KA Dresdner Strae 70 1200 Wien www ama

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

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 2

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) 3

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

RD Budget Allocation in AT Total budget for RD: 1, 1 bn € p. a. Axis 1 50% 12% Agro-Inv (axis 2) LFA (axis 2) Axis 3 2% 5% LEADER Technical assistence 10% 25% 5

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 6 • Infrastructure 30 mill. € • Processing and marketing 12 mill. € • Forestry measures 20 mill. €

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, …) 7

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 -yearplan • Quality check by operating department of AMA (sampling inspection) Benefit: 8 • • • Specialized staff Civil servants Professionals (e. g. master-builder) Ergo: high standard in processing of applications Local governments: no costs for the Paying Agency

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

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) 10

Operation / Time Flow • Monthly payment • Deadline for payment next month (e. g. June): 4 th 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. 25 th each month) 11

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

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) 13

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! 14

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