Scottish Government

7 Implementing provisions

7.1 Designation of bodies

Overall UK policy responsibility for the implementation of the programme at the member state level rests with the Department of Environment, Food and Rural Affairs (Defra). The Marine and Fisheries Agency ( MFA) is an Executive Agency of Defra and undertakes and manages delivery functions for Defra, including responsibility of the European Fisheries Fund for the UK. In England, the MFA has overall responsibility for the enforcement of the Common Fisheries Policy ( CFP) and its associated regulations. The Fisheries Unit of the Welsh Assembly Government works closely with the MFA and has responsibility for the enforcement of the CFP, associated regulations and UK and Welsh Statutory Instruments. In Scotland, responsibility for enforcement of national law, the CFP and its associated regulations sits jointly with the Scottish administration's Marine Directorate (policy) and the Scottish Fisheries Protection Agency (operational enforcement). Within Northern Ireland, these responsibilities lie with the Sea Fisheries Inspectorate of the Department of Agriculture and Rural Development.

The governance arrangements in the UK delegates responsibility for the delivery and programme administration to the Marine and Fisheries Agency for England and to each of the three devolved administrations. This has been achieved through the wide ranging Constitutional Reform resulting in The Scotland Act, 1989, The Government of Wales Act, 2006 and The Northern Ireland Act, 2006.

In accordance with Article 58 of EC Regulation No 1198/2006:

• the UK Managing Authority will be the Marine and Fisheries Agency as they have responsibility for grants and undertake the delivery functions for grants. The Managing Authority performs the tasks described in Article 59 of EC Regulation No 1198/2006.
• the UK Certifying Authority will be The Natural Environment Group Finance and Business Management Team in the Department for Environment, Food and Rural Affairs, to perform the tasks as described in Article 60 of EC Regulation 1198/2006. This includes approval of applications for expenditure and payment requests before they are submitted to the Commission. The approval confirms that the requested payments conforms to relevant EU and national rules.
• the UK Audit Authority will be the Internal Audit Division in the Finance Group of the Department for Environment, Food and Rural Affairs.

Internal audit is an independent and objective appraisal service within an organisation, and as such is the appropriate body to carry out the role of the Auditing Authority. Internal audit primarily provides an independent and objective opinion to the Accounting Officer ( AO) on risk management, control and governance, by measuring and evaluating their effectiveness in achieving the organisation's agreed objectives. Internal Audit Division performs tasks for Defra and monitors security and efficiency with regard to commercial transactions. The Audit Authority performs the task described in Article 61 of EC Regulation 1198/2006, and will undertake an assessment of the management and controls systems as required by Article 71 of 1198/2006 and Article 50 of 498/2007.

7.2 Responsibilities for payments

The UK Certifying Authority will be the body responsible for receiving payments from the Commission on the basis of the certified statements of spend. EU co-financing is transferred directly into Defra's bank account and is posted as income for Defra's Natural Environment Group Finance and Business Support Division. EC Receipts will then be disbursed among the administrations within agreed timetables, as set out in service level agreements and in accordance with expenditure in their area and relative to their respective share of the UK allocation at the Member State level.

Payment to the final beneficiaries will be made by different bodies in the four administrations in the UK; in each case appropriate mechanisms to ensure financial propriety and separation of functions are in place. Final payments are made to the beneficiaries on the basis of expenses incurred and paid that are documented by the beneficiaries. Payment can be made in instalments, but final payment is conditional upon completion of the project.

In England, the separation of functions between administering the programme and the authorisation of grant payment are clearly defined, and comply with the requirements of Articles 39 and 43 of Regulation 498/2007. The Shared Service Organisation of Defra is responsible for making payments on the basis of instructions from the grants claims team in the Marine and Fisheries Agency.

In Scotland, there will be complementary mechanisms based upon the separation of functions established to administer the predecessor FIFG programme and will be fully compliant with the standards and requirements specified by both the EFFUK Managing Authority, the competent auditing authority and Articles 39 and 43 of the implementing Regulation. Appropriate Service Level Agreements will further reinforce these administrative arrangements. In Scotland, the Scottish administration Internal Audit Division is the body assigned to deliver the audit requirements of the EFF Programme on behalf of the UK Audit Authority.

