Introducing the

Agricultural and Rural

Development

Agency (ARDA) of Hungary

Sándor Matuska, Head of Unit

ARDOP and EAFRD LEADER Unit

Directorate for Rural Development Support Measures

• History

• Managed subsidies

• Management of applications

• Axis IV.

2

Subjetcs

Pre-accession period

• October 2000: – Commission approval of the SAPARD Plan

– October 2000: Establishment of the SAPARD Agency

• November 2002: Accreditation

• July 2003: Establishment of ARDA, budgetary organisation with independent financial management and nationwide competence

3

History of the institution

4

Subsidies managed by ARDA

European Agricultural Guarantee Fund (EAGF)

5

Internal market measures

External market measures

Intervention

Direct Payments

Other measures (NVT)

Complementary national

payments (top-up)

European Agricultural Fund for Rural Development (EAFRD)

European Fisheries Fund

Pre-accession fund: SAPARD

European Agricultural Guidance and Guarantee Fund

(EAGGF) Guidance: ARDOP

National subsidies

External market measures

Intervention

Our mission

Processing and paying out the

most applications possible in

proper quality, with as low

expenses as possible, always

on schedule, with minimal risk.

6

Organisation

Set out in ARDA’s Code of Organization and Operation

• 19 county offices (of which 7 with regional tasks) + central

office

• Staff of approximately 1 800 persons (of which approximately 600 temporary)

• President, General Vice President, Vice President

• Directorates, Departments, Independent Units

7

8

Regional and County offices

9

•Pécs

•Szekszárd

•Győr •Tatabánya

•Szombathely

•Székesfehérvár

•Kecskemét •Békéscsaba

•Salgótarján

•Eger

•Szolnok

•Debrecen

covering the whole country

EAFRD

Management of applications for support

and payment

10

Legislation

ARDOP

• Council Regulation (EC) No 1260/1999 1260/1999/EK – laying down general provisions on the Structural Funds

• Council Regulation (EC) No 1257/1999 – on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)

• Council Regulation (EC) No 1268/1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period

• 14/2004. (VIII. 13.) TNM-GKM-FMM-FVM-PM Joint Regulation - on the Structural Funds

SAPARD

• Council Regulation (EC) No 595/1999. (20 July 1999.)

• Government Decree 2349/1999. (21 December) – on institutional background

• Government Decree 117/2001. (30. June) – on multi-annual financial agreement

• Decree 53/2001. (17. August) of the Ministry of Agriculture and Regional Development on annunciation the Sapard Plan of Hungary 2000-2006.

• Decree 72/2002. (15. August) of the Ministry of Agriculture and Regional Development on support the agricultural and regional measures of Sapard Plan.

EAFRD

• Council Regulation (EC) No 1698/2005 – on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

• Commission Regulation (EC) No 1974/2006 – laying down detailed rules for the application of Council Regulation (EC) No 1698/2005

• Commission Regulation (EC) No 1975/2006 – laying down detailed rules for the implementation of Council Regulation (EC) No 1698/2005

• 2007. XVII. Act laying down detailed rules on support for

agricultural, rural development and fisheries and other

measures

• 23/2007. (IV.17.) MARD Regulation laying down general

rules for the application of support for rural development by the

European Agricultural Fund for Rural Development (EAFRD)

• Support regulations (equal to call for tenders)

11

Legal background

12

Hungarian

Rural

Development

Programme

EU

law

Acts

Governmental

Decrees

Agricultural and Rural Development

Ministerial (MARD) Regulations

Managing Authority Notices, ARDA Notices

EU

law

Acts

Government Decrees

Ministerial Regulations

Managing Authority Notices, ARDA Notices

13

THE DREAM OF THE CLIENT

what the application

contains

THE REAL DEMAND

what neccessary

for the applicant

THE MONEY WHAT

THE CLIENT HAS

FOR

what we don’t

really want to

support

Allocation of EAFRD resources

15

Axis I. 48% 2,3 billion EUR Axis IV.

27

5 m

illion

EU

R

Axis II. 35% 1,6 billion EUR

Axis III. 17% 690 million EUR

LAG finance from Axis IV.

15% 43 million EUR

TA 4% 203 million EUR

Local Action Groups 96 LAGs became „LEADER LAGs” officially (26th September 2008);

16

covering the whole country

Financing of Local Action Groups’

running costs

• Organisations certified by Managing Authority (in

decision) as Local Action Group

• 95 Local Action Groups at present

• Tasks:

– assigned by Managing Authority (general and unique

tasks)

– assigned by ARDA – application processing concerning

measures 411, 412, 413 (slide 15.)

Tasks of ARDA in connection with

execution of measure

• proceeding support claims and payment claims including administrative checks (formal and content), budgetary control and authorization of payments

• on-the-spot checks connected to claims

• remittance and paying tasks

• accounting tasks and provide accounting registration

• tasks in connection with irregularities (handling, reporting)

Eligible costs

Based on a ‘positive’ list in the decree of the measure

including:

• overheads of the office, stationery, IT appliances, office

furniture and appliances, cost of necessary services;

• eligible costs related to human resources:

Salary, taxes, costs of business trips.

20

Number of claims

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

SAPARD ARDOP EAFRD total

8,827 11,169

327,171

2,761 7,227

250,783

2,761 6,581

302,044

number of submitted claims

number of supported claims

number of supported paymentclaims

423 Million € 256 Million €

6 346 Million €

Thank you for your attention!