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

ARMA Polish Paying Agency

Experiences & Accomplishments

Brussels, 3-4 October 2007


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


Area of ARMA Experience

• Implementation capacity of EU programs (HR, IT, procedures)

• Organizational capacity & institutional framework

• Knowledge of beneficiaries’ needs• Building upon lessons learnt


Scope of Continuation – Programs

SAPARD

Rural Development Plan

SOP Agriculture Rural Development Program

2002-2004 2004-2006 2007-2013

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 Measures46,000 beneficiaries

Budget: 3 600 MEUR (EAGGF: 2 866 MEUR)10 Measures320,000 beneficiaries + 2.1 M LFA applicants

Budget: 17.2 bn EUR (EAFRD: 13.2 bn EUR)

22 Measures1.4 M Beneficiaries + 5.2 M LFA applicants


ARMA Organisational Structure - 3 levels

ARMA Headquarters in Warsaw

ARMA Regional Offices in each voivodship (16) - 2000

Poviat Bureaus (314) in each poviat – 2002


17715716316312993511 609

3129

4220

5621

82789171

10793

0

2 000

4 000

6 000

8 000

10 000

12 000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

30.06

.2007

Headquarters Regional Offices Poviat Bureaus

Growth of Employment 1994 - 2007


Scope of Continuation – Institutional SystemMain

participants of the

institutional system

SAPARDSOP

Restructuring...2004-2006

RDP 2004-2006 RDP 2007-2013

MF1National

Authorising Officer

Paying AuthorityCompetent Authority

Certifying Body

Competent Authority

Certifying Body

MARD2 Managing Authority

Managing Authority

Managing Authority and Coordinating

Body

Managing Authority and Coordinating

Body

ARMA SAPARD Agency

Implementing Institution / Final

BeneficiaryPaying Agency

Implementing Institution /

Paying Agency

1 – Ministry of Finance2 – Ministry of Agriculture and Rural Development


ARMA’s accreditation and certificationARMA’s accreditation and certification

MARD

Supervision of management of public

funds

Supervision of activity

External Auditor

ARMA

MF

Examination of accreditation criteria

Delegated Body


Financial & Accounting System of the Paying Agency

Area Payments

Processing aid applications – from receiving to payment

calculations

Fin

anc

ial&acc

ou

ntin

g p

latform

Execution of Payments

Accounting of Payments

Vindication

Financial Plans

Reporting

Home-banking

Rural Development


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

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 Delegation of functions

Written procedures updated in good time

Written procedures updated in good time

Control activities: procedures for authorisation, payment, accounting, advances and securities, debts, audit trail

Debtors ledger 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

Technical services ensuring documentary and physical checks

Monitoring: internal control activities, internal audit service

Independent Internal Audit Service Independent Internal Audit Service

Public procurement provisions


ARMA’s ARMA’s AAccreditationccreditation Approach Approach

SAPARD RDP 2004-2006 RDP 2007-2013

Accreditation by packages of measures5 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


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

ARMA’s ARMA’s AAccreditationccreditation


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)

ARMA’s accreditationARMA’s accreditation


Delegation of tasks (e.g. to regional governments)

MARDManaging Authority

Regional Governments

Implementing bodies

•Improvement and development of infrastructure

•Basic services •Village renewal•Leader Axis

RDP 2007 – 2013 measures delegated to regional governments

ARMAPaying 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

Au

dit

pla

ns


Village Renewal and Development Aid application

Beneficiary

Aid application

Regional Government

Ranking list

Agreement between

Beneficiary and RG

Administrative checks and ranking list


Village Renewal and DevelopmentAuthorisation of payment

Beneficiary

Claim for payment

Regional Government

Paying Agency

Payment Order

Payment (E

AFRD)

Authorisation of payment: Administrative check and verification

of compliance with the agreement


Financial Management Principles:

•Reimbursement ofpart 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

beneficiary’s own funds

Total cost of the project submitted by a municipality

Eligible costs Non-eligible costs

Non-eligible costs

Possibilities of financing of project costs:- Own budget

- Bridge loan and/or co-financing loan


Thank You [email protected]

ARMA

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

Documents

measures accreditation

paying agency slide

body arma sapard agency

ministry of agriculture

accreditation reports

unconditional accreditation

pa rdp

preparation of arma