Accreditation of the Paying Agency
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1 PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT Accreditation of the Paying Agency The Croatian experience Zdravko Tušek PAAFRD Assistant Director 35th CONFERENCE OF THE DIRECTORS OF EU PAYING AGENCIES Komotini, Greece, 9th - 11th April 2014
2 CROATIA in few pictures
3 CONTENT 1. Croatian agriculture 2. Croatian EU membership roadmap 3. CAP implementation 4. Organizational structure 5. Paying agency 6. Accreditation process
4 Croatia in numbers 4.4 mil. - population 87, 609 km ² - total surface (land km ² + sea km ² ) 47.6 % rural population 195,000 - farmers registered in Farmer Register ( farmers with land) 1,022,351 ha agricultural land registered in LPIS 5.4 ha average area per farmer 78.5/km ² - population density GDP per capita: cca 10,500 Eur Share of Agriculture in GDP around 5%
5 I. Croatian agriculture
6 Obstacles in agricultural sector before accession Legal background huge work for adjustment of national legislation with EU legislation Administrative insufficient administrative structures and capacities for preparation of CAP management Technical IACS and its elements not fully developed / not fully in compliance with EU regulations Cultural small family farms (average 2,4 ha) orientation to traditional production (cereals 65% of arable land, corn, ), land fragmentation organization of market
7 Land parcel identification system (LPIS) called ARKOD in Croatia - Number of farmers: Declared area (ha): Number of LPIS parcels: Distribution of LPIS parcels
8 II. Croatian EU membership roadmap
9 CROATIA - Timetable of accession to the EU ( ) Official candidate country Screening The benchmark for opening of negotiations published The benchmark completed Te positions for Chapter 11 delivered EU adopts the negotiation position The beginning of negotiations in chapter 11 RoC fulfills the benchmarks for closing of negotiations Negotiations; auditing; negotiation positions Completion of accession negotiations Accession Treaty signing The referendum on EU membership The Ratification of Accession Treaty Croatia becomes a EU member Farm register (including cadastre and animal register) 2003 Reform national measures (coupled payments) SAPARD/IPARD Agency EU Pre-accession RD measures Land Parcel Identification System (LPIS) Integrated Administration and Control System (IACS) Paying Agency Transitional EU like measures EU EAGF measures
10 Process of Accession Negotiations Chapter 11 Main tasks for Croatia Reform of subsidy policy and harmonization with CAP Establishment of IACS system Setting up of the Paying Agency Implementation of Common Market Organization regulations (sugar, fruit and vegetables, milk...)
11 Process of Accession Negotiations Chapter 11 Closing benchmarks: An implementation plan for the setting up of a Paying Agency and IACS - to be fully operational by the date of accession An implementation plan for CMO Implementation plans: Development and establishment of a legal framework Organizational structure Provision of the required logistics and a sufficient number of qualified staff System for submission, control and approval of applications Detailed procedures for administration of support and implementation of controls Education program for the PAAFRD employees Registers needed for implementation of the CAP measures Setting-up of the Land Parcel Identification System (LPIS) System for accounting, payments and reporting Establishment of a complete IT system Informing of the farmers and all involved institutions.
