Ministry of Agriculture, Fisheries and Rural Development

Republic of Croatia Ministry of Agriculture, Fisheries and Rural Development

Programme: IPA 2008 FPP RAC

Partner Country: Croatia

Area of Cooperation: Agriculture

TWINNING LIGHT PROJECT FICHE

Strengthening of Croatian administration in charge of accreditation of agriculture paying agency Project budget: 222.222,00 EUR

STANDARD TWINNING LIGHT PROJECT FICHE

1. Basic Information

1.1 Programme: IPA 2008 Facility for Project Preparation and Reinforcement of Administrative Capacity (FPP RAC) 1.2 Twinning Number: HR/2008/IB/AG/01TL 1.3 Title: Strengthening of Croatian administration in charge of accreditation of agriculture paying agency

1.4 Sector: Agriculture 1.5 Beneficiary country: Republic of Croatia

2. Objectives 2.1 Overall Objective(s):

Republic of Croatia prepared for the implementation of the Common Agricultural Policy (CAP) after accession to the European Union.

2.2 Project purpose:

Development of the administrative system for accreditation of agriculture paying agency for the purpose of implementation of CAP measures financed by European Agricultural Guarantee Fund (EAGF) and European Agricultural Fund for Rural Development (EAFRD).

2.3 Contribution to Accession Partnership/ Stabilisation and Association Agreement/ Program of the Government of the Republic of Croatia for adoption and implementation of the acquis communautaire

Accession Partnership

The Accession partnership (Council Decision of 12 February 2008) in its part “Ability to assume the obligations of membership”, for Chapter 11: Agriculture and rural development sets the following priorities: - to strengthen the administrative structures needed to implement market and rural development policies; - to continue preparations to establish effective and financially sound paying bodies for the management and control of agricultural funds, in line with EU requirements and international auditing standards.

In line with these priorities and objectives, the Government of the Republic of Croatia set up the Paying Agency for Agriculture, Fisheries and Rural Development (PA) by the Law on establishment of PA (Official Gazette 30/09), as a body responsible for payments to beneficiaries under the principle of the shared management of the two EU agricultural funds:

2 EAGF and EAFRD. This Twinning light project will contribute to strengthening of the administrative structures in charge of implementing market and rural development policies, as well as to continuing preparations to establish effective paying bodies for the management and control of agricultural funds.

Stabilization and Association Agreement and Program of the Government of the Republic of Croatia for adoption and implementation of the acquis communautaire

This Project is in compliance with general objectives of the Stabilisation and Association Agreement as well as with the Program of the Government of the Republic of Croatia for adoption and implementation of the acquis communautaire.

Croatia 2011 Progress Report

The European Commission’s “Croatia 2011 Progress Report” (Brussels, 12 October 2011 SEC (2011) 1200 in respect to Chapter 11 “Agriculture and Rural Development” in the 1st paragraph states the following:

“ Good progress can be reported regarding horizontal issues. Croatia complemented the legislative framework related to agricultural payments, enabling the 2011 campaign to use some procedures aligned with the acquis. Additional efforts are needed to complete the legislative framework in order for Croatia to meet its commitment to implement a system of national direct payment similar to the Common Agriculture Policy in 2012.”

Furthermore, in respect to Chapter 11, it concludes: “Good progress can be reported in the field of agriculture and rural development, in particular on the establishment and implementation of the paying agency and of the integrated administration and control system and on the common market organization. Overall, preparations are on track. Croatia needs to sustain efforts in all these areas in order to have fully operational and compliant systems in place.”

PA’s development in line with relevant EU requirements and standards is being monitored by the European Commission, following the adoption of the “Implementation plan on the establishment of the PA and the Integrated Administration and Control System (IACS) in the Republic of Croatia” (by the Croatian Government in February 2010), and subsequent progress reports on its implementation issued by the PA (May 2010, September 2010 and March 2011). The latest Monitoring Mission by DG Agriculture and Rural Development (No. PAYIOO3/2011 and A.M2011-35) on the Establishment of the PA and IACS took place in Zagreb and selected regional offices of the PA from 27 June to l July 2011. One of the mission's subjects was the preparation of Croatian administration for the accreditation process.

The Twinning Light project will strengthen Croatian administration in charge of accreditation of PA, as a final step in the preparation for the implementation of Common Agricultural Policy (CAP) measures financed by EAGF and EAFRD.

