Inventories held for distribution Total inventories (current) During , $73,590 of inventory held for sale was recognised as an expense ( : $97,293). During , $75,598 of inventory held for distribution was recognised as an expense ( : $29,170). No items of inventory are recognised at fair value less cost to sell. All inventories are expected to be sold or distributed in the next 12 months. Note 6G: Other non-financial assets Prepaid property rentals and other prepayments 1,454 1,411 Total other non-financial assets (current) 1,454 1,411 Financial statements PART 5 Total other non-financial assets - are expected to be recovered in: No more than 12 months 1,408 1,274 More than 12 months Total other non-financial assets 1,454 1,411 No indicators of impairment were found for other non-financial assets. Note 7: Payables Note 7A: Suppliers Trade creditors and accruals 13,998 10,075 Operating lease rentals 8 79 Total supplier payables 14,006 10,154 Supplier payables expected to be settled within 12 months: Related entities External parties 13,829 10,008 Total supplier payables 14,006 10,154 Settlement is usually made net 30 days. Note 7B: Other payables Salaries and wages 3,871 3,074 Superannuation Prepayments received / unearned income Lease incentive - liability 4,609 5,399 Total other payables 9,837 9,285 Total other payables are expected to be settled in: No more than 12 months 6,010 4,676 More than 12 months 3,827 4,609 Total other payables 9,837 9,285

142 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 8: Provisions Note 8A: Employee provisions Leave 19,604 19,426 Ancillary cost on leave provision 2,873 2,673 Total employee provisions 22,477 22,099 Total employee provisions are expected to be settled in: No more than 12 months 18,100 17,369 More than 12 months 4,377 4,730 Total employee provisions 22,477 22,099 The classification of current employee provisions includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification does not represent the amount expected to be settled within one year of the reporting date. Employee provisions expected to be settled within twelve months from the reporting date are $7,678,197 (2010: $7,533,350). Note 8B: Other provisions Provision for claims 13,200 - Provision for makegood 1,203 1,226 Total other provisions 14,403 1,226 Other provisions are expected to be settled in: No more than 12 months 13, More than 12 months 1,048 1,104 Total other provisions 14,403 1,226 Provision for claims Provision for makegood Total Carrying amount as at 1 July ,226 1,226 Additional provisions made 13,200-13,200 Amounts used Amounts reversed - (80) (80) Unwinding of discounted amount or change in discount rate Closing balance as at 30 June ,200 1,203 14,403 CASA currently has seven agreements for the leasing of premises which have provisions requiring CASA to restore the premises to their original condition at the conclusion of the lease. CASA has made a provision to reflect the present value of these obligations.

143 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 9: Cash flow reconciliation Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement Cash at year end per Cash Flow Statement 63,539 57,505 Balance Sheet items comprising cash and cash equivalents: Cash on hand 6 8 Deposits at call 7,533 4,997 Investments 56,000 52,500 Total cash and cash equivalents 63,539 57,505 Difference - - Reconciliation of net cost of services to net cash from operating activities: Net cost of services (149,391) (131,340) Add: revenue from Government 148, , Financial statements PART 5 Adjustments for non-cash items: Depreciation and amortisation 10,950 10,329 Non-cash supplier and other expenses 3, Reversals of previous asset write-downs (96) - Net write down of non-financial assets 1,125 2,126 (Gains) / losses on disposal of assets 1 - Changes in assets / liabilities (Increase) / decrease in net receivables (9,803) 58 (Increase) / decrease in accrued revenue (449) 1,158 (Increase) / decrease in inventories 50 (6) (Increase) / decrease in prepayments (43) 150 Increase / (decrease) in employee provisions 378 2,837 Increase / (decrease) in supplier payables (1,524) 886 Increase / (decrease) in other provisions 10,053 (35) Increase / (decrease) in other payables Net cash from / (used by) operating activities 13,092 16,556

144 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 10: Contingent assets and liabilities 142 CASA Annual Report Contingent assets Indemnities Claims for damages/costs Guarantees Total Balance from previous period New Re-measurement Assets crystallised Expired Total contingent assets Contingent liabilities Indemnities Claims for damages/costs Guarantees Total Balance from previous period New Re-measurement Liabilities crystallised Obligations expired Total contingent liabilities Net contingent assets / (liabilities) The above schedule should be read in conjunction with the accompanying notes. Quantifiable remote contingencies There are no quantifiable contingent assets and liabilities as at the balance date. Unquantifiable remote contingencies As at 30 June 2011, CASA had five legal claims against it for damages relating to property damage, personal injury, economic loss and cancellation of licence and air operator certificate. CASA has denied liability and is defending the claims. These claims are considered to have a remote chance of success and it is deemed not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.

145 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 11: Directors remuneration 2011 No No. The number of non-executive directors of the Authority included in these figures are shown below in the relevant remuneration bands. less than $150, Total number of non-executive directors of the Authority 4 4 Total remuneration received or due and receivable by directors $315,798 $280,681 The Board of CASA was introduced with effect from 1 July Remuneration of executive directors is included in Note 13: Senior Executive Remuneration. Note 12: Related party disclosures The aggregate remuneration of Directors is disclosed in Note Financial statements PART 5 Loans to Directors and Director-Related Entities There are no loans to the Directors or Director-related entities. Other transactions with Director or Director-Related Entities There are no other transactions with the Directors or Director-related entities. Transactions with related parties Transactions between related parties are on normal commercial terms and conditions unless otherwise stated.

146 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 13: Senior Executive remuneration Note 13A: Senior Executive Remuneration Expense for the Reporting Period Total expense recognised in relation to senior executive employment Short-term employee benefits: Salary (including annual leave taken) 4,125,845 3,501,683 Annual leave accrued 415, ,457 Performance bonus 643, ,704 Allowances 109, ,539 Total short-term employee benefits 5,295,320 4,458, $ 2010 $ Post-employment benefits: Superannuation 544, ,322 Total post-employment benefits 544, ,322 Other long-term benefits: Long-service leave 186, ,499 Total other long-term benefits 186, ,499 Termination benefits 150,271 Total 6,026,124 5,206,475 Notes: 1. Note 13A was prepared on an accrual basis (so the performance bonus expenses disclosed above differ from the cash Bonus paid in Note 13B). 2. Note 13A excludes acting arrangements and part-year service where remuneration expensed was less than $150,000.

147 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 13B: Average Annual Remuneration and Bonus Paid for Substantive Senior Executives as at the end of the Reporting Period As at 30 June 2011 As at 30 June 2010 Fixed elements Fixed elements Bonus paid 2 $ Total $ Allowances $ Salary $ Senior Executives No. Bonus paid 2 $ Total $ Allowances $ Salary $ Senior Executives No. Fixed Elements and Bonus Paid 1 Total remuneration (including part-time arrangements): less than $ 150, , ,769 12,499 $ 150,000 - $ 179, , ,044 15, , ,065 13,975 $ 180,000 - $ 209, , ,740 22, , ,859 12,454 $ 210,000 - $ 239, , ,001 36, , ,092 31,836 $ 240,000 - $ 269, , ,648 42, , ,020 31,043 $ 270,000 - $ 299, , ,075 13,936 $ 420,000 - $ 449, , ,604 - $ 450,000 - $ 479, , , Total Notes: 1. This table reports on substantive senior executives who are employed by the entity as at the end of the reporting period. Fixed elements are based on the employment agreement of each individual. Each row represents an average annualised figure (based on headcount) for the individuals in that remuneration band (i.e the Total column). 2. This represents average actual bonuses paid during the reporting period in that remuneration band. The Bonus paid was excluded from the Total calculation, (for the purpose of determining remuneration bands). The Bonus paid within a particular band may vary between financial years due to factors such as individuals commencing with or leaving the entity during the financial year. The average bonus was calculated based on the individuals who actually received a bonus within the indicated bands. 145 Financial statements PART 5

148 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Variable Elements: With the exception of performance bonuses, variable elements are not inlcuded in the Fixed Elements and Bonus Paid table above. The following variable elements are available as part of the senior executives remuneration. 146 CASA Annual Report (a) Performance bonuses: Bonuses were based on the performance rating of each individual. The maximum bonus that an individual could receive was 15 per cent of his/her total employment cost. (b) On average senior executives are entitled to the following leave entitlements: Annual Leave (AL): entitled to 20 days (2010: 20 days) each full year worked (pro-rata for part-time SES) Personal Leave (PL): entitled to 18 days (2010: 18 days) or part-time equivalent; and Long Service Leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act (c) Senior executives are members of one of the following superannuation funds: Australian Government Employee Superannuation Trust (AGEST): this fund is for senior executives who were employed for a defined period. Employer contributions were set at 9 per cent (2010: 9 per cent); Commonwealth Superannuation Scheme (CSS): this scheme is closed to new members, and employer contributions were averaged 28.3 per cent (2010: 24 per cent); Public Sector Superannuation Scheme (PSS): this scheme is closed to new members, with current employer contributions set at 15.4 per cent (2010: 15.4 per cent); Public Sector Accumulation Plan (PSSap): employer contributions were set at 15.4 per cent (2010: 15.4 per cent), and the fund has been in operation since July 2005; and Other: There were some senior executives who had their own superannuation arrangements (e.g. self-managed superannuation funds). Their superannuation employer contributions were set between 9 per cent to 15.4 per cent (2010: 9 per cent to 15.4 per cent). (d) Variable allowances: Superannuation payments were provided to all senior executives: $489,675 (2010: $357,830); and Accomodation allowance up to $28,500 for the Director. (e) Others: Car parking is provided within the building for all senior executives; and Various salary sacrifice arrangements were available to senior executives including super, motor vehicle and expense payment fringe benefits. Note 13C: Other Highly Paid Staff During the reporting period, there were 31 (2010:15) employees whose salary plus performance bonus were $150,000 or more. This was calculated by reference to the gross payments line of the group certificate. These employees did not have a role as senior executive and were therefore not disclosed as senior executives in Note 13A and Note 13B.

149 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 14: Remuneration of auditors Financial statement audit services are provided to the Authority by the Auditor-General: 2011 $ The fair value of the services provided was: 85,000 81,000 No other services were provided by the Auditor-General $ 147 Financial statements PART 5

150 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 15: Financial instruments Note 15A: Categories of financial instruments Financial assets Loans and receivables Cash on hand 6 8 Deposits at call 7,533 4,997 Trade and other receivables 11,567 1,767 Accrued revenue 1,463 1,014 Carrying amount of loans and receivables 20,569 7,786 Investments held to maturity Investments 56,000 52,500 Carrying amount of investments held to maturity 56,000 52,500 Carrying amount of financial assets 76,569 60,286 Financial liabilities Other financial liabilities Supplier payables 14,006 10,154 Other payables 9,837 9,285 Carrying amount of financial liabilities 23,843 19,439 Note 15B: Net income and expense from financial assets Loans and receivables Interest revenue Net gain/(loss) loans and receivables Investments held to maturity Interest revenue 3,183 2,278 Net gain/(loss) investments 3,183 2,278 Total gain/(loss) from financial assets 3,329 2,401 The interest income from financial assets not at fair value through profit and loss is $3,329,000 ( : $2,401,000). The interest expense from financial liabilities not at fair value through profit and loss is $57,000 ( : $62,000).

