Zdravko Tušek PAAFRD Assistant Director
PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT
Accreditation of the Paying Agency The Croatian experience
35th CONFERENCE OF THE DIRECTORS OF EU PAYING AGENCIES Komotini, Greece, 9th - 11th April 2014
CROATIA in few pictures
CONTENT 1. Croatian agriculture 2. Croatian EU membership roadmap 3. CAP implementation 4. Organizational structure 5. Paying agency 6. Accreditation process
Croatia in numbers • 4.4 mil. - population • 87, 609 km ² - total surface (land 56. 542 km
² + sea 31.067 km ² ) • 47.6 % rural population • 195,000 - farmers registered in Farmer
Register (168.000 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%
I. Croatian agriculture
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
Land parcel identification system (LPIS) – called ARKOD in Croatia - Number of farmers: 141.793 - Declared area (ha): 985.287 - Number of LPIS parcels: 1.262.253
Distribution of LPIS parcels
II. Croatian EU membership roadmap
CROATIA - Timetable of accession to the EU (2004-2013)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Scre
enin
g
The
benc
hmar
k fo
r ope
ning
of
nego
tiatio
ns p
ublis
hed
The
ben
chm
ark
com
plet
ed
Te p
ositi
ons f
or C
hapt
er 1
1 de
liver
ed
EU a
dopt
s the
neg
otia
tion
posi
tion
The
begi
nnin
g of
neg
otia
tions
in
chap
ter 1
1
Com
plet
ion
of a
cces
sion
ne
gotia
tions
Acce
ssio
n Tr
eaty
sign
ing
The
refe
rend
um o
n EU
mem
bers
hip
The
Ratif
icat
ion
of A
cces
sion
Tre
aty
Croa
tia b
ecom
es a
EU
mem
ber
RoC
fulfi
lls th
e be
nchm
arks
for
clos
ing
of n
egot
iatio
ns
Neg
otia
tions
; aud
iting
; neg
otia
tion
posi
tions
Off
icia
l can
dida
te c
ount
ry
Farm register (including cadastre and animal register)
Land Parcel Identification System (LPIS)
Integrated Administration and Control System (IACS)
SAPARD/IPARD Agency
2003 Reform – national measures (coupled payments)
Transitional „EU like” measures
EU EAGF measures
Paying Agency
EU Pre-accession RD measures
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...)
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.
III. CAP implementation
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;
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
IV. Organizational structure
Organizational structure – CAP implementation
Competent AuthorityMinistry of Agriculture
Certifying BodyAgency for the Audit of European Union
Programmes Implementation System
Pre-accreditation Body- Independent Audit company Paying Agency for Agriculture, Fisheries and Rural Development
CENTRAL OFFICE - office: 1 - number of employees: 331
- 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
- administrative control of direct payments and RD measures- on the spot control for RD and market support measures
- office: 21 - number of employees: 329
CENTRAL OFFICE
LOCAL OFFICES - office: 27 - number of employees: 250
- office: 1 - number of employees: 70
- coordination and development- supervison of local offices
CENTRAL OFFICE - office: 1 - number of employees: 26
- coordination and development- supervison of local offices
LOCAL OFFICES - office: 114 - number of employees: 240
Managing authorityMinistry of Agriculture
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)
Competent Inspections - bodies for Cross-Compliance controls
Ministry of Environmental and Nature Protection ( MENP)
- inspection for environmental protection (30 employees, 20 offices)
- inspection for nature protection(11 employees, 7 offices)
Croatian Agricultural Agency Croatian Agricultural Advisory Service
- 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)
- 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
External bodies
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
V. 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
Development of a Paying Agency
SECTOR FOR FINANCE (1+27)
SECTOR FOR DIRECT SUPPORT (1+29)
SECTOR FOR ON -THE- SPOT CONTROL (1+40)
SECTOR FOR MARKET SUPPORT (1+36)
SECTOR FOR GENERAL AND LEGAL AFFAIRS
(1+43) SECTOR FOR
REGISTERS (1+26)
CONTROL SERVICE FOR DIRECT SUPPORT (1+12)
13-EAGF/EAFRD
CONTROL SERVICE FOR STRUCTURAL SUPPORT
(1+18)14-preaccession programmes
5-EAGF/EAFRD
ACCOUNTING SERVICE(1+9)
10-national support/preaccession programmes/
EAGF/EAFRD
REPORTING SERVICE(1+5)6-preaccession programmes/
EAGF/EAFRD
FINANCIAL AFFAIRS SERVICE(1+10)
11-national support/preaccession programmes/
EAGF/EAFRD
SERVICE FOR DECOUPLED SUPPORT AND COUPLED DIRECT SUPPORTS FOR
ANIMALS(1+7)
8-EAGF/EAFRD
HUMAN RESOURCES MANAGEMENT SERVICE(1+6)
7-preaccession programmes
LEGAL AFFAIRS SERVICE (1+6)
7--preaccession programmesi
INTERNAL AUDIT SECTOR (1+12)
PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT
DIRECTOR'S OFFICE
DEPUTY DIRECTOR
FARMER REGISTER SERVICE
(1+7)8-EAGF/EAFRD
LPIS SERVICE(1+5)
6-EAGF/EAFRD
PAYMENT ENTITLEMENTS SERVICE(1+3)4-EAGF/EAFRD
CONTROL SERVICE FOR MARKET SUPPORT
(1+7) 8-EAGF/EAFRD
