Agency for Restructuring and Modernisation of Agriculture ARMA Polish Paying Agency Experiences & Accomplishments Brussels, 3-4 October 2007

Agency for Restructuring and Modernisation of Agriculture Functions of ARMA in Paying Agency: EAGGF Guarantee Section, EAGF, EAFRD 2004 – 2006 Implementing Institution and Final Beneficiary of two Sectoral Operational Programmes (payments until 2008) 2002 – 2004 SAPARD Paying and Implementing Agency 1994 – 2013 Managing Body of State Aid Instruments

Agency for Restructuring and Modernisation of Agriculture Area of ARMA Experience Implementation capacity of EU programs (HR, IT, procedures) Organizational capacity & institutional framework Knowledge of beneficiaries needs Building upon lessons learnt

Agency for Restructuring and Modernisation of Agriculture Scope of Continuation – Programs SAPARD Rural Development Plan SOP AgricultureRural Development Program Measures 24,000 beneficiaries Budget: 944 MEUR * (EAGGF: 708 MEUR) * After reallocation from RDP the total budget amounted to 1084 MEUR Budget: MEUR (EAGGF: MEUR) 15 Measures 46,000 beneficiaries Budget: MEUR (EAGGF: MEUR) 10 Measures 320,000 beneficiaries M LFA applicants Budget: 17.2 bn EUR (EAFRD: 13.2 bn EUR) 22 Measures 1.4 M Beneficiaries M LFA applicants

Agency for Restructuring and Modernisation of Agriculture ARMA Organisational Structure - 3 levels ARMA Headquarters in Warsaw ARMA Regional Offices in each voivodship (16) Poviat Bureaus (314) in each poviat – 2002

Agency for Restructuring and Modernisation of Agriculture Growth of Employment

Agency for Restructuring and Modernisation of Agriculture Scope of Continuation – Institutional System Main participants of the institutional system SAPARD SOP Restructuring RDP RDP MF 1 National Authorising Officer Paying Authority Competent Authority Certifying Body Competent Authority Certifying Body MARD 2 Managing Authority Managing Authority and Coordinating Body ARMA SAPARD Agency Implementing Institution / Final Beneficiary Paying Agency Implementing Institution / Paying Agency 1 – Ministry of Finance 2 – Ministry of Agriculture and Rural Development

Agency for Restructuring and Modernisation of Agriculture ARMAs accreditation and certification ARMAs accreditation and certification MARD Supervision of management of public funds Supervision of activity External Auditor ARMA MF Examination of accreditation criteria Delegated Body

Agency for Restructuring and Modernisation of Agriculture Financial & Accounting System of the Paying Agency

Agency for Restructuring and Modernisation of Agriculture Accreditation Criteria (1) SAPARD Multi-annual financing Agreement of 2001 RDP Commission Regulation (EC) 1663/95 RDP Commission Regulation (EC) 885/2006 Administrative structure ensuring separation of functions: authorisation, execution and accounting of payments Internal environment: administrative structure ensuring separation of functions, HR standard, delegation Delegation of functions Written procedures updated in good time Control activities: procedures for authorisation, payment, accounting, advances and securities, debts, audit trail Debtors ledger Appropriate Management Information system Information Systems Security Standards (since ) Information and communication: update of procedures in good time, information systems security standards Technical services ensuring documentary and physical checks Monitoring: internal control activities, internal audit service Independent Internal Audit Service Public procurement provisions

Agency for Restructuring and Modernisation of Agriculture ARMAs Accreditation Approach ARMAs Accreditation Approach SAPARDRDP RDP Accreditation by packages of measures 5 measures - Commission Decision of 2 July 2002 Conditional accreditation for 9 measures for a period of 1 May 2004 – 31 Dec accredited measures continued from RDP Last measure – Decision of the Commission of 14 Nov 2003 Unconditional accreditation as of 1 Jan 2006 for 10 measures Accreditation for 4 new operations Other measures to be accredited by the set agenda

Agency for Restructuring and Modernisation of Agriculture SAPARD, RDP , RDP Similarities: Accreditation approach: by packages of measures Role of Ministry of Finance (Competent Authority): constant supervision over PA.. Opinion of Minister of Finance on the preparation of ARMA to act as a PA (SAPARD) vs Ordinance of Minister of Finance pointing out ARMA as a PA (RDP & RDP ) based on the Accreditation Reports issued by the External Auditor Role of Independent External Auditor: public procurement invitation published by the Ministry of Finance for carrying out accreditation audit (SAPARD – Arthur Andersen, RDP & RDP KPMG) Role of ARMA Internal Audit Division: coordination of accreditation activities in ARMA, ensuring pre-accreditation preparation and effective communication with the External Auditor ARMAs Accreditation ARMAs Accreditation

Agency for Restructuring and Modernisation of Agriculture RDP Differences Accreditation criteria extended: Information Systems Security in compliance with one of internationally recognized standards (ARMA - BS ISO/IEC 17799) Accreditation scope extended: other implementing bodies with delegated functions (e.g. regional governments) number of measures (10 in RDP vs 22 in RDP ) ARMAs accreditation ARMAs accreditation

Agency for Restructuring and Modernisation of Agriculture Delegation of tasks (e.g. to regional governments) MARD Managing Authority Regional Governments Implementing bodies Improvement and development of infrastructure Basic servicesVillage renewalLeader Axis RDP 2007 – 2013 measures delegated to regional governments ARMA Paying Agency Delegation of MA tasks: Aid application collection Administrative checks Ranking or project selection Decision or contract Delegation of PA task (payment authorisation): Collection of claims for payment Administrative checks On-the-spot checks Payment order Audit plans

Agency for Restructuring and Modernisation of Agriculture Village Renewal and Development Aid application Beneficiary Aid application Regional Government Ranking list Agreement between Beneficiary and RG Administrative checks and ranking list

Agency for Restructuring and Modernisation of Agriculture Village Renewal and Development Authorisation of payment Beneficiary Claim for payment Regional Government Paying Agency Payment Order Payment (EAFRD) Authorisation of payment: Administrative check and verification of compliance with the agreement

Agency for Restructuring and Modernisation of Agriculture Financial Management Principles: Reimbursement of part of project eligible costs Project implementation in 1 or 2 stages Village Renewal and Development Financial Engineering EAFRD funding – maximum 75% At least 25% of beneficiarys own funds Total cost of the project submitted by a municipality Eligible costsNon-eligible costs Possibilities of financing of project costs: - Own budget - Bridge loan and/or co-financing loan

Agency for Restructuring and Modernisation of Agriculture Thank You ARMA