Baltic–Polish Paying Agencies Conference in Klaipėda, August 2011 Workshop 3 « Challenges related to supervision of implementing delegated functions » Conclusions Kristina Kertenė Delegated Measures Control Unit of Market Regulation Measures Department

CONCLUSIONS OF THE WORKSHOP  Type of functions delegated to other bodies: -Administration / authorization of payments: Agriculture Registers and Information Board (ARIB)(Estonia); National Paying Agency under the Ministry of Agriculture (NPA, Lithuania); Agency for Restructuring and Modernisation of Agriculture (ARMA) (Poland). -Technical service (On the spot check, sampling, laboratory analyses, administrative checks): Rural Support Service RSS (Latvia) ARIB (Estonia); NPA (Lithuania); The Agricultural Market Agency (AMA) (Poland); Directotare for Agrarian Payments (DAP) (Serbia); (ARMA) (Poland).  Almost all PA‘s have delegated functions to the state institutions, only Agricultural Registers and Information Board in Estonia has delegated the whole process of administration to private institution – Private forest centre.

CONCLUSIONS OF THE WORKSHOP  According to the Commission Regulation No 885/2006 Annex I point (C) „Delegation“ PA‘s have introduced such delegated functions‘s supervision elements: All participating PA‘s have drawn up formal agreements with delegated bodies. Use of other elements of delegated functions supervision varies: - Regular meetings of senior management (ARIB (Estonia), AMA (Poland), NPA (Lithuania)), ARMA (Poland); - Approval of procedures (ARIB (Estonia), AMA (Poland), NPA (Lithuania)); - Documentary checks (ARIB (Estonia), NPA (Lithuania)), ARMA (Poland), RSS (Latvia); - On the spot checks (ARIB (Estonia), AMA (Poland), ARMA (Poland)) - Internal auditing (AMA (Poland), NPA (Lithuania)), ARIB (Estonia); - Reports from audits conducted by delegated bodies internal audit or external audit services (ARMA (Poland), NPA(Lithuania), RSS (Latvia); - Periodic reports of performance delivered by delegated body (AMA (Poland)).

CONCLUSIONS OF THE WORKSHOP  Usually the performance of delegated functions is reviewed once a year  In case of delegated technical function (laboratory analyses, on the spot checks) supervision is implemented by structural division, responsible for technical, on the spot control. In case of delegated function of administration/payment‘s authorization supervision is implemented by structural division responsible for certain group of measures.  Paying Agencies ensure the implementation of „four eyes“ principle and use of detailed cheklists by approving the work procedures and by executing regular supervision checks

CONCLUSIONS OF THE WORKSHOP  Only in Estonia and Lithuania delegated bodies receive funding from EU (Rural Development Programme for „Technical assistance”)  At the beginning of implementing delegated functions, delegated bodies made some serious errors, but now all participating PA stated that delegated bodies make only formal errors, which have no impact on reliability of payments, so the supervision systems in PA’s are properly developed.  In case of delegated function of administration/ payment authorization the supervision covers all steps of administration. In case of delegated technical service the supervision is periodic

CONCLUSIONS OF THE WORKSHOP  The main points of discussion: - When the functions were delegated? -How to define delegated function/ tasks/ bodies/measures? Final conclusion will be drawn after bilateral contacts -Responsibilities of Paying Agency

MANY THANKS TO ALL OF YOU FOR YOUR VERY KIND AND USEFUL PARTICIPATION