In Wales, payments will be delivered by the Welsh Assembly Government Food and Market Development Division, Fisheries Strategic Development and Implementation Unit. Match funding arrangements will be administered by the Food and Market Development Division Fisheries Policy Unit and the programme will be audited by the Welsh Assembly Government Internal Audit Department.

In Northern Ireland, payments will be made using the similar mechanisms employed for the purposes of the FIFG programme. Payments will be delivered by the Fisheries Grant Section of the Department of Agriculture and Rural Development responsible for checking and processing payments. The Department's Internal Audit Division will undertake the audit requirements of the EFF Programme on behalf of the UK Audit Authority.

7.2.1 Separation of Functions by each Administration

This table is for illustrative purposes and administrative arrangements are subject to agreement within the respective administrations.

7.3 Financial procedures

Procedures for mobilising finance to ensure the required transparency, will be set out in service level agreements between the Managing, Certifying and Audit Authority. The Auditing Authority will ensure the quality of audit reports from Internal Audit Functions of the Devolved Administrations, by agreeing procedures to ensure compliance with relevant elements of ISA 600 & ISA 610.

An EFF specific concordat and associated service level agreements will be put in place for each of the four administrations to guide the intra- UK administration of the programme.

FLOWCHART OF UK PAYMENT STRUCTURE

The Managing Authority will undertake a number of checks during the lifetime of a project. There will be sample on-the-spot verification checks to ensure that the expenditure declared is real, and the product or services have been delivered in accordance with the approval decision. There will also be administrative checks which will cover documentation checks prior to payment.

In accordance with Article 61 of EU Regulation 1198/2006, the UK Audit Authority performs the control to check whether the management and control systems are working effectively, and will produce an audit strategy which sets the scope, objectives and methodology for all the audit work to be carried out. The Audit Strategy will be reviewed annually and will lead to:

• the submission of an annual control report as required by Article 61(1)(e)(i) to the Commission on 31 December each year.
• The report will set out the findings of the audits carried out during the previous 12 months and give an opinion based on the controls and audits that have been carried out under its responsibility as to whether the management and control systems have been effective.
• Service Level Agreements will be set up between the UK Audit Authority and each administration to ensure that auditing roles within each administration are carried out in agreement with the UK Audit Authority and in accordance with Regulations 39 and 43 of EC Regulation 498/2007.
• A Service Level Agreement will also be set up between the Managing Authority and the Certifying Authority.

Audits (referred to in Regulation 1198/2006, Article 61 (1)(b)) will be carried out on operations on the basis of an appropriate sample to verify expenditure declared of operations selected by a method established or approved by the Audit Authority, and in accordance with Article 43 of Regulation 498/2007.

In accordance with Article 71(1) of EU Regulation 1198/2006, a report will be submitted to the Commission providing a description of systems which covers the organisation and procedures of:

• The Managing and Certifying Authorities
• Certifying Authority and the responsibilities of each administration to provide payment details for the Statement of Spend
• The Audit Authority and each administration who will be carrying out audits under the responsibility of the Audit Authority

The description of systems report will, as required by Article 71 (2) Regulation 1198/2006, be accompanied by a paper setting out the results of an assessment of the setting up of systems and giving an opinion on their management and control compliance with Articles 57 to 61. The report will be submitted to the Commission before the submission of the first application for interim payment, or at the latest 12 months after the approval of the Operational Programme.

We do not propose to use intermediate bodies as referred to in Article 38 of Regulation 498/2007. This is to keep the administration of the scheme to a minimum so that more of the available funding can go directly to projects. The use of intermediate bodies would require significant resources and would not be compatible with the UK programme. The UK does not qualify for proportional control arrangements as described in Articles 51, 52 and 53 of Regulation 498/2007.

7.4 Monitoring and evaluation system and the Monitoring Committee

There will be one Monitoring Committee for the UK programme. The composition of the UK Monitoring Committee will cover key sectoral and regional interests as appropriate to reflect the diverse nature of the industry. Membership of the Monitoring Committee will include UK representation from the catching, processing, aquaculture sectors and environmental groups. The membership of the Monitoring Committee will be kept under review to ensure that representation is correct to meet the programme priorities, and the delegation of tasks which are required of the Committee.

