Goal four. Schemes delivery, customer service and financial management

Transcription

1 Goal four Schemes delivery, customer service and financial management

2 Scheme Operations Table 4.1 and 4.2 beneath gives operational details on the main schemes operated by the Department in Table 4.1 : Payments to Farmers in 2007 Scheme Applications received in 2007 Applications processed Payments made* M Single Payment 126, ,023 1,301,8 Disadvantaged Areas 104, , ,8 Rural Environmental 52,079 50, ,7 Protection Farm Waste Management 4, ,8 Dairy Hygiene 776 7,6 Afforestation Grant ,1 Forestry Premium 19,294 19,059 70,2 Early Retirement ,3 Installation Aid ,7 Alternative Enterprise 83 9 Pig welfare 6 6 TB and Brucellosis 5,716 5,716 19,2 Compensation BSE Compensation Scrapie Compensation Fallen Animals 250,747 animals 23,7 Farm Improvement 12, * This column refers to all payments made in 2007 which often involve commitments over and above applications processed in In 2007, applications were suspended under the Farm Improvement Scheme (FIS) and the Pig Welfare Housing Scheme as applications had reached the level of funding available for the schemes, i.e 79 million and 6million respectively. Applications will be processed up to the level of funding available. Table 4.2 : Trader Payments in 2007 FEOGA Year Scheme Applications received Applications processed Payments made M Intervention Nil Nil Nil Export Refunds Dairy 3,744 3,301 41,8 Beef 1,581 1,149 5,18 Processed Products 9,541 7,909 17,5 Cereals, Pigmeat, Poultry & Eggs TOTAL 14,948 12,437 64,5 51

3 Customer Service Customer Service Action Plan and Charter In line with the Government s Quality Customer Service Initiative, the Department remains committed to providing the highest standard of service to all customers. The Department s Customer Service Action Plan sets out standards of service customers can expect to meet under the Department s Customer Charter. Delivery of service standards is monitored on an ongoing basis by the dedicated Quality Service Unit in the Department, through regular contact with the divisions of the Department and with our customers. Charter of Rights for Farmers The Charter of Rights for Farmers builds on the progress achieved under the Protocol on Direct Payments. It was launched in December 2005 and contains specific commitments on service delivery targets for the farmer customer. A Monitoring Committee, with an independent chairman and comprising representatives of the Department and the farmer representative associations, monitors progress on Charter commitments. Four meetings of the Monitoring Committee were held in Library and Information Services The Department s Library and Information Service continued to provide a wide range of services to the staff of the Department including : Access to a wide range of electronic information resources via the Department s Ezone (Intranet) Subject information research and advice service Information skills training Cataloguing and classification of a wide range of material Access to a large subject collection of publications, both hardcopy and electronic Access to external libraries and information services. In 2007, it specifically enhanced its systems by provides real time updates of breaking news/news alerts. This provides regularly updated links to relevant news stories and was rolled out to all internal customers. Other important services provided are the maintenance of the data bank on the Department s legislation and the specialised training courses provided in legal information searching These services have resulted in a considerable increase in usage of the Library Ezone. Complaints Procedure The Department continued to operate a formalised complaints procedure in The 8 formal complants received in 2007 were investigated by the Quality Service Unit and were settled in accordance with the Ombudsman s guidelines on good practice on public administration. Office of the Ombudsman The Office of the Ombudsman received a total of 70 complaints relating to the Department in The Department met the statutory deadlines for reply in all cases. Freedom of Information (FOI) The Department received a total of 156 FOI applications during 2007, 53% of which were for personal information. The remaining 47% were from a number of different sources including the media, and business/interest groups. 8 requests in total were received from journalists. A total of 19 requests have proceeded to internal review, with 7 being appealed to the Information Commissioner. The Agriculture Appeals Office The Agriculture Appeals Office provides a statutory independent appeals service to farmers who are dissatisfied with decisions of the Department on their entitlements under certain schemes. Its fifth Annual Report is available on the Office s own website; In 2007, the Office received 394 appeals, of which 251 were closed at the year-end. A summary of the outcome of the cases closed is set out below: Summary % Appeals Allowed, Partially Allowed 37.5 or Revised by the Department Appeals Withdrawn, 18.3 Not Valid or Out of Time Appeals Disallowed 44.2 In addition to its customary functions, the Single Payment Appeals Committee, continued to examine appeals in relation to the various facets of the Single Payment Scheme. In 2007 the Single Payment Appeals Committee held 7 meetings and concluded the consideration of 564 cases. 52

