Accounting Charter

Bank of the Republic of Haiti (BRH) 64 THE ACCOUNTING CHARTER Pursuant to Article 12 of the Act of June 26, 2002 on credit and savings cooperatives, these cooperatives must comply with the following provisions when recording their transactions.

1. Definition The accounting charter of CECs is a list of accounts in which all their operations are recorded. The various accounts are grouped under logical headings with detailed descriptions listed under more general accounts in each category. Each account is assigned a number indicating the general group to which it belongs. The Chart of Accounts is divided into two parts: • the account nomenclature • the account descriptions The accounts are grouped according to the following categories: assets, liabilities, equity, and the income statement such as revenues and expenses. 1.1 Assets An asset is an identifiable element of a CEC's patrimony having a positive economic value, that is, generating a resource that the CEC controls as a result of past events and from which the CEC expects future economic benefit. 1.2 Liabilities Liabilities are elements of patrimony having a negative economic value for the CEC, that is, the CEC's obligations to a third party from which it is probable or certain that resources will flow out to benefit that third party, without at least equivalent consideration expected in return. Liabilities include provisions and debts. 1.3 Equity "The CEC's equity bears the total risk of the CEC. It is divided into two categories: • members' equity; • cooperative equity. 1.3.1 Members' Equity It represents the capital contributed by members as participation in the formation and strengthening of the CEC. 1.3.2 Cooperative Equity It consists of reserves, undistributed surpluses, and contribution surplus. 1.4 Income Statement The income statement is an accounting document summarizing all expenses and revenues of a CEC for a given period called the accounting period. This document shows the net result, that is, what the CEC has earned (surplus) or lost (deficit) during the period, which is reflected in the balance sheet.

Bank of the Republic of Haiti (BRH) 65 Sanctions In case of violation of the provisions of this circular, the BRH will apply an administrative sanction against the CEC in accordance with Articles 139 and 140 of the Act of June 26, 2002. Administrative sanctions imposed by the BRH must be addressed during the CEC's annual general meeting, pursuant to Article 43(g) of the Act of June 26, 2002. Entry into Force of this Circular The provisions of this circular enter into force on _______________________ Port-au-Prince, on __________________2008 Charles CASTEL Governor