An EFF shadow Monitoring Committee has been formed. In accordance with Article 63 of EC Regulation, the composition of the EFF Monitoring Committee has been agreed between the Managing Authority and partners. The EFF Monitoring Committee will immediately take over responsibility from the shadow EFF Monitoring Committee on adoption of the Operational Programme.

The following organisations have been invited to serve on the UKEFF Programme Monitoring Committee:

• EU Commission DG Mare (advisory capacity)
• Department for Environment, Food and Rural Affairs
• Marine and Fisheries Agency
• Scottish Executive
• Welsh Assembly Government
• Department of Agriculture and Rural Development Northern Ireland
• Sea Fish Industry Authority
• World Wildlife Fund
• Joint Nature Conservation Council
• National Federation of Fishermen's Organisations
• Shellfish Association of Great Britain
• Food and Drink Federation
• British Trout Association
• British Ports Association
• Scottish Fishermen's Federation
• Federation of Scottish Aquaculture Producers
• East of England Regional Development Agency
• Cornish Fisheries Task Force
• Highlands & Islands Enterprise
• Scottish Salmon Producers Organisation
• Welsh Aquaculture Producers Association
• Welsh Federation of Fishermen's Associations
• Northern Ireland EFF Advisory Group

The Monitoring Committee will in accordance with Article 65 of Council Regulation ( EC) No 1198/2006, be responsible for:

• agreeing the overall programme strategy - financial programme and complement and consultation of the Operational Programme with the shadow EFF Monitoring Committee;
• approving the selection criteria for operations;
• checking the implementation of the programme with particular regard to quality and impact/benefits of the programme to the fishing industry;
• approving the documentation (annual and final reports) required by the Commission; and
• proposing any revisions to the Operational Programme.

The Managing Authority and the Monitoring Committee shall out carry out monitoring by reference to the targets set for each priority axis, as set out in Article 20(1)(c) of Regulation 1198/2006.

As required by Regulation 1198/2006, the Operational Programme will be subject to an ex ante evaluation, an interim evaluation and an ex post evaluation, in accordance with the provisions of Articles 48-50. Evaluations will be carried out by independent assessors, and will be financed from the budget for Technical Assistance. The ex ante evaluation has been summarised at Section 4 of the Operational Programme, and submitted with the Operational Programme. The interim evaluation will be organised on the initiative of the Managing Authority and in consultation with the Commission. The interim evaluation will be forwarded to the Monitoring Committee for their comment. The ex post evaluation shall be performed at the initiative and under the responsibility of the Commission, and the Managing Authority shall collect the information necessary for its implementation. The ex post evaluation will be completed no later than 31 December 2015.

As required by Article 67 of Regulation 1198/2006, the Managing Authority shall by 30 June each year, send the Commission an annual report on the implementation of the programme which will include all the information requirements as set out under Article 67. Under Article 40 of Regulation 498/2007, at the written request of the Commission the Managing Authority shall provide the Commission with information set out at Annex III to the Regulation within 15 days of receipt of the request or other agreed period. The purpose of such requests from the Commission is to carry out documentary and on the spot checks. The request from the Commission may include information on the level of the operations, measures, priority axes or on the operational programme. Information should be disaggregated where relevant on the basis of age and gender of beneficiaries.

In the fisheries sector, the meeting of targets such as increases in turnover, profitability, jobs, catch, production, etc. depend on a variety of factors such as the weather, fish stocks, quotas, etc., and it would be unfair to penalise applicants if such factors prevented targets being met. Applicants will be asked to complete a progress report whenever a claim is submitted. For projects lasting more than a year before the final claim is submitted, applicants will submit progress reports after each year, and this will be the opportunity to review the indicators and targets and if necessary amend them.

The Marine and Fisheries Agency will be responsible for collating data on each scheme for the annual and final implementation reports, and for communicating with the Monitoring Committee to seek the Committee's approval to submit the reports to the Commission. The Marine and Fisheries Agency will provide appropriate information to external evaluators for the mid-term and final evaluations. The programme will be monitored to ensure compliance and that the Operational Programme is correctly implemented as required by Article 62 of Regulation 1198/2006.