4 Customer Service Targets Table 4.3 indicates the progress achieved on the targets specified in the Customer Service Action Plan. Achievement of service delivery targets is predicated on correct scheme requirements and documentation being available. Table 4.3: 2007 Performance on Customer Service Targets Schemes of Direct Payments to Farmers SERVICE TARGET DELIVERY TIME 2007 PERFORMANCE Single Payment Scheme EU Regulations provide that payments shall be made once a year within the period 1 December to 30 June of the following year. However, EU agreement was obtained which allowed for 50% advance payments from 16/10/2007. Balancing payments commenced on 1/12/2007. Advance payments commenced on 16/10/2007 and balancing payments commenced on 1/12/2007. By end of December 1,197 billion had been paid to 97% of applicants. Disadvantaged Area Compensatory Allowances Agreement was reached with the farming organisations that payments in all eligible cases would commence on 21 September. Payments commenced on 21 September as agreed and almost 250m was paid to in excess 95% of all applicants by 31 December Early Retirement Scheme Processing of valid application to scheduling for payment stage:- Applications not selected for pre-payment inspection within 9 weeks* Application selected for pre-payment inspection within 11 weeks* Issue of payment following approval within 6 weeks* 99% within target Rural Environment Protection Scheme Application for admission to scheme Payments monthly thereafter for duration of pension period. Processing of valid application to scheduling for payment:- Applications not selected for prepayment inspection within 10 weeks* Applications selected for pre-payment inspection within 12 weeks* 97% 89% Application for annual payment Issuing of payment following approval within 1 month Processing of valid application to scheduling for payment within 8 weeks Issuing of payment following approval within 1 month 84% Farm Waste Management Scheme valid application within 3 months* Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* for payment within 6 weeks* 99% 53

5 SERVICE TARGET DELIVERY TIME 2007 PERFORMANCE Dairy Hygiene Scheme Alternative Enterprise Scheme Installation Aid valid application within 3 months* Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* for payment within 6 weeks* valid application within 3 months* Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months* for payment within 6 weeks* Processing of valid application to scheduling for payment stage:- Applications not selected for prepayment inspection within 10 weeks* Applications selected for prepayment inspection within 12 weeks* within 6 weeks* * To apply from commencement of new schemes Improvement in Animal Welfare Standards (Sow Housing) valid application within 3 months Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months for payment within 6 months. Farm Improvement Scheme valid application within 3 months Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months for payment within 6 months. Young Farmers Installation Scheme valid application within 3 months Approval for payment following receipt of notice of completion of works and valid supporting documents within 3 months for payment within 6 months. 54

6 Afforestation Programme SERVICE TARGET DELIVERY TIME 2007 PERFORMANCE Grant Schemes Approvals within 10 weeks of application except where public consultation is required under statute. 40% inspection level within 4 weeks of receipt of application. Payment within 6 weeks for noninspection cases or 10 weeks where inspection is required. No. of applications received: 1,251 covering an area of 13,718 ha. No. approved : 1,397 covering an area of 13,705 ha. Payments Applications received: 871 covering an area of 6,237 ha. Applications paid* 21.26m paid in respect of 936 applications covering an area of 6947 ha Forestry Premium Scheme Annual bulk run carried out during March but payments will continue throughout the year. Premiums Paid Annual Premium Run:** Subsequent Runs: Total Expenditure: 60.19m 10.11m 70.30m In relation to Approvals, minimum of 50% approved within Protocol but figures distorted by cases where delay is on part of applicant. Analysis based on applications which actually resulted in planting indicate that 90% of these were processed within Protocol. In relation to Payments, minimum of 71% paid within Protocol, where no inspection required and 50% where there was an inspection. However, more refined analysis based on the date on which the last correct document received (only available for latter half of 2007) suggests that these figures should be revised upwards to 80% and 60% respectively. ** 95% of premium commitments relating to valid applications received before the end of March were paid in the annual bulk run in March compared with the Charter target of 90%. Disease Control Schemes Compensation Bovine TB and Brucellosis Eradication Schemes TB and Brucellosis compensation will be paid within 3 weeks of the date of receipt of the required correct documentation or of eligibility as per terms and conditions. Reactor Grant, Valuation compensation payments 96% within 3 weeks 99% within 8 weeks. Income Supplement, Depopulation and Hardship 91% within 3 weeks 98% within 8 weeks BSE Compensation BSE compensation to be paid within 21 days of receipt of completed documentation. BSE Cohorts and Progeny Compensation of 146, was paid by 31 December % within 21 days. (91% were paid within 14 days.) Scrapie Compensation Compensation paid within 14 days of receipt of the last document, i.e. receipt of confirmation of slaughter. Compensation paid up to 31/12/2007 = 577,

