ARR before and after accreditation
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- Whitney Aubrey Fletcher
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1 ARR before and after accreditation Waldemar Sochaczewski ARR Deputy President 1
2 Historical outline The Agricultural Market Agency was set up in 1990 by virtue of law of 7 of June 1990 on the establishment of the Agricultural Market Agency in order to fulfil state intervention policy 2
3 Historical outline main tasks Agricultural Market Agency carried out state agricultural intervention policy in order to: stabilise agri and agri- food products market protect incomes obtained from agriculture ARR was also responsible for collecting and admininistering agri and agri-food products state stocks 3
4 Historical outline legal basis ARR functioned on the basis of: law of 7 of June 1990 on the establishment of the Agricultural Market Agency in order to fulfil the state intervention policy, Statute, Sectoral laws, Annual Intervention Activities Plan, The Council of Ministers resolutions. 4
5 Historical outline - scope of activities The scope of tasks fulfilled by ARR included several basic agri-food product markets on which the Agency applied few instruments. ARR fulfilled those tasks in accordance with sectoral laws, the Council of Ministers resolutions and on the basis of Annual Intervention Activities Plan approved by the Council of Ministers. 5
6 Historical outline - schemes In 1996 ARR administered the following schemes: Intervention buy-in and sale of: Cereals Butter Skimmed milk powder Pork halves Honey Potato starch Wool Hop Sugar Rapeseed 6
7 Historical outline - schemes Since 1998 ARR has successfully introduced the following schemes: Buy-in prices refund: Wheat, Rye, Raw tobacco. Export refund: Milk powder, Potato starch, Rapeseed Storage aid: Butter, Pork halves, Ripening hard cheeses 7
8 Historical outline - schemes Storage aid: Wheat, Rye, Butter, Hard cheeses, Skimmed milk powder Skimmed milk powder and full milk powder production refund, Compensation refund for starch producers, Compensation payments for potato producers, Raw tobacco buy-in refund, Starch and skimmed milk powder export refund. 8
9 Historical outline schemes Within the framework of Annual Intervention Activities Plan also came the following: Refunds for tobacco producers, Compensatory refund for cereals bought in 2002, Within the framework of the realization of sectoral laws also came the following : Production refund for starch used for non-consumption purposes Export refund for pork halves 9
10 Historical outline sectoral laws Laws regulating relevant agricultural markets which were introduced in 2000 and 2001 had a considerable influence on the activities of ARR. In 2001, in accordance with the European Commission recommendations, an emphasis was made on the acceleration of legislation adaptation. The Seym appointed European Law Commission in order to accelerate legislative actions connected with the adaptation of Polish legislation to the requirements of the European Union. 10
11 Historical outline sectoral laws The entry into force of sectoral laws regulating relevant agricultural markets in accordance with the requirements of the EU and gradual implementation of schemes enabled easier and more complete adaptation of ARR to administering CAP schemes after Poland s accession to the EU. 11
12 In 2001, by virtue of law of 16 of February 2001 ARR was designated as one of two future paying agencies in Poland 12
13 Institutional Scheme of CAP in Poland EUROPEAN COMMISSION Ministry of Finance Ministry of Agriculture and Rural Development International Fiscal Relations Bureau (4045/89) Customs Services ARR ARiMR Central Inspectorate of Commercial Quality of Agri-Food Products Central Veterinary Inspectorate 13
14 Main challenges on the way towards accreditation 1. LEGISLATION Division of competences connected with administering CAP schemes between ARR and ARiMR and other co-operating institutions (Inspectorate of Commercial Quality of Agri- Food Products,Customs Services, Coordinating Unit) Legal acts that constitute basis for the application of the relevant CAP schemes 14
15 Main challenges on the way towards accreditation 2. ADAPTATION OF QUALITY REQUIREMENTS FOR PRODUCTS COVERED BY INTERVENTION ACTIVITIES TO THE EU REQUIREMENTS Milk products Cereals Meat Sugar Fruit and vegetables Tobacco Dried feed Flax and hemp Grape must 15
16 Main challenges on the way towards accreditation 3. PREPARATION OF IMPLEMENTATION DOCUMENTATION FOR ADMINISTERING CAP SCHEMES Preparation of written procedures for CAP schemes Organizational models Procedures Desk instructions Control plans Human resources requirements Information brochures 16
17 Main challenges on the way towards accreditation 4. PREPARATION OF IT SYSTEMS SUPPORTING OPERATION OF CAP SCHEMES Ensuring technical infrastructure Ensuring data safety Software preparation (including preparation of IT files for the relevant CAP schemes) 17
18 Main challenges on the way towards accreditation 5. PREPARATION OF ORGANIZATIONAL AND FUNCTIONAL MODEL OF ARR Preparation of the Agency s target structure Preparation of documentation structure and preparation of procedures and administrative instructions 18
19 Main challenges on the way towards accreditation 6. STAFF TRAINING Regulation 1663/95 obliges a Paying Agency to ensure an adequate level of qualifications. 7. TRAINING BENEFICIARIES AND CONVEYING THE INFORMATION ON CAP SCHEMES Phare 2001 Project Training for market beneficiaries and administration employees on the implementation of CAP schemes provided training sessions on implementation and knowledge on CAP schemes for CAP schemes beneficiaries. 19