3 3. Description 3.1 Background and justification:

Under the basic rules for the financial management of the CAP, the European Commission is responsible for the management of the EAGF and the EAFRD, but does not make payments to beneficiaries. According to the principle of shared management, this task is delegated to the Member States, who themselves work through national or regional paying agencies. Before these paying agencies can claim any expenditure from the EU-budget, they must be accredited on the basis of a set of criteria laid down by the Commission in the Regulation (EC) 885/2006 of 21 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 1290/2005 as regards the accreditation of paying agencies and other bodies and the clearance of the accounts of the EAGF and of the EAFRD. To be able to use EAGF and EAFRD funds, but also the pre-accession assistance funds (IPARD), Republic of Croatia has established the paying agency (PA) - national body responsible for payments in agriculture. On the date of the accession of Republic of Croatia to the European Union, PA should be ready to implement the CAP measures financed by the EAGF and the EAFRD, under the principle of shared management. PA is preparing necessary infrastructure for this purpose (human and material resources, IACS - integrated administration and control system, LPIS - land parcel identification system, compulsory registers, detailed work procedures, information safety procedures, etc.) to be able to get accreditation and carry out its CAP payment functions.

The accreditation is a procedure by which the Competent Authority (CA) verifies whether the PA complies with the accreditation criteria for using funds deriving from the EU agricultural funds. It should be carried out before any expenditure effected by it is charged to the EAGF or the EAFRD, in line with the Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy and Commission Regulation (EC) 885/2006. To this end, Ministry of Agriculture, Fisheries and Rural Development (MAFRD) was designated as CA for the accreditation of the PA by the Act on Agriculture (Official Gazette 149/09). The Ordinance on Accreditation of Paying Agency for Agriculture, Fisheries and Rural Development (Ordinance on accreditation) that is laying down the accreditation criteria and procedures for accreditation, review and withdrawal of accreditation in accordance with the EU practice was adopted in April 2011 and published in Official Gazette 40/2011. The Independent Service for Accreditation of Agriculture Paying Agency and Certification of Fisheries Support Programme (the Service) within MAFRD is designated by Governmental Decision (of 21 November 2009) as operative unit in the CA responsible for the accreditation of the PA (in line with Art. 6 of 1290/2005 and Art. 1 of 885/2006) and constant supervision of the PA (in line with Art. 2 of 885/2006).

The CA shall, by way of a formal act, decide on the accreditation of the PA on the basis of an examination of the accreditation criteria set out in Annex I to the Ordinance on accreditation regarding internal environment (organizational structure, human-resource standard, delegation), control activities (procedures for authorizing claims, procedures for payment, procedures for accounting, procedures for advances and securities, procedures for debts, audit trail), information and communication (communication, information systems security) and monitoring (ongoing monitoring via internal control activities and separate evaluations via an internal audit service). If the CA establishes that the PA fully complies with all the accreditation criteria, it shall issue the decision on accreditation. If the CA establishes that the PA does not comply with one or more of the accreditation criteria, it shall take a decision on provisional accreditation. In this case, the CA shall address detailed instructions to the PA to correct the deficiencies, specifying the deadline for correction.

4 Three employees were initially employed by the Service in September/October 2010, who conducted the study of relevant EU legal framework, prepared detailed insight into CAP support measures and payment procedures of agriculture paying agency, initiated the cooperation with the PA and other national counterparts (Ministry of Finance, Agency for the Audit of European Union Programmes Implementation System), and with several EU member states accreditation experts (introductory visits to Competent Authorities of Austria, Slovenia and Estonia).

However, employees of the Service need to reinforce the knowledge on the operations of the PA (payment of the income support, market support and rural support measures from the two EU agricultural funds), as well as on the details on the accreditation procedure in the pre- accession phase and constant supervision of accreditation in the post-accession period.

In addition to assistance in preparation of necessary working documents for the Service (procedures and operational guidelines), advice and recommendations related to the accreditation process would be of significant importance, particularly taking into consideration that the Republic of Croatia will be a single EU-accession country going through a process of agriculture paying agency accreditation in 2012. Until now, no targeted aid was received by Croatia in terms of assistance to capacity building of CA for the accreditation of PA.

This Twinning light project should assist MAFRD in preparation of the process of PA accreditation (identifying legislative gaps related to CA, bringing detailed insight into operations of an agriculture paying agency, drafting the accreditation procedures including the procedures for granting and monitoring of provisional accreditation, issuing guidelines for relevant reporting to the EC, drafting the decision on accreditation with necessary accompanying documents) and preparation of procedures for constant supervision of fulfillment of accreditation criteria (detailed insight into accreditation review, guidelines for constant supervision of accreditation criteria, agreement on reporting and cooperation with Certification Body – CB (ARPA - Agency for the Audit of European Union Programmes Implementation System), guidelines for putting accreditation under probation, relevant reporting to the EC, withdrawal of accreditation, and basic information on the conformity clearance procedure - a procedure that includes check of the internality, accuracy and veracity of the accounts) and on scrutiny by Member States of transactions forming part of the system of financing by EAGF (according to Council Regulation No 485/2008).