151 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 15C: Fair values of financial instruments Total Total Carrying Aggregate Carrying Amount Fair Value Amount Aggregate Fair Value Notes Financial assets Cash on hand 5A Deposits at call 5A 7,533 7,533 4,997 4,997 Trade and other receivables 5B 11,567 11,567 1,767 1,767 Accrued revenue 5C 1,463 1,463 1,014 1,014 Investments under s18 of the CAC Act 5A 56,000 56,000 52,500 52,500 Total financial assets 76,569 76,569 60,286 60,286 Financial liabilities Suppliers payables 7A 14,006 14,006 10,154 10,154 Other payables 7B 9,837 9,837 9,285 9,285 Total financial liabilities 23,843 23,843 19,439 19, Financial statements PART 5 Financial Assets The net fair values of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amounts. The investments are short term in nature and as such the fair value of these investments at year end approximate their carrying values. Financial Liabilities The net fair values for supplier payables, which are short-term in nature, are approximated by their carrying amounts. Note 15D: Credit risk exposures The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. CASA s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet. This amount is detailed in the table below. CASA has assessed the risk of the default on payment and has allocated $24,000 in 2011 (2010: $133,000) to an impairment allowance account. CASA is exposed to low overall credit risk. The majority of loans and receivables are cash, appropriation made under law (which guarantees fixed amounts of funding that CASA can drawdown as required) or amounts owed by the Australian Tax Office in the form of a Goods and Services Tax refund. Investments held to maturity represent investments held with financial institutions with an approved credit rating, in accordance with CASA Investment Policies, and are within limits set for any one particular institution. CASA s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet. CASA has no significant exposures to any concentrations of credit risk. CASA manages its credit risk by undertaking reviews of payment history before giving lines of credit, otherwise all payments for goods and services are to be paid in advance. In addition, CASA has policies and procedures that guide employees debt recovery techniques that are to be applied. CASA holds no collateral or other security to mitigate against credit risk.

152 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Credit Risk of financial instruments not past due or individually determined as impaired: Not past due nor impaired 2011 Not past due nor impaired 2010 Past due or impaired 2011 Past due or impaired 2010 Cash on hand Deposits at call 7,533 4, Trade and other receivables 11,511 1, Accrued Revenue 1,463 1, Investments 56,000 52, ,513 60, Ageing of financial assets that are past due but not impaired for 2011: 0 to 30 days to 60 days to 90 days days 2011 Total 2011 Trade and other receivables Total Ageing of financial assets that are past due but not impaired for 2010: 0 to 30 days to 60 days to 90 days days 2010 Total 2010 Trade and other receivables Total

153 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2011 Note 15E: Liquidity risk CASA s financial liabilities are payables. The exposure to liquidity risk is based on the notion that CASA will encounter difficulty in meeting its obligations associated with financial liabilities. This is considered highly unlikely due to appropriation funding and mechanisms available to CASA and internal policies and procedures put in place by CASA to manage cash and investments balances to ensure there are appropriate resources to meet its financial obligations. The following table illustrates the maturities for financial liabilities: On demand 2011 Within 1 year to 2 years to 5 years 2011 > 5 years 2011 Total 2011 Suppliers payables - 14, ,006 Other payables - 6, ,790 1,255 9,837 Total - 20, ,790 1,255 23, Financial statements PART 5 On demand 2010 Within 1 year to 2 years to 5 years 2010 > 5 years 2010 Total 2010 Suppliers payables - 10, ,154 Other payables - 4, ,180 1,647 9,285 Total - 14, ,180 1,647 19,439 Note 15F: Market risk CASA holds basic financial instruments that do not expose it to certain market risks. CASA is not exposed to currency risk or other price risk. Interest rate risk The only interest bearing items in the balance sheet are cash and cash equivalents, and investments. Cash on deposit is held in a bank account with a floating interest rate. The investments bear fixed interest rates and will not fluctuate due to changes in the market interest rate. Note 16: Compensation and debt relief $ $ Nil payments were made during the reporting period. (2010: Nil payments made) - -

154 CIVIL AVIATION SAFETY AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June CASA Annual Report Note 17: Reporting of outcomes CASA is structured to meet a sole outcome with a single output and therefore does not have shared items in its statement of comprehensive income or balance sheet that require attribution. In accordance with FMO P(c) tables B and C have been ommitted from CASA s reporting of Outcomes. Note 17A: Net cost of outcome delivery Outcome Expenses 167, ,906 Income from non-governmental sector Activities subject to cost recovery 13,378 13,326 Total Income 13,378 13,326 Other own-source income Aviation fuel excise 105,383 79,406 Interest 3,329 2,401 Other Total other own-source income 109,560 82,670 Total income from non-government sector and other own-source income 122,938 95,996 Net cost/(contribution) of outcome 44,689 56,910 CASA s outcome is described at Note 1.1. The net costs shown include intra-government costs that would be eliminated in calculating the actual Budget outcome. Note 17B: Major classes of expenses, income, assets and liabilities by outcome CASA has only one outcome and the major classes of expenses, income, assets and liabilities can be reliably attributed to this outcome which are shown in the Balance Sheet and Statement of Comprehensive Income. CASA s outcome is described at Note 1.1

155 06 appendices 153 and references This part of the annual report contains appendices that: provide details of CASA s aviation safety regulatory activities and operations, to supplement the report on performance provide statistics on staffing and reviews of CASA decisions, to complete the report on management and accountability address particular reporting requirements under the Commonwealth Authorities and Companies Act 1997 and other legislation. The appendices are followed by reference tools to help the reader to find and use information in the annual report. Appendices and references PART 6 In this part Appendix A: Regulatory development 154 Appendix B: Operating statistics 160 Appendix C: Management and accountability 168 Appendix D: Statutory reports 172 Abbreviations list 177 Compliance index 178 Alphabetical index 180

156 154 CASA Annual Report Appendix A: Regulatory development Table A.1 Regulatory instruments and publications, Amendments to the Civil Aviation Act 1988 Nil. Amendments to the Civil Aviation Regulations 1988 Select Legislative Instrument 2010 No. 328 Amendment of the CAR 1988 to make transitional, consequential and savings provisions for those regulations. The transitional, consequential and savings provisions allow the introduction of CASR Parts 42, 66, 145 and 147 using a phased approach and provide for an orderly transition to the new regulations. Amendments to the Civil Aviation (Fees) Regulations 1995 Nil. Amendments to the Civil Aviation Safety Regulations 1998 Select Legislative Instrument 2010 No. 277 Select Legislative Instrument 2010 No. 328 Amendment of the CASR 1998 to insert a new Part 90, entitled Additional Airworthiness Requirements. The new Part 90 sets out aircraft airworthiness requirements to supplement the existing design standards known as the type certification requirements. Amendment of CASR 1998 to insert new parts as follows: Part 42, entitled Continuing airworthiness requirements for aircraft and aeronautical products. This Part sets out continuing airworthiness requirements for aircraft and aeronautical products. Part 66, entitled Continuing airworthiness aircraft engineer licences and ratings. This Part applies to all personnel seeking an aircraft engineer licence or licence rating and sets out requirements for the application for, the granting of, and the appropriate use of Aircraft Maintenance Engineer licences and ratings. Part 145, entitled Continuing airworthiness Part 145 approved maintenance organisations. This Part sets out matters pertaining to Part 145 approved maintenance organisations and maintenance personnel requiring authorisation for the performance of maintenance certifications and the issue of certificates of release to service for aircraft and aeronautical product maintenance. Part 147, entitled Continuing airworthiness maintenance training organisations. This Part sets out matters pertaining to maintenance training organisations, training personnel requiring licences and ratings for the performance of maintenance certifications, and certificates of release to service for aircraft maintenance. The regulations apply to all aircraft maintenance training organisations which seek or gain a CASR Part 147 approval. Civil Aviation Orders Amendment CAO Amendment Instrument 2011 (No. 1) instruments

157 Amendment orders CAO 82.6 Amendment Order (No. 2) 2010 CAO 20.6 Amendment Order (No. 1) 2010 CAO Amendment Order (No. 1) 2010 CAO 95.7 Amendment Order (No. 2) 2010 CAO 82.6 Amendment Order (No. 2) 2010 CAO 82.5 Amendment Order (No. 3) 2010 CAO Amendment Order (No.1) 2011 CAO 82.5 Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 CAO 82.5 Amendment Order (No. 2) 2011 CAO 82.3 Amendment Order (No. 1) 2011 CAO Amendment Order (No. 1) 2011 Instruments CAO 95.8 Instrument 2011 CAO Instrument 2011 CAO Instrument 2011 CAO Instrument 2011 CAO Instrument 2011 CAO Instrument 2011 CAO Instrument 2011 CAO 95.4 Instrument 2011 Repeal orders CAO Repeal Order 2011 Notices of proposed rule making NPRM 1003OS Carriage of fuel on flights to a remote island proposed amendment to CAO July 2020 NPRM 1007OS Mandatory flight simulator training proposed amendments to CAOs 40.0 and October 2010 NPRM 0907MS Registration of aircraft and related matters proposed amendments to Part 47 of the CASR December 2010 NPRM 0712MS Display of nationality and registration marks and aircraft registration identification plates Proposed amendments to Part 45 of the CASR December 2010 Notices of final rule making NFRM 0305CS Additional airworthiness requirements CASR 1998 Part December 2010 NFRM 1001OS Proposed amendment to an Airworthiness Directive requiring additional maintenance to aircraft transponder systems 22 December 2010 NFRM 0604MS A proposal to modernise and harmonise rules for the maintenance of Australian aircraft and aviation personnel licensing 25 February Appendices and references PART 6

158 156 CASA Annual Report NFRM 0603OS Sport and recreational aviation operations 9 June 2011 NFRM 0806SS Regulatory administrative procedures CASR Part June 2011 Discussion papers Discussion Paper Proposed strategy and regulatory plan in support of the Australian Government s Aviation 1006AS White Paper 5 October 2010 Notices of proposed change Nil. Notices of final change Nil. Draft advisory circulars Draft AC 21-2(1) Special Certificates of Airworthiness 6 July 2010 Draft AC 21-3(1) Special Certificates of Airworthiness overview 6 July 2010 Draft AC 92A-01(0) The consignment and carriage of dangerous goods on all aircraft in Australian territory and on Australian aircraft overseas: an overview of the legislative framework and procedures 22 September 2010 Draft AC (0) Strength rating of aerodrome pavements 20 October 2010 Draft AC (0) Use of restricted operation (dumb-bell) ground signals 2 December 2010 Draft AC (0) Wildlife hazard management at aerodromes 22 December 2010 Draft AC 92-05(0) Use of compressed oxygen: carriage and consignment of live aquatic animals for transport by air 6 April 2011 Draft AC (0) Training of aerodrome reporting officers and works safety officers 20 May 2011 Advisory circulars AC 173-4(1) Instrument procedures design and clarification of RNAV and BARO/VNAV criteria 28 July 2010 AC 21-2(1) Special Certificates of Airworthiness 11 November 2010 AC 21-3(1) Special Certificates of Airworthiness overview 11 November 2010 AC 139-6(0) Use of restricted operation (dumb-bell) ground signals 25 January 2011 AC 92A-01(0) The consignment and carriage of dangerous goods on all aircraft in Australian territory and on Australian aircraft overseas: an overview of the legislative framework and procedures 1 March 2011 AC 66-1(0) Control or delivery of aircraft type training by a Part 145 AMO (systems based, manufacturer s, exclusion removal training) 21 April 2011