20 Main challenges on the way towards accreditation 8. AVAILABILITY OF LEGAL ACTS OF THE EUROPEAN UNION IN POLISH LANGUAGE In connection with different sources of the origin of translations and simultaneously different versions and quality of available translations a homogenous EU legal acts data base was missing. 20
21 ARR tasks as a paying agency ARR is responsible for realisation of the following groups of CAP schemes: Intervention buy-in and sale; Private storage aid; Aid for processing; Management of quotas and production limits; Issue and clearance of import and export licences; Export refunds payment; Food aid; Promotion and information; Measures to improve the production and marketing of honey; Additionally: Excessive stocks monitoring 21
22 I. Private storage aid Private storage aid for: selected types of long-ripening cheeses butter skimmed milk powder table wine and grape must pigmeat sheepmeat / goatmeat beef / veal 22
23 II. Intervention buy-in and sale Intervention buy-in and sale of: Cereals Beef Butter Skimmed milk powder Sugar 23
24 III. Production and processing aid Production refund for butter, concentrated butter and cream Production refund for dried feed Aid for starch production Production refund for sugar used in chemical industry Production refund for flax and hemp grown for fibre Production refund for skimmed milk powder intended for animal feed Aid for concentrated butter intended for direct consumption 24
25 III. Production and processing aid Production refund for skimmed milk intended for casein and caseinates Aid for starch used for non-consumption purposes Production refund for olive oil used in the manufacture of certain preserved foods Aid for using grape must and concentrated grape must Aid for silkworm breeders 25
26 IV. Quotation Milk Production Quota Tobacco production quota Production levies on the sugar market 26
27 V. Other schemes Supply of food from intervention stocks for the benefit of the most deprived persons in the Community Aid for the purchase of butter by non-profit institutions and organizations Aid for consumption of milk and milk products in educational establishments 27
28 V. Other schemes Measures to improve the production and marketing of honey Administration of distribution of fruit and vegetables not intended for sale Promotion and information activities on the market of selected agricultural products 28
29 VI. Foreign trade milk market cereals market sugar market beef and veal market pigmeat market poultry and eggs market oils and fats market rice market fresh fruit and vegetable market banana market wine market processed fruits and vegetables market non-annex I processed product market sheep and goat market cereals market seed market flax and hemp market agricultural origin ethyl alcohol market 29
30 Changes of ARR organizational structure since 2001 YEAR 2001 Creation of External Trade Office Creation of Legal Office Increase of employment and restructuring of IT Team into IT Office Division of the existing Strategy, Market Analysis and European Integration Office. Analysis and Planning Office European Integration Office (increase of employment) 30
31 Changes of ARR organizational structure since 2001 Year 2002 Division of Intervention and Market Regulation Office Plant Products Office Animal Products Office Creation of Milk Quota Office Creation of Internal Audit Office Creation of Accreditation Team 31
32 Changes of ARR organizational structure since 2001 Year 2003 Change of the structure of European Integration Office Transfer of market departments to the relevant Operational Offices Increased involvement of Operational Offices in the adaptation process Creation of Technical Controls Office Restructuring of Internal Controls Office into Internal Controls Team responsible, among others, for the realization of tasks resulting from the Council Regulation 4045/89 32
33 Changes of ARR organizational structure since 2001 Year 2003 Creation of 9 new ARR Regional Branches (ARR RB) Layout of ARR RB until Katowice 2. Lublin 3. Olsztyn 4. Poznań 5. Szczecin 6. Warszawa 7. Wrocław 33
34 Changes of ARR organizational structure since 2001 Present layout of ARR RB ARR RB before 2003: 1. Katowice 2. Lublin 3. Olsztyn 4. Poznań 5. Szczecin 6. Warszawa 7. Wrocław New ARR RB: 8. Białystok 9. Bydgoszcz 10. Gdynia 11. Gorzów Wielkopolski 12. Kielce 13. Kraków 14. Łódź 15. Opole 16. Rzeszów 34
35 Regional Branches ARR has 16 Regional Branches. The territorial range of each Branch is identical to the range of the particular voivodeship. The Regional Branch is managed by the Director appointed by the President of ARR. The Director of the RB fulfils the tasks specified in the Statute, in authorisations granted by the President of ARR and in separate legal provisions. The structure of Regional Branches is determined by Rules and Regulations of the Regional Branches laid down by the President of ARR. 35
36 ARR present organisational structure Deputy President DP-1 ARR President Deputy President DP-2 Deputy President DP-3 Deputy President DP-4 Legal Office Human Resources Management Office Coordination Team Internal Audit Office Technical Control Office ARR s Property Supervision Team Plant Product Office Milk Office Meat Office Sugar Office Analysis and Programming Office Milk Quota Administration Office Data Communications Office Dairy Promotion Fund Administration Team External Trade Office Administration Office Finance and Accounting Office European Co-operation Office Technical Control Office Information Office Promotion and Food Aid Office RB Olsztyn RB Warszawa RB Lublin RB Katowice RB Wrocław RB Poznań RB Szczecin RB Łódź RB Białystok RB Bydgoszcz RB Gdynia RB Gorzów Wlkp. RB Kielce RB Kraków RB Opole RB Rzeszów 36