5 3.2 Linked activities (other international and national initiatives):

IPA 2007 project „Establishment of effective and financially sound management system and control of use of agricultural funds in line with EU requirements and international auditing standards“ ( HR2007/03/11 – Beneficiary: PA ), with the following components:

Service: „Support to establishment of fully operational Paying Agency in line with the EU standards“ Project activities started in April 2010 and are expected to be finished in April 2012. The purpose of this contract is to develop full software support for the entire process of applications processing and control of use of agricultural funds in line with EU requirements and international auditing standards, as well as to prepare and organize the information campaign about CAP implementation.

Twinning: „Capacity building of the Croatian Paying Agency” (Twinning no. HR/2007/IB/AG/01) Project activities started in January 2010 and are expected to be finished in January 2012. MS partner for the Twinning is Austrian Ministry of Agriculture, Forestry, Environment and Water Management (MAFEWM) and Agrarmarkt Austria (AMA). The purpose of this contract is the full preparation of prospective PA for defining entire process of use of agricultural funds, starting from preparation of aid applications until payments.

Supply I: „ Supply of equipment for Croatian Paying Agency/Ministry of Agriculture, Fisheries and Rural Development“ Project included supplies of IT equipment-PC computers and laptops, vehicles, laser distances meters, GPS devices and digital cameras. Equipment was delivered in February 2010 and vehicles in May 2010.

Supply II: „Supply of Vehicles for Paying Agency for Agriculture, Fisheries and Rural Development“ Project consisted of supply of terrain vehicles. Vehicles were delivered in April 2011.

Given the fact that the PA will be subject to accreditation by the CA and has to prepare for accreditation prior to use of EU agriculture funds, mentioned project provides assistance to the establishment of IACS, system for the rural development support, system for reporting and the system for X-tables support, risk assessment, internal control questioner and audit programs for a system and compliance audits, information campaign and the full integration of all the processes and databases.

IPA 2008 project “Support the Implementation of the Common Organization of the Agricultural Markets“ - Beneficiary: PA, Twinning Light Contract no. HR/2008/IB/AG/01TL

The Twinning partner was the Ministry of Food, Agriculture and Fisheries of France. Under the supervision of the French Ministry of Agriculture, Food, Fisheries, Rural development and Territorial planning (MAAPRAT) the project was implemented by French Market and Intervention Agency for agricultural products and fisheries known as FranceAgriMer. In that framework also experts from Hungary, Germany and Poland were included in this project. Project activities started in November 2010 and finished in May 2011. The aim of the project was to assist the PA in preparation for administration of common market organisation measures of selected sectors (sugar, milk and milk products, beef and veal, fruit and

6 vegetables, export refunds for Non-Annex I products). The final beneficiary was the Paying Agency in Agriculture, Fisheries and Rural Development. 3.3 Results:

Component 1 Setting up the administrative system for accreditation of the Paying Agency

Result 1.1.: Recommendations for improvement of legal framework related to accreditation of Paying Agency prepared

Result 1.2.: Procedures and guidelines for accreditation drafted

Result 1.3.: Guidelines for the preparation of decision on accreditation drafted

Result 1.4.: Competent Authority staff trained on accreditation process

Component 2 Setting up the administrative system for review of accreditation of the Paying Agency

Result 2.1.: Procedures and guidelines for review of the accreditation drafted

Result 2.2.: Agreement on cooperation and reporting between the Competent Authority and Certification Body finalized

Result 2.3.: Competent Authority staff trained on accreditation review, conformity clearance procedure and scrutiny of transactions

7 3.4. Activities: Component 1 Setting up administrative system for accreditation of the Paying Agency

Activities related to Result 1.1.

Activity 1.1.1. Conducting analysis of alignment of the Croatian legislation with the EU Acquis related to accreditation of Paying Agency

Activity 1.1.2. Preparing report with recommendations for improvement of Croatian legal framework related to accreditation of Paying Agency

Activities related to Result 1.2.

Activity 1.2.1. Drafting procedures for accreditation, including procedures for monitoring of Paying Agency’s preparation for accreditation. Procedures shall contain conditions for accreditation, mode of cooperation with the pre-accreditation audit company and the Paying Agency, provisions in respect to pre-accreditation audit report examination and accreditation criteria compliance assessment, and guidelines for the follow up of implementation of auditors recommendations prior to granting of accreditation

Activity 1.2.2. Drafting procedures for provisional accreditation, which shall contain: procedures for granting of provisional accreditation including conditions for provisional accreditation, guidelines for monitoring of the implementation of the remedial action plan for the full accreditation and guidelines on relevant reporting to the EC.

Activities related to Result 1.3.

Activity 1.3.1. Drafting guidelines for the preparation of decision on accreditation. The guidelines should include definition and scope of the documents accompanying the decision and the draft of the decision

Activities related to Result 1.4.

