The Scottish Government

Inspections

What are the Regulatory Requirements?

Under Article 12 of the EC Implementing Regulation 1975/2006 there is a requirement that at least 5% of beneficiaries who have management commitments under the Scotland Rural Development Programme (SRDP) must be selected for an inspection each year. In addition, 5% of the value of capital expenditure must also be inspected.

The inspection system is designed to reduce the number of visits to any individual beneficiary. An inspection will involve verification of the undertakings of the beneficiary on the day of the inspection.

Cross Compliance checks will be carried out on 1% of all beneficiaries of agri-environment, animal welfare, first afforestation on agricultural land and forest-environment payments. The selection sample will be based on a cross compliance risk analysis.

In addition checks will be carried out on 1% of all beneficiaries of agri-environment payments to ensure they are complying with minimum requirements for fertiliser and plant protection product use plus the general environmental condition to protect the historic landscape.

How are Inspections Selected?

A percentage (approximately 1.25%) of beneficiaries are selected at random for an inspection in each year. The remainder (at least 5%) are selected by applying risk analysis criteria annually to applications. The risk analysis criteria for management options are as follows:

• Amount of Aid Involved.
• Findings from Previous Year
• Previous breaches in other RDR schemes are considered.
• Total Managed Area in Agreement.
• Changes from Previous Year.
• Numbers of Options on Application.
• A check will be performed on the total number of distinct operations.
• Other risk factors on a regional basis.

The risk analysis criteria for capital items will also select an appropriate mix of type and size of operations.

Manual/Targeted inspection selection

In addition to the above 5%, inspections can also be selected manually when breaches have been identified from processing of the application or by officials in the course of other inspections.

Potential breaches of LMO might be notified to the Scottish Government Rural Payments and Inspections Directorate (SGRPID) and other competent authorities. If the notification is in writing from an identifiable source it must be investigated and will be selected for a manual inspection. This is in line with procedures followed for other schemes, in particular Single Application Form (SAF) related schemes.

Notice of Inspection

It is a requirement of the EC legislation that inspections should normally be unannounced. If announced visits are carried out, notice should be limited to the minimum period necessary and only in very limited circumstances should the notice exceed 48 hours. Full reasons for any notice given must be recorded on the inspection report, by the inspector.

It is regarded as good practice to record the date and time that initial contact is made with the beneficiary. Notice periods as required by the Legislation:

0 - 3 hours notice - recorded as unannounced

3 - 24 hours notice

24 - 48 hours notice

over 48 hours

Note - notice given should reflect time lapsed between notification and start of inspection including weekends and public holidays etc.

Timing of inspections

Inspections should be carried out at a time of year which will cover the most representative commitments and obligations of the measures to be checked. For example, Summer Grazing of Cattle where participants are required to graze cattle on the hill from 1st June for at least 3 months may determine the timing of the single 'overarching' inspection.

Who should complete an Inspection?

There should be a clear separation of duties between the person who captured any application relating to the inspection and the officer who later carries out the inspection. This is to satisfy auditors that there could be no collusion between beneficiary and official. Principal Agricultural Officers (PAOs) will decide on a local basis which grade of officer and individual should undertake the inspections.

Pre-inspection office procedures

Prior to inspection, Inspecting Officers will confirm that all data capture, validation and administrative checks have been completed and any difficulties identified will be resolved at inspection.

Prior to leaving the office the inspectors should ensure they have the following:

• The inspection pack - pre printed inspection report form.
• Set of flash cards. These are an aide memoir of the requirements for each measure.
• Cross Compliance Inspection Questionnaire for completion and recording of any obvious breaches of the Statutory Management Requirements (SMRs) or Good Agricultural and Environmental Conditions (GAEC) which are noted during the inspection.
• Pesticide Proforma - application of Plant Protection Products.
• A copy of the Land Managers Options (LMO) technical guidance. Inspectors should be familiar with the contents of this guidance, as it is central to the inspection procedure.
• Officers may wish to take a digital camera for recording images of good practice and any breaches.

On-farm inspection procedures

These on the spot inspections should be unannounced and cover all the agricultural parcels and obligations covered by the beneficiary's agreements and claims.

