Circular No. 2381 — Establishes the obligation for consortium administrators to prepare, publish, and submit financial statements to the Central Bank, clarifies accounting valuation and appropriation criteria, and consolidates accounting standards

CIRCULAR NO. 002381

Establishes the obligation for consortium administrators to prepare, publish, and submit financial statements to the Central Bank, clarifies accounting valuation and appropriation criteria, and consolidates accounting standards.

The Board of Directors of the Central Bank of Brazil, in a session held on 17.11.93, having regard to the provisions of Law No. 8.177, of 01.03.91,

DECIDED:

Art. 1. Maintain, in the Accounting Plan of the Institutions of the National Financial System - COSIF, documents No. 3 STATEMENT OF CONSORTIUM RESOURCES - Publication Model and No. 7 STATEMENT OF VARIATIONS IN GROUP AVAILABILITY, Publication and Submission Model, code CADOC 4350.

Sole Paragraph. In preparing document No. 7 of COSIF, STATEMENT OF VARIATIONS IN GROUP AVAILABILITY, code CADOC 4350, it must be observed that entries related to reversals and transfers occurring in the group's accounting, which do not imply an inflow or outflow of financial resources, cannot be considered.

Art. 2. The following titles and subtitles are maintained in COSIF for use by the administrator:

3.0.9.45.00-1 CONSORTIUM RESOURCES;
3.0.9.45.10-4 Used;
3.0.9.45.20-7 To Be Used;
9.0.9.45.00-3 COLLECTED CONSORTIUM RESOURCES;
7.1.7.35.00-5 REVENUE FROM CONSORTIUM ADMINISTRATION FEES; 3.0.9.75.00-2 MONTHLY FORECAST OF RESOURCES TO BE RECEIVED FROM CONSORTIUM MEMBERS; 9.0.9.75.00-4 CONTRIBUTIONS FROM CONSORTIUM MEMBERS TO BE RECEIVED; 4.9.9.93.00-6 RESOURCES OF GROUPS IN FORMATION.

Art. 3. Maintain in account 9.0.9.45.00-3 COLLECTED CONSORTIUM RESOURCES of COSIF, the subtitles 9.0.9.45.10-6 Normal and 9.0.9.45.20-9 Excesses to record, respectively, the balances of collected values not fully used and the excesses of utilization of collected resources.

Art. 4. The accumulated totals of the debtor and creditor balances of consortium groups, determined in the consolidation of the Statement of Consortium Resources, code CADOC 4110, in titles 6.3.1.00.00-2 COLLECTED RESOURCES, 6.3.2.00.00-5 RESOURCES USED, and 3.0.7.75.00-6 MONTHLY FORECAST OF RESOURCES TO BE RECEIVED FROM CONSORTIUM MEMBERS, must appear in the administrator's monthly trial balances, respectively, in accounts 9.0.9.45.00-3 COLLECTED CONSORTIUM RESOURCES, subtitle 9.0.9.45.10-6 Normal, 3.0.9.45.00-1 CONSORTIUM RESOURCES, subtitle 3.0.9.45.10-4 Used, and 9.0.9.75.00-4 CONTRIBUTIONS FROM CONSORTIUM MEMBERS TO BE RECEIVED.

Sole Paragraph. Regarding each consortium group, the difference existing between items 6.3.1.00.00-2 COLLECTED RESOURCES and 6.3.2.00.00-5 RESOURCES USED for the use of groups must be recorded in the administrator's accounting; in the case of a creditor balance, in subtitle 3.0.9.45.20-7 To Be Used, or, in the event of a debtor balance, in subtitle 9.0.9.45.20-9 Excesses.

Art. 5. The administrator must transfer to the group's accounting, as soon as it has been definitively constituted, the balances presented in the account RESOURCES OF GROUPS IN FORMATION and in the accounts that record the respective availability, including the earnings derived from the application of those resources.

Art. 6. The appropriation of the admission fee by the administrator, as effective revenue, must occur on the date of the assembly constituting the respective group.

