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ARR’ financial system meets the requirements of :

Financial aspects of the adaptation of Agricultural Market Agency to fulfil the role of a Paying Agency Roman Wenerski President of the Agricultural Market Agency. ARR’ financial system meets the requirements of :.

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ARR’ financial system meets the requirements of :

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  1. Financial aspects of the adaptation of Agricultural Market Agency to fulfil the role of a Paying Agency Roman WenerskiPresident of the Agricultural Market Agency

  2. ARR’ financial system meets the requirements of: • The European Commission Regulations that lay down the rules of clearance of means coming from EAGGF - European Agricultural Guidance and Guarantee Fund, Guarantee Section, in particular: • Commission Regulation (EC) No 1663/95of 7 of July 1995; • Acts of domestic law regulating the basis for Agricultural Market Agency activity.

  3. Division of functions in ARR resulting from Commission Regulation (EC) No 1663/95 • Authorization of payments – Operational offices/ sections in the Headquarters and ARR Regional Branches • Execution of payments – Finance and Accounting Office in ARR Headquarters • Accounting payments – Finance and Accounting Office in ARR Headquarters

  4. Adopted assumptions of the organizational model: • Processes of payments authorization and financial processes supporting the realization of CAP schemes were separated and are realized by independent units functioning within ARR structure.

  5. Adopted assumptions of the organizational model: • All the financial processes supporting the realization of CAP scheme are fully centralized. • Payments authorization processes are decentralized (an exception are foreign trade schemes)

  6. Adopted assumptions of the organizational model: • Financial processes are supported by IT system integrated with systems serving operational activities with the possibility of serving non-computerized schemes.

  7. Main financial processes supporting the administering CAP schemes: • Guaranty system; • Accounting records; • Execution of payments; • Recovery of debts; • Reporting to the European Commission;

  8. Adopted assumptions concerning guaranty system In accordance with Commission Regulation (EC) No 2220/85 Agricultural Market Agency accepts the following forms of guaranties: • Cash deposits • Guaranties of the recognized financial institutions

  9. Adopted assumptions concerning guaranty system – cash deposits • Payments are made to a separate ARR account in NBP (The National Bank of Poland) • Cash can be used in any CAP scheme • Cash can be returned only when an entrepreneur submits a written application on a standard form approved by ARR

  10. Adopted assumptions concerning guaranty system – Guarantors • Only the guaranties of financial institutions approved by the Minister of Finance, with which ARR concluded an agreement are accepted. • Legal basis: • Ordinance of the Minister of Finance of 14 of April 2003 on the list of guarantors entitled to grant guaranties submitted as a safeguard of payment of the amounts resulting from customs debts (O.J. 80 of 2003, item 723) • Ordinance of the Minister of Finance of 21 of April 2004 on the co-operation between financial institutions entitled to safeguard customs debts and Agricultural Market Agency (O.J. 78 of 2004, item 733) • In the agreement the Guarantor obliges itself to deliver to ARR a list of persons entitled to sign guaranty documents with signature samples charts and to update them.

  11. Adopted assumptions concerning guaranty system - Guaranties • Obligatory are samples of the guaranty of a single transaction and collective guaranty that constitute an annex to the Ordinance of the Minister of Finance • The moment the guaranty is recognized as a safeguard it is accepted by ARR • Guaranty can be returned after an entrepreneur or a Guarantor submit a written application on a standard form, approved by ARR or as a result of the expiry of the Guaranty’s validity period. • Return after the application can be made on condition that the guaranty is not used in any CAP scheme.

  12. Adopted assumptions concerning accounting records • Accounting books are kept in national currency • Accounting records are kept in a centralized way

  13. Adopted assumptions concerning the realization of payments • The bank of the Agricultural Market Agency is the National Bank of Poland • Payments are made by the Agency’s Headquarters • Payments are made by means of homebanking

  14. Adopted assumptions concerning the recovery of debts • All the amounts due to EAGGF are immediately included in the accounts • All the amounts due to EAGGF are directly registered in Debtors’ Book • The Agricultural Market Agency runs a homogenous legal service concerning amounts due to EAGGF

  15. Adopted assumptions concerning reporting to the European Commission • The Agricultural Market Agency prepares weekly, monthly, semi-annual and annual financial reports in accordance with Regulations No 296/96 and 1663/95 • Reports are prepared in a centralized way • Reports are delivered to the European Commission by the Coordinating Unit • Reports are delivered in electronic form by means of SysAP, an application designed for that purpose

  16. Providing the Agricultural Market Agency with financial means • Sources of financing of the Agricultural Market Agency as regards Common Agricultural policy and administrative activity are different.

  17. Providing the Agricultural Market Agency with financial means for the realization of Common Agricultural Policy Ordinance of the Minister of Finance on providing paying agencies with financial means for the realization of Common Agricultural Policy tasks (O.J. 118 of 2004, item 1231) lays down two schemes of providing ARR with financial means: • Pre-financing • Co-financing

  18. The basis for launching the process of financial means flow is sending the request for financial means to a relevant financing body – the Ministry of finance or the Ministry of Agriculture and Rural Development

  19. Pre-financing • The source of pre-financing of CAP expenditure is a loan drawn by the Agricultural Market Agency. • Loan contract is concluded by the Minister of Finance with a paying agency for the whole budget year (calendar year) • The drawn loan is subject to clearance after receiving the refund from the European Commission means.

  20. Scheme of pre-financing of ARR as a paying agency Report Table 104 Co-ordinating Unit Report Table 104 European Commission Paying Agency Request for means Financial means Financing Unit Financial means

  21. Refunds from the European Commission Basis: report – Table 104 In accordance with Commission Regulation (EC) No 1258/99 advance payments should be paid to a Member State not later than on the third working day of the second month following the month which the expenditure concerns.

  22. Co-financing Financial means for co-financing of CAP expenditure are provided by domestic budget.

  23. Scheme of co-financing of ARR as a paying agency Ministry of Agriculture and Rural Development Paying Agency Request for means Financial means

  24. Clearance of means for co-financing Means for co-financing of CAP expenditure are cleared in accordance with domestic legislation – Law on public finance

  25. In accordance with the decision of the Minister of Finance, Agricultural Market Agency obtained unconditional accreditation in the scope of the realization of Common Agricultural Policy tasks. Ordinance of the Minister of Finance of 19 of April 2004 on the establishment of Agricultural Market Agency as a paying agency (O.J.04.76.713 )

  26. Thank you for your attention!

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