Activity 1.4.1. Conducting training needs analysis (TNA) for the Competent Authority employees related to functions and tasks of the Competent Authority in relation to the process of accreditation of Paying Agency, preparing corresponding TNA report, as well as preparing training programme and materials for training of the Competent Authority employees on accreditation process

8 Activity 1.4.2. Conducting training in form of workshops for 4 Competent Authority employees on the issues concerning accreditation process, requirements and procedures, including practical experience of other member states, with emphasis on related critical points. The training should include all aspects of accreditation defined by Ordinance on accreditation of Paying Agency, Regulations (EC) No 1290/2005, 885/2006 and respective DG Agri Guidelines, including PA’s operations and requirements of next Financial Programming Period 2014-2020

Component 2 Setting up the administrative system for review of accreditation of the Paying Agency

Activities related to Result 2.1.

Activity 2.1.1. Drafting procedures for constant supervision of accreditation criteria, including procedures for follow-up of any identified deficiencies, and guidelines for the establishment of the system for the exchange of information on possible cases of non-compliance, including procedures to deal with such cases

Activity 2.1.2. Drafting guidelines for informing the Commission of the supervision results (including form, content and necessary evidence)

Activity 2.1.3. Drafting procedures for putting the Paying Agency’s accreditation under probation, including conditions for the probation. Procedures shall also include guidelines for monitoring of the remedial action plan for the restoration of full accreditation and guidelines for relevant reporting to the EC

Activity 2.1.4. Drafting procedures for withdrawal of the accreditation including conditions for withdrawal

Activities related to Result 2.2.

Activity 2.2.1. Analysing existing Draft of Agreement between Competent Authority and Certification Body and preparing report with recommendations for its improvement, including reporting requirements, scope of certification audit, and mode of cooperation

Activity 2.2.2. Preparing final version of the Agreement on cooperation and reporting between the Competent Authority and Certification Body, including reporting requirements and the scope of certification audit

Activities related to Result 2.3.

Activity 2.3.1. Conducting training needs analysis (TNA) for the Competent Authority employees related to processes of accreditation review, preparing

9 corresponding TNA report, as well as preparing training programme and training materials for training of the Competent Authority employees on review of accreditation process

Activity 2.3.2. Conducting training in form of workshops for 4 Competent Authority employees on the issues concerning accreditation review (mode of constant supervision, use of Certification Body reports, provision of information to the Commission, accreditation under probation, withdrawal of accreditation), conformity clearance procedure, scrutiny of transactions by Member States, and other relevant topics

Activity 2.3.3. Organizing study visit in duration of 4 days to an EU Member State for 3 members of Competent Authority staff with the aim of getting acquainted with the existing institutional framework for review of accreditation and practical experiences, including visits to all authorities involved

10 Indicative schedule of activities Date/Duration Activity Output Input (working days) Month 1 Activity Analysis of alignment of the MS experts in total of 10 1.1.1 Croatian legislation with the EU working days Acquis conducted.

Month 1 Activity Report with recommendations MS experts in total of 5 1.1.2. for improvement of Croatian working days legal framework prepared.

Month 1 Activity Procedures for accreditation, MS experts in total of 26 1.2.1. including procedures for working days monitoring Paying Agency’s preparation for accreditation drafted. Month 2 Activity Procedures for provisional MS experts in total of 16 1.2.2. accreditation drafted. working days

Month 2 Activity Guidelines for the preparation of MS experts in total of 15 1.3.1. decision on accreditation working days drafted.

Month 2 Activity Training needs analysis (TNA) MS experts in total of 9 1.4.1. conducted, TNA report working days prepared, training programme and materials prepared.

Month 3 Activity Training for four employees of MS experts in total of 20 1.4.2. the Competent Authority working days conducted. Month 4 Activity Procedures and guidelines MS experts in total of 15 2.1.1. drafted. working days

Month 4 Activity Guidelines for informing the MS experts in total of 5 2.1.2. Commission of the supervision working days results drafted.

Month 4 Activity Procedures for putting the MS experts in total of 19 2.1.3. Paying Agency’s accreditation working days under probation drafted.

11 Month 5 Activity Procedures for withdrawal of the MS experts in total of 5 2.1.4. accreditation including working days conditions for withdrawal drafted. Month 5 Activity Existing Draft of Agreement MS experts in total of 5 2.2.1. between Competent Authority working days and Certification Body analysed and report with recommendations for its improvement prepared Month 5 Activity Final version of the Agreement MS experts in total of 5 2.2.2. on cooperation and reporting working days between the Competent Authority and Certification Body prepared. Month 5 Activity Training needs analysis (TNA) MS experts in total of 8 2.3.1. conducted, TNA report working days prepared, training programme and materials for training prepared Month 6 Activity Training in form of workshops MS experts in total of 20 2.3.2. for four competent Authority working days employees conducted

Month 6 Activity Study visit conducted 2.3.3.