159 AC 66-2(0) List of aircraft type ratings for CASR Part 66 licences 21 April 2011 AC 66-3(0) Engine ground run training and assessment 21 April 2011 AC 92-05(0) Use of compressed oxygen: carriage and consignment of live aquatic animals for transport by air 26 May 2011 AC 66-2(2) List of aircraft type ratings for CASR Part 66 licences 27 May 2011 Draft civil aviation advisory publications Draft CAAP SMS Non-technical skills training and assessment for regular public transport operations 3(1) 15 September 2010 Draft CAAP 33-1(1) Aircraft manual welding approvals and qualifications 18 March 2011 Draft CAAP 30-4(1) Certificate of approval maintenance organisations 17 May 2011 Draft CAAP 149- RAAO registered aircraft acceptable to CASA for the aero-towing of other aircraft 1(0) 17 June 2011 Civil aviation advisory publications 42W-1(3) Documents for the supply of aeronautical products 12 July W-2(5) Authorised release certificate 12 July (1) Flight crew licensing flight reviews 21 September (1) Ditching 21 September 2010 SMS-3(1) Non-technical skills training and assessment for regular public transport operations 29 April 2011 Regulatory impact statements Nil. Manuals of Standards Manuals MOS Part 42 Instrument 2011 MOS Part 66 Instrument 2011 MOS Part 90 Instrument 2010 MOS Part 145 Instrument 2011 MOS Part 147 Instrument 2011 Amendments MOS Part 42 Amendment Instrument (No. 1) 2011 MOS Part 66 Amendment Instrument (No. 1) 2011 MOS Part 66 Amendment Instrument (No. 2) 2011 MOS Part 139 Amendment Instrument (No. 1) 2011 MOS Part 145 Amendment Instrument (No. 1) 2011 MOS Part 147 Amendment Instrument (No. 1) 2011 MOS Part 172 Amendment Instrument (No. 1) 2011 MOS Part 173 Amendment Instrument (No. 1) 2011 AC = Advisory Circular, CAAP = Civil Aviation Advisory Publication, CAO = Civil Aviation Order, CAR = Civil Aviation Regulations, CASR = Civil Aviation Safety Regulations, MOS = Manual of Standards, NFRM = Notice of Final Rule Making, NPRM = Notice of Proposed Rule Making 157 Appendices and references PART 6

160 158 CASA Annual Report Table A.2 New legislative projects, Date initiated No. Description 9 July 2010 AS 10/17 Airspace and aerodromes Safety Management Systems advisory material and alignment 22 July 2010 CS 10/18 Update of AC July 2010 AS 10/19 Updating and restructuring into an AC of information from CAAP 89C-1(0) Training of Aerodrome Reporting Officers 7 September 2010 CS 10/20 Preparation of an AC dealing with the certification of software and complex hardware systems 10 September 2010 FS 10/22 Amendment of CASR Part 60 to reference ICAO Document 9625 Manual of Criteria for the Qualification of Flight Simulation Training Devices (third edition, 2009) 1 October 2010 MS 10/20 Expansion of CAO Appendix 1 Application (Administration and procedures distribution and rejection of aircraft components and aircraft materials) 18 November 2010 AS 10/23 Clarification of terms used in relation to terminal instrument flight procedures 2 December 2010 AS 10/24 Terminology amendment and review of terminal instrument flight procedure withdrawal protocol MOS Part 173 Standards applicable to instrument flight procedure design 8 December 2010 OS 10/26 CASR Part 138 Aerial work operations Rotorcraft 17 December 2010 MS 10/27 Cancellation of radio/navigation equipment required for flight DASR 4/ January 2010 MS 11/02 Adjustment of CAAP 30-4 to add manufacture to the course of maintenance (MITCOM) guidance 18 January 2010 CS 11/01 Review of CAO Process control Magnetic particle inspection 2 February 2011 OS 11/03 Rewrite of CAAP 174-1(1) Night vision goggles Helicopters and postimplementation review of CAO February 2011 CS 11/04 Amendment of CAAP 51-2 to provide an appendix detailing a summary of suspected/unapproved parts 3 March 2011 OS 11/06 Amendment to CAO 20.9 (Air service operations) precautions in refuelling, engine and ground radar operations earthing of aircraft and refuelling equipment at refuelling site 11 March 2011 AS 11/07 Review of guidelines for conducting plume rise assessments AC

161 Date initiated No. Description 15 March 2011 OS 11/05 Revision of CAAP 215 Modernisation of CASA guidance on preparation of an operations manual 25 March 2011 CS 11/08 Proposed assessment of AC (Experimental certificates) to include additional risk assessment information 11 April 2011 CS 11/09 Amendment of CAO B and CAO to account for jet aeroplanes with maximum take-off weight between 6,000lb and 12,500lb 29 April 2011 MS 11/10 Creation of a CASA instrument authorising pilots to carry out maintenance for the replenishment of the Emergency Medical System oxygen system installed 29 April 2011 MS 11/11 CASA direction to CAR 30 maintenance organisations regarding maintenance of the composite structure of aircraft 17 May 2011 AS 11/14 Post-implementation review of MOS Part 139 Aerodromes, chapters 1 and 2 17 May 2011 CS 11/13 Review of the airworthiness standard for approved single engine aeroplane (previously approved single turbine powered aeroplanes) operations and inclusion of the standard CASR Part 90 MOS 17 May 2011 CS 11/12 Minor correction to CASR Part 90 MOS 24 May 2011 AS 11/15 Review of MOS Part 139 Aerodromes, Chapter 6 Section 2 Runway widths, and review of CAR 235A Instrument Instructions minimum runway width for aeroplanes 25 May 2011 OS 11/16 Machinery amendment to CAO 82.3 and 82.5 to introduce a structured change process for Safety Management Systems and human factors and non-technical skills training programs 3 June 2011 OS 11/17 Proposed amendments to CAO Computer navigation databases (subsection 9A) 28 June 2011 MS 11/19 Amendment of CAAP 42B.1 CAA Maintenance schedule to make terminology consistent with the current regulations AC = Advisory Circular, CAAP = Civil Aviation Advisory Publication, CAO = Civil Aviation Order, CAR = Civil Aviation Regulations, CASR = Civil Aviation Safety Regulations, ICAO = International Civil Aviation Organization, MOS = Manual of Standards 159 Appendices and references PART 6

162 Appendix B: Operating statistics Aircraft operations Table B.1 Air Operator s Certificates, to 160 CASA Annual Report Type of application GA AO GA AO GA AO GA AO GA AO Initial issue Subsequent issue Subsequent issue with variation Variation Total Current certificates at 30 June AO = airline operations, GA = general aviation Note: Includes operators involved in one or more of aerial work, charter, charter (cargo), flying training, foreign aircraft (passengers and cargo), foreign aircraft (cargo), scheduled cargo services, scheduled passenger services and unmanned aerial vehicles. GA applications are processed by the CASA Service Centre, and include some low-capacity regular public transport operators. AO applications are processed by CASA airline offices. Table B.2 Certificates of Approval, to Type of application GA AO GA AO GA AO GA AO GA AO Initial issue Subsequent issue Subsequent issue with variation Variation Total Current certificates a at 30 June AO = airline operations, GA = general aviation, n/a = not applicable a CASA s information management system no longer separates current Certificates of Approval into the GA and AO categories. From, the number of current certificates is the total of all current certificates. Note: Includes operators involved in one or more of aircraft and component maintenance, design (aircraft, components and materials), distribution (components and materials), and Aircraft Maintenance Engineer training and examinations. GA applications are processed by the CASA Service Centre, and include some low-capacity regular public transport operators. AO applications are processed by CASA airline offices.

163 Table B.3 Airworthiness certificates, authorisations and approvals issued, to Type certificate (includes amendments) Aeroplanes 2 5 a 4 5 a 3 Lighter than air 1 1 a Rotorcraft Engine n/a Propeller n/a Total Type acceptance certificate (includes amendments) Aeroplanes Lighter than air n/a Rotorcraft n/a Total Other authorisations, certificates and approvals Special Flight Authorisation Supplemental Type Certificate Australian Parts Manufacturer Approval b Australian Technical Standard Order Authorisation n/a 1 Special Flight Permit Experimental Certificate Exclusions Against Airworthiness Directive Australian Parts Manufacturer Approval Variation Generated Master Minimum Equipment List n/a 11 c 27 c 0 64 c Simulator Certification n/a (Flight Simulator Training Devices) Certificate of Approval n/a 1 3 d Instrument of Appointment n/a Design Advice n/a Flight Manual Supplement n/a Flight Manual Approval Pages n/a n/a = not applicable a Includes amendments to type certificate data sheets. b This figure covers only initial approvals to produce and sell replacement or modification parts. It does not reflect CASA s administrative scrutiny of the manufacturer s activities under each approval. c Includes development and variation to Generated Master Minimum Equipment Lists. d Includes one Manufacturing Certificate of Approval and two Certification Certificates of Approval. 161 Appendices and references PART 6

164 Table B.4 Aircraft service difficulty reports, to Status Received during the year 1,686 1,864 2,046 2,029 2,401 a Closed during the year 2,390 1,600 2,143 2,098 1,787 Open as at 30 June b 1,019 b, c a The number of reports submitted increased significantly in, by 18%. b Two-thirds of this figure consists of aircraft above 5,700kg awaiting follow-up reports, such as investigation reports or laboratory reports, including some from overseas manufacturers. c Affected by staff turnover, critical aviation incidents and regulatory implementation projects. 162 CASA Annual Report Table B.5 Aircraft registrations, to Initial registrations Changes of registration holder 1,410 1,578 1,588 1,407 1,387 Cancellations of registration Changes of registration marks Reservations of registration marks 1,390 1,106 1,220 1,118 1,284 Reissues of certificates of registration a Aircraft registered as at 30 June 12,718 13,270 13,510 13,907 14,362 Marks reserved as at 30 June 1, a Due to changes of address or loss, for example.

