27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 MANAGEMENT AND CONTROL UNDER REG. 1290/2005 AND THE IMPROVEMENT FOR THE NEW FINANCING PERIOD AFTER-2013 Workshop 1 Summary from questionnaire

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 a) Could you give a short description of the general management and control framework in your country under Reg. 1290/2005? The balance of the general management under Regulation 1290/2005 is considered positive in the EAGF and EAFRD payments. The Regulation 1290/2005 has contributed to the reduction of the number of paying agencies in some Member States. The main challenges for the implementation have been the introduction of Statement of Assurance of the PA Directors and the new guidelines for the certification. Introduction of 50/50 rule in order to simplify the debts management.

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 b) Could you mention 3 major strengths and 3 major weaknesses of the present EC framework? Continuous improvement by the follow-up of the recommendations of the certifying bodies. Fairly adequate and effective control and audit framework, revisions 1290/2005 and 995/2006. Framing Statement of Assurance based on analysis of control statistics. Management Committee Meetings and Expert Groups. The introduction of SPS gives the possibility of a better budget execution. Use of the management experience from the EAGGF-Guarantee in the implementation of the Rural Development Programmes. MAIN STRENGTHS:

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 b) Could you mention 3 major strengths and 3 major weaknesses of the present EC framework? Different interpretations of the regulations lead to financial corrections. Severe rules for PA in relation with the reports and late payments, overshooting of financial ceilings. The costs of PA are disproportionated in certain countries. Forfait corrections instead of punctual corrections. Lack of accountability system in RDPs. Complexity of the method of risk management oriented to detect errors instead of desired social effects/aims of the policy. Commission asks MS to implement changes in a short period of time. MAIN WEAKNESSES :

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 c) Do you have suggestions as to how we can simplify (in terms of efficiency, effectiveness and administrative burden) the present framework for audit, controls and accounts from the point of view of: Control of the measures should be combined in a single on-the-spot control. Stimulating the use of e-applications. Use of data from third parties. Farmers

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 c) Do you have suggestions as to how we can simplify (in terms of efficiency, effectiveness and administrative burden) the present framework for audit, controls and accounts from the point of view of: Introduction of preventive audits instead of audits of conformity clearance of accounts. Transparency on planning/outcome/implementation costs of audits. More flexibility in the regulations to avoid the difficulties to join the checks in a short period. Sharing best practices between Commission and MS. Optimize the balance between costs/benefits of controls. Stimulate the collaboration with intermediate parties. Harmonization of procedures, controls, reporting… Paying Agencies

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 d) Do you have examples of best practice that support your ideas? Controls for remote sensing instead of the classical on-the-spot checks. Use of informatic tools reading in animal identification and registration in order to improve the animal welfare and quality of controls. Early warning system if the MS are not in compliance with the Community regulations. Combine controls: Join samples for several controls. Joint Inspection Office. Combining article 68 and identification and registration of animals controls.

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 e) What other concrete simplifications would you suggest for the period 2013 and beyond? Please give a short explanation of each suggested simplification Simplify Community framework (i.e. accountability of progressive modulation). Create focus on output (goals) and outcome (effects) instead of input (money). EAFRD quarter declaration expenditures should be only for the communitarian contribution instead of the whole public expenditure. Harmonisation of period of rural development (calendar or financial year). Simplify the reporting to the Commission (only the information that Commission is going to use), less changes in regulations, guidelines, X- tables… Continue discussion on 39 simplification proposals. The Cross Compliance proposals are particularly promising.

27th Conference of EU Paying Agency Directors Oviedo, Spain April 2010 Workshop 1 THANKS