THE INFORMATION SYSTEM FOR THE PAYMENTS AGENCY FOR RURAL DEVELOPMENT AND FISHERY
RATIONALE
Given Romania’s obligations following the commitments undertaken within the Accession Treaty to the European Union, it became necessary to take all the measures for institutional development in order to run the funds for financing the common agricultural policy.
Considering the need for implementing the European Council’s provisions regarding the funding of the common agricultural policy and the Regulation regarding the support for rural development funded through the European Fund for Agriculture and Rural Development (FEADR), as well as the framework provisions of the EU legislation on the management and implementation of the European Fund for Fisheries (FEP), a necessary step was to create a proper and efficient framework. This will ensure the management and the technical and financial implementation of the communitary funds granted to Romania following the accession to the European Union.
The main objectives of the Payments Agency for Rural Development and Fisheries are: the technical implementation, delegated by the Ministry of Agriculture, Forests and Rural Development, through the Management Authority for the National Program for Rural Development, the financial implementation of FEADR, in conformity with the strategy and measures set in the National Strategic Plan and the National Program for Rural Development in the 2007-2013 time frame.
Main objectives of the Agency for the technical implementation activity
- receiving the aid requests drafted by the potential beneficiaries of the projects funded through FEADR
- checking the funding requests for approving the FEADR funded projects in compliance with the eligibility criteria set by the programs
- selecting the projects funded through FEADR in conformity with the programs’ provisions
- setting the contractual obligations between the Agency and potential beneficiaries and approving the run of FEADR funded projects
- performing on-the–spot–checks for the projects to be funded through FEADR, both before and after their approval
- undertaking actions regarding the promotion, communication, informing, control and other, that will ensure the good running of the projects funded through FEADR
- reporting on the progress of the measures implemented through FEADR to the bodies ensuring the management and coordination of the program funding.
Main payment responsibilities of the Agency
- checking the payment requests submitted by the beneficiaries of projects funded through FEADR
- field checks of the projects funded through FEADR to establish the eligibility of payments
- payment’s authorization to the beneficiaries of projects funded through FEADR
- performing payments to the beneficiaries of projects funded through FEADR
- registering payment commitments and payments to the beneficiaries of projects funded through FEADR
- checking the beneficiaries of projects funded through FEADR anytime necessary after payment’s performing, in order to set whether the eligibility and conditions for granting the non-reimbursable financial aid are respected.
Implementation of the Project Components
The software solution for the Payments Agency for Rural Development and Fishery includes the following components:
- Data Capture Component
- Business checks and field checks component
- Contracting and implementation component
- Payments authorization component
- Payments and accounting component
- Monitoring Component.
1. Data Capture component
The component includes the submission and registration of aid requests. The potential beneficiary of FEADR submits the aid request in PDF, XML format, together with the attached documents at the Agency’s premises for carrying out the conformity. The PARDF expert imports the aid request into the application, and the conformity of the aid request is checked.
2. Business checks and field checks component
After the project is evaluated it will be declared eligible or non- eligible. In case the project is declared non-eligible, its flow within the Information System for Processing the Rural Development Requests ends. If the project is declared eligible, then its flow will continue within the selection module.
The selection is carried out automatically within the system based on selection criteria set at the beginning of the submission session and on an ordering algorithm for funding. The ordering algorithm has the following parameters:
- total score as a result of evaluating the selection criteria
- criteria for differentiation
- eligible value of projects
- available funds allocated for the respective submission session.
3. Contracting and implementation component
After signing the funding contract, an expert from the Payment Agency for Rural Development and Fishery will reserve the sum corresponding to the signed contract in the accounting system. The beneficiary starts the procurement phase which runs according to the working procedures in force.
4. Payments authorization component
Depending on the procurement performed, the beneficiary may come to APDRP with several payment requests. At the moment when the sum requested through the payment request is authorized, the payment is performed by means of the payment orders issued through the application for releasing Payment Orders.
5. Component for payments performing and accounting
For each FEADR beneficiary two payment orders are drafted corresponding to the EC and SB (state budget) contributions, therefore validating the unique fiscal identification code and IBAN code.
The accounting system developed by SIVECO Romania (SIVECO Applications 2020) is integrated with the Information System for Processing Rural Development Requests. The system has the ability to register the details of proposed payments and deductions granted to farmers based on the documents issued by the Management Authority.