165 Table B.6 Average age of the Australian fleet of civil aircraft at 30 June 2011 Aircraft group by airframe and propulsion characteristics > 56 years years years years years 16 7 years 6 2 years < 2 years Group Proportion total of fleet (%) Gliders Powered gliders Balloons Amateur- Aeroplane Single engine Piston , built aircraft Turboprop Jet Rotary Multi engine Piston Helicopter Piston Turboshaft Production Helicopter Single engine Piston , built aircraft Turboshaft Multi- Up to 5,700 Turboshaft engine kg MTOW Over 5,701 Turboshaft kg MTOW Aeroplane Single Up to 5,700 Piston ,698 2, , engine kg MTOW Turboprop Jet Over 5,701 Piston kg MTOW Turboprop Jet Multi- Up to 5,700 Piston , engine kg MTOW Turboprop Jet ,701 kg to Piston ,000 kg Turboprop MTOW Jet ,001 kg to Piston ,000 kg Turboprop MTOW Jet ,001 kg to Piston ,000 kg Jet MTOW Over 100,001 Jet kg MTOW Age bracket total 783 1,170 2,606 4,339 1,395 2,106 1, ,462 Proportion of fleet (%) MTOW = maximum take-off weight 163 Appendices and references PART 6

166 164 CASA Annual Report Airworthiness Table B.7 Airworthiness Directives and bulletins, to Australian Airworthiness Directive 530 1,361 1, New issue Cancellation , Amendment State of Design Airworthiness Directive a Normal Urgent Australian unique Based on foreign airworthiness directive Exclusion from airworthiness directive n/a n/a 1, n/a 1, Review of airworthiness directive Airworthiness bulletin n/a = not applicable 297 n/a n/a n/a n/a 203 a As a result of changes to Civil Aviation Safety Regulations Part 39 that became effective on 1 October 2009, CASA now accepts State of Design Airworthiness Directives as Australian Airworthiness Directives. Aerodromes Table B.8 Aerodromes, at 30 June, to Certified Registered Total n/a n/a n/a n/a 205 Table B.9 Airspace reviews, at 30 June, to Reviews n/a a n/a = not applicable a CASA s Office of Airspace Regulation, which conducts airspace reviews, was established in June 2007.

167 Flight operations and personnel Table B.10 Flight crew licences, to Issued Current Issued Current Issued Current Issued Current Issued Current Air 488 6, , , ,825 a 473 7,051 Transport Commercial 1,162 3,686 1,352 4,103 1,453 4,235 1,344 4,189 a 1,288 4,144 Multi-crew b n/a n/a n/a n/a a 0 6 Private 1,279 11,448 1,130 11,041 1,330 10,949 1,273 10,563 a 1,399 10,300 Student 1,138 3,085 1,104 3,005 1,120 3,002 1,358 3,256 a 1,341 3,035 (GFPT) Subtotal 4,067 24,445 4,107 24,713 4,334 24,874 4,461 24,833 a 4,501 24,536 Helicopter Air a Transport Commercial 212 1, , , ,604 a 284 1,621 Private a Student a 4 11 (GFPT) Subtotal 367 2, , , ,840 a 440 2,890 Other Commercial Balloon Student 3,110 6,038 3,184 6,736 2,824 6,642 2,441 6,123 2,931 5,942 (no GFPT) Flight Engineer c Restricted d d d Flight Engineer c Subtotal 3,117 6,364 3,190 7,735 2,830 7,737 2,445 6,194 2,940 6,881 Total 7,551 33,272 7,681 35,021 7,580 35,313 7,345 33,867 7,884 a 34,308 a GFPT = General Flying Progress Test (test taken if a student pilot wishes to be able to take passengers), n/a = not applicable a Figure updated after refined data cleansing was undertaken b Licence type introduced in Australia in c Flight engineers may also hold another flight crew licence and will be included in both figures. d Figure not available. 165 Appendices and references PART 6

168 166 Table B.11 Flight crew licensing examinations, to Licence Candidates Passed Candidates Passed Candidates Passed Candidates Passed Candidates Passed (no.) (%) (no.) (%) (no.) (%) (no.) (%) (no.) (%) Air Transport Pilot Licence 4, , , , , Commercial Pilot Licence 11, , , , , Private Pilot Licence 2, , , , , Total 18,841 22,840 23,678 22,006 20,660 CASA Annual Report Table B.12 Medical certificates, to Certificate Initial Renewal Fail Initial Renewal Fail Initial Renewal Fail Initial Renewal Fail Initial Renewal Fail Class 1 1,888 12, ,175 15, ,327 13, ,116 15, ,270 15, Class 2 5,403 18, ,105 21, ,114 19, ,913 11, ,925 5, Class Total 7,343 32, ,370 36, ,513 33, ,156 27, ,279 21, Note: The certificate classes are Class 1 Professional pilots and flight engineers; Class 2 Student and private pilots; and Class 3 Air traffic control and flight service providers. Maintenance organisations and personnel Table B.13 Aircraft maintenance examinations, to Scheduled examination sittings 5,724 4,626 5,005 4,624 5,187 Special examination sittings a 1,554 3,322 1,695 1,157 1,070 Category technical competency examinations b Weight control authority examinations Total 7,415 8,113 6,805 5,907 6,355 a Special examination sittings may be approved for individuals who are unable to sit an examination at a scheduled sitting date and have a particular reason to sit for an examination for the issue of an Aircraft Maintenance Engineer licence. Training organisations may also seek special sittings to coincide with completion of their courses. b These examinations are for Australian Defence Force and overseas licence holders only.

169 Table B.14 Aircraft Maintenance Engineer licences and ratings, to Licence assessments Category Technical Competency Assessment and Licence Technical Assessment (combined) Australian Civil n/a Australian Military n/a Foreign Military n/a Foreign Civil n/a Total Trans-Tasman Mutual Recognition Act 1997 assessments Total Licences Aircraft Maintenance Engineer a licences initial issue Aircraft Maintenance Engineer 6,403 6,474 6,613 6,796 7,076 b licences current at 30 June Airworthiness/welding authorities Examiner authorities initial issue Maintenance authorities Non-destructive testing authorities Weight control authorities Welding authorities Current airworthiness/welding 1,856 1,953 1,940 1,910 1,879 authorities at 30 June n/a = not applicable a Civil Aviation Regulation 31 licences. b Civil Aviation Safety Regulation Part 66 licences. 167 Appendices and references PART 6

170 168 CASA Annual Report Appendix C: Management and accountability Staffing Table C.1 Employees by division and category at 30 June 2011 Positions Full-time equivalent Employees Temporary Permanent Total Division Office of the Director Airspace and Aerodrome Regulation Group Operations Safety Analysis, Education and Promotion Indonesia Projects Corporate Services Standards Development and Future Technology Industry Permissions Legal Services Subtotal Other employees Employees allocated to project-funded positions Total Table C.2 Employees by classification and region at 30 June 2011 Office Region Classification Canberra Brisbane Eastern Northern Southern Sydney Western Total Air Transport Inspector and System Safety Specialist Airworthiness and Aerodrome Corporate Services Aviation Safety Advisor (Safety Promotion) Flying Operations (Airlines) Flying Operations (General Aviation) Flight Training Examiner Professional Services Senior Management Total

171 Table C.3 Employees by classification and age grouping at 30 June 2011 Age grouping Classification < > 64 Total Air Transport Inspector and System Safety Specialist Airworthiness and Aerodrome Corporate Services Aviation Safety Advisor (Safety Promotion) Flying Operations (Airlines) Flying Operations (General Aviation) Flight Training Examiner Professional Services Senior Management Total Table C.4 Employees by classification and gender at 30 June 2011 Male Female Employment classification Permanent Temporary Permanent Temporary Total Female (%) Air Transport Inspector and System Safety Specialist Airworthiness and Aerodrome Corporate Services Aviation Safety Advisor (Safety Promotion) Flying Operations (Airlines) Flying Operations (General Aviation) Flight Training Examiner Professional Services Senior Management Total Appendices and references PART 6 Table C.5 Workplace diversity data for employees by classification and gender at 30 June 2011 Male Female Employment classification Disability ATSI NESB Disability ATSI NESB Total Air Transport Inspector and Safety System Specialist Airworthiness and Aerodrome Corporate Services Aviation Safety Advisor (Safety Promotion) Flying Operations (Airlines) Flying Operations (General Aviation) Flight Training Examiner Professional Services Senior Management Total ATSI = people from Aboriginal or Torres Strait Islander backgrounds, NESB = people from non English speaking backgrounds Note: This table includes only information volunteered by employees.

172 170 CASA Annual Report Reviews of regulatory decisions Table C.6 Administrative Appeals Tribunal merits reviews of CASA regulatory decisions, to Applications on hand from the previous year Applications lodged during the year Total Matters dealt with a Decisions affirmed Decisions varied Decisions set aside Matters dismissed Total Other matters Applications withdrawn by the applicant Applications remaining on hand at 30 June Total a Does not include decisions made during the progress of action. Table C.7 Categories of CASA decisions appealed to the Administrative Appeals Tribunal, Refusal Issue subject to Cancellation/ Variation/ Total to issue conditions not sought suspension imposition of by applicant for the conditions not authorisation sought by holder Flight crew licence (including ratings and endorsements) Aviation maintenance licence or authority (including ratings) Medical certificate Air Operator s Certificate Certificate of Approval Certificate of registration or airworthiness Chief pilot approval Maintenance controller approval Total

173 Table C.8 Applications to Federal Court for judicial review of CASA regulatory decisions, to Filed by Filed subject by person CASA Filed by Filed subject by person CASA Filed by Filed subject by person CASA Filed by Filed subject by person CASA Filed by Filed subject by person CASA Matters with the court Applications on hand from the previous year Applications filed during the year Total Matters dealt with Decisions affirmed Decisions set aside or overturned Matters dismissed Total Other matters Proceedings discontinued Applications on hand at 30 June Total Decisions arising from Administrative Appeals Tribunal decision Appendices and references PART 6

174 172 CASA Annual Report Appendix D: Statutory reports Freedom of information Table D.1 Freedom of information requests, to Requests Requests on hand from the previous year New requests received Total Status of requests at 30 June Matters decided: access granted in full access granted in part access refused a Subtotal Other matters: request withdrawn by applicant request transferred in whole to another agency request remaining on hand Subtotal Total a Includes matters where the reason for refusal was that the document or documents did not exist. Table D.2 Time taken to decide freedom of information matters, to No. % No. % No. % No. % No. % 0 30 days days days > 90 days

175 Table D.3 Internal review of CASA freedom of information decisions, to Matters for review Matters on hand New applications received Total Matters decided Decisions upheld Greater access given Charges increased Charges reduced Total Other matters Applications withdrawn Applications remaining on hand at 30 June Total Coronial inquiries Table D.4 Coronial inquiries, to Inquiries on hand from previous year New inquiries Total Conclusions handed down Inquiries remaining in progress at 30 June Appendices and references PART 6 Enforcement Table D.5 Medical certificate cancellations and suspensions, to Certificate C S C S C S C S C S Class Class Class C = cancelled, S = suspended Note: The certificate classes are Class 1 Professional pilots and flight engineers; Class 2 Student and private pilots; and Class 3 Air traffic control and flight service providers.

176 Table D.6 Licence and certificate actions, to 174 Action a Show cause notices issued Variations Suspensions a Cancellations Other enforcement action b a Includes suspensions under section 30DC of the Civil Aviation Act 1988 and regulations 265 and 269 of the Civil Aviation Regulations b Does not include action in relation to medical certificates or variations processed by the CASA Service Centre. Note: These figures do not include action taken in relation to Part 99 offences. CASA Annual Report Table D.7 Infringement notices and prosecutions, to Action Infringement notices issued Matters referred to the Director of Public Prosecutions Prosecutions finalised Acquittals 0 4 a 3 a 4 a 1 Convictions a Two matters were withdrawn. Media, advertising, direct mail, legal and consultants costs Table D.8 Media costs, Vendor Amount ($) Aerospace Australia Ltd 27,092 Arthur Sanderson (Vic) Pty Ltd 12,460 Besco Pty Ltd 56,710 FBA Enterprises Pty Ltd 17,417 Media Monitors Australia Pty Ltd 68,815 Montage Productions Pty Ltd 48,773 Pandora s Boxes 47,353 Planview Exhibitions & Displays Pty Ltd 25,867 Sealight Pictures Pty Ltd 17,340 Stella Aviation Pty Ltd TA WardAir Flight Training 54,544 Total 376,371 Note: Relates to amounts over $10,000. Amounts exclude GST and are rounded to whole dollars.