Total: 183 WORKING DAYS

Two visibility events will be organized in the course of the implementation of the project; Kick-off meeting at the start of the implementation and the Final meeting at the end of the implementation of the project activities.

12 3.5 Means/ Input from the MS Partner Administration: One of the experts may act as the Project Leader responsible for general coordination.

3.5.1 Profile and tasks of the Project Leader

Profile of the Project Leader

Requirements:

. University level education or equivalent professional experience of 13 years in public or business administration . 6 years of experience in the field of EU funding . Experience in accreditation of paying agency for the use of EU agricultural funds . Experience in continued compliance control of paying agency for the use of EU agricultural funds . Working level of English language . Proven contractual relation to public administration or mandated body, as defined under Twinning manual 5.3.2. . Computer literacy . Experience in project management

Assets: . Experience in use of EU agricultural funds on the institutional level

Tasks of the Project leader:

. Overall management and coordination of the project in cooperation with short- term experts and BC Project leader . Overall coordination of MS expert’s work and availability . Organization of study visit . Participation in Steering Committee meetings . Project reporting . Ensuring backstopping and financial management of the project in Member state

3.5.2 Profile and tasks of the short-term experts

For each of the proposed experts in the submitted proposal the Member State is kindly requested to indicate the expert’s profile.

Profile of the Short-term experts

Requirements:

13 . University level education or equivalent professional experience of 10 years in public or business administration . 4 years of experience in the field of EU funding . Experience in accreditation of paying agency for the use of EU agricultural funds . Experience in continued compliance control of paying agency for the use of EU agricultural funds . Working level of English language . Proven contractual relation to public administration or mandated body, as defined under Twinning manual 5.3.2. . Computer literacy

Assets: . Experience in drafting decision on accreditation . Experience in audit procedures of agriculture paying agency . Experience in organizing and conducting trainings

Tasks:

. Conducting analysis of alignment of the Croatian legislation with the EU Acquis related to accreditation of Paying Agency . Preparing report with recommendations for improvement of Croatian legal framework related to accreditation of paying Agency . Drafting procedures for accreditation, including procedures for monitoring of Paying Agency’s preparation for accreditation . Drafting procedures for provisional accreditation . Drafting guidelines for the preparation of decision on accreditation . Conducting training needs analysis (TNA) for the Competent Authority employees related to processes of accreditation, preparing corresponding TNA report, training programme and materials . Conducting training in form of workshops on the issues concerning accreditation process . Drafting procedures for constant supervision of accreditation criteria . Drafting guidelines for the establishment of the system for the exchange of information on possible cases of non-compliance . Drafting guidelines for informing the Commission of the supervision results . Drafting procedures for putting the Paying Agency’s accreditation under probation . Drafting procedures for withdrawal of the accreditation . Analyzing existing Draft of Agreement between Competent Authority and Certification body and preparing report with recommnedations . Preparing final version of the Agreement on cooperation and reporting between Competent Authority and Certification Body . Conducting training needs analysis (TNA) for the Competent Authority employees related to processes of accreditation review, preparing corresponding TNA report, training programme and materials . Conducting training in form of workshops on the issues concerning accreditation review

Note:

14 . The pool of experts must include at least one expert who in addition to profile requirements has experience in organizing and conducting trainings, one expert who in addition to profile requirements has experience in drafting accreditation procedures and guidelines and one expert with the experience related to accreditation by Competent Authority as defined by the Commission Regulation (EC) No. 885/2006

4. Institutional Framework Beneficiary institution of this Twinning light project is the Ministry of Agriculture, Fisheries and Rural Development - Independent Service for Accreditation of Paying Agency in Agriculture, Fisheries and Rural Development and Certification of Fisheries Programme Support (the Service), which operates in the area of responsibility of the Minister of agriculture, fisheries and rural development.

The Service is an organisational unit of the Competent Authority responsible for tasks related to accreditation and supervision of compliance with the accreditation criteria. It shall carry out the accreditation process and shall present to the Minister responsible for agriculture a proposal for a decision on accreditation. After the accreditation is granted, the Service shall supervise the work of the Agency and its fulfilment of the accreditation criteria, and every three years inform the European Commission in writing of the results of its supervision.

Based on the Government Regulation on the amendments of the Regulation on the internal organization of the MAFRD (OG 118/09), the corresponding amendments are introduced into the Ordinance on the internal order within the MAFRD (September 2009). The latter document defines the tasks of each of the posts within the organizational scheme. According to this, the Service comprises of two departments (for organization chart see Annex II): - Department for Accreditation of PA; - Department for Certification of Fisheries Programme Support.

Currently, Head of Independent Service and Heads of Departments are employed, while further staffing is in progress (according to the employment plan: two employees in 2011 and other two in 2012).