12 III. CAP implementation
13 CAP benefits for Croatian agricultural sector Trading without barriers Market for Croatian producers >500 million buyers Protection of the internal market and single prices More opportunities for Croatian farmers: 373 million for Direct payments yearly 330 millions for Rural Development 9,6 million for de-mined agricultural area yearly Additional wine envelope of 10,8 million per year;
14 Expectations of Croatian farmers POSITIVE: Larger market for marketing and selling of products Higher subsides Greater safety in agriculture (prices and market) Regular payment of subsides Better organization of quotas Better product prices Better organization of the market Better quality of production Improved sales of products NEGATIVE: Failure of small farmers Reducing of subsides More difficult sales of products Non-competitiveness on the market Complex paperwork Severe, rigorous controls Endangering small producers
15 IV. Organizational structure
16 Organizational structure CAP implementation Certifying Body Agency for the Audit of European Union Programmes Implementation System Competent Authority Ministry of Agriculture Managing authority Ministry of Agriculture Pre-accreditation Body - Independent Audit company Paying Agency for Agriculture, Fisheries and Rural Development CENTRAL OFFICE - office: 1 - number of employees: coordination and development - supervison of regional offices - approval of payments - payments and accounting - reporting - coordination of FR and LPIS development and updating - supervision of all PA functions REGIONAL OFFICES - office: 21 - number of employees: administrative control of direct payments and RD measures - on the spot control for RD and market support measures Croatian Agricultural Agency Croatian Agricultural Advisory Service Competent Inspections - bodies for Cross- Compliance controls External bodies CENTRAL OFFICE LOCAL OFFICES - office: 1 - number of employees: 70 - coordination and development - supervison of local offices - office: 27 - number of employees: assistance to farmers in filing-in application forms (requests for support) - quality control of final ARKOD data on the spot - quality control PRCS DATA - advising and informing farmers on CC - milk quotas - classification control (intervention measures) CENTRAL OFFICE - office: 1 - number of employees: 26 - coordination and development - supervison of local offices LOCAL OFFICES - office: number of employees: assistance to farmers in filing-in application forms (requests for support) - advising and assistance to farmers during the preparation of application requests for agro-environmental support measures - advising and informing farmers on support measures, and CC - activities regarding integrated agricultural manufacturing Ministry of Agriculture (MoA) - veterinary inspection (53 employees, 19 offices), - livestock inspection (10 employees, 9 offices), - agricultural inspection (85 employees, 53 offices), - inspection for water protection (27 employees, 20 offices) Ministry of Environmental and Nature Protection ( MENP) - inspection for environmental protection (30 employees, 20 offices) - inspection for nature protection (11 employees, 7 offices) DELEGATED FUNCTIONS - Ministry of Finance ( Custom authority ) - external technical experts for IPARD TECHNICAL SERVICES - On-the-spot control of eligibility for EAGF direct payments and EAFRD-area and animals related measures (IACS) and fulfilling the criteria for Cross-complinace (competency of Agency) - Ministry of Agriculture Animal register, Control of market standards ( Producer organizations ) - accredited laboratories
17 V. Paying agency