7 Financial Management Expenditure The Department was responsible for Voted expenditure of billion in 2007 (including full year expenditure of million for fisheries and related functions which transferred to this Department on 19 October 2007). In addition to voted expenditure, the Department spent billion in administering EU fully funded CAP Guarantee schemes, bringing total expenditure to billion (see table 4.4). This latter expenditure mainly comprises the Single Farm Payment, but also includes market support schemes such as Export Refunds and Market Intervention. Activity under these market support headings has diminished significantly in recent years. Table 4.4: Summary of Expenditure on Irish Agriculture in 2007 EAGGF Guarantee direct expenditure m m Single Farm Payment 1, , Premia/Area Aid 1.07 Export Refunds Sugar Restructuring Other Market Supports 2.89 Voted Expenditure (excluding Administration) 1, Rural Development (1) Structural Measures (1) State Bodies (incl.fisheries) Animal Health Research & Training Market Support Costs Forestry & Bio Fuels Fisheries Food Aid Other Administration Total Voted Expenditure 1, Total Expenditure 3, (1). Rural Development measures and certain Structural development measures are part financed by the EU and the Vote. The figures above are total Vote expenditure on these measures in the calendar year. The EU contribution to expenditure is subsequently recouped to the Vote as appropriations in aid, some of which are received in the following calendar year. In 2007, EU receipts amounted to million. 56

8 Vote Expenditure For a detailed breakdown of Vote expenditure see Appendix B: Vote 31. When the 2007 expenditure on transferred fisheries functions ( million) is excluded, there was an 9% increase of approximately 129 million in total gross expenditure in 2007 compared with This reflects a number of factors including lower expenditure on certain measures, e.g. REPS and higher expenditure in other areas, e.g. Farm Waste Management Scheme, Forestry. A comparative outturn of Agriculture and Food, Vote 31 expenditure for year 2007 and 2006 is set out in the table below: Table 4.5: Comparative Outturn of Vote Expenditure for Years 2006 and 2007 Expenditure Type Year 2006 m Year 2007 m Net Expenditure , Appropriation in Aid EU Receipts Other Gross Expenditure 1, , Note: Figures include total expenditure in 2007 on transferred fisheries functions amounting to million. EU EXPENDITURE 2007 was the first year of operation of two new agricultural funds with a common set of financing rules, European Agricultural Guarantee Fund (EAGF), which is fully financing CAP expenditure on direct payments to farmers and EU market supports. European Agricultural Fund for Rural Development (EAFRD), which is co-financing expenditure under Ireland s Rural Development Programme Claims submitted to the EU in 2007 in respect of measures funded by the EAGF amounted to 1, million and a detailed breakdown of measures is set out in Appendix B: EAGF. The EAGF also finances a market intervention scheme for fish withdrawals. EAFRD consolidated EU agricultural policies on Structural and Rural Development measures under a single set of operational and financing rules. Under this programme, the Department received million from the EU in 2007; details of 2007 expenditure are set out in Appendix B: EAFRD. EAGGF Guidance Fund In 2007, the Department also continued to receive funding on outstanding expenditure under the Structural Fund Operational Programmes on its own behalf as well as on behalf of the Department of Community, Rural and Gaeltacht Affairs (DCRGA) and the Department of Environment, Heritge and Local Government (DEHLG). Ireland s EAGGF Guidance Fund receipts in 2007 amounted to million (DAFF m, DCRGA m and DEHLG m) million). Details are set out in Table 4.6. Table 4.6: EAGGF Guidance Receipts ( m) Programme period 2007 m NPD S&E/BMW Regional OP's (a) LEADER Plus (b) Peace and Reconciliation Initiative ( c) Total Guidance Notes a. Includes Department of Community Rural and Gaeltacht Affairs (DCRGA) Receipts ( 3.572m in 2006) b. All Department of Community Rural and Gaeltacht Affairs (DCRGA) receipts c. Includes Department of Community Rural and Gaeltacht Affairs (DCRGA) receipts of ( 9.932m in 2006) and Department Environment, Health and Local Government (DEHLG) ( in 2006) 57