Two Steering Committee meetings will be held for the purpose of reviewing the progress made under the project as well as to discuss results achieved and/or problems occurred. The first Steering Committee meeting will be held during the third month of project activities implementation in order to discuss and comment the draft start-up report. The second Steering Committee meeting will be organised during the last month of the implementation period of the Action to discuss the draft final report. It should be noted that the participation of the Member State Project Leader in Steering Committees meetings has to be combined with expert missions in case the Member State Project Leader is also a short-term expert in the twinning light project. If the Member State Project Leader is not short-term expert in the twinning light project then his visits to Croatia, (one visit every three months) as part of his overall task to ensure coordination and political steering of the project, should be organised at the same time as the two Steering Committee meetings of the project. 15 The exact participants of the Steering Committee meetings will be defined during the implementation of the project, but will at least include the following members:

 BC Project Leader  MS Project Leader  CFCA Project Manager  EUD Task Manager  CODEF Sector Manager

The beneficiary is committed to provide all necessary infrastructure such as office space and desktop computers with internet connection for experts, venue for holding seminars and workshops, and to ensure the necessary local staff/experts inputs.

5. Budget

Strengthening of Croatian IPA administration in charge of National Community TOTAL accreditation of agriculture Co-financing Contribution paying agency Twinning Light Contract 90% 10% 222.222 €

Interpretation costs will be reimbursed from the budget only for the purpose of workshops and seminars, up to 7% of the Contract amount can be used for translation and interpretation purposes.

Provisions for visibility costs and expenditure verification costs should be included in the budget.

6. Implementation Arrangements 6.1 Implementing Agency responsible for tendering, contracting and accounting

Central Finance and Contracting Agency (CFCA) Ulica grada Vukovara 284 10000 Zagreb, Croatia Mrs Marija Tufekčić, Director of the CFCA Phone:+ 385 1 4591 245 Fax: +385 1 4591 075 E-mail: [email protected]

Twinning Administrative Office Central Finance and Contracting Agency Ulica grada Vukovara 284 10000 Zagreb, Croatia Contact: Mr Domagoj Šimunović, Twinning NCP Phone: +385 1 4591 245 Fax: + 385 1 4591 075 E-mail: [email protected]

16 6.2. Main counterpart in the BC

Senior Programme Officer (SPO) Ministry of Agriculture, Fisheries and Rural Development Ulica grada Vukovara 78 HR – 10000 Zagreb, Republic of Croatia Mrs Gabrijela Krasić, State Secretary Phone: +385 1 6106 080 Fax: +385 1 6109 200 E-mail address: gabrijela.krasic @mps.hr

BC Project Leader Ministry of Agriculture, Fisheries and Rural Development Independent Service for Accreditation Ulica grada Vukovara 78 HR – 10000 Zagreb Mrs Gordana Parać, Head of Service Phone: +385 1 6106 222 Fax: +385 1 6109 208 E-mail: [email protected]

6.3 Contracts

This Twinning project will be implemented through one Twinning Light contract with an indicative amount of 222.222 €. 6.4. Reporting

The Start-up Report will cover first two months of the contract and will be submitted during the third month. The Start-up report should:

- Clearly define the aims and purpose of the aid provided by the project, - Give detailed description of the content of particular parts of the project, - Work out in detail the activities carried out and the results achieved, - Work out in detail all modifications agreed with the beneficiary institution, - Review difficulties met during the implementation of the project and measures that were undertaken for their removal, - Provide all findings obtained in the meanwhile and preliminary conclusions, and - Contain a general plan of activities for the implementation of the remained duration of the project.

The Final Report shall be submitted within three months upon the completion of the project activities and in any case within the legal duration of the project, and it should contain the following:

- Complete review of all activities carried out by MS experts during the implementation of the project, - Achieved progress concerning each activity, - Summary of all project results, with particular emphasis on mandatory results,

17 - Estimation of the project impact compared with the project aims and measures of the achieved progress, - Identification of all important problems met during the implementation of the contract and solutions that have been applied, - Lessons drawn from the project, and - Recommendations for further steps in future projects

These reports must be endorsed and countersigned by the beneficiary, who may make additional comments.

Reports shall be submitted to the Ministry of Agriculture, Fisheries and Rural Development, the Central Finance and Contracting Agency, the Central Office for Development Strategy and Coordination of EU funds and the EU Delegation to Croatia in a form of 4 hard copies and an electronic version. All reports should be written in English.

6.5. Language English

7. Implementation Schedule (indicative)

7.1 Launching of the call for proposals: 4Q 2011 7.2 Start of project activities: 1Q 2012 7.3 Project completion: 3Q 2012

7.4 Duration of the execution period: 9 months; the execution period will end 3 months after the implementation period of the Action (work plan) which will take 6 months.