18 Development of a Paying Agency Before PAAFD - Paying Agency function Directorate for Market and Structural Support in Agriculture established in 2005 within MoA SAPARD Agency accredited from 2006 IPARD Agency accredited from 2009 Paying Agency for Agriculture, Fisheries and Rural Development (PAAFRD) independent institution - from Dec 2009 central office (Headquarters) Zagreb + 21 regional offices in Counties 682 work posts (50% in HQ, 50% in reg. offices) 645 filled (37 vacant) Main tasks: national and EU direct payments (SPS) implementation of CMO measures implementation of RD measures implementation of EFF measures
19 SECTOR FOR FINANCE PAAFRD: director general, a deputy, 5 assistants, 3 advisors, Sector for PR, EU affairs and international cooperation, Internal Audit Sector & 9 operational sectors + 21 regional offices, PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT Central office Director's Office SECTOR FOR PUBLIC RELATIONS AND INFORMATION, EU AFFAIRS AND INTERNATIONAL COOPERATION (1+8) SERVICE FOR EU AFFAIRS AND INTERNATIONAL COOPERATION (1+3) 2-national support 1-preaccession programmes 1-EAGF/EAFRD SERVICE FOR PUBLIC RELATIONS AND INFORMATION (1+3) 2,5 - preaccession programmesi 1,5 - EAGF/EAFRD ASSISTANT DIRECTOR DIRECTOR'S ADVISER FOR COORDINATION OF RISKS AND IRREGULARITIES MANAGEMENT (1) ASSISTANT DIRECTOR ASSISTANT DIRECTOR DIRECTOR'S OFFICE DEPUTY DIRECTOR SENIOR EXPERT CLERK(1) ASSISTANT DIRECTOR ASSISTANT DIRECTOR DIRECTOR'S ADVISOR FOR INFORMATION SECURITY (1) ADVISOR TO THE DIRECTOR(1) INTERNAL AUDIT SECTOR (1+12) SERVICE FOR AUDITING DIRECT SUPPORT AND CMO MEASURES (1+5 6-EAGF/EAFRD SERVICE FOR AUDITING RURAL DEVELOPMENT MEASURES AND PRE- ACCESSION FUNDS (1+5) 6-EAFRD/EMFF/IPARD PLANNING AND COORDINATION SECTOR(1+8) SECTOR FOR GENERAL AND LEGAL AFFAIRS (1+43) SECTOR FOR INFORMATION MANAGEMENT (1+23) SECTOR FOR REGISTERS (1+26) SECTOR FOR DIRECT SUPPORT (1+29) SECTOR FOR STRUCTURAL SUPPORT (1+63) SECTOR FOR MARKET SUPPORT (1+36) SECTOR FOR ON -THE- SPOT CONTROL (1+40) (1+27) SERVICE FOR PLANNING AND COORDINATION OF REGIONAL OFFICES (1+2) 3--national support/ EAGF/EAFRD SERVICE FOR MANAGEMENT OF WRITTEN PROCEDURES (1+4) 5--national support/ preaccession programmes/ EAGF/EAFRD HUMAN RESOURCES MANAGEMENT SERVICE(1+6) 7-preaccession programmes PUBLIC PROCUREMENT SERVICE (1+11) 12--preaccession programmes LEGAL AFFAIRS SERVICE (1+6) 7--preaccession programmesi SERVICE FOR FINANCIAL AND ACCOUNTING AFFAIRS(1+6) GENERAL AFFAIRS SERVICE (1+9) 3-national support 7-preaccession programme PROJECTS MANAGEMENT SERVICE (1+7) TECHNICAL SUPPORT SERVICE (1+8) SECURITY SERVICE(1+5) FARMER REGISTER SERVICE (1+7) 8-EAGF/EAFRD LPIS SERVICE (1+5) 6-EAGF/EAFRD PAYMENT ENTITLEMENTS SERVICE(1+3) 4-EAGF/EAFRD SERVICE FOR DATA QUALITY CONTROL (QC/ QA)(1+3) 4-EAGF/EAFRD SERVICE FOR ANIMAL REGISTER(1+3) 4-EAGF/EAFRD SERVICE FOR SINGLE APPLICATION PROCEDURE (1+6) 2-national supporti/ 5-EAGF/EAFRD SERVICE FOR DECOUPLED SUPPORT AND COUPLED DIRECT SUPPORTS FOR ANIMALS (1+7) 8-EAGF/EAFRD SERVICE FOR ORGANIC FARMING AND CONSTRAINS AREAS (1+6) 3-national support/ 4-EAGF/EAFRD SERVICE FOR CROSS COMPLIANCE AND AGRI- ENVIRONMENTAL MEASURES (1+6) 3national supporti/ 4-EAGF/EAFRD PROJECT APPROVAL AND RURAL DEVELOPMENT SERVICE (1+22) 18,5-preaccession programmes/ 4,5-EAFRD PAYMENT APPROVAL SERVICE (1+10) 8,5-preaccession programmes/ 2,5-EAFRD TECHNICAL ANALYSES SERVICE (1+11) 9,5-preaccession programmes/ 2,5-EAFRD ECONOMIC ANALYSES SERVICE (1+8) 6,5-preaccession programmesi/ 2,5-EAFRD SERVICE FOR FISHERIES SUPPORT (1+7) 8-national suppor / EFF SERVICE FOR TRADE MEASURES (1+10) 11-EAGF/EAFRD SERVICE FOR MARKET INTERVENTIONS -ANIMAL PRODUCTION (1+7) 8-EAGF/EAFRD SERVICE FOR MARKET INTERVENTIONS -PLANT PRODUCTION (1+8) 9-EAGF/EAFRD SERVICE FOR THE IMPLEMENTATION OF NATIONAL MEASURES IN AGRICULTURE AND PROCESSING OF AGRICULTURAL PRODUCTS FINANCED THROUGH EAGF FUNDS(1+7) 8-national suppor CONTROL SERVICE FOR FINANCIAL AFFAIRS STRUCTURAL SUPPORT SERVICE(1+10) (1+18) 11-national support/ 14-preaccession programmes preaccession programmes/ 5-EAGF/EAFRD EAGF/EAFRD ACCOUNTING CONTROL SERVICE FOR SERVICE(1+9) DIRECT SUPPORT (1+12) 10-national support/ 13-EAGF/EAFRD preaccession programmes/ EAGF/EAFRD CONTROL SERVICE FOR REPORTING