Art. 7. The consortium administrator is obliged to prepare the following accounting documents, in the form of COSIF:

I - Trial Balance and General Analytical Balance Sheet (document No. 1 of COSIF), codes CADOC 4010 and 4016;

II - Statement of Consortium Resources, by group and consolidated (document No. 6 of COSIF), code CADOC 4110;

III - Statement of Variations in Group Availability, by group and consolidated (document No. 7 of COSIF), code CADOC 4350.

Paragraph 1. The consortium administrator must use the accounts contained in the List of Accounts - 1 of that Accounting Plan with attribute "H" for the preparation of its trial balances and balance sheets, as well as the Statement of Consortium Resources, of each group.

Paragraph 2. Document No. 6 of COSIF Statement of Consortium Resources is maintained, whose accounting titles and subtitles integrate the aforementioned List of Accounts - 1 of the Accounting Plan, with attribute "H".

Paragraph 3. The Statement of Variations in Group Availability, consolidated, as well as the Statement of Consortium Resources, also consolidated, must be prepared from the statements of each consortium group.

Paragraph 4. The preparation of the Statement of Variations in Group Availability, for the first semester and the fiscal year, does not dispense with the preparation of the positions relative to the months of June and December, respectively.

Paragraph 5. Consortium administrators are exempt from preparing consolidated financial statements, and the same must not be included in the operational consolidation referred to in COSIF 1.21.

Paragraph 6. In the preparation of the Statement of Consortium Resources, code CADOC 4110, only the accounts contained in document No. 6 of COSIF must be used for the registration of consortium group operations, whose accounting titles cannot integrate the trial balance/balance sheet, codes CADOC 4010 and 4016, of the administrator.

Art. 8. For the purpose of preparing the Documents Trial Balance and General Analytical Balance Sheet, the consortium administrator must observe the accounting classification criteria provided for in COSIF, as well as adopt the monthly accrual basis in the appropriation of revenues, including late fees, of revenues, gains, profits, expenses, losses, and deficits, monetary correction of assets, revaluation of own-use real estate, income tax, and valuation of investments by the equity method, regardless of the determination of the result.

Paragraph 1. The consortium administrator, constituted in any legal form, must incorporate into the share capital the monetary correction of the paid-in capital, observing the current legislation on the matter.

Paragraph 2. The administration fee of the consortium groups must be recorded in the administrator upon its effective receipt, when it will be appropriated as revenue.

Art. 9. The consortium administrator must perform daily control of the movement of the accounts comprising the availability of consortium groups, including bank deposits, with a view to reconciling global receipts for the analytical identification of the bank balance by consortium group.

Sole Paragraph. The maintenance of a bank deposit account individualized by group is permitted.

Art. 10. The consortium administrator must submit to the Central Bank, on magnetic media, observing the provisions contained in item 3-a, of Chapter General Information - 1, of the Title: SUBMISSION OF DOCUMENTS AND DATA of the Catalog of Documents - CADOC, the following documents:

I - monthly:

a) General Analytical Trial Balance (Document No. 1 of COSIF - CADOC 4010);

b) Statement of Consortium Resources, consolidated (Document No. 6 of COSIF - CADOC 4110);

c) Statement of Variations in Group Availability, consolidated (Document No. 7 of COSIF - CADOC 4350);

II - on June 30:

a) General Analytical Trial Balance (Document No. 1 of COSIF - CADOC 4010);

b) General Analytical Balance Sheet (Document No. 1 of COSIF - CADOC 4016);

c) Statement of Consortium Resources, consolidated (Document No. 6 of COSIF - CADOC 4110);

d) Statement of Variations in Group Availability, consolidated (Document No. 7 of COSIF - CADOC 4350);

III - on December 31:

a) General Analytical Trial Balance (Document No. 1 of COSIF - CADOC 4010);

b) General Analytical Balance Sheet (Document No. 1 of COSIF - CADOC 4016);

c) Statement of Consortium Resources, consolidated (Document No. 6 of COSIF - CADOC 4110);

d) Statement of Variations in Group Availability, consolidated (Document No. 7 of COSIF - CADOC 4350).

