Zdravko Tušek PAAFRD Assistant Director

PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT

Accreditation of the Paying Agency The Croatian experience

35th CONFERENCE OF THE DIRECTORS OF EU PAYING AGENCIES Komotini, Greece, 9th - 11th April 2014

CROATIA in few pictures

CONTENT 1. Croatian agriculture 2. Croatian EU membership roadmap 3. CAP implementation 4. Organizational structure 5. Paying agency 6. Accreditation process

Croatia in numbers • 4.4 mil. - population • 87, 609 km ² - total surface (land 56. 542 km

² + sea 31.067 km ² ) • 47.6 % rural population • 195,000 - farmers registered in Farmer

Register (168.000 farmers with land) • 1,022,351 ha – agricultural land registered in

LPIS • 5.4 ha – average area per farmer • 78.5/km ² - population density • GDP per capita: cca 10,500 Eur • Share of Agriculture in GDP – around 5%

I. Croatian agriculture

Obstacles in agricultural sector before accession Legal background

• huge work for adjustment of national legislation with EU legislation Administrative

• insufficient administrative structures and capacities for preparation of CAP management

Technical • IACS and its elements not fully developed / not fully in compliance

with EU regulations Cultural

• small family farms (average 2,4 ha) • orientation to traditional production (cereals – 65% of arable land,

corn,…), • land fragmentation • organization of market

Land parcel identification system (LPIS) – called ARKOD in Croatia - Number of farmers: 141.793 - Declared area (ha): 985.287 - Number of LPIS parcels: 1.262.253

Distribution of LPIS parcels

II. Croatian EU membership roadmap

CROATIA - Timetable of accession to the EU (2004-2013)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Scre

enin

g

The

benc

hmar

k fo

r ope

ning

of

nego

tiatio

ns p

ublis

hed

The

ben

chm

ark

com

plet

ed

Te p

ositi

ons f

or C

hapt

er 1

1 de

liver

ed

EU a

dopt

s the

neg

otia

tion

posi

tion

The

begi

nnin

g of

neg

otia

tions

in

chap

ter 1

1

Com

plet

ion

of a

cces

sion

ne

gotia

tions

Acce

ssio

n Tr

eaty

sign

ing

The

refe

rend

um o

n EU

mem

bers

hip

The

Ratif

icat

ion

of A

cces

sion

Tre

aty

Croa

tia b

ecom

es a

EU

mem

ber

RoC

fulfi

lls th

e be

nchm

arks

for

clos

ing

of n

egot

iatio

ns

Neg

otia

tions

; aud

iting

; neg

otia

tion

posi

tions

Off

icia

l can

dida

te c

ount

ry

Farm register (including cadastre and animal register)

Land Parcel Identification System (LPIS)

Integrated Administration and Control System (IACS)

SAPARD/IPARD Agency

2003 Reform – national measures (coupled payments)

Transitional „EU like” measures

EU EAGF measures

Paying Agency

EU Pre-accession RD measures

Process of Accession Negotiations – Chapter 11

Main tasks for Croatia

• Reform of subsidy policy and harmonization with CAP

• Establishment of IACS system

• Setting up of the Paying Agency

• Implementation of Common Market Organization regulations

(sugar, fruit and vegetables, milk...)

Process of Accession Negotiations – Chapter 11

Closing benchmarks: • An implementation plan for the setting up of a Paying Agency and IACS - to be

fully operational by the date of accession • An implementation plan for CMO Implementation plans: • Development and establishment of a legal framework • Organizational structure • Provision of the required logistics and a sufficient number of qualified staff • System for submission, control and approval of applications • Detailed procedures for administration of support and implementation of controls • Education program for the PAAFRD employees • Registers needed for implementation of the CAP measures • Setting-up of the Land Parcel Identification System (LPIS) • System for accounting, payments and reporting • Establishment of a complete IT system • Informing of the farmers and all involved institutions.

III. CAP implementation

CAP benefits for Croatian agricultural sector

• Trading without barriers • Market for Croatian producers >500 million buyers • Protection of the internal market and single prices • More opportunities for Croatian farmers:

€373 million for Direct payments yearly

€330 millions for Rural Development

€9,6 million for de-mined agricultural area yearly

Additional wine envelope of €10,8 million per year;

Expectations of Croatian farmers POSITIVE: • Larger market for marketing and

selling of products • Higher subsides • Greater safety in agriculture

(prices and market) • Regular payment of subsides • Better organization of quotas • Better product prices • Better organization of the market • Better quality of production • Improved sales of products

NEGATIVE: • Failure of small farmers • Reducing of subsides • More difficult sales of products • Non-competitiveness on the

market • Complex paperwork • Severe, rigorous controls • Endangering small producers