These general procedures should be followed for all inspections carried out by SGRPID staff.

• Explanation/Introduction - The inspecting officer will provide the scheme(s) participant (if available) with a clear explanation of why he/she is there, the format of the inspection, the undertakings to be checked and what supporting documentation will be required.
• Length of time of the inspection - The inspecting officer will give an indication of how long the inspection will take, although this will to some degree be dependent on his/her findings.
• Biosecurity and Health and Safety aspects - inspectors should ensure that all disinfection, biosecurity (check for isolation areas) and Health and Safety procedures are properly observed throughout the farm visit.
• Managed areas will be inspected to ensure the requirements are being met for each of the options. For example grazing dates, correct areas sown/managed.
• Capital works -The inspector will ensure the work has been completed to any specified standards, the item appears to be technically sound, the claimed costs are justified and the item is being used for the purpose for which it was funded. For example - Nutrient Management Plan - the inspector will look at the Plan to ensure it has been prepared to an acceptable standard or completed by a competent advisor. Invoices will be checked at the submission of the claim.

On completion of the inspection the beneficiary will be given a summary of the main inspection findings and any potential implications for payments. He/she will also be given the opportunity to provide written comments and to sign the inspection report form.

If a problem is identified, it may not always be possible on the day of the inspection to work out the precise implications of all findings. In such cases, the beneficiary will be sent a detailed explanation in writing as soon as possible - outlining Scheme breach procedures and remedial actions to be undertaken.

Area Re-measurements

If a managed area is re-measured using precision equipment, for example, Global Positioning System (GPS), and/or during Field Identification System (FIS) mapping, and is found to be greater or less than the area declared in the LMO application, the declared area will be corrected through the inspection program to the found area of the site. This will allow future management payments to be calculated using the correct area. Provided precision re-mapping is the reason for the change in area and we are satisfied that there has been no attempt to defraud, no retrospective action will be taken. Any management option width, area and/or financial limits must still be applied.

Photographic Records

Photographs should be used to provide a visual indication of the landscape appearance and, where relevant, the vegetation and condition of sites subject to management under the Land Managers Options.

Landscape photographs will be long distance shots or panoramas of the whole unit and should if possible include some identifying feature. More detailed records will be close-up photographs which, if possible, should be tied in to specific reference points to make subsequent photographs of the same spot or area possible.

Photos of value will either be:

• Stored electronically and a reference put on file or
• Mounted on cards, inserted into transparent envelopes and retained in the file.

Inspections and verification of agri-environmental land based options

Following submission of the of Land Managers Options ( LMO) application:

• The application will be data captured to allow a computer based validation of the options and areas managed. This will involve cross checking against the Single Application Form, Legacy agri environment and forestry schemes and Field Identification System for any eligibility or double funding issues.
• At inspection, the inspector will verify the areas under management are the same as the claimed areas. In cases where there is dispute the area may be measured using precision equipment.
• The inspector will check the requirements of the option are being met (as detailed under 'What you must do') by a visual assessment on the day of inspection. For example:

Option - Summer grazing of Cattle.

Requirement - You must put cattle onto hill grazings on or before 1 June, and keep them there for at least three months.

If the holding is inspected in June, July or August, the inspector will expect to find cattle on the hill grazings. If the inspection takes place outwith these months the inspector will check for evidence that cattle have been grazing the hill.

• The inspector may ask to see records to ensure the requirements of an option are being met, for example pesticide records.
• Inspectors may also ask to see copies of any permissions granted, for example permissions from Scottish Natural Heritage or Historic Scotland and evidence you have checked for any historic or archaeological features or areas on the land.
• Minimum requirements for fertiliser use - the inspector will check that fertilisers have not been applied
• Where they are likely to enter a watercourse
• When the land is waterlogged, the soil is frozen, or is covered in snow
• To steeply sloping fields
• Any middens are located at least 10 m from a watercourse or field drain and at least 50 m away from any spring, well or borehole.
• Minimum requirements for plant protection products - the inspector will check that the beneficiaries:
• Pesticide record book is completed and up to date
• Has a licence to use the products (or employs a contractor with a licence)
• Meets the training obligations and requirements on safe storage
• Meets the rules on spraying close to water and other sensitive sites.