GENERAL AFFAIRS SERVICE (1+9)
3-national support7-preaccession programme
ASSISTANT DIRECTOR
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 ORGANIC FARMING AND
CONSTRAINS AREAS(1+6)
3-national support/4-EAGF/EAFRD
SERVICE FOR FINANCIAL AND ACCOUNTING
AFFAIRS(1+6)
SERVICE FOR SINGLE APPLICATION PROCEDURE
(1+6)2-national supporti/
5-EAGF/EAFRDPUBLIC PROCUREMENT
SERVICE (1+11)12--preaccession
programmes
ASSISTANT DIRECTOR
SECTOR FOR STRUCTURAL SUPPORT
(1+63)
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
SERVICE FOR FISHERIES SUPPORT
(1+7)8-national suppor / EFF
SERVICE FOR EU AFFAIRS AND INTERNATIONAL COOPERATION (1+3)
2-national support1-preaccession programmes
1-EAGF/EAFRDSERVICE 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
TECHNICAL ANALYSES SERVICE (1+11)9,5-preaccession
programmes/2,5-EAFRD
ECONOMIC ANALYSES SERVICE (1+8)
6,5-preaccession programmesi/2,5-EAFRD
PLANNING AND COORDINATION
SECTOR(1+8)
ASSISTANT DIRECTOR
SENIOR EXPERT CLERK(1)
SECTOR FOR PUBLIC RELATIONS AND INFORMATION, EU AFFAIRS AND
INTERNATIONAL COOPERATION (1+8)
SERVICE FOR PUBLIC RELATIONS AND INFORMATION
(1+3)2,5 - preaccession programmesi
1,5 - EAGF/EAFRD
Director's Office
Osječko-baranjska county (30)
Vukovarsko-srijemska county (19)
Virovitičko-podravska county (17)
Požeško-slavonska county (14)
Brodsko-posavska county (16)
Koprivničko-križevačka county
(23)
Bjelovarsko-bilogorska county
(30)
Međimurska county (9)
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)
Istarska county(9)
Zadarska county (12)
Šibensko-kninska county (11)
Splitsko-dalmatinska county (24)
Dubrovačko-neretvanska county
(13)
Reporting lines
21 Regional offices
Central office
DIRECTOR'S ADVISOR FOR INFORMATION SECURITY
(1)
ADVISOR TO THE DIRECTOR(1)
SUBJECT OF EU ACCREDITATION OF IPARD AGENCY
LEGEND
ASSISTANT DIRECTOR
SECTOR FOR INFORMATION
MANAGEMENT (1+23)
TECHNICAL SUPPORT SERVICE (1+8)
SECURITY SERVICE(1+5)
PROJECTS MANAGEMENT SERVICE (1+7)
ASSISTANT DIRECTOR
SERVICE FOR DATA QUALITY CONTROL (QC/
QA)(1+3)4-EAGF/EAFRD
SERVICE FOR CROSS COMPLIANCE AND AGRI-
ENVIRONMENTAL MEASURES (1+6)3national supporti/4-EAGF/EAFRD
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
DIRECTOR'S ADVISER FOR COORDINATION OF RISKS AND IRREGULARITIES MANAGEMENT
(1)
SERVICE FOR ANIMAL REGISTER(1+3)4-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
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,
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
• Farmer register – established in 2003 (Unique identification of farmer) • 194. 674 farmers
• LPIS (ARKOD) – in use from campaign 2011 • farmers 150.395 • parcels 1.306.813 • ha 1.022.398
• 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 2009-2011; IACS compatible; in use from 2011
Establishment of IACS
AgroNet
ISAP ISUT ISSP
Finance Accounting Reporting
Public Web Farmer level
Administrative level
Financial level
Registers Direct Support
Controls (OTS, CwRS)
Client Register and Middle Layer Integration level
Payment entitlements
Premium rights
Farmer register
ARKOD
Animal register
IACS rural measures
Aid applications
CAP Direct support
Sensitive sectors
Classic OTS controls
CwRS
Inspection
Current state of IACS – how it all fits together
VI. Accreditation process
PAAFRD-Accreditation process
I phase of accreditation EAGF-direct payments and horizontal issues
Self-assesment audits: => 8.7.2011 - 4.6.2012 Pre-accreditation audit: => 2.7.2012 - 15.12.2012 Decision on provisional accreditation of PAAFRD for EAGF funds
concerning implementation of direct payments => 27.12.2012 IIa phase of accreditation EAGF-CMO measures and overview on
the findings of previous pre-accreditation audit of the horizontal issues
Self-assesment audits: => 14.6.2012 – 19.2.2013 Pre-accreditation audit: => 1.3.2013 - 30.6.2013 Decision on amendments to the Decision on accreditation of PAAFRD for
EAGF funds concerning implementation of CMO measures => 1.7.2013
IIb phase of accreditation EAGF-CMO measures and follow-up recommendations for direct payments
Pre-accreditation audit: => 5.9.2013 - 16.12.2013 Decision on full accreditation of PAAFRD for EAGF funds => 20.12.2013 III phase of accreditation EAFRD–rural development
Pre-accreditation audit of PAAFRD’s technical capacities => 1.4. - 30.7.2014 Decision on provisional accreditation of PAAFRD for EAFRD => 1.8.2014 Pre-accreditation audit of procedures => 1.12.2014. do 20.7.2015 Decision on full accreditation of PAAFRD for EAFRD => 1.8.2015
Summary of accreditation experience of the Croatian Agency
1. Accreditation of the SAPARD Agency in 2006 - 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. 2012 (provisional) 4. Accreditation of 1st set of CMO measures – July 2013 5. Accreditation of 2nd set of CMO measures & confirmation of full accreditation
for EAGF – Dec. 2013 6. 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.???
HVALA!
THANK YOU
FOR YOUR ATENTION!