2002/927/EC: Commission Decision of 26 November 2002 conferring management of aid on implementing agencies for pre-accession measures in agriculture and rural development in Hungary in the pre-accession period
Date: 2002-11-26
Institutions: European Commission
Subjects: EU programme, Hungary, aid to agriculture, financial management, rural development

27.11.2002

EN

Official Journal of the European Communities

L 322/51

COMMISSION DECISION

of 26 November 2002

conferring management of aid on implementing agencies for pre-accession measures in agriculture
and rural development in Hungary in the pre-accession period

(2002/927/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1266/1999 of 21
June 1999 on coordinating aid to the applicant countries in the
framework of the pre-accession strategy and amending Regula-
tion (EEC) No 3906/89 (1), and in particular Article 12(2)
thereof,

Europe in the pre-accession period (4), as amended by
Regulation (CE) No 2252/2001 (5),
the Commission
the national and
analysed on a case-by-case basis
sectorial
capacity,
programme/project management
financial control procedures and structures regarding
public finance and considers that, for the implementa-
tion of the aforementioned measures, Hungary complies
with the provisions of Articles 4 to 6 and of the Annex
to Regulation (EC) No 2222/2000, and with the
minimum conditions set out in the Annex to Regulation
(EC) No 1266/1999.

Whereas:

(1)

(2)

(3)

(4)

In accordance with Article 4(5) of Council Regulation
(EC) No 1268/1999 of 21 June 1999 on Community
support for pre-accession measures for agriculture and
rural development in the applicant countries of central
and eastern Europe in the pre-accession period (2), as last
amended by Regulation (EC) No 2500/2001 (3), a
Programme for Agriculture and Rural Development for
Hungary was approved by Commission Decision on 18
October 2000, and amended by Commission Decision
of 26 November 2002.

The Hungarian Government and the Commission, acting
on behalf of the Community, signed on 1 March 2001
the Multiannual
(hereinafter
MAFA) laying down the technical, legal and administra-
tive framework for the execution of the Special Acces-
sion Programme for Agriculture and Rural Development
(hereinafter the ‘Sapard Programme’).

Financing Agreement

The competent authority of Hungary has appointed as
the Sapard Agency a public institution with legal status,
subordinate to the Ministry of Agriculture and Rural
Development. It will be responsible for implementing
some of the measures defined in the Programme for
Agriculture and Rural Development. The Ministry of
Finance, National Fund, has been established for the
financial functions which it is due to perform in the
framework of
the Sapard
programme.

implementation of

the

to Regulation (EC) No 1266/1999 and in
Pursuant
accordance with the rules provided for in Commission
Regulation (EC) No 2222/2000 of 7 June 2000 laying
down financial rules for the application of Council Regu-
lation (EC) No 1268/1999 on Community support for
pre-accession measures for agriculture and rural develop-
ment in the applicant countries of central and eastern

(5)

(6)

(7)

(8)

(9)

In particular, the Sapard Agency has implemented the
following key accreditation criteria satisfactorily: written
procedures, segregation of duties, pre-project approval
and
procedures,
accounting procedures, computer security, internal audit,
and, where appropriate, public procurement provisions.

pre-payment

payment

checks,

On 27 August 2002, the Hungarian authorities provided
the revised list of eligible expenditure in conformity with
Section B of Article 4(1) of the MAFA, which did not
give rise to objections by the Commission.

The Ministry of Finance, National Fund, has imple-
mented the following criteria satisfactorily for the finan-
cial functions which it is due to perform in the frame-
work of the implementation of the Sapard programme
for Hungary: audit trail, treasury management, receipt of
funds, disbursements to the Sapard Agency, computer
security and internal audit.

It is therefore appropriate to waive the ex-ante approval
requirement provided for in Article 12(1) of Regulation
(EC) No 1266/1999 and to confer on the Sapard Agency
in
and on the Ministry of Finance, National Fund,
Hungary,
the management of aid on a decentralised
basis.

However, since the verifications carried out by the
Commission are based on an operational, but not oper-
ating system, it is appropriate to confer the management
of the Sapard Programme on the Sapard Agency and on
the Ministry of Finance, National Fund, according to
Article 3(2) of Regulation (EC) No 2222/2000, on a
provisional basis.

(1) OJ L 161, 26.6.1999, p. 68.
(2) OJ L 161, 26.9.1999, p. 87.
(3) OJ L 342, 27.12.2001, p. 1.

(4) OJ L 253, 7.10.2000, p. 5.
(5) OJ L 304, 21.11.2001, p. 8.

L 322/52

EN

Official Journal of the European Communities

27.11.2002

(10)

Full conferral of management of the Sapard Programme
is only envisaged after further verifications to ensure that
the system operates satisfactorily have been carried out
and after any recommendations which the Commission
may issue, with regard to the conferral of management
of aid on the Sapard Agency and on the Ministry of
Finance, National Fund, have been implemented.

(11)

In order to take account of the requirements of Section
A of Article 8(1)(b), of the MAFA, rules for the eligibility
for Community cofinance of expenditure pursuant to
this Decision should be set out,

HAS DECIDED AS FOLLOWS:

Article 1

The requirement of ex-ante approval by the Commission of
project selection and contracting by Hungary provided for in
Article 12(1) of Regulation (EC) No 1266/1999 is hereby
waived.

Article 2

Management of the Sapard Programme is conferred on a provi-
sional basis to:

(a) the Sapard Agency under the Ministry of Agriculture and
Rural Development of Hungary, for the implementation of
the following measures, as defined in the Programme for

Agriculture and Rural Development for Hungary:
ments in agricultural holdings’,
of agricultural and fishery products’,
improvement of rural
tance’;

‘Invest-
‘Processing and marketing
‘Development and
infrastructure’ and ‘Technical assis-

(b) the Ministry of Finance, National Fund, for the financial
functions it is due to perform in the framework of the
implementation of the Sapard programme for Hungary.

Article 3

Expenditure pursuant
to this Decision shall be eligible for
Community cofinance only if incurred by beneficiaries from
the date of adoption of this Decision or, if later, from the date
of conclusion of the instrument making them a beneficiary for
the project in question, except for feasibility and related studies
and for technical assistance, where this date shall be 18
October 2000, provided in all cases it has not been paid by the
Sapard Agency prior to the date of adoption of this Decision.

Done at Brussels, 26 November 2002.

For the Commission

Franz FISCHLER

Member of the Commission