a flat fee with no actual service provided
Are you sure there is no costs to your Authority?
In the UK, we are subject to a periodic inspection or audit. The person from the UK CAA spent the entire day with us, including inspecting our facilities, going through our student training records, inspecting not only our aircraft documents but the aircraft itself to ensure it complied with regulation. Then there were interviews with our Safety Representative, Head of Training and our Accountable Manager. If none of that is going on in Iceland, I'd be surprised.
TOO