Presentation of the Italian system AGEA: Agenzia per erogazioni in agricoltura (Italian Paying Agency) Presentation of the Italian system 1

Authority for the coordination of the controls in agriculture AGEA’s mission National law 99/2004 has given AGEA the role of: Authority for the coordination of the controls in agriculture Responsible for the management of the SIAN (National Agriculture Information System enforcing nat. law 173/99) and IACS and the integration of the territorial, graphical and transactional data bases of the agricultural sector Within this framework AGEA guarantees the: Definition of the standards for the full compliance with the SIAN’s infrastructure; Realization of the utilities for the interoperability, exchange and cooperation among the different Administrations with the data bases of the SIAN. 2 2 2 2

Paying Agencies framework A modification of Italian Constitutional law of 2001 gave Italy’s Regional authorities (and Autonomous Provinces) specific administrative and legislative powers in the context of management of local agricultural policy Functions previously performed by a single national paying agency, i.e. AGEA, have been decentralized since 2002 and transferred to individual regions. In this regard, the latter have gradually designated their own paying agencies (PA) as laid down in Legislative Decree No. 165/99. To date, there are eleven accredited paying agencies in Italy. 3 3 3 3

The responsibilities of AGEA as Coordination Body are: Allocate the funds to the Paying Agencies taking into account the needs and expenditure forecasts made by the PA themselves; Report to the EU on all the payments made by the different PA in accordance with the procedures, formats and deadlines required by Community legislation; Take care of the relations with the European Commission on matters pertaining to the management of funds EAGF – EAFRD looking after the respect of the terms of payment; Promote the harmonization of the application of Community legislation, monitoring the compliance and the timing of the procedures implemented by the different PA; Express technical and legal advice for the accreditation of paying agencies ensuring that the organization and structures are consistent and compliant with EU regulations.

AGEA as Paying Agency is responsible of: management of public storage of agricultural products; supply of food to the benefit of the most deprived people; programs for the improvement of the quality of agricultural products; provision of food supply to other counties under the framework of EU economic cooperation. AGEA operates then under the principle of subsidiariety on behalf of the local (regional) Public Administration not having yet established their own Paying Agency.

Italian IACS: Some figures The italian IACS system is managed by AGEA on behalf of the Italian Ministry of Agriculture and is part of the the SIAN (Italian Agricultural Information System). It includes services for all the different departments of the administration: agricultural, forestry, fisheries, land control, food safety. 7.000 Bill. € of aids to farmers provided each year 2.000.000 farms managed 20.000 users for more than 150 different administrations; Agreements with Central and Local P.A. (Finance, Health, Census, INPS) for data and services exchange; 5.000 counters to citizens by central or local offices

Centers for assistance to farmers General IACS workflow AGEA Paying Agencies SIN Technical body of AGEA CAA Centers for assistance to farmers IACS Management (IT) Subsidies Farm's Registry LPIS upgrade (refresh project) Ont the Spot Controls Eligibility (LPIS) Field 5% Cross Compliance (GA EC) Cross Compliance (SMR) Entitelments Registry Certified holdings Support to farmers Formation and maintainance of - - Farm's registry Documents conservation Filling of application Internet transmission of information Pre-checked applications Cross checks by IACS Payments procedures Debtor's registry Payments Execution 7

Recording of sole representation mandate countersigned by the farmer CAA's activities The Centers for Assistance to Farmers (CAA) take care of all the duties required by national law 99/2004 for the upkeep of electronic farm's registry as defined in the procedures handbook drawn up by AGEA with special regard to: Recording of sole representation mandate countersigned by the farmer Acquisition and maintainance of all the documents required for farm's regstry formation and managament either electronic or as physical archive Recording of the basic information (personal details) and farm's assets (land properties, buildings, machinery and production components) required by the implementation of electronic farm's registry Maintainance of the physical archives and of the farmer's acceptance documentation of the entire content of the electronic farm's registry Management of inconsistencies and certification by means of a specific check-list of the carrying out of all the cross checks and of the completeness of the documentation required by the farm's registry 8 8 8

a clear separation of roles and inherent responsabilities CAA's committments The “representative mandate” is the contract between the CAA and the farmer and legitimate it, only within the requirements of farm's registry, to: carry out controls over the farm in order to guarantee the accuracy of information acquired access the system (SIAN), on its associated farmer's information only in order of the management of the documentation on the basis of the rules defined by AGEA coordination body The activities carried out by the CAA are to be compliant to CE Reg. 1663/95 ensuring: a clear separation of roles and inherent responsabilities the compliance with the written procedures the application of the requested check-list The respect of suitable levels of security when accessing the information system 9 9 9

CAA's activities scheme Integrates or modify its information / solve the inconsistencies declares Farm Shows all the information regarding the farm and/or the existing inconsistencies Animals in the Livestock Registry Paying Agency system The system of the Paying Agency extracts information from external system in orde to: 1. gather information 2.execute cross checks Land properties at the Cadastre Manages the certified Farm's registry Manages declared information of farmers Main office and legal representative at Tax registry Farm's Registry Business information at Chamber of commerce 10 10

The mission of SIN SIN is a company, established with the AGEA’s board of director resolution on the 2005 November 25th. AGEA owns 100% of the share capital, whose for the 49% has been temporally transferred to a private partner selected with an European open tender SIN realize services for the public administrations; with his organization “address, manage, control and monitor” the services provided by the private partner The private partner is formed by a temporary grouping of enterprises (RTI): Almaviva s.p.a., Sofiter – Società terziario avanzato S.p.A., Agriconsulting S.p.A., Cooprogetti Società cooperativa, IBM Italia S.p.A., Auselda AED Group S.p.A., Agrifuturo – Società cooperativa a mutualità prevalente, Telespazio S.p.A. 11 11 11 11