177 Table D.9 Advertising costs, Vendor Amount ($) ACP Magazines Ltd 18,800 Adcorp Australia Pty Ltd 49,673 Coates Hire 18,408 Convenience Advertising Pty Ltd 80,388 Max Interactive Pty Ltd 15,000 Nextmedia Pty Ltd 11,000 Yaffa Publishing Group Pty Ltd 12,703 Total 205,972 Note: Relates to amounts over $10,000. Amounts exclude GST and are rounded to whole dollars. 175 Table D.10 Direct mail costs, Vendor Amount ($) Australia Post 760,465 Australian Air Express Pty Ltd 167,534 Canberra Mailing and Envelopes 47,175 Total 975,174 Note: Relates to amounts over $10,000. Amounts exclude GST and are rounded to whole dollars. Table D.11 Legal costs, Vendor Amount ($) Australian Government Solicitor 225,744 Blake Dawson Waldron 53,884 Brenda Tronson 10,250 Brett Shields 46,269 Foleys List Pty Ltd 13,740 Ian Harvey 154,736 DLA Phillips Fox 16,346 Total 520,969 Note: Relates to amounts over $10,000. Amounts exclude GST and are rounded to whole dollars. Appendices and references PART 6

178 176 CASA Annual Report Table D.12 Total consultant costs, Vendor Nature and purpose Amount ($) Adelaide Research & Innovation Alcohol and other drugs implementation review services 115,000 Pty Ltd Altara Group Pty Ltd Review of Air Operator s Certificate paperwork for international 30,566 operations Australian Quality Training Production of business case for the establishment and implementation 33,801 Consultants of an academy and becoming a registered training organisation Aviation Concepts & Training Consultancy services related to ageing aircraft policy and ageing 218,599 Services Pty Ltd aircraft management plan and development of Ageing Aircraft 101 awareness training package CB Richard Ellis Property advisory services 24,956 Clockwork Research Ltd Advice and expertise in relation to Fatigue Risk Management 33,000 System project Cognesis Pty Ltd Scoping study on helicopter inspectors and technical writing services 30,770 Economic Associates Pty Ltd Industry impact analysis on the introduction of the new maintenance 32,055 regulations Ernst & Young Consultancy services around preparation of business case for financial 22,727 management information system replacement Gian Wild Assessment of current website compliance with Web Content 14,000 Accessibility Guidelines 2.0 Hyder Consulting Pty Ltd Consultancy to conduct an airspace review around Canberra Airport 43,029 Katestone Environmental Review of guidelines for plume rise assessments 35,455 KPMG Consultancy services related to Aviation Industry Regulatory System 20,800 impairment assessment review and asset capitalisation review Leslie Whittet & Associates Review and development of CASA s business continuity management 45,000 Pty Ltd framework Lessons Learnt Consulting Consultancy services for workplace readiness assessment 32,000 Pty Ltd Monash University Alcohol and other drugs implementation review and review of literature 153,884 and critical appraisal of traumatic brain injury No Standing Enterprises Pty Ltd Business analysis services related to audit work systems 12,451 Noetic Solutions Pty Limited Review of regulatory program and airworthiness inspector on-the-job 78,845 training workbook, business analysis and course development services Oakton Services Pty Ltd Review and preparation of proposed methodology for CASA s future cost recovery review 15,750 Peter J Murphy & Associates Pty Ltd Review of Air Operator s Certificate Manual and Fatigue Risk Management System (FRMS) documents and services to finalise FRMS Toolbox 23,800 PricewaterhouseCoopers Professional services related to 2010 CASA staff engagement survey 68,182 Protiviti Pty Ltd Review of the trial of the Certificate Management Team approach 35,936 SMS Management & Consultancy services associated with the development of information 142,400 Technology Ltd and communication technology strategic plan The Ambidji Group Pty Ltd Services related to CASA Class D tower assessment and professional 206,421 services on human factors and non-technical skills assessment and training To70 Aviation (Australia) Pty Ltd Airspace modelling services 50,724 Total Decision Support Pty Ltd Services related to CASA costing model refresh 53,160 Total 1,573,311 Note: Relates to amounts greater than $10,000. Includes expenditure on consultants which may be either capital or operating in nature. Amounts exclude GST and are rounded to whole dollars.

179 Abbreviations list AAT Administrative Appeals Tribunal AIRS Aviation Industry Regulatory System AOC Air Operator s Certificate APV approach with vertical guidance ASIC Aviation Security Identification Card ATO Approved Testing Officer ATSB Australian Transport Safety Bureau Avtex Avtex Air Services Pty Ltd CAC Act Commonwealth Authorities and Companies Act 1997 CASA Civil Aviation Safety Authority CASR Civil Aviation Safety Regulations Chicago Convention 1944 Convention on International Civil Aviation Civil Aviation Act Civil Aviation Act 1988 DAME Designated Aviation Medical Examiner DHSR Deputy Health and Safety Representative DWG designated work group EMS environmental management system EUV Enforceable Voluntary Undertaking FAA United States Federal Aviation Administration FOI Flying Operations Inspector FOI Act Freedom of Information Act 1982 HSMAs Health and Safety Management Arrangements HSR Health and Safety Representative ICAO International Civil Aviation Organization ICC Industry Complaints Commissioner IPA Implementation Procedures for Airworthiness IPS Information Publication Scheme IT information technology ITSAP Indonesian Transport Safety Assistance Package KIMS Knowledge and Information Management Services LAME Licensed Aircraft Maintenance Engineer MRS Medical Records System OHS occupational health and safety OHS Act Occupational Health and Safety Act 1991 PASO Pacific Aviation Safety Office PNG Papua New Guinea Qantas Qantas Airways Ltd RAAO recreational aviation administration organisation RASF Regional Aviation Safety Forum SCC Standards Consultative Committee SMS Safety Management System UAS Unmanned Aircraft System UK CAA United Kingdom Civil Aviation Authority URES Upgrade/Replace Existing Systems 177 Appendices and references PART 6

180 178 CASA Annual Report Compliance index Requirement Reference Pages Commonwealth Authorities and Companies Act 1997 Financial statements Schedule 1, subclause 1(b) and subclause 2(1) Financial statements certification: a statement, signed Schedule 1, subclause 2(3) 109 by the directors Financial statements certification: Auditor-General s Schedule 1, subclause 1(c) 107 Report Commonwealth Authorities and Companies (Report of Operations) Orders 2008 Advertising and market research Subclause 17(2), with reference to the 104 Commonwealth Electoral Act 1918, section 311A Audit Committee Subclause 15(2) Certification, report of operations Clause 4 2 Clear links between outcomes, strategies for achieving Subclause 10(2)(b) those outcomes and the principal outputs Commonwealth Disability Strategy Clause Directors Clause Ecologically sustainable development and environmental performance Subclause 17(2), with reference to the 103 Environment Protection and Biodiversity Conservation Act 1999, section 516A Clause Effects of ministerial directions and notification of general policies of the Government Efficiency and effectiveness of the operations in Subclause 10(2)(a) producing its principal outputs Enabling legislation, functions and objectives Clause 8 58 Factors, events or trends influencing performance Subclause 10(1)(b) 8, 10, 12 18, Freedom of information Subclause 17(2), with reference to the Freedom of Information Act 1982, subsection 8(1) Indemnities and insurance premiums for officers Clause Judicial decisions and decisions of administrative Subclause 11(a) tribunals that have had, or may have, a significant impact on operations Location of major activities and facilities Clause Ministerial directions on performance of functions, Subclause 17(1), with reference to the Civil 59 exercise of powers Aviation Act 1988, section 12 and section 49 Ministerial directions regarding documents and Subclause 17(1), with reference to the Civil 59 information Aviation Act 1988, section 12 and section 49 Ministerial directions regarding reporting Subclause 17(1), with reference to the Civil 59 Aviation Act 1988, section 12 and section 49 Notification of minister s views Subclause 17(1), with reference to the Civil 59 Aviation Act 1988, sections 12 and section 49 Occupational health and safety Subclause 17(2), with reference to the Occupational Health and Safety (Commonwealth Employment) Act 1991, section

181 Requirement Reference Pages Operational and financial results during the year, Subclause 10(1)(d) 1, including principal outputs, major investing activities, 22 26, key financial and non-financial activities Organisational structure Clause Reports on the operations of the authority by the Subclause 11(b) 93 Auditor-General, a parliamentary committee or the Commonwealth Ombudsman Responsible minister(s) Subclause 8(b) 58 Review of performance Subclause 10(1)(a) Significant changes in state of affairs or principal Subclause 10(1)(e) 98 activities during the financial year Significant developments since the end of the Subclause 10(1)(f) 98 financial year Significant events referred to in section 15 of the Subclause 10(1)(c) 98 Commonwealth Authorities and Companies Act 1997 Statement on governance Clause Commonwealth Fraud Control Guidelines 2011 Fraud risk assessment and control Chapter Appendices and references PART 6

182 180 CASA Annual Report Alphabetical index A access clauses in tender documents and contracts, 104 Accident Liaison and Investigation Unit, 90 accident simulation exercise at Sydney Airport, 90 accidents helicopter sector, 13 high-capacity regular public transport aircraft, 8 private and business general aviation, 8 accidents and dangerous occurrences workplace, 86 accountability, 15 see also management arrangements and accountability reporting Administrative Appeals Tribunal (AAT), 98 9 categories of decisions appealed to statistics, 170 Legal Services and, 75 merits reviews of regulatory decisions, 95 statistics, 170 and review of FOI decisions, Snell and Civil Aviation Safety Authority [2010] AATA 984, 102 Vasta and Anor and Civil Aviation Safety Authority [2010] AATA 499, 102 Administrative Decisions (Judicial Review) Act 1977, 95 administrative scrutiny, 93, 94 advertising and market research, 104 advertising costs statistics, 175 advisory circulars, dangerous goods, 38, 66 aerial work operations revised regulations covering maintenance organisations, 12, 27 Aerodrome Emergency Plan at Soekarno Hatta International Airport, Jakarta, 55 aerodrome rescue and firefighting service providers number of operators, 5 aerodromes statistics, 164 see also certified and registered airports Ageing Aircraft Management Plan, 38 see also average age of the Australian fleet of civil aircraft air operators and move to new maintenance regulations, 13, 36 Air Operator s Certificate holders number of, 5 regular public transport and new regulations, 1, 36, 42, 43 Air Operator s Certificate Manual, 16, 37 Air Operator s Certificates online, 17 and Operations Enhancement Program, 49 statistics, 3, 161 suspension of Avtex Air Services Pty Ltd, 98 9, 99 Skymaster Air Services Pty Ltd, 98 9, 99 Tiger Airways Australia Pty Ltd, 14, 88 Air Safety Advisors and AvSafety, 40 air safety inspectors new work bases in northern Australia, 40 air traffic control tower services Broome and Karratha (WA), 36 Air Transport Safety Bureau and Joint Agencies Safety Analysis Group, 43 air travel statistics, 8 Aircraft Maintenance Engineer licences transition from Civil Aviation Regulation 31 to CASR Part 66, 1, 36, 42 Aircraft Maintenance Engineer licences and ratings statistics, 167 aircraft maintenance examinations statistics, 166 Aircraft Noise Ombudsman and improvement of access to complaints channels and the experience of complainants, 16, 95 aircraft operations statistics, aircraft owners number of, 5 aircraft registrations statistics, 162 aircraft service difficulty reports statistics, 162 airports see aerodromes; certified and registered airports Airservices Australia approach with vertical guidance (APV), 44 BARO/VNAV APV procedures, 44 and Aviation Implementation Group, 90 and Directors General of Civil Aviation Conference, 91 and improvement of access to complaints channels and the experience of complainants, 16, 95 and International Civil Aviation Organization, 90 and Joint Agencies Safety Analysis Group, 43 and Papua New Guinea Interagency Transport Cooperation Working Group, 92 and State Safety Program, 14 airspace ash-affected, 36 reclassification, 36 in emergency circumstances, 36 see also Class D airspace Airspace Act 2007, 58 Airspace and Aerodrome Regulation Division role, 72 airspace consultative processes, 52 airspace reform initiatives, 45 airspace reform program, 45 Airspace Reform Work Program, 45 airspace reviews statistics, 164 airworthiness statistics, 164 see also continuing airworthiness requirements airworthiness certificates, authorisations and approvals statistics, 161 airworthiness delegations, 16 Airworthiness Directives above 5,700kg, 51 aircraft below 5,700kg, 51 review of, 51 Airworthiness Directives and bulletins, 51 statistics, 164 Airworthiness Inspectors entry-level training framework, 40 airworthiness programs regional airline sector, 38 airworthiness requirements, additional CASR Part 90, 88

