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

2. Agency for Restructuring and Modernisation of Agriculture Functions of ARMA in 1994-2013 2004 - 2013 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

3. 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

4. Agency for Restructuring and Modernisation of Agriculture Scope of Continuation – Programs SAPARD Rural Development Plan SOP AgricultureRural Development Program 2002-2004 2004-20062007-2013 6 Measures 24,000 beneficiaries Budget: 944 MEUR * (EAGGF: 708 MEUR) * After reallocation from RDP the total budget amounted to 1084 MEUR Budget: 1 784 MEUR (EAGGF: 1 193 MEUR) 15 Measures 46,000 beneficiaries Budget: 3 600 MEUR (EAGGF: 2 866 MEUR) 10 Measures 320,000 beneficiaries + 2.1 M LFA applicants Budget: 17.2 bn EUR (EAFRD: 13.2 bn EUR) 22 Measures 1.4 M Beneficiaries + 5.2 M LFA applicants

5. Agency for Restructuring and Modernisation of Agriculture ARMA Organisational Structure - 3 levels ARMA Headquarters in Warsaw ARMA Regional Offices in each voivodship (16) - 2000 Poviat Bureaus (314) in each poviat – 2002

6. Agency for Restructuring and Modernisation of Agriculture Growth of Employment 1994 - 2007

7. Agency for Restructuring and Modernisation of Agriculture Scope of Continuation – Institutional System Main participants of the institutional system SAPARD SOP Restructuring... 2004-2006 RDP 2004-2006RDP 2007-2013 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

8. 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

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

10. Agency for Restructuring and Modernisation of Agriculture Accreditation Criteria (1) SAPARD Multi-annual financing Agreement of 2001 RDP 2004-2006 Commission Regulation (EC) 1663/95 RDP 2007-2013 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 23.03.2005) 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

11. Agency for Restructuring and Modernisation of Agriculture ARMAs Accreditation Approach ARMAs Accreditation Approach SAPARDRDP 2004-2006RDP 2007-2013 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 2005 4 accredited measures continued from RDP 2004- 2006 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

12. Agency for Restructuring and Modernisation of Agriculture SAPARD, RDP 2004-2006, RDP 2007-2013 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 2004-2006 & RDP 2007-2013) 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 2004-2006 & RDP 2007-2013 - 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

13. Agency for Restructuring and Modernisation of Agriculture RDP 2007-2013 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 2004-2006 vs 22 in RDP 2007-2013) ARMAs accreditation ARMAs accreditation

14. 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

15. 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

16. 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

17. 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

18. Agency for Restructuring and Modernisation of Agriculture Thank You Iwona.Nurzynska@doplaty.gov.pl ARMA