8. Sustainability

The achievements of Twinning light project (mandatory results) shall be maintained as a permanent asset to the Beneficiary administration even after the end of the Twinning light project implementation, since the procedures for review of accreditation criteria shall be permanently applicable. This project proposal was drafted with a guiding principle that knowledge and mechanisms to be put in place through this project are adequately applied upon the contract closure. Therefore, the twinning assistance should result in increasing administrative capacity of the respective structure with regards to preparation for implementation of Common Agriculture Policy as well as assistance in implementation of the policy itself.

9. Crosscutting issues

Based on the fundamental principles of promoting equality and combating discrimination, participation in the project will be guaranteed on the basis of equal access regardless of sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

10. Conditionality and sequencing N/A

18 19 ANNEXES TO PROJECT FICHE

1. Logical framework matrix in standard format 2. Organisational scheme of the Independent Service for Accreditation of Paying Agency in Agriculture, Fisheries and Rural Development (PAAFRD) and Certification of Fisheries Programme Support

20 Annex 1. Logical framework matrix in standard format

STRENGTHENING OF CROATIAN ADMINISTRATION IN CHARGE Programme name and number: OF ACCREDITATION OF AGRICULTURE PAYING AGENCY IPA 2008 – FPP RAC Ministry of Agriculture, Fisheries and Rural Development Contracting period expires: Disbursement period expires: 3 years following the date of 3 years following the end date for conclusion of the Financing contracting Agreement Total budget: 222.222 € IPA financing: 90% National co-financing: 10% Overall objective Objectively Verifiable Indicators Sources of Verification Republic of Croatia prepared for the Institutional set up for implementation of European Commission (EC) implementation of the Common Common Agricultural Policy (CAP) reports on Croatia Agricultural Policy (CAP) after fully functional and accredited. accession to the European Union. Ministry of Agriculture, Fisheries and Rural Development (MAFRD) reports

Project purpose Objectively Verifiable Indicators Sources of Verification Assumptions Development of the administrative Capacity of Independent Service for Project reports Legislative, personnel and system for accreditation of agriculture accreditation enhanced EC reports administrative framework for paying agency for the purpose of Procedures and Guidelines of IS implementation in place implementation of CAP measures Pre-accreditation procedures established; financed by European Agricultural decision on accreditation drafted; system Technical personnel involved in Guarantee Fund (EAGF) and European of constant supervision of Paying agency implementation of the project fully Agricultural Fund for Rural set up. assist and cooperate with the Development (EAFRD). consultants

Croatian Government maintains strong commitment to the implementation of Common Agricultural Policy (CAP)

21 Results Objectively Verifiable Indicators Sources of Verification Assumptions Result 1.1. Recommendations for Analysis of alignment of the Croatian Final report National legislation for accreditation improvement of legal framework legislation with the EU Acquis Twinning project reports adopted related to accreditation of Paying conducted. Relevant project documentation PA ready for accreditation; Agency prepared. Pre-accreditation audit taking place; Adequate resources allocated to the Report with recommendations for Final report Independent Service improvement of Croatian legal Twinning project reports framework prepared. Relevant project documentation

Result 1.2. Procedures and guidelines Procedures for accreditation, including Final report for accreditation drafted. procedures for monitoring Paying Twinning project reports Agency’s preparation for accreditation Relevant project documentation drafted.

Procedures for provisional accreditation Final report drafted. Twinning project reports Relevant project documentation

Guidelines for the preparation of Final report Result 1.3. Guidelines for the decision on accreditation drafted. Twinning project reports preparation of decision on Relevant project documentation accreditation drafted.

Training needs analysis (TNA) Final report Result 1.4. Competent Authority staff conducted, TNA report prepared, Twinning project reports trained on accreditation process. training programme and materials Relevant project documentation prepared.

22 Training for four employees of the Competent Authority conducted. List of participants

Final report Result 2.1. Procedures and guidelines for review of the accreditation drafted. Procedures and guidelines drafted. Twinning project reports Relevant project documentation

Final report Guidelines for informing the Twinning project reports Commission of the supervision results drafted. Relevant project documentation

Final report

Procedures for putting the Paying Twinning project reports Agency’s accreditation under probation Relevant project documentation drafted.

Final report Procedures for withdrawal of the accreditation including conditions for Twinning project reports withdrawal drafted. Relevant project documentation

Existing Draft of Agreement between Final report Competent Authority and Certification Result 2.2. Agreement on cooperation Body analysed and report with Twinning project reports and reporting between the Competent recommendations for its improvement Relevant project documentation Authority and Certification Body prepared. finalized.

23 Final version of the Agreement on Final report cooperation and reporting between the Twinning project reports Competent Authority and Certification Body prepared. Relevant project documentation

Final report Result 2.3. Competent Authority staff Training needs analysis (TNA) trained on accreditation review, conducted, TNA report prepared, Twinning project reports conformity clearance procedure and training programme and materials for Relevant project documentation scrutiny of transactions. training prepared.