9 Veterinary Fund Expenditure The European Commission contributes, through the Veterinary Fund, towards the cost of measures to eradicate and monitor animal diseases. This funding is provided as part of the approved annual eradication and monitoring programmes operated by the Department. In 2007, the Department received a total of million from the EU Veterinary Fund. FINANCIAL CONTROLS Compliance with National and EU Financial Reporting Requirements The Department operates comprehensive financial management, control and accounting systems to comply with EU and national financial reporting, accounting and governance requirements. These include: SAP computerised accounts system to meet expanding national and EU control requirements; an effective Internal Audit Unit; an Audit Committee, six out of seven of which are external members; audit examination by 5 independent external auditors (Comptroller and Auditor General; European Commission; European Court of Auditors; the Certifying Body; and OLAF, (the independent European Commission Anti-Fraud Office); an Accreditation Review Group to ensure compliance with EU accreditation and audit findings; implementation of a formal Risk Management Programme. ACCREDITATION In 2007, the Department retained its accreditation status as paying agency for all expenditure and recoupment in Ireland under EAGF and EAFRD. In October 2007, the Minister provided for delegation of certain LEADER Measures to the Department of Community, Rural and Gaeltacht Affairs. The Department adhered to the stringent EU accreditation requirements and submitted its independently certified annual accounts of expenditure to the EU Commission. The Department s performance as paying agency continued to be monitored in 2007 by the Accreditation Review Group (ARG). This was established by the Minister, is chaired by the Secretary General and includes representatives from the Department of Finance and the Office of the Revenue Commissioners. During 2007, the ARG ensured that the recommendations of the Certifying Body for the previous year were implemented and that all EU audit findings were followed up appropriately. AUDIT FUNCTIONS In 2007, The Department s Audit Committee consisted of Mr. Eamon O Connor, Revenue Commissioners; Ms. Gráinne McGuckin, Department of Finance; Ms. Helen Nolan, Bank of Ireland; Ms. Claire O Connor, West LB Ireland PLC, and Mr. Seamus Healy, A/Secretary General, Department of Agriculture, Fisheries and Food. The Committee was chaired by Mr Michael Downes, Group Internal Auditor of CIE. The Audit Committee advises on the operation of the internal audit function; it monitors the application of the Regulation under the market support schemes funded by the EAGGF Guarantee Fund and advises on best practice for risk management. The Committee met four times in 2007 and their deliberations were assisted by presentations by Department officials on many aspects of the Department s operations. In March 2007 the Committee presented the Minister with their 2006 Annual Report. In this, the Chairman reported I am very pleased to express my satisfaction with the financial management of the demanding and complex programmes operated by the Department. The Chairman went on to say that An efficient and effective Internal Audit Unit supports the management of these programmes. I am satisfied that the Internal Audit Unit is well led and appropriately resourced. Internal Audit In 2007, the Internal Audit Unit completed its internal audit and scrutiny audit annual programmes to help ensure the highest standards of corporate and financial management and accountability. The Department s activities were subjected to a total of 2036 audit person days by the Internal Audit and a further 789 audit person days were directed to post factum scrutiny auditing of companies in receipt of EAGGF funding. Seventeen internal audit reports and twenty nine scrutiny audit reports were completed and issued during the year. All regulatory requirements on audit and control were completed in accordance with the prescribed timescales as set out in the EU Scrutiny and Structural Fund Regulations. The IT audit group, assisted by specialist external consultants, completed a significant amount of audit coverage. A comprehensive training programme was again put in place under which 192 training days were provided to staff of the Unit. 58

10 EU 2007 AUDIT PROGRAMME Prompt Payments European Commission European Court of Auditors Audit of Cross-Compliance X-Table Audit of Dried Fodder: Audit of Public Storage Intervention Barley Audit of the reliability of the Single Payment Scheme (SPS)/ Integrated Agricultural Control System (IACS) In 2007, a total of 210 invoices valued in excess of (the prescribed threshold) incurred late payment penalties. The value of all invoices that were paid late amounted to 1,308,548. This represents 0.009% of the total payments falling within the terms of the Regulations. The average payment delay in excess of 30 days, the period defining a late payment under the Regulations, was 9 days. The total interest paid during 2007 resulting from late payments amounted to 3,940. Statement of Assurance Audit 2006 (REPS and Forestry) Risk Management The overall objective of the Risk Management Programme is to identify and assess the key risks (strategic, operational, financial, reputational) facing the Department in achieving its objectives and also to outline measures for addressing those risks. The Risk Management Committee, which consists of senior officials of the Department and chaired by the Secretary General, has responsibility for overseeing the Risk Management programme. This committee met on four occasions during Management Information Framework (MIF) The Department was one of the first Departments to select and install a MIF compliant Financial Management System. There are now in excess of 1,000 staff across the Department with access to up to date financial information on-line. In addition, all staff have on-line access to divisional reports that include financial information and information in relation to divisional performance against the key performance indicators in divisional business plans. These indicators feed into the high level goals in the Department s statement of Strategy. Reports, including financial and non-financial information, are provided to the Department s Management Advisory Committee on a regular basis. The Department s MIF Steering Group oversees the ongoing implementation of MIF and related financial issues. In 2007, they further developed and rolled-out the MIF Management Reports and integrated them with the six-monthly reports required under the business planning process. This group also provided the Dail Select Committee on Agriculture with the Department s 2007 Annual Output Statement. This is a new requirement under the Government s reform of the estimates and budgetary process and involved setting high level goals for DAFF Vote 2007, financial costs for these programmes and key performance indicators against which progress will be assessed at year end. 59