IV. Organizational structure

Organizational structure – CAP implementation

Competent AuthorityMinistry of Agriculture

Certifying BodyAgency for the Audit of European Union

Programmes Implementation System

Pre-accreditation Body- Independent Audit company Paying Agency for Agriculture, Fisheries and Rural Development

CENTRAL OFFICE - office: 1 - number of employees: 331

- coordination and development- supervison of regional offices- approval of payments- payments and accounting- reporting- coordination of FR and LPIS development and updating- supervision of all PA functions

REGIONAL OFFICES

- administrative control of direct payments and RD measures- on the spot control for RD and market support measures

- office: 21 - number of employees: 329

CENTRAL OFFICE

LOCAL OFFICES - office: 27 - number of employees: 250

- office: 1 - number of employees: 70

- coordination and development- supervison of local offices

CENTRAL OFFICE - office: 1 - number of employees: 26

- coordination and development- supervison of local offices

LOCAL OFFICES - office: 114 - number of employees: 240

Managing authorityMinistry of Agriculture

Ministry of Agriculture (MoA)

- veterinary inspection (53 employees, 19 offices),

- livestock inspection (10 employees, 9 offices),

- agricultural inspection (85 employees, 53 offices),

- inspection for water protection(27 employees, 20 offices)

Competent Inspections - bodies for Cross-Compliance controls

Ministry of Environmental and Nature Protection ( MENP)

- inspection for environmental protection (30 employees, 20 offices)

- inspection for nature protection(11 employees, 7 offices)

Croatian Agricultural Agency Croatian Agricultural Advisory Service

- assistance to farmers in filing-in application forms (requests for support)- quality control of final ARKOD data on the spot- quality control PRCS DATA- advising and informing farmers on CC- milk quotas- classification control (intervention measures)

- assistance to farmers in filing-in application forms (requests for support)- advising and assistance to farmers during the preparation of application requests for agro-environmental support measures- advising and informing farmers on support measures, and CC- activities regarding integrated agricultural manufacturing

External bodies

DELEGATED FUNCTIONS

- Ministry of Finance ( Custom authority )- external technical experts for IPARD

TECHNICAL SERVICES

- On-the-spot control of eligibility for EAGF direct payments and EAFRD-area and animals related measures (IACS) and fulfilling the criteria for Cross-complinace (competency of Agency)

- Ministry of Agriculture Animal register, Control of market standards ( Producer organizations )

- accredited laboratories

V. Paying agency

Before PAAFD - Paying Agency function • Directorate for Market and Structural Support in Agriculture – established in 2005 within MoA • SAPARD Agency – accredited from 2006 • IPARD Agency – accredited from 2009

Paying Agency for Agriculture, Fisheries and Rural Development (PAAFRD)

• independent institution - from Dec 2009 • central office (Headquarters) – Zagreb + 21 regional offices in Counties • 682 work posts (50% in HQ, 50% in reg. offices) – 645 filled (37 vacant) •Main tasks:

• national and EU direct payments (SPS) • implementation of CMO measures • implementation of RD measures • implementation of EFF measures

Development of a Paying Agency

SECTOR FOR FINANCE (1+27)

SECTOR FOR DIRECT SUPPORT (1+29)

SECTOR FOR ON -THE- SPOT CONTROL (1+40)

SECTOR FOR MARKET SUPPORT (1+36)

SECTOR FOR GENERAL AND LEGAL AFFAIRS

(1+43) SECTOR FOR

REGISTERS (1+26)

CONTROL SERVICE FOR DIRECT SUPPORT (1+12)

13-EAGF/EAFRD

CONTROL SERVICE FOR STRUCTURAL SUPPORT

(1+18)14-preaccession programmes

5-EAGF/EAFRD

ACCOUNTING SERVICE(1+9)

10-national support/preaccession programmes/

EAGF/EAFRD

REPORTING SERVICE(1+5)6-preaccession programmes/

EAGF/EAFRD

FINANCIAL AFFAIRS SERVICE(1+10)

11-national support/preaccession programmes/

EAGF/EAFRD

SERVICE FOR DECOUPLED SUPPORT AND COUPLED DIRECT SUPPORTS FOR

ANIMALS(1+7)

8-EAGF/EAFRD

HUMAN RESOURCES MANAGEMENT SERVICE(1+6)

7-preaccession programmes

LEGAL AFFAIRS SERVICE (1+6)

7--preaccession programmesi

INTERNAL AUDIT SECTOR (1+12)