37 Regional Branch Structure Technical Control Section ARR RB DIRECTOR ARR RB DEPUTY DIRECTOR Intervention Section Finance & Accounting Section Administration Section IT Post Post for Legal Services Milk Quota Administration Section Information Section Excessive Stocks Section 37
38 Assumptions for ARR organisational structure Present ARR organisational structure was prepared on the basis of activities: The division of three basic paying agencies functions: payment s authorisation, paying and accounting, The independence of internal audit services, The independence of technical services, 38
39 Basic functions of paying agency All three paying functions are executed by separated units or organisational units of ARR. Individual functions are executed by the following organisational units: Payment authorisation is executed by the operational offices - organisational units of ARR s Headquarters and Regional Branches, responsible for CAP schemes management. Payment execution is executed only by Financial Unit in Finance and Accounting Office, Accounting payments is executed only by Accounting Unit in Finance and Accounting Office. 39
40 Division of tasks between selected organisational units in ARR s Headquarters Operational Offices are responsible for : Processing and authorising correct claims, Issuing decisions/ granting authorisation, etc.. Finance and Accounting Office: Making payments, Accounting payments, Vindication of debts, Drawing up financial reports, 40
41 Internal Audit Independence and impartiality of ARR Internal Audit Office is ensured by: Internal Audit Office responds directly to ARR s President; Internal Audit Office tasks and competence are described in the ARR s organizational chart; The Internal Audit Office employees do not perform any of executive functions; Book of Procedures regulates the scope and competence of Internal Audit Office. 41
42 Technical Service Technical service conducts controls in the scope of: Conducting authorization controls of intervention warehouses, production and processing plants; Conducting controls of delivered, stored and removed from storage products amount evaluation; Taking and passing to laboratory tests the samples of products; Conducting basic evaluation of products quality features. 42
43 Delegated tasks Delegated units performing specialist control functions: ICQAFP (Inspectorate of Commercial Quality of Agri-Food Products) estimation of quality parameters of agricultural products included in CAP Customs Services confirmation of export of agri-food products administered by ARR and performance of chosen control tasks 43
44 Employment in ARR In 1999, ARR s Headquarters employed 150 persons, In 2001, ARR s Headquarters employed ca. 250 persons, In 2003, ARR s Headquarters employed 490 persons (and together with Regional Branches ARR employed 905 persons) On the 1st of May 2005, ARR employed (both in headquarters and all regional branches) 1302 persons which included: Headquarters 588 persons, All Regional Branches 714 persons. 44
45 Written documentation over 50 main operational processes (ca. 300 processes described by the procedures and ca. 400 desk instructions) 16 main managing processes and processes supporting the functioning of the system (ca. 100 processes described by the procedures) 45
46 IT in ARR documents, procedures, systems IT SYSTEMS SECURITY POLICY OFFICES BOOKS OF PROCEDURES IT STRATEGY IT MANAGEMENT BOOK OF PROCEDURES STRATEGIC DOCUMENTS IT Standards Present State Running of IT projects methodology ARR IT SYSTEM 46
47 IT SYSTEMS SECURITY POLICY Document structure Security Policy is a superior document Detailed rules of ensuring security are described in Detailed Guidelines to Security Policy Inferior documents are: procedures, conforming policy, describing proceeding rules instructions, which are translations of procedures in way of particular technical solutions 47
48 IT SYSTEMS SECURITY POLICY Detail Guidelines Detail Guidelines for Security Policy completely embraces rules included in Paying Agencies' IT Systems Computer Security Guidelines, ie.: Physical security Information access control Preparing and maintaining of ARR s central information systems Routines Telecommunication Microcomputers and equipment supporting data processing Managing continuity of ARR s activities Application security requirements 48
49 ARR COMPUTER SYSTEMS IACS evidence of farms (administered by ARMA) Integrated CAP Systems CAP PARTICIPANTS REGISTRATION (RCP) APPLICATION FORMS REGISTRATION CELINA support system for customs declarations (administered by Customs Service) TRADE REGULATIONS (TRA) + NON-ANNEX INTERVENTION PURCHASE AND SALES (IPS) cereals, dairy products, meat PRIVATE STORAGE AID (SPS) dairy products, meat MILK QUOTAS TOBACCO REGULATIONS SCHOOL MILK STARCH PRODUCTION QUOTAS... REGULATIONS SUPPORTED BY OFFICE APPLICATIONS EXCESSIVE STOCKS OTHERS OUTSIDE CAP ADMINISTRATION (fixed assets, remunerations, stocks etc.) TECHNICAL CONTROLS FINANCIAL SECURITIES (FSS) CAP FINANCIAL SYSTEM ARR FINANCIAL SYSTEM 49
50 THANK YOU QUESTIONS? 50
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