183 alcohol tests number of conducted, 3 Aleck, Jonathan, 69 Alfredson, Rod, 63 the Americas engagement with, 91 Anastasi, Adam, 75 annual report award for, 15 Report of Operations, certification, 2 apprentice Licensed Aircraft Maintenance Engineers scholarships for, 41 approach with vertical guidance (APV), 44 see also BARO/VNAV APV procedures approved maintenance organisations CASR Part 145, 1, 12, 13, 27, 36, 42, 88, 154 Approved Testing Officers (ATOs) Professional Development Programs for, 36, 39 Asia Pacific Bilateral Partners meeting United States Federal Aviation Administration, 92 Asia Pacific region engagement with, 91 2 Auditor-General reports by, 93 AusAID and Indonesian Transport Safety Assistance Package, 92 and Papua New Guinea Interagency Transport Cooperation Working Group, 92 Australia United States Bilateral Aviation Safety Agreement, 54, 91 Australian Airspace Policy Statement, 45 Australian Civil Aircraft Register number of aircraft on, 3 online, 17 Australian Maritime Safety Authority and State Safety Program, 14 Australian National Audit Office Audit Report No. 13, Implementation and Administration of the Civil Aviation Safety Authority s Safety Management System Approach for Aircraft Operators, 93 Audit Report No. 14, Capitalisation of Software, 93 Australian Quality Training Framework and Unmanned Aircraft System, 38 Australian Safety Transport Bureau and improvement of access to complaints channels and the experience of complainants, 16, 95 Australian Transport Safety Bureau (ATSB) dangerous goods incidents, 66 and Papua New Guinea Interagency Transport Cooperation Working Group, 92 relationship with, 53, 58, 90 and State Safety Program, 14 Australia New Zealand mutual recognition agreements, 58 average age of the Australian fleet of civil aircraft statistics, 163 see also Ageing Aircraft Management Plan aviation and general liability insurance, 104 aviation fuel excise rate and funding, 50 Aviation House, Canberra equipment and furniture, 103 waste collection system, 103 Aviation Implementation Group, 53, 90 aviation industry consultation with, 17, 27, 42 education for, 1, 12, 36, 43 online learning for, 12 engagement with, 88 9 Aviation Industry Regulatory System, 50 Aviation Industry Regulatory System (AIRS) replacement of, 1, 10, 16 aviation infringement notices, 102 see also infringement notices and prosecutions Aviation Medicine Branch, 65 aviation participants relationship with, 1, 52 6 Aviation Policy Group, 53, 89, 90 aviation safety trends in, 8 aviation safety agreements bilateral, 10 aviation safety communication improvement of, 55 Aviation Safety Digest, 3 Aviation Safety Network, 39, 89 aviation safety regulations revision of, 1, 10, 12 Aviation Safety Regulatory Development Taskforce, 42 Aviation Transport Security Act 2004, 58 AvSafety on-site visit tool, 40, 43 seminars, 1 Avtex Air Services Pty Ltd suspension of Air Operator s Certificate, 98 9, 99 B barometric vertical navigation, 44 BARO/VNAV APV procedures, 44 see also approach with vertical guidance (APV) bilateral aviation safety agreements, 10, 54 Board, functions, 59 meetings, 62 members, Statement of Expectations for, 59 Statement of Intent, 59 Board Audit Committee, 78 meetings, 62 members, 63 Boyd, Peter, 71 Brazil engagement with, 91 see also National Civil Aviation Agency of Brazil Bureau of Meteorology and State Safety Program, 14 business and risk management plan, 49 see also risk management Business Change and Process functions, 65 business improvement program, 49 business structure, 48 Business Support Branch, 48 C Canada engagement with, 91 see also Transport Canada Capital Replacement Plan, 50 The CASA Briefing newsletter, 17, 88, 95 Catherine Fargeon Award, 87 Cecil A Brownlow Award Flight Safety Australia, 1, 15, 52, 87 Certificate Management Teams, 37 and regional offices, 13, 15 trial, 36 Certificate of Approval Manual, 16, 46 and Operations Enhancement Program, 49 Certificates of Approval applications, 46 statistics, 3, Appendices and references PART 6

184 182 CASA Annual Report certified and registered airports number of operators, 5 number of under regulatory oversight, 3 see also aerodromes Chair of the Board message from, charter operations revised regulations covering maintenance organisations, 12, 27 Chicago Convention see Convention on International Civil Aviation (Chicago Convention) Chile volcanic eruption risk management and, 1 case study, 34 China aviation safety arrangements with, 54 civil aircraft average age of statistics, 163 Civil Aviation (Carriers Liability) Act 1959, 58, 104 Civil Aviation Act 1988, 4, 20, 58, 104 alignment of CASA policies with, 47 and CASA Board, 59 and CASA organisational structure, 46, 65 and cooperation with the Australian Transport Safety Bureau, 53 and corporate governance, 58 and employment of staff, 81 and enforcement actions, 102 and external engagement, 88 and industry consultation, 17 and Jones v Civil Aviation Safety Authority and Anor [2011] FCA 632, 99 and ministerial directions, 59 and review of CASA policies, 47 and significant events, 98 and suspension of Air Operator s Certificates, 98 and suspension of civil aviation authorisation, 99 civil aviation advisory publications, 157 Civil Aviation Authority of Fiji, 54, 92 Civil Aviation Orders, 58, 75 amendment instruments, 154 amendment orders, 155 regulatory framework for the implementation of APV, 44 Civil Aviation Regulations (CAR) 1988, Aircraft maintenance engineer licences, 1, 36, 42 see also Civil Aviation Safety Regulations (CASR) 1998, Part Minimum equipment list training program, 39 42M System of maintenance training program, 39 amendments to, 154 and enforcement actions, 102 Civil Aviation Safety Authority (CASA) corporate goals, 4 financial management, 17 financial result, 5 financial statements, financial summary, 22 6 high points, 1 history of key moments in, 20 1 and Infrastructure and Transport portfolio, 33, 58 key corporate statistics, 6 locations, 185 management arrangements and accountability reporting, mission, 4 operating environment, 5 organisational structure, 64 5 changes, 65 overview, 9 29 performance reporting, role, 4 values, 4 vision, 4 Civil Aviation Safety Authority of Papua New Guinea, 54 Civil Aviation Safety Regulations (CASR) 1998, 58 amendments to, 12 13, 36, 154 and enforcement actions, 102 Part 42 Continuing airworthiness requirements for aircraft and aeronautical products, 1, 12, 13, 27, 36, 42, 88, 154 Part 66 Maintenance personnel licensing, 1, 12, 13, 27, 36, 42, 88, 154 Part 90 Additional airworthiness requirements, 88 Part 92 Consignment and carriage of dangerous goods by air, 38 Part 101 Unmanned aircraft and rocket operations, 38 Part 145 Approved maintenance organisations, 1, 12, 13, 27, 36, 42, 88, 154 Part 147 Maintenance training organisations, 1, 12, 27, 36, 42, 88, 154 post-implementation review, 38, 42 Class D airspace General Aviation Aerodrome Procedures aerodromes, 45 Code of Conduct, 79, 95 Comcare and accidents and dangerous occurrences, 86 investigations, 86 and workers compensation claims, 86 Comcover Risk Management Benchmarking Program annual survey, 77, 78 Commonwealth Authorities and Companies Act 1997 (CAC Act), 58, 59 Commonwealth Authorities and Companies (Report of Operations) Orders 2008, 104 and judicial decisions and decisions of administrative tribunals, 98 and significant events, 98 Commonwealth Director of Public Prosecutions, 14, 102 Commonwealth Disability Strategy, 86 Commonwealth Electoral Act 1918, 104 Commonwealth Ombudsman investigations by, 93, 95 Commonwealth Procurement Guidelines, 104 communications with aviation stakeholder/participants, community engagement, 88 feedback, 88 complaints, 96 complaints-handling mechanisms, 95 6 see also Industry Complaints Commissioner (ICC) Compliance Report, 59 conflict of interest, 79 Conflict of Interest Policy contravention of, 95 consultancy services, 104 consultant costs, total statistics, 175 consultation with aviation industry, 12, 17, 27, 42 on Operations and Flight Crew Licensing regulations, 36