6. Monitoring component
Its main objective is to collect, centralize and report the Output Indicators and Result Indicators that can be collected in the project’s submission phase, (according to the protocol signed with MADR – AM for the National Program for Rural Development).
Functionalities of the Information System for Processing the Requests for Rural Development
Given the large number of measures within the National Program for Rural Development, as well as the complexity of their implementation, it was identified the need for developing an information system that would allow the good operation of the proposed management and control system.
The processing of the funding requests submitted for rural development measures require the introduction of a large volume of important data for checking the conformity and eligibility, for field checks, financing data, payment requests and performing payment requests.
The system ensures the data collection from the funding requests for rural development measures and monitors the progress in a defined flow, handles and follows up all the scanned/attached pages from each location.
The documents submitted along with the funding requests are scanned and made available in the system to all authorized users.
All data is registered in the corresponding tables within the database and this makes the monitoring of request status possible at any moment. This way it is monitored the physical movement of documents from one department to another, from the initial request receipt up to the final authorization and easy elaboration of management reports, audit, statistical and other general reports.
The system allows:
- taking over and recording the funding requests (projects) from the applicants of non-reimbursable funds funded through FEADR
- verifying the funding requests for approving the FEADR funded projects, in accordance with the eligibility criteria set through the programs
- selecting the projects funded through FEADR, in conformity with the programs’ provisions
- performing both administrative and field checks
- setting the contractual obligations between the Agency and the potential beneficiaries, and approving the start the FEADR funded projects
- verifying the payment requests for the beneficiaries of the FEADR funded projects
- field checks of the FEADR funded projects, in order to establish the payment eligibility
- payment calculation and authorization
- actual performing of payments to the beneficiaries of FEADR funded projects
- payment accounting - standard accounting procedures based on the income and expenditure accounts
- management of advances and warranties
- debt management and monitoring
- payment management and monitoring
- reporting on the progress of the measures implemented through FEADR to the bodies ensuring the management and coordination of the program funding.
Results
The Payments Agency for Rural Development and Fishery performed so far payments to the beneficiaries of the National Rural Development Program (PNDR) worth 4,39 billion Euros.
Out of this amount, 2,7 Billion EUR represent payments for funding investments run through PNDR for the development of agriculture and the rural environment, while the rest, 1,7 billion Euro, represents direct payments performed to farmers.
Perspective and conclusions
In the prospect of 2020, the reform proposals are based on the general policy options destined to meet the future challenges that the agriculture and the rural areas will faced and to meet the objectives set for PAC:
- Reliable foodstuff production
- Sustainable management of natural resources and climate policies
- Balanced territorial development
The priorities for rural development for 2014-2020 will be as follows:
1. know-how transfer and innovation
2. competitiveness in agriculture and farm viability
3. Foodstuff organization chain
4. eco-system restoring, conservation and improvement
5. resource efficiency and moving to low carbon emissions and resilience to climate changes
6.social inclusion, poverty reduction and economy development in rural areas
For reaching the objectives in the development plan 2014-2020, the following actions and measures will be carried out:
- stimulating innovation and knowledge base in rural areas
- strengthening the link between agriculture, forestry, research and innovation
- promoting life-long learning and professional training in the agricultural and forestry sector
- facilitating restructuring of the farms facing major structural problems, especially the farms with a low degree of market participation or farms focused on specific market sectors and requiring agricultural diversification
- facilitating the renewal of generations in the agricultural sector
- better integration of the primary producers in the foodstuff chain through quality schemes promoted on the local market and in short supply chains, groups of producers and inter-professional organizations
- supporting farms’ risk management
- restoring and preserving biodiversity, including the Nature 2000 areas and HNV and the state of the European landscape
- improving water management
- improving soil management
- increasing efficiency in water’s use in agriculture
- increasing the efficiency in using energy in agriculture and in foodstuff processing
- facilitating the supply and use of renewable energy sources, coming from secondary products, waste, residues and other raw material used for bio-economic purposes
- reducing the nitrate oxide and the nitrate emissions from agriculture
- stimulating carbon reduction in agriculture and forestry
- facilitating the diversity and creation of small enterprises and creating new jobs
- stimulating local development in rural areas
- raising the quality of information and communication technologies in rural areas.