PAYING AGENCY FOR AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT

DIRECTOR'S OFFICE

DEPUTY DIRECTOR

FARMER REGISTER SERVICE

(1+7)8-EAGF/EAFRD

LPIS SERVICE(1+5)

6-EAGF/EAFRD

PAYMENT ENTITLEMENTS SERVICE(1+3)4-EAGF/EAFRD

CONTROL SERVICE FOR MARKET SUPPORT

(1+7) 8-EAGF/EAFRD

GENERAL AFFAIRS SERVICE (1+9)

3-national support7-preaccession programme

ASSISTANT DIRECTOR

SERVICE FOR TRADE MEASURES (1+10)11-EAGF/EAFRD

SERVICE FOR MARKET INTERVENTIONS -ANIMAL

PRODUCTION (1+7)8-EAGF/EAFRD

SERVICE FOR MARKET INTERVENTIONS -PLANT

PRODUCTION(1+8)

9-EAGF/EAFRD

SERVICE FOR ORGANIC FARMING AND

CONSTRAINS AREAS(1+6)

3-national support/4-EAGF/EAFRD

SERVICE FOR FINANCIAL AND ACCOUNTING

AFFAIRS(1+6)

SERVICE FOR SINGLE APPLICATION PROCEDURE

(1+6)2-national supporti/

5-EAGF/EAFRDPUBLIC PROCUREMENT

SERVICE (1+11)12--preaccession

programmes

ASSISTANT DIRECTOR

SECTOR FOR STRUCTURAL SUPPORT

(1+63)

PROJECT APPROVAL AND RURAL DEVELOPMENT

SERVICE (1+22)18,5-preaccession

programmes/ 4,5-EAFRD

PAYMENT APPROVAL SERVICE (1+10)8,5-preaccession

programmes/2,5-EAFRD

SERVICE FOR FISHERIES SUPPORT

(1+7)8-national suppor / EFF

SERVICE FOR EU AFFAIRS AND INTERNATIONAL COOPERATION (1+3)

2-national support1-preaccession programmes

1-EAGF/EAFRDSERVICE FOR AUDITING DIRECT SUPPORT AND CMO MEASURES (1+5

6-EAGF/EAFRD

SERVICE FOR AUDITING RURAL DEVELOPMENT MEASURES AND PRE-

ACCESSION FUNDS (1+5)6-EAFRD/EMFF/IPARD

TECHNICAL ANALYSES SERVICE (1+11)9,5-preaccession

programmes/2,5-EAFRD

ECONOMIC ANALYSES SERVICE (1+8)

6,5-preaccession programmesi/2,5-EAFRD

PLANNING AND COORDINATION

SECTOR(1+8)

ASSISTANT DIRECTOR

SENIOR EXPERT CLERK(1)

SECTOR FOR PUBLIC RELATIONS AND INFORMATION, EU AFFAIRS AND

INTERNATIONAL COOPERATION (1+8)

SERVICE FOR PUBLIC RELATIONS AND INFORMATION

(1+3)2,5 - preaccession programmesi

1,5 - EAGF/EAFRD

Director's Office

Osječko-baranjska county (30)

Vukovarsko-srijemska county (19)

Virovitičko-podravska county (17)

Požeško-slavonska county (14)

Brodsko-posavska county (16)

Koprivničko-križevačka county

(23)

Bjelovarsko-bilogorska county

(30)

Međimurska county (9)

Varaždinska county (15)

Krapinsko-zagorska county (16)

Zagrebačka county (29) City of Zagreb (6) Sisačko-moslavačka

county (17)Karlovačka county

(10)Ličko-senjska county

(11)Primorsko-goranska

county (11)

Istarska county(9)

Zadarska county (12)

Šibensko-kninska county (11)

Splitsko-dalmatinska county (24)

Dubrovačko-neretvanska county

(13)

Reporting lines

21 Regional offices

Central office

DIRECTOR'S ADVISOR FOR INFORMATION SECURITY

(1)

ADVISOR TO THE DIRECTOR(1)

SUBJECT OF EU ACCREDITATION OF IPARD AGENCY

LEGEND

ASSISTANT DIRECTOR

SECTOR FOR INFORMATION

MANAGEMENT (1+23)

TECHNICAL SUPPORT SERVICE (1+8)

SECURITY SERVICE(1+5)

PROJECTS MANAGEMENT SERVICE (1+7)

ASSISTANT DIRECTOR

SERVICE FOR DATA QUALITY CONTROL (QC/

QA)(1+3)4-EAGF/EAFRD

SERVICE FOR CROSS COMPLIANCE AND AGRI-

ENVIRONMENTAL MEASURES (1+6)3national supporti/4-EAGF/EAFRD

SERVICE FOR PLANNING AND COORDINATION OF

REGIONAL OFFICES (1+2)3--national support/

EAGF/EAFRD

SERVICE FOR MANAGEMENT OF

WRITTEN PROCEDURES (1+4)