185 contact point CASA documents, 101 freedom of information, 100 continuing airworthiness requirements CASR Part 42, 1, 12, 13, 27, 36, 42, 88, 154 Convention on International Civil Aviation (Chicago Convention), 90 alignment of CASA functions with, 47 State Safety Program, 14 coronial inquiries, 99 statistics, 173 corporate goals/program deliverables, 32 enhanced focus on regulating aviation safety achievements, 36 initiatives, looking ahead, 45 enhanced governance and operational efficiency, 32 achievements, 46 initiatives, looking ahead, 51 enhanced relationships with key aviation participants, 32 achievements, 52 initiatives, 53 5 looking ahead, 56 corporate governance, corporate orientation programs for newstarters, 84 Corporate Plan, 4, 10, 18, 59 and corporate goals/program deliverables, 32 and funding strategy, 50 Corporate Relations Branch, 65 Corporate Services Division, 65 role, 76 corporate statistics, key, 6 Coyne, Jim award, 87 Critical Occurrence Response Plan, 90 Cromarty, Peter, 72 CyberExams, flight crew examination system, 50 D dangerous goods incidents, 66 dangerous goods oversight, 38 case study, 66 Danos, Trevor, 61, 63 data management tool, EMPIC-EAP, 16, 46 data quality frameworks, 49 Delegate Advisory Panel, 52 Delegate Management Notification System, 46 online, 16 delegates and authorised persons, 39 surveillance strategies for, 39 website for, 52 see also Technical Delegates and Authorised Persons Policy deliverables see corporate goals/program deliverables Department of Defence and Joint Agencies Safety Analysis Group, 43 relationship with, 53 and State Safety Program, 14 Department of Infrastructure and Transport and amendments to the Implementation Procedures for Airworthiness, 54 and Directors General of Civil Aviation Conference, 91 and Indonesian Transport Safety Assistance Package, 92 and International Civil Aviation Organization, 90 and Papua New Guinea Interagency Transport Cooperation Working Group, 92 relationship with, 53 and State Safety Program, 14 Deputy Director of Aviation Safety role, 68 Deputy Health and Safety Representatives (DHSRs), 83, 84 Designated Aviation Medical Examiners (DAMEs), 50 workshops, 50 designated work group (DWG) structure, 83 direct mail costs statistics, 175 Director of Aviation Safety review by, see also Office of the Director of Aviation Safety directors and officers indemnity, 104 Directors General of Civil Aviation Conference, 91 disability reporting, 86 discussion papers, 156 divisional workshops, 48 draft advisory circulars, 156 draft civil aviation advisory publications, 157 drug tests number of conducted, 3 E early intervention assistance for non-compensable injuries and illnesses, 84 Eastern Region Air Transport Office, 48 ecologically sustainable development, 103 principles of, 103 education see safety education and training elearning system number of visits to website, 3 see also online learning EMPIC-EAP data management tool, 16, 46, 50, 51 employee assistance program, 84 enabling legislation, 58 Enforceable Voluntary Undertakings (EVUs), 102 enforcement, 14 enforcement actions, 102 statistics, Enforcement Manual, 36, 44 enforcement practices, 75 enforcement strategies, 44, 75 Enhanced Self-Administration Project sports aviation sector, 39, 89 enterprise agreement, 41, 81 environment measures taken to minimise impact of activities on, 103 Environment Protection and Biodiversity Act 1999, 103 environmental management committees, 103 Environmental Management Manual, 103 Environmental Management Policy, 103 environmental management system (EMS), 103 Ethics and Conduct Committee and complaints, 95 Europe aviation safety arrangements with, 54 engagement with, 92 European Aviation Safety Agency, 92 European Commission safety agreement, 92 Executive Manager Corporate Services, 83 Executive Managers executive coaching for, 41 Executive Managers meeting, 83 Expert Panel on Aircraft Air Quality, 89 external engagement, external scrutiny, Appendices and references PART 6

186 184 CASA Annual Report F FAA see United States Federal Aviation Administration Farquharson, Terry, 68 Federal Court of Australia applications for judicial review of regulatory decisions statistics, 171 Jones v Civil Aviation Safety Authority and Anor [2011] FCA 632, 99 judicial review of regulatory decisions, 95 Legal Services and, 75 and suspension of Air Operator s Certificates of Avtex Air Services Pty Ltd and Skymaster Air Services Pty Ltd, 99 Fereday, Peter, 74 Fiji engagement with, 92 see also Civil Aviation Authority of Fiji Finance Minister General Policy Orders, 59 reports, documents and information on its operations for, 59 Finance office, 76 financial management, 17 key statistics, 6 financial management information system replacement of, 1, 16 financial result, 5 financial statements, financial summary, 22 6 flight approaches to aerodromes, 44 flight crew examination system (CyberExams), 50 flight crew licences statistics, 3, 165 flight crew licensing examinations statistics, 3, 166 flight operations and personnel statistics, Flight Path to the Future, and in the Australian Airspace Policy Statement 2010 (National Aviation Policy White Paper), 10, 18, 88 flight planning see OnTrack (interactive, online flight-planning tool) Flight Safety Australia magazine, 3, 17, 53 award for, 1, 15, 52, 87 Flight Safety Foundation, 15, 52, 87 Flying Operations Inspectors (FOIs) entry-level training framework, 40 helicopters, 37 Flying Training Panel, 89 Foreign Agencies Program and Indonesia, 55 Foreign Agency Programs Branch, 65 foreign air operators en-route surveillance of, 37 number of under regulatory oversight, 3 regulatory oversight of, 37 Foreign Aircraft Air Operator s Certificate regime, 93 fraud control, 79 Fraud Control Framework, 79 Fraud Policy contravention of, 95 freedom of information, administrative review of FOI decisions, 101 internal review of decisions statistics, 173 requests, 101 statistics, 172 section 8 statement arrangements for participation, 100 categories of documents, 101 particulars of organisation, 100 procedures and contact point, 100 time taken to decide matters statistics, 172 Freedom of Information Act 1982, 75, 100 Fundamentals of Risk Management training module, 51 funding additional, 10, 17, 36 aviation fuel excise rate increase and, 50 funding strategy, 50 G General Aviation Aerodrome Procedures aerodromes Class D airspace, 45 General Aviation Office, 48 general aviation sector consultation with, 17 general aviation statistics, 8 General Policy Orders from Finance Minister, 59 Gillies, Helen, 61 governance and operational efficiency, 1, governance framework, 46, 47 governance manual, 47 Governance Systems Branch, 78 Graduate and Internship Program, 41 graduate development program, 15, 36 case study, 80 graduate intake, 15, 36, 41, 80 Graduate Program, 41 Gray, David, 61 H Harbor, Gary, 76 Hawke, Dr Allan, 61 see also Chair of the Board Health and Safety Management Arrangements (HSMAs), 83 4 Health and Safety Representatives (HSRs), 83, 84 health, safety and security advice and risk mitigation strategies for travellers, 84 health, safety and welfare at work of employees and contractors measures taken, 85 helicopter flying training, 13, 37 helicopter sector accidents, 13 oversight of operations, 13, 37 high performance recognition of, 82 high-capacity passenger-carrying sector consultation with, 17 high-capacity regular public transport aircraft accidents, 8 hours flown, 8 high-risk areas, 37 history of CASA key moments in, 20 1 Hood, Greg, 70 Human Factors function, 65 human resource management information system replacement of, 1, 16 Human Resources, 48 human resources statistics see staffing statistics I Implementation Procedures for Airworthiness (IPA) Australia United States Bilateral Aviation Safety Agreement, 54, 91 Indonesia engagement with, 92 Foreign Agencies Program and, 55 Indonesian Directorate General of Civil Aviation, 55

187 Indonesian Transport Safety Assistance Package (ITSAP), 55, 92 Industry Career Guides, 41 Industry Complaints Commissioner (ICC), 69, 95 6 and improvement of access to complaints channels and the experience of complainants, 16, 95 industry consultation, 17, 27, 42 industry engagement, 88 9 Industry Permissions Division, 49, 65 role, 74 information and education campaign on new safety regulations, 13, 27, 36, 95 information and knowledge management system, 49 information technology investments in, 1, 16, 50 replacement of financial management and human resource management information systems, 1, 16 Information Technology Branch, 49, 50, 65, 76 information technology infrastructure, 50 Infrastructure and Transport portfolio, 33, 58 Infrastructure, Transport, Regional Development and Local Government portfolio, 33 infringement notices and prosecutions, 14 statistics, 174 see also aviation infringement notices inspectors training, 15 see also air safety inspectors; Airworthiness Inspectors; Flying Operations Inspectors (FOIs) insurance and indemnities, 104 internal audit arrangements, 78 9 internal audit reviews, 46, 78 international awards case study, 87 International Civil Aviation Organization Assembly, 90 International Civil Aviation Organization (ICAO), 90 1 alignment of CASA functions with standards and recommendations of, 47 Dangerous Goods Panel, 66 dangerous goods training, 38 International Volcanic Ash Task Force, 34 Member State of Chief Importance status, 1, 17, 52, 54, 90 membership of, 54, 90 State Safety Program, 90 international cooperation, 17 international engagement, 90 International Volcanic Ash Task Force International Civil Aviation Organization, 34 intra-governmental engagement, 53, J Joint Agencies Safety Analysis Group, 43 Joint Standing Committee on Treaties and amendments to the Implementation Procedures for Airworthiness, 54, 91 Jones v Civil Aviation Safety Authority and Anor [2011] FCA 632, 99 Judiciary Act 1903, 99 K key performance indicators, 32, 33 Knowledge and Information Management Services (KIMS), 49 knowledge management capability, 49 Korea engagement with, 92 Korean Office of Civil Aviation and airworthiness certification, 92 aviation safety arrangements with, 52, 54 L leadership capability development of, 41 learning management system, 40 Learning Seat (online learning provider), 40 legal costs statistics, 175 Legal Services, 47 role, 75 Legislative Instruments Act 2003, 88 legislative projects, new, letter of transmittal, 2 licence and certificate actions statistics, 174 Licensed Aircraft Maintenance Engineers scholarships for apprentices, 41 Licensed Aircraft Maintenance Engineers (LAMEs) new licences, 13, 27 see also Civil Aviation Safety Regulations (CASR) 1998, Part 66 number of, 5 local occupational health and safety committees, 83 locations, 185 lost-time occurrence incidence rate, 86 low-cost operations monitoring of, 37 low-visibility landing procedures new regulatory standards, 1, 36 M McCormick, John F., 61 see also Director of Aviation Safety maintenance organisations and move to new maintenance regulations, 13 number of, 5 and Safety Management Systems, 43 see also approved maintenance organisations maintenance organisations and personnel statistics, maintenance personnel licensing CASR Part 66, 1, 12, 13, 27, 36, 42, 88, 154 maintenance regulations, 12 revised, 12, 42, 45 case study, 27 see also Civil Aviation Safety Regulations (CASR) 1998 maintenance regulations communications campaign, 13, 27, 36, 95 maintenance training organisations CASR Part 147, 1, 12, 27, 36, 42, 88, 154 management arrangements and accountability reporting, statistics, managers and divisions, manuals reviewing and updating of, 47 Manuals of Standards, 58, 88, 157 Manufacturing Section, 48 market research see advertising and market research measures undertaken in to ensure the health, safety and welfare at work of employees and contractors, 84, 85 media costs statistics, 174 media scrutiny, 95 Medical Aviation Regulatory Processing System, 50 medical certificate cancellations and suspensions statistics, 173 medical certificates statistics, 3, 166 Medical Records System (MRS) online project, Appendices and references PART 6