7.5 Computerised exchange of data system

The newly developed SFC data system will enable the exchange of data in computerised form, as required by Article 64 of Regulation 498/2007. The grants team in the Marine and Fisheries Agency (Managing Authority) will coordinate returns of information on the required management and control systems.

As required by Article 66 of Regulation 498/2007, the Managing Authority shall record into the computer system for data exchange, the documents for which they are responsible, and update information using the required model as set out in the Regulations. The Managing Authority will ensure that the system is kept up to date and that the data exchange to the Commission is accessible.

The dates for the forwarding of documents to the Commission shall be the date on which the Managing Authority records the documents into the computer system for data exchange. This system will be used by the Managing Authority, the Certifying Authority and the Audit Authority. The Managing Authority will be coordinating the data from all four administrations. This includes the Operational Programme, the National Strategy and the Commission's decisions on the programme. Other information includes the audit strategy and reports on implementation of the programme and audit, administration, control and payment requests. The system will also contain financial data and data on all irregularities.

7.6 Partnership arrangements

As required by Article 8 of Regulation 1198/2006, the objectives of the EFF shall be pursued within the framework of close co-operation with the Commission. The competent public authorities are Defra and the devolved administrations in the UK.

In line with the requirements of Article 17(3) and Article 8 of Regulation 1198/2006), regional, local, economic and social partners have been be involved in the preparation of the Operational Programme. They will continue to have involvement in the implementation, monitoring and evaluation of the Operational Programme through regular network meetings during the lifetime of the programme. Each administration has their own partners and these are described in the table below.

Defra has responsibility for ensuring broad and effective partnership involvement in all administrations, along with the promotion of equality, sustainable development and social inclusion. Defra and the Marine and Fisheries Agency as the Managing Authority, are the lead Department/Agency for the delivery of the consultation on the Operational Programme and this process has been undertaken in partnership with the devolved administrations: Scotland, Wales and Northern Ireland. The devolved administrations have been, and will continue to be, fully engaged in the development of the arrangements for delivering the UKEFF programme.

To take account of the differing partnerships, it was appropriate for each administration to consult with their partners and to produce an analysis of their responses. Defra have consolidated the outcomes from each administration to feed into a UK consultation report.

The formal consultation of the UK Operational Programme has been undertaken in the following stages:

• First stage consultation with 122 organisations during a four week period from 7 March to 4 April 2008.
• Responses taken into account and a second stage 8 week consultation is to be undertaken from 2 May until 27 June 2008.
• Key environmental organisations across the UK have been widely consulted across the four administrations as part of the SEA process. Two environmental organisations are members of the FIFGPMC and have therefore been involved in EFF discussions, and are also members of the shadow UKEFFPMC. These organisations will serve on the EFFPMC.
• An ex-ante Steering Group was set up to discuss the Operational Programme in advance of the formal consultation. Membership consisted of representation from each administration, industry, the fishing and environmental sectors.
• A series of visits will take place across the UK during the second stage of the EFF consultation, to give an opportunity for local, economic and social partners, the fishing industry and potential beneficiaries to put forward their comments on the proposed EFF programme.

7.6.1 Consultation Outcome

The first phase of consultation ended on 4 April 2008. There were 36 responses to this consultation. A number of responses commented on areas that have since been addressed in later versions of the Operational Programme, for example the need for more detail on axis, indicator and objectives. Other comments included concern that the emphasis of the Operational Programme is on economics rather than to address environmental issues; the need for a social/economic balance; and concern that about the lack of scientific knowledge in the Operational Programme to be used to protect fish stocks. All comments were considered in finalising the draft Operational Programme and changes were made where appropriate.

All administrations have undertaken stakeholder consultation with their regional, local, economic and social partners on the EFF Programme, NSP and the Operational Programme in advance of the formal consultation. This includes:

England

• Consultation on the UK National Strategic Plan with stakeholders (industry and environmental interests), Regional Development Agencies ( RDA's), other relevant Government departments, the Environment Agency and English Nature.
• Workshops with the "Marine Fisheries Stakeholder Forum" on EFF prioritisation. The Marine Fisheries Stakeholder Forum includes membership from the RDA's, the Regional Advisory Councils ( RAC's), industry representatives and environmental bodies.
• Financial Instrument for Fisheries Guidance ( FIFG) "Lessons Learned" workshop in which a number of recommendations were made to improve implementation and monitoring for the EFF scheme. In attendance were Defra, the Marine and Fisheries Agency, Fishery Coastal Officers and Grants Facilitators.