5--national support/preaccession programmes/

EAGF/EAFRD

DIRECTOR'S ADVISER FOR COORDINATION OF RISKS AND IRREGULARITIES MANAGEMENT

(1)

SERVICE FOR ANIMAL REGISTER(1+3)4-EAGF/EAFRD

SERVICE FOR THE IMPLEMENTATION OF

NATIONAL MEASURES IN AGRICULTURE AND

PROCESSING OF AGRICULTURAL

PRODUCTS FINANCED THROUGH EAGF

FUNDS(1+7)8-national suppor

PAAFRD: director general, a deputy, 5 assistants, 3 advisors, Sector for PR, EU affairs and international cooperation, Internal Audit Sector & 9 operational sectors + 21 regional offices,

Main changes: decentralisation

IPARD: central office in Zagreb; New decentralised structure EFF/EAFRD : 5 regional offices (Zagreb, Bjelovar, Osijek, Rijeka, Split) + Central office ZG* *role of central office ZG: • Administration of measures,

parameters, procedures, creation of documents, improvements of process

• control of work done in RO • support to RO • Economical and technical

analysis of projects

• Farmer register – established in 2003 (Unique identification of farmer) • 194. 674 farmers

• LPIS (ARKOD) – in use from campaign 2011 • farmers 150.395 • parcels 1.306.813 • ha 1.022.398

• Animal register – external register, in use as part of IACS from 2011 (integrated) • Payment entitlements system – in use from 2012 (integrated) • Application System, Administrative Control, OTS Control – developed from 2009-2011; IACS compatible; in use from 2011

Establishment of IACS

AgroNet

ISAP ISUT ISSP

Finance Accounting Reporting

Public Web Farmer level

Administrative level

Financial level

Registers Direct Support

Controls (OTS, CwRS)

Client Register and Middle Layer Integration level

Payment entitlements

Premium rights

Farmer register

ARKOD

Animal register

IACS rural measures

Aid applications

CAP Direct support

Sensitive sectors

Classic OTS controls

CwRS

Inspection

Current state of IACS – how it all fits together

VI. Accreditation process

PAAFRD-Accreditation process

I phase of accreditation EAGF-direct payments and horizontal issues

Self-assesment audits: => 8.7.2011 - 4.6.2012 Pre-accreditation audit: => 2.7.2012 - 15.12.2012 Decision on provisional accreditation of PAAFRD for EAGF funds

concerning implementation of direct payments => 27.12.2012 IIa phase of accreditation EAGF-CMO measures and overview on

the findings of previous pre-accreditation audit of the horizontal issues

Self-assesment audits: => 14.6.2012 – 19.2.2013 Pre-accreditation audit: => 1.3.2013 - 30.6.2013 Decision on amendments to the Decision on accreditation of PAAFRD for

EAGF funds concerning implementation of CMO measures => 1.7.2013

IIb phase of accreditation EAGF-CMO measures and follow-up recommendations for direct payments

Pre-accreditation audit: => 5.9.2013 - 16.12.2013 Decision on full accreditation of PAAFRD for EAGF funds => 20.12.2013 III phase of accreditation EAFRD–rural development

Pre-accreditation audit of PAAFRD’s technical capacities => 1.4. - 30.7.2014 Decision on provisional accreditation of PAAFRD for EAFRD => 1.8.2014 Pre-accreditation audit of procedures => 1.12.2014. do 20.7.2015 Decision on full accreditation of PAAFRD for EAFRD => 1.8.2015

Summary of accreditation experience of the Croatian Agency

1. Accreditation of the SAPARD Agency in 2006 - with 2 measures in implementation (M1 and M2)

2. Accreditation of the IPARD Agency: a) two measures in 2009 (M 101 and M 103) b) additional two measure in 2011 (M 301 and M 302) c) last two measures in 2013 (M 501 and M 202) 3. Accreditation of EAGF direct payments – Dec. 2012 (provisional) 4. Accreditation of 1st set of CMO measures – July 2013 5. Accreditation of 2nd set of CMO measures & confirmation of full accreditation

for EAGF – Dec. 2013 6. Accreditation of PAAFRD’s technical capacities for EAFRD – on-going 7. Accreditation of EAFRD procedures for measures to be implemented - planned

7 done, 2 to go – all in all, 9 accreditations in 9 years (so far) ! On-going discussion - Accreditation for EAGF DP measures in force from 2015.???

HVALA!

THANK YOU

FOR YOUR ATENTION!