Paragraph 1. The deadline dates for the delivery of financial statements at the Document Reception Center of the Regional Delegacies are as follows:

I - documents of monthly submission: day 20 of the month following the respective base date;

II - documents relating to the months of June and December: day 25 of the month following the respective base date.

Paragraph 2. When the delivery is not effected until 16:00 hours on the deadline date, a notification of irregularity will be issued to the non-compliant consortium administrator, granting a period until the subsequent day 25 or 30, as the case may be, respectively, for the documents mentioned in items I and II of the preceding paragraph.

Paragraph 3. When the deadline dates referred to in paragraph 1 of this article coincide with a non-business day, they will be automatically postponed to the immediate next business day.

Art. 11. The documents referred to in the previous article must be delivered to the Central Bank recorded on magnetic media, observing the technical specifications defined in COSIF 1.27, considering, furthermore, the provisions contained in Circular No. 1.095, of 10.12.86.

Paragraph 1. In order to contribute to accelerating the systematic application referred to in this article, consortium administrators may obtain, at no cost, from the Regional Branch of the Central Bank having jurisdiction over the headquarters of the administrator, a product of code PCOSW10, upon delivery, by the interested party, of 2 (two) 5 1/4" double-sided, double-density flexible disks, on which the program, in executable module, will be recorded.

Paragraph 2. Regarding the aforementioned product (PCOSW10), it must be observed that:

I - its sale or transfer for consideration is prohibited, but its duplication or transfer, without consideration, to third parties is permitted;

II - it is intended for use in microcomputers of the IBM PC-XT or AT type, with at least one 5 1/4" flexible disk drive and one hard disk drive with 10 "megabytes" of capacity, having been tested with the MS-DOS 3.1, SIM-DOS V2.1 R02, and SISNE-PLUS 3.30.R00 operating systems;

III - it allows the recording of accounting documents of codes CADOC 4010, 4016, 4110, and 4350;

IV - its use is limited to the processing of accounting documents in which the filled value fields have, at most, 15 (fifteen) significant digits, that is, contain values lower than CR$10,000,000,000,000.00 (ten trillion reais cruzeiros).

Art. 12. Non-observance of the deadlines fixed in Art. 10 of this Circular will subject the non-compliant administrator, based on Art. 16 of Law No. 5.768, of 20.12.71, to a monetary fine incident on the delay in the delivery of each document, applicable from the day following the expiration of these deadlines and until the date of delivery of the correct document, according to the regulatory provisions established by the Central Bank, observing the following criteria:

I - maximum limit: 40 (forty) times the highest value fixed in item II of Art. 21 of Law No. 8.178, of 01.03.91, increased by 70% (seventy percent), as provided in Art. 10 of Law No. 8.218, of 28.08.91;

II - period of application: up to 40 (forty) days of delay;

III - incidence range, based on the number of days of delay:

a) up to the 10th day of delay: 10 (ten) times the value fixed in item II of Art. 21 of Law No. 8.178, of 01.03.91, increased by 70% (seventy percent), as provided in Art. 10 of Law No. 8.218, of 28.08.91, and updated by the Fiscal Reference Unit (UFIR), in the form of Law No. 8.383, of 30.12.91;

b) from the 11th day to the 40th day of delay: 11 (eleven) times 40 (forty) times the value fixed in item II of Art. 21 of Law No. 8.178, of 01.03.91, increased by 70% (seventy percent), as provided in Art. 10 of Law No. 8.218, of 28.08.91, and updated by the UFIR.

Paragraph 1. The monetary fine provided for in this article will be applied at double its value in the event of recurrence, in accordance with Art. 16 of Law No. 5.768, of 20.12.71.

Paragraph 2. A collection notification will be issued, discriminating the value of the monetary fine and the deadline for payment at the Central Bank branch indicated in said notification.

Paragraph 3. The application of the monetary fine will not eliminate the possibility of initiating an administrative process, subjecting the non-compliant institution to the penalties provided for in the current legislation.