Wales

• Ongoing informal and formal stakeholder consultations through the development of the Wales Fisheries Strategy. The Wales Fisheries Strategy has been developed over the past 18 months in close consultation and partnership with all stakeholders in Wales through stakeholder groups and a Steering Committee. This comprised representatives from the fishing sectors, responsible authorities e.g. SFCs, EA, CCW, and other interested parties e.g. Local Authorities, WWF Cymru. The Strategy is now out for consultation and work continues with stakeholders on its implementation.

Scotland

There has been ongoing formal and informal consultation with and briefings for stakeholders. This has included:

• The quarterly meetings of the Scottish Fisheries Management Groups and Project Assessment Committees for FIFG have been used as a platform to discuss EFF Implementation. This was followed-up by an EFF discussion forum, facilitated by the then Scottish Executive and attended by Fisheries Administration Officials and representatives of Producer Organisations and representative bodies, the Scottish Environment Protection Agency, Scottish Natural Heritage, NGO's (including Environmental and Natural Heritage interests), Local Authorities, the Scottish Enterprise Networks and Industry Representatives (March 2006).
• An informal consultation on a draft of a Scottish Operational Programme for EFF and the requirements of the UK Operational Programme was conducted in November, 2006. Consultees included NGO's, Local Authorities and industry representatives.
• A workshop for Scottish stakeholders and policy officials was held in April 2008. The catching, aquaculture and processing sectors, along with representative from the Scottish Enterprise Networks, Scottish local authorities, training providers and others, participated to review the lessons learned from FIFG and the priorities and arrangements for delivering EFF in Scotland.

Northern Ireland

Has convened a number of formal and informal consultations and briefings with stakeholders. These consultations included:

• Meetings of the Northern Ireland Inshore Fisheries Management Review Group.
• Ad hoc meetings with industry organisations, the County Down Tri-council Fisheries Working Group and the County Down Fishing Villages Steering Group
• Ministerial briefings for presentation and scrutiny at the NI Assembly's cross-party Agriculture and Rural Development Committee.

7.7 Information and Publicity

In accordance with Article 51 of EC Regulation 1198/2006 and Article 28 of EC Regulation No 498/2007, the Managing Authority will have responsibility for the content of the information and publicity of the EFF programme. The Managing Authority in accordance with Article 51 of EC Regulation 1198/2006 shall notify the Commission each year of the information and publicity initiatives undertaken through annual and final implementation reports.

It is anticipated that across the UK, at least €500,000 will be spent on facilitation and publicity annually. Publicity costs will be generated from advertising and the development of EFF promotional material. Each Administration will be responsible for deciding the best way forward to promote EFF in the light of their local priorities.

7.7.1 Information and publicity arrangements

Facilitation

The use of facilitators will be a principal means of promoting the programme in England. Publicity material in the form of a handout has been produced for facilitators to give to potential beneficiaries/interested parties. Facilitators are the advisory middle men between the beneficiaries and the Marine and Fisheries Agency. The facilitators advise and support the beneficiary prior to and during the application stage, and ensure applications are compliant with principles governing the grant of funding under EFF regulations.

Website

Each Administration will promote the programme through their websites. Details of awarded grants will be placed on the website. Details will cover who the beneficiary is, how much the grant was awarded and a short description of the project. Each Administration will be responsible for the upkeep and monitoring of information to ensure it is up to date.

Press

Each Administration will place articles in both the national fishing press (Fishing News) and local media to both promote the EFF programme and detail grant awards. At publicity events, each administration will be responsible for the development of its own publicity arrangements and clearance of Press Releases.

Exhibitions/Events

Each Administration will use attendance at fisheries exhibitions, strategy meetings and festivals as another avenue to promote the programme, and to showcase the benefits of projects funded. Stakeholder events will also provide an opportunity to showcase the programme.

7.7.2 EFF Launch - Arrangements of each Administration

England

A series of Coastal visits will be undertaken to inform industry and alert them to the opening of the EFF scheme. A Press Release will be issued when the Operational Programme is submitted to the Commission, and when the Operational Programme is approved.