Training in form of workshops for four List of participants competent Authority employees conducted. Study Visit Report Study visit conducted. Activities Means Specification of costs Assumptions Activity 1.1.1. Conducting analysis of Analysis Twinning light: EUR 222,222 Experts able and experienced to alignment of the Croatian legislation Consultations perform the required tasks with the EU Acquis related to accreditation of Paying Agency Independent Service (IS) has adequate number of staff Activity1.1.2.Preparing report with recommendations for improvement of Preparation of documentation IS personnel co-operative and Croatian legal framework related to committed to work with twinning accreditation of Paying Agency partners on a daily basis

Activity 1.2.1. Drafting procedures for Preparation of documentation accreditation, including procedures for Consultations monitoring of Paying Agency’s preparation for accreditation. Procedures shall contain conditions for accreditation, mode of cooperation 24 with the pre-accreditation audit company and the Paying Agency, provisions in respect to pre- accreditation audit report examination and accreditation criteria compliance assessment, and guidelines for the follow up of implementation of auditors recommendations prior to granting of accreditation

Activity 1.2.2. Drafting procedures for provisional accreditation, which shall contain: procedures for granting of Preparation of documentation provisional accreditation including Consultations conditions for provisional accreditation, guidelines for monitoring of the implementation of the remedial action plan for the full accreditation and guidelines on relevant reporting to the EC.

Activity 1.3.1. Drafting guidelines for the preparation of decision on accreditation. Preparation of documentation The guidelines should include definition and scope of the documents Consultations accompanying the decision and the draft of the decision

Activity 1.4.1. Conducting training needs analysis (TNA) for the Competent Authority employees Analysis related to functions and tasks of the Consultations Competent Authority in relation to the process of accreditation of Paying Preparation of documentation

25 Agency, preparing corresponding TNA report, as well as preparing training programme and materials for training of the Competent Authority employees on accreditation process

Activity 1.4.2. Conducting training in form of workshops for 4 Competent Authority employees on the issues concerning accreditation process, Workshops requirements and procedures, including practical experience of other member states, with emphasis on related critical points.

The training should include all aspects of accreditation defined by Ordinance on accreditation of Paying Agency, Regulations (EC) No 1290/2005, 885/2006 and respective DG Agri Guidelines, including PA’s operations and requirements of next Financial Programming Period 2014-2020

Activity 2.1.1. Drafting procedures for constant supervision of accreditation criteria, including procedures for follow-up of any identified Preparation of documentation deficiencies, and guidelines for the establishment of the system for the Consultations exchange of information on possible cases of non-compliance, including procedures to deal with such cases

Activity 2.1.2. Drafting guidelines for

26 informing the Commission of the supervision results (including form, content and necessary evidence) Preparation of documentation Activity 2.1.3. Drafting procedures for Consultations putting the Paying Agency’s accreditation under probation, including conditions for the probation. Procedures shall also include Preparation of documentation guidelines for monitoring of the Consultations remedial action plan for the restoration of full accreditation and guidelines for relevant reporting to the EC

Activity 2.1.4. Drafting procedures for withdrawal of the accreditation including conditions for withdrawal

Activity 2.2.1. Analysing existing Preparation of documentation Draft of Agreement between Consultations Competent Authority and Certification Body and preparing report with recommendations for its improvement, Analysis including reporting requirements, Consultations scope of certification audit, and mode Preparation of documentation of cooperation

27 Activity 2.3.1. Conducting training needs analysis (TNA) for the Competent Authority employees related to processes of accreditation review, preparing corresponding TNA report, as well as preparing training Analysis programme and training materials for Consultations training of the Competent Authority employees on review of accreditation Preparation of documentation process

Activity 2.3.2 Conducting training in form of workshops for 4 Competent Authority employees on the issues concerning accreditation review (mode of constant supervision, use of Certification Body reports, provision of information to the Commission, Workshops accreditation under probation, withdrawal of accreditation), conformity clearance procedure, scrutiny of transactions by Member States, and other relevant topics

Activity 2.3.3. Organizing study visit in duration of 4 days to an EU Member State for 3 members of Competent Authority staff with the aim of getting acquainted with the existing institutional framework for review of accreditation and practical Study visit experiences, including visits to all authorities involved

28 Annex 2. Organizational scheme of the Independent Service for Accreditation of Paying Agency in Agriculture, Fisheries and Rural Development (PAAFRD) and Certification of Fisheries Programme Support

INDEPENDENT SERVICE FOR ACCREDITATION OF PA AND CERTIFICATION OF FISHERIES PROGRAMME SUPPORT

(1)

Department for Department for Certification Accreditation of PA of Fisheries Programme Support

(1 + 2) (1 + 2)

Note: Employment status September 2011: Head of Service, Head of Department for Accreditation and Head of Department for Fisheries Certification. Employment plan: two employees by the end of 2011 and other two employees in 2012. 29 30