SERVICE(1+5) MARKET SUPPORT 6-preaccession programmes/ (1+7) EAGF/EAFRD 8-EAGF/EAFRD LEGEND SUBJECT OF EU ACCREDITATION OF IPARD AGENCY 21 Regional offices Osječko-baranjska county (30) Vukovarskosrijemska county (19) Virovitičko-podravska county (17) Požeško-slavonska county (14) Brodsko-posavska county (16) Koprivničkokriževačka county (23) Bjelovarskobilogorska county (30) Međimurska county (9) Istarska county(9) Šibensko-kninska county (11) Dubrovačkoneretvanska county (13) Varaždinska county (15) Krapinsko-zagorska county (16) Zagrebačka county (29) City of Zagreb (6) Sisačko-moslavačka county (17) Karlovačka county (10) Ličko-senjska county (11) Primorsko-goranska county (11) Zadarska county (12) Splitsko-dalmatinska county (24) Reporting lines
20 Main changes: decentralisation IPARD: central office in Zagreb; New decentralised structure EFF/EAFRD : 5 regional offices (Zagreb, Bjelovar, Osijek, Rijeka, Split) + Central office ZG* *role of central office ZG: Administration of measures, parameters, procedures, creation of documents, improvements of process control of work done in RO support to RO Economical and technical analysis of projects
21 Establishment of IACS Farmer register established in 2003 (Unique identification of farmer) farmers LPIS (ARKOD) in use from campaign 2011 farmers parcels ha Animal register external register, in use as part of IACS from 2011 (integrated) Payment entitlements system in use from 2012 (integrated) Application System, Administrative Control, OTS Control developed from ; IACS compatible; in use from 2011
22 Farmer level Current state of IACS how it all fits together AgroNet Public Web Administrative level Farmer register ARKOD Animal register Registers Payment entitlements Premium rights Aid applications CAP Direct Direct support Controls ISAP CwRS ISUT ISSP Support (OTS, CwRS) Sensitive sectors IACS rural measures Classic OTS controls Inspection Integration level Client Register and Middle Layer Financial level Finance Accounting Reporting
23 VI. Accreditation process
24 PAAFRD-Accreditation process I phase of accreditation EAGF-direct payments and horizontal issues Self-assesment audits: => Pre-accreditation audit: => Decision on provisional accreditation of PAAFRD for EAGF funds concerning implementation of direct payments => IIa phase of accreditation EAGF-CMO measures and overview on the findings of previous pre-accreditation audit of the horizontal issues Self-assesment audits: => Pre-accreditation audit: => Decision on amendments to the Decision on accreditation of PAAFRD for EAGF funds concerning implementation of CMO measures =>
25 IIb phase of accreditation EAGF-CMO measures and follow-up recommendations for direct payments Pre-accreditation audit: => Decision on full accreditation of PAAFRD for EAGF funds => III phase of accreditation EAFRD rural development Pre-accreditation audit of PAAFRD s technical capacities => Decision on provisional accreditation of PAAFRD for EAFRD => Pre-accreditation audit of procedures => do Decision on full accreditation of PAAFRD for EAFRD =>
26 Summary of accreditation experience of the Croatian Agency 1. Accreditation of the SAPARD Agency in with 2 measures in implementation (M1 and M2) 2. Accreditation of the IPARD Agency: a) two measures in 2009 (M 101 and M 103) b) additional two measure in 2011 (M 301 and M 302) c) last two measures in 2013 (M 501 and M 202) 3. Accreditation of EAGF direct payments Dec (provisional) 4. Accreditation of 1st set of CMO measures July Accreditation of 2nd set of CMO measures & confirmation of full accreditation for EAGF Dec Accreditation of PAAFRD s technical capacities for EAFRD on-going 7. Accreditation of EAFRD procedures for measures to be implemented - planned 7 done, 2 to go all in all, 9 accreditations in 9 years (so far)! On-going discussion - Accreditation for EAGF DP measures in force from 2015.???
27 HVALA! THANK YOU FOR YOUR ATENTION!
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