Scotland

Publicised through News Releases to the national and trade media, at trade shows and at conferences through participation on trade stands and distribution of publicity leaflets. Writing directly to every recognised trade body and to selected previous grant recipients under the earlier FIFG programme. This will then be followed-up by EFF presentations at various key fisheries events or areas throughout Scotland.

Wales

The Welsh Assembly Government will encourage Ministerial involvement in the launch of the EFF programme. Ministerial Press Release issued.

Northern Ireland

Northern Ireland will seek Ministerial involvement in the formal launch of the EFF programme and will publicise the launch through press releases to the national and trade media, web-site development, attendance at relevant industry-based events and publicity leaflets located at key points within fishing dependent regions. Fisheries Division, in association with the Departmental Press and Private Offices, will be responsible for information and publicity.

7.7.3 Information and Publicity Campaigns

In addition to the publicity arrangements in each administration, a large publicity campaign to promote awareness and details of the EFF programme took place at the Fishing 2008 Show in Scotland in April 2008. This is an annual conference and is the largest fishing show in the UK, with attendance from across the UK and beyond. The show is attended by all areas of the industry and provided the opportunity to inform and update potential beneficiaries as well as the wider public on the UK's EFF programme. Promotional material was developed for the conference.

During the consultation of the Operational Programme, a series of coastal roadshows/visits were organised to inform and publicise the programme. In England, 12 coastal areas were visited and an open invitation was issued to interested parties. Scotland, Wales and Northern Ireland undertook similar publicity arrangements using trade and industry events, conferences and fish fairs to promote the programme.

In 2007, a series of coastal roadshows linked to the 2027 Fishing Vision took place across England. The road shows provided an opportunity for potential beneficiaries to discuss the EFF programme and how they may benefit from support.

7.7.4 Evaluation of Publicity Measures

As required under Article 28(d) of Regulation 498/2007, the information and publicity measures will be evaluated by:

• Recognition through beneficiary feedback that the EFF programme provides vital support for the fishing industry;
• Increasing number of grant applications;
• Applications from new applicants who may not have been aware of the FIFG programme, but through increased EFF publicity have been made aware of the EFF programme;
• The EFF annual allocation is accounted for each year;
• Risk of decommitment significantly reduced;
• The Scottish administration will evaluate the effectiveness of publicity and awareness through its project inspections and as part of ongoing evaluation and annual reporting for Scotland.

7.7.5 Grant Applications and Approvals

Each beneficiary, where appropriate, will be expected to acknowledge the European Community financial assistance by way of a billboard or appropriate plaque.

Applications for EFF funding will be presented to a panel separately established by each of the four Administrations, on the basis of a competitive assessment system across each Axis. The considerations of the panel may be based on a scoring system applying the selection criteria. However, it remains the responsibility for each Administration to agree their own priorities and criteria for measures, and each Administration will have responsibility for appraising their applications. The considerations of the panel will include an environmental assessment to identify, characterise and prioritise environmental impacts associated with measures; to determine the probability and consequences of harm; and to analyse proposed management and mitigation measures. In England, the grants facilitators will have a role in assisting applicants in undertaking environmental assessment in order to answer a number of questions on environmental performance which will be included in the application forms. In each administration, where appropriate, expert advice will be sought during the appraisal of applications with regards to appropriate assessment under the Habitats Directive and bearing in mind the need to meet other environmental objectives such as those established under the Water Framework Directive. The administrations will ensure suitably qualified facilitators, panel members and experts are available for this purpose.

When awarding grants, each Administration will ensure that the beneficiaries are informed of the specific conditions and targets concerning the delivery of each project under the programme, the financing plan of the project, and the deadline for completing the project and submitting claims. These details will be set out in the grant awarding letter. Approval of applications for EFF funding will only be granted where it can be demonstrated that all relevant consents, approvals and assessments have been completed and appropriate mitigation measures identified.

Improved electronic application and management systems are being developed, in order to simplify the administrative processes for both government and applicants of the grant scheme. In particular, each administration plans to further simplify the application process, by streamlining the operation of the tranche panels, simplifying application forms and designing guidance notes that are easily understood and state what is and is not eligible for funding. These actions are anticipated to reduce the administrative burdens of the scheme.