Paragraph 4. The non-delivery of correct documents until the 41st day after the date from which the application of the monetary fine began will imply the automatic initiation of an administrative process against the non-compliant institution and its administrators.

Art. 13. The consortium administrator, observing the aggregation of accounts and the publication models provided for in COSIF, must publish, semi-annually, the documents specified below, relating to the periods and base dates indicated, accompanied by the explanatory notes and the opinion of the independent auditor:

I - on June 30:

a) Balance Sheet;

b) Statement of Result of the first semester;

c) Statement of Consortium Resources, consolidated, base date of 06.30 (Document No. 3 of COSIF);

d) Statement of Variations in Group Availability, consolidated, of the first semester (Document No. 7 of COSIF);

II - on December 31:

a) Balance Sheet;

b) Statement of Result of the fiscal year;

c) Statement of Consortium Resources, consolidated, base date of 12.31 (Document No. 3 of COSIF);

d) Statement of Variations in Group Availability, consolidated, of the fiscal year (Document No. 7 of COSIF).

Paragraph 1. The financial statements, including the Statement of Consortium Resources and the Statement of Variations in Group Availability, relating to the base dates of 06.30 and 12.31, except those relating to the 1st semester and the fiscal year of 1993, both accompanied by the explanatory notes and the opinion of the independent auditor, must be published comparatively with the positions of the previous semester/fiscal year.

Paragraph 2. The explanatory notes must contain relevant and supplementary information to that contained in the financial statements accompanying them, relating to the administrator and the consortium groups in progress, indicating, in addition to the criteria for appropriation of revenues and expenses, provision for losses, recognition of inflationary effects:

I - quantity of groups administered;

II - goods delivered, in the period and totals;

III - default rate;

IV - quantity of active consortium members, as well as withdrawers and excluded members, in the period and totals;

V - quantity of goods pending delivery, on the base date;

VI - the events subsequent to the closing date of the semester/fiscal year that have, or may come to have, a relevant effect on the financial situation and future results of the administrator and the groups in progress.

Paragraph 3. The disclosure of the financial statements must be made in a newspaper of large circulation, edited in the city of the administrator's headquarters, or, alternatively, in specialized magazines or in information and dissemination bulletins of the class entities.

Paragraph 4. The administrator may not publish its financial statements before their respective and definitive submission to the Central Bank, duly approved and accepted.

Paragraph 5. The financial statements referred to must be published within 45 (forty-five) days after the respective delivery of the documents to the Central Bank.

Art. 14. The administrator must submit to all consortium members, together with the monthly contribution collection document, the following documents:

I - the last Statement of Variations in Group Availability that served as the basis for the consolidated statement delivered to the Central Bank;

II - Individual Statement of the Consortium Member, containing, at minimum, the information specified in the attached model.

Paragraph 1. Administrators must record in the monthly collection documents the amounts due by consortium members, observing the following discrimination:

I - monthly contribution - common fund;

II - monthly contribution - reserve fund;

III - monthly contribution - administration fee;

IV - insurance premium, if applicable;

V - difference or adjustment of contribution;

VI - adjustment of cash balance;

VII - fine and late interest;

VIII - total contribution value;

IX - price of the good and value of the credit for its acquisition, on the base date of the assembly, even if by estimate.

Paragraph 2. The Individual Statement of the Consortium Member will be filled with data relating to the assembly of the immediately preceding month.

Art. 15. In the group assemblies, the administrator must make available to the consortium member and deliver, if requested:

I - a copy of the last administrative balance sheet of the administrator submitted to the Central Bank, as well as the Statement of Consortium Resources of the respective group that served as the basis for the consolidated statement delivered to the Central Bank;

II - the Statement of Variations in Group Availability of the respective group, relating to the period comprised between the date of the last consortium members' assembly and the previous day, or of the day itself, at the administrator's discretion.

Sole Paragraph. The financial statements provided for in the "caput" of this article must be authenticated by the signature of the administrators and the person responsible for accounting.

Art. 16. Contracts for the sale of consortium shares must provide for