188 186 CASA Annual Report Melbourne Air Transport staff, 48 Member State of Chief Importance International Civil Aviation Organization, 1, 17, 52, 54 memorandum of understanding on cooperation in transport sector between Governments of Australia and Papua New Guinea, 92 Miller Review review by Russell Miller into relationship between the Australian Transport Safety Bureau and CASA, 53 mining industry oversight of aviation operations supporting, 13 Minister for Infrastructure and Transport, 58 relationship with, 53 ministerial directions, 59 Ministry of Civil Aviation, Tonga, 54 Moorabin General Aviation staff, 48 N National Aviation Policy White Paper, Flight Path to the Future, and in the Australian Airspace Policy Statement 2010, 10, 18, 88 National Chief Flying Instructor Conference, 89 National Civil Aviation Agency of Brazil airworthiness procedures and processes, 91 National Disability Strategy, 86 National Occupational Health and Safety Committee, 83, 84 national recruitment campaign, 41 national vaccination campaign for seasonal influenza, 84 New Leaders at CASA program, 41 New Zealand engagement with, 92 New Zealand Civil Aviation Authority aviation safety arrangements with, 52 discussion of mutual recognition and exchange of safety-related information, 92 newsletter see The CASA Briefing newsletter northern Australia work bases for air safety inspectors in, 40 Northern Territory aviation activity, 13 Notices of final rule making (NFRM), Notices of proposed rule making (NPRM), 155 post-implementation review of CASR Part 92, 38 O occupational health and safety, 83 6 audits, risk assessments and reviews, 85 consultation, 85 equipment, 85 health services, 85 information and training, 85 outcomes, 84 Occupational Health and Safety Act 1991 (OHS Act), 83 occupational health and safety management system, 83 Occupational Health and Safety Policy, 83, 84 occupational health and safety training, induction and orientation measures, 84 Office of Legislative Drafting and Publishing and Regulatory Reform Program, 42 Office of the Director of Aviation Safety, 65 Program Management Branch, 15 role, 69 Office of Transport Security and improvement of access to complaints channels and the experience of complainants, 16, 95 offshore maintenance of Australian-registered aircraft, 37 online Delegate Management Notification System, 16 online learning for aviation industry, 12 equity and diversity training, 84 OHS training, 84 see also elearning system OnTrack (interactive, online flight-planning tool), 36, 43 operating statistics, Operational and Licensing Regulations, 42 operational resource allocation and management framework, 37 operations key statistics, 6 Operations and Flight Crew Licensing regulations, 36 Operations Division, 15, 37, 38, 41, 48 role, 70 Operations Enhancement Program, 37, 49 organisation structures realignment of, 47 organisational changes, 15, 65 organisational structure, 64 5 Outcome 1, 32, 33 outcomes, 22 6 cash flow, 25 expenses, 24 financial position, 25 income, 23 outlook, 26 outside bodies decisions by, 98 9 oversight management review of at Darwin, Cairns and Townsville, 40 P Pacific Aviation Safety Office (PASO), 54, 91 Pacific island nations assistance to re aviation regulatory capacity, 54 Papua New Guinea engagement with, 92 see also Civil Aviation Safety Authority of Papua New Guinea Papua New Guinea Interagency Transport Cooperation Working Group, 92 Parliamentary Joint Committee on law Enforcement inquiry into adequacy of aviation and maritime security measures to combat serious and organised crime, 93 parliamentary scrutiny, 93 people, 5, 11 see also staff People and Performance Branch, 76, 83 People and Performance Business and Risk Management Plan, 83 people management, 81 2 Performance Assessment Communication Scheme, 40 performance reporting, Permissions Application Centre, 50 and Certificate of Approval applications, 46 phone calls number of received, 3 pilots number of, 5 planning, reporting and performance management framework, 40 policies and procedures, 16 policy notices, 46, 47 policy review, 46, 47 population of Australia, 8 Portfolio Budget Statements and outcome, program, program objective and key performance indicators, 32 3 portfolio outcome see Outcome 1 portfolio structure and responsible minister, 58 position descriptions, 48 Prime Minister s Pacific Australia Award, 54 Privacy Act 1988, 75

189 private and business general aviation accidents, 8 private operations revised regulations covering maintenance organisations, 12, 27 probity measures, 79 procedures reviewing and updating of, 47 procurement framework, 104 procurement policies, 104 Professional Development Programs for Approved Testing Officers, 36, 39 professional indemnity, 104 Program 1.1, 32 key performance indicators, 32 objective, 32 Program Management Branch, 15, 65, 69 prosecutions see infringement notices and prosecutions purchasing, 104 Q Qantas Airways Ltd A380 fleet safety aspects of return to service of, 1 and Vasta and Anor and Civil Aviation Safety Authority [2010] AATA 499, 102 Queensland floods staff cooperation to help, 94 Queensland, north aviation activity, 13 R recruitment, 41 surveillance and subject matter staff, 36 regional airline sector fleet airworthiness programs, 38 Regional Airspace and Procedures Advisory Committee Kununurra, WA, 52 Regional Aviation Safety Forum (RASF), 52, 53, 55, 56, 89 regional offices and Certificate Management Teams, 13, 15 regular public transport Air Operator s Certificate holders and new regulations, 1, 36, 42, 43 regular public transport aircraft regulations covering continuing airworthiness, 12, 27 regulations covering maintenance organisations, 12, 27 see also high-capacity regular public transport aircraft regular public transport operators and Safety Management Systems, 43 Regulatory and Technical Training Section, 81 regulatory decisions reviews of, 95 statistics, regulatory development, regulatory instruments and publications, Regulatory Reform Program, 42 regulatory services number of applications for, 3, 12 Regulatory Services Workflow Implementation Project, 50 remote Australia work bases for air safety inspectors in, 40 Remuneration and Benefits Strategy, 41 reporting structure for service monitoring and analysis new, 49 resources five-year summary, 6 risk management, 1, 51, 77 8 and volcanic eruption in Chile, 1, 14 see also business and risk management plan Risk Management and Quality Assurance Section, 78 Risk Management Framework, 46, 51 Risk Management Policy, 46, 51 risk management practices, 46, 51 risk-based surveillance methodology, 49 Roche, Michael, 63 Royal Australian Air Force and Aviation Implementation Group, 90 S Safety Analysis, Education and Promotion Division, 65 role, 73 safety communication and education programs, 43 safety education and training, for aviation industry, 1, 12, 36, 43 safety management course, 43 Safety Management International Collaboration Group, 44 Safety Management Systems, 43 airline, 34 introduction of, 36, 39 maintenance organisations, 43 regular public transport operators, 43 safety oversight, Safety Oversight Branch, 48 safety regulations new, see also Civil Aviation Safety Regulations (CASR) 1998 Safety Systems Office, 1, 46, 47, 49, 90 safety value indicators, 44 safety-related trends and risk factors, 43 satellite offices in northern Australia, 40 scholarships for apprentice Licensed Aircraft Maintenance Engineers, 41 self-administering organisations sport aviation sector, 36 Self-Administering Sport Aviation Organisations Section, 39, 65 Senate Rural Affairs and Transport Estimates Committee appearance before, 93 Senate Standing Committee on Foreign Affairs, Defence and Trade inquiry into the Department of Defence s request for tender for aviation contracts, 93 Senate Standing Committee on Rural Affairs and Transport inquiry into pilot training and airline safety, including consideration of Transport Safety Investigation Amendment (Incident Reports) Bill 2010, 93 senior management team, 67 appointments, 67 Service Catalogue, 50 service level standards review of, 46, 49 Service Point Program, 50 ServiceLOG project, 50 significant events, 98 Sinclair, Mark, 73 Singapore aviation safety arrangements with, 54 Single Service Centre approach/methodology, 46, 49 project, 50 skilled staff shortage of, 41 Skymaster Air Services Pty Ltd suspension of Air Operator s Certificate, 98 9, Appendices and references PART 6

190 188 CASA Annual Report Snell and Civil Aviation Safety Authority [2010] AATA 984, 102 social media, 17 Soekarno Hatta International Airport, Jakarta Aerodrome Emergency Plan at, 55 South Australia aviation activity, 13 Southern Region Air Transport Office, 65 Southern Region General Aviation Office, 65 Southern Region office, 48 Southern Region Operations Office, 65 Space Based Augmentation System, 44 Sport Aviation Forum, 39, 56, 89 Sport Aviation function, 65 Sport Aviation Office, 39 Sport Aviation Safety Forum, 52, 53, 55 sport aviation sector self-administering organisations, 36, 39 staff attraction and retention, 41 performance awards, 82 recruitment, 36, 41 training and development, 15, 81 inspectors, 15 turnover, 81 staff engagement survey, 1, 16, 40, 46, 47 Staff Selection Guidelines new, 41 staffing, 81 staffing statistics, 5, 6, stakeholder engagement, 10, 12, 16 17, 27, 52 6, standards industry consultation on re changes to, 55 Standards Consultative Committee (SCC), 52, 53, 56, 88 9 Charter, 55 Standards Development and Future Technology Division, 65 role, 71 Standards Development Manual, 55 Standing Committee on Infrastructure and Communications inquiry into ratio of cabin crew members to passengers on aircraft, 93 State Safety Program, 44, 90 Convention on International Civil Aviation (Chicago Convention), 14 Statement of Expectations for Board, 59 Statement of Intent from Board, 59 Strategic Workforce Plan, 1, 46, 48 surveillance and subject matter staff recruitment, 36 Surveillance Process Manual and Operations Enhancement Program, 49 T Technical Delegates and Authorised Persons Policy, 39 technical training see training framework Tiger Airways Australia Pty Ltd suspension of Air Operator s Certificate, 14, 88 Tonga see Ministry of Civil Aviation, Tonga training framework entry-level Flying Operations Inspectors and Airworthiness Inspectors, 40 training programs CAR 37 Minimum equipment list, 39 CAR 42M System of maintenance, 39 Transport Canada aviation safety arrangements with, 52, 54 maintenance arrangements with, 91 Transport Safety Investigation Act 2003, 53, 58 Transport Safety Investigation Amendment (Incident Reports) Bill 2010, 93 Transport Senior Officials Meeting and capacity building in Papua New Guinea, 92 travel function, 83 trending analysis, 49 Twitter, 1, 17, 52 U United States engagement with, 91 see also Australia United States Bilateral Aviation Safety Agreement United States Federal Aviation Administration Asia Pacific Bilateral Partners meeting, 92 aviation safety arrangements with, 52 CASA s aircraft parts manufacturing approvals, 91 unmanned aerial vehicles sector, 38 Unmanned Aircraft System (UAS), 36, 38, 87 Unmanned Aircraft System Operator s Certificate manual, 38 Unmanned Vehicle Systems International (UVS International), 87 unplanned absences staff, 81 Update/Replace Existing Systems program, 46 Upgrade/Replace Existing Systems (URES) program, 50 V Vasta and Anor and Civil Aviation Safety Authority [2010] AATA 499, 102 visiting international delegations, 52, 53 volcanic ash cloud from eruption in Chile risk management and, 1, 14 case study, 34 W waste reduction, 103 web content audit, 55 web content management system, 55 web publishing guidelines, 55 website, 17, 55, 95 feedback feature, 88 see also elearning system Western Australia, north aviation activity, 13, 36, 52 whistleblower policy, 79 work bases for air safety inspectors in northern Australia, 40 workers compensation claims, 86 workers compensation premium, 86 Workplace Safety and Environment Section, 83 workstation assessment, individual, 84 Y Yeoh, Barbara, 63

191 CASA locations Horn Island Darwin Gove Kununurra Broome Cairns Townsville Brisbane Perth Adelaide Tamworth Sydney Canberra Regional office National Headquarters Satellite office Melbourne Acknowledgments Project Manager: Pradeep de Silva Assisted by: Michelle Spence Design: Duncan Grant Photography: Karen Scrimes Editing: WordsWorth Writing Pty ltd Printing: CanPrint Communications Pty ltd Thank you to all contributors and divisional coordinators.

192 CASA national HeAdquARteRS Aviation House 16 Furzer Street Phillip ACT 2606 GPO Box 2005 Canberra ACT 2601 T (local call) F E [email protected] W