According to the provisions of article 15.3 of Law 30/1992, of November 26, of the Legal Regime of Public Administrations and of the Common Administrative Procedure, the Agreement of Management of Management is given between the Presidency of the Spanish Agricultural Guarantee Fund the Ilmo. Mr Secretary-General for Agriculture and Food, with regard to aid for the improvement of nuts and for the production of pre-recognized producer groups.

Madrid, November 11, 2004. -The President, P. S. R. [art. 4.3.a) FEGA Statute, approved by Royal Decree 1441/01 of 21 December 2001, BOE of 14 January 2002], the Secretary General, Luis González-Quevedo Tejerina.

AGREEMENT ON MANAGEMENT BETWEEN THE GENERAL SECRETARIAT OF AGRICULTURE AND FOOD AND THE SPANISH AGRICULTURAL GUARANTEE FUND IN RELATION TO AID TO THE PLANS FOR THE IMPROVEMENT OF NUTS AND TO THE PRE-RECOGNIZED PRODUCERS

In Madrid, 21 October 2004.

UNITED

On one hand, the Ilmo. Mr Fernando Moraleda Quilez, in his capacity as Secretary General of Agriculture and Food of the Ministry of Agriculture, Fisheries and Food, for which he was appointed by Royal Decree 676/2004 of 19 April, BOE of 20 April.

And on the other hand: The Ilmo. Mr Francisco Mombiela Muruzabal, in his capacity as President of the Spanish Agricultural Guarantee Fund, for which he was appointed by Royal Decree 995/2004 of 30 April 2004 BOE of 1 May. Both parties to the quality that act are recognised with sufficient powers to grant this Convention and to that end,

EXPOSE

That the General Secretariat of Agriculture and Food, hereinafter the General Secretariat, has full powers in the field of agricultural and livestock production and markets, as well as in plant health, as stated in the article 5 of Royal Decree 1417/2004, of 11 June, for which the basic organic structure of the Ministry of Agriculture, Fisheries and Food is developed.

That the Spanish Agricultural Guarantee Fund, an autonomous agency attached to the Ministry of Agriculture, Fisheries and Food, hereinafter referred to as "FEGA", is the body authorized by the European Union to act as a paying agency in accordance with the provisions of Article 2 of the R.D. 327/2003 of 14 March, which regulates the arrangements for paying agencies and coordination with the EAGGF Guarantee Section. As laid down in Article 2 of Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy and Regulation (EEC) No 1663/1995 of the Commission of 7 July 1995 laying down detailed rules for the Pursuant to Regulation (EEC) No 729/1970 as regards the procedure for the clearance of the accounts of the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, they provide for a number of conditions and requirements to be met by the paying agencies. In particular, paragraph 2 of its Annex provides for the payment by the paying agency, the authorisation, the execution and the accounting of the payments, by adding in paragraph 3 that the body shall have a control service. and a technical service. In paragraph 4, it is stated that such functions may be carried out by other bodies at the request of the paying agency, and in any event all the specifications referred to therein must be completed. That in order to comply with the requirements laid down for the paying agencies by Regulation No 1663/1995 of the Commission of 7 July, the functions of authorization, execution and accounting of payments are the responsibility of the FEGA. For the above, the interveners,

AGREE

First. Content.-In relation to applications for aid for the plans for the improvement of nuts and for the groups of pre-recognized producers, the functions of authorization of payments and those resulting from the technical service which in Application of Regulation (EC) No 1663/1995 to the FEGA shall be carried out by the General Secretariat.

Second. Regulations applicable. The content and requirements for the exercise of these functions shall be that provided for in the Community Regulations governing the matter, obliging the General Secretariat to comply with all the requirements required for the exercise of the tasks set out in the previous paragraph. Third. Tasks to be carried out. -During the pre and post-authorisation phases of the aid payments, the General Secretariat shall carry out the following tasks: to verify that the application has been submitted within the time limits laid down by the Community legislation or the national legislation implementing it. Check that the required documents have been submitted. Propose the appropriate payment or its refusal and refer it, together with the precise documentation, to the FEGA and in particular as regards the certificate of admissibility and report of the results of the checks provided for in paragraph 4 (iv) of the Annex to Regulation (EC) No 1663/1995 of 7 July 1995 within the time limits laid down for the aid. In the event that the controls are carried out by the Autonomous Communities, they shall be carried out under the coordination, supervision and control of the Management Unit of the General Secretariat, which shall be responsible for the conditions of authorization. provided for in the said Annex. Check that the requirements set out in the Community regulations have been met for each aid. Keep the documentation at the disposal of the FEGA. Carry out or propose, where appropriate, the necessary inspections to verify the facts which serve as a basis for the payments, by means of the checks at the places where the facts take place. Send to the FEGA in accordance with point 4 of the Annex to Regulation (EC) No 1663/1995 and before 1 September each year, a report as complete as possible indicating the following aspects:

Controls that have been performed

Risk criteria that have been used, if applicable. Scope of the controls Evaluation of controls and their monitoring, as well as the results of all inspections and measures taken in relation to the discrepancies and irregularities discovered. Procedures that have been followed in case of litigation.

Issue written instructions that are accurate for the use of control lists in the preparation of payment proposals, adequate security and computer controls, administrative checks and physical tests to be performed.

Define the necessary data for each of the payments proposed according to the requirements of Regulation (EC) 2390 /1999, of the Commission of October 25 to fill in the "table of crosses" established in the same. Fourth. Procurement files. -Where appropriate, the processing of a procurement file for the determination of any expenditure to be met from the budget concept 470, of expenditure of the FEGA and, for which the award is due be carried out through the appropriate procurement procedure, without prejudice to the above, the General Secretariat shall make the relevant proposal, subject to the technical conditions signed, to the FEGA, and that it should be appropriate, corresponding to the paying agency the processing of the appropriate procedure, the monitoring, development and implementation of the contractual relationship in the procurement file, irrespective of the practice of the control inspections which are necessary for the verifications of the facts on the basis of which they are expenditure, which shall be sufficient, in cases where payments are made without the need for a procurement procedure. Fifth. Advances and guarantees. -If the payment of advances of Community aid is proposed and the guarantee presentation is necessary, it will be necessary, in order to incorporate them in the accounts of advances, to send to the FEGA a relationship, both in paper as a computer, of the advances granted in conjunction with a proposal for authorisation for payment of the same. In relation to the guarantees presented, the part that will be carried out by the EAGGF Guarantee Section, will be presented to the M.A. managing unit in favor of the FEGA, for its custody, accounting and incorporation to the register of endorsements of the Pagador Agency. The return of the guarantees shall be made to the person concerned, on a proposal from the managing unit of the M.A.P.A., once it has been established that all the Community requirements have been met. In the case of non-compliance, on a proposal from the MAPA management unit, the FEGA shall carry out the endorsement, prior to the necessary formalities. Sixth. Audit.-The internal audit services of the FEGA, as a paying agency, shall carry out the checks at the managing unit of the General Secretariat which it considers necessary to ensure that the Community funds have been properly used. Seventh. Duration. This Convention shall last for two years. Without prejudice to the foregoing, it shall apply to procedures which have been initiated after 4 January 2004. Eighth. Extensions.-Without prejudice to the above clause, the parties may extend the duration of this Convention for successive campaigns. Ninth. Applicable rules.-The references made to the Community Regulations in this Convention shall be construed as being made for those other than those which subsequently amend or supplement them. And, in proof of conformity, for the proper constancy, the present Convention of Management by an exemplary quadriplicado, in all its leaves, in the place and date of its heading is signed. -By the General Secretariat of Agriculture and Food, the Secretary General, Fernando Moraleda Quilez. -For the FEGA, the President, Francisco Mombiela Muruzabal.