1. Dresdner Straße 70 1200 Wien www.ama.at www.eama.at Administration of Investment Measures in Paying Agency of Austria Günter Griesmayr May, 6th 2015 K-A

2. 2 Relevant Elements of the Management and Control System Regulations Rural Development Approbation of projects (delegated bodies) On-the-spot control / risk analysis The technical service (on-the-spot controls) Database Internal and external audit

3. 3 EU Regulations Rural Development –Reg. (EU) No 1303/2013 (common provisions) –Reg. (EU) No 1305/2013 (council / parliament) –Reg. (EU) No 807/2014 (del. reg.) CAP –Reg. (EU) No 1306/2013 (council-reg.) –Impl.- Reg. (EU) No 809/2014 (control) –Del. Reg. (EU) No 907/2014 (annex) –Impl.- Reg. No 908/2014 (accreditation Paying Agency)

4. 4 National Regulations Austrian RD Program National Ordinances –Agro-environment –Less Favored Areas –Investment in rural areas –Broadband infrastructure Regional Ordinances –Nature protection –Village renewal

5. 5 RD Budget Allocation in AT Total budget for RD: 1,1 bn € p.a.

6. 6 The most important Investment Measures (average payments in mill. € pa ) Investment in farm holdings: 80 mill. € –76 %: Physical structure (barn, liquid manure,…) –Rest (each with about 3 – 5%): Equipment (e.g. milking machine) Greenhouse Mountain pasture (physical structure, processing,…) No support for : –Mechanizing equipment (tractors, combines,…) –Exception: special-purpose machines for joint use Infrastructure30 mill. € Processing and marketing12 mill. € Forestry measures20 mill. €

7. 7 Reference Costs Provided by Federal Ministry of Agriculture Developed and periodical updated by a group of experts Based on empirical value (experts) Basis for costs evaluation for approving a project Not (yet) used as basis for payments! Austria intends to use as simplified cost instead of invoicing Field of application: construction (farm holdings, agro-tourism, biomass,…)

8. 8 Authorization and Control of Payments Delegated bodies 25 regional institutions (local governments)  up to 700 employees Separate treaty with each institution Monitoring by Internal Audit of AMA following a 5-year- plan Quality check by operating department of AMA (sampling inspection) Benefit: Specialized staff Civil servants Professionals (e.g. master-builder) Ergo: high standard in processing of applications Local governments: no costs for the Paying Agency

9. 9 Approval of Projects Regional Institutions Receipt of Applications Check of Applications Selection process Data entry (database) Contracting procedure

10. 10 Authorization of Payments Regional Institutions Receipt of payment claim Invoicing Decision If required: sanctions (Art. 63 Reg. No 809/2014) Data entry into database In-situ visits (effective date not determined)

11. 11 Operation / Time Flow Monthly payment Deadline for payment next month (e.g. June): 4th each month (May) Funds request Risk analysis (2 days) Handover of documents (2 days) On-the-spot control (4 weeks) Appraisal and data entry (1 week) Execution for payment (1 week) Accounting for payment (ca. 25th each month)

12. 12 The Technical Service Regional offices (AMA) Order by the central unit Information to the delegated body Order to regional offices (AMA) for the on-the- spot control Handover of documents (regional institution) On-the-spot control Return of the results and documents to the regional institution Assessment and data entry of the results by the granting body

13. 13 Database / IT-Management Database: online, managed by a central server Workflow system Number of users: up to 700 Data entry by delegated body IACS-basic claims data (name, address, …) Administrative checks (work-flow) Calculation of sanction if appropriate Interface to risk analysis Interface to the accounting system (SAP)

14. 14 Current Problems Control and penalty rules –Applicable legislation is spread in different regulations –Guidance document prepared by the EC is helpful (draft version already available) – but it arrives rather late Control statistics –Preparation of the requested tables is very complex –Requirements by the EC arrived rather late –Therefore the provision of data is partial unfeasible –Petition to the EK: Reduction to what is absolutely necessary!

15. 15 Thanks for your attention guenter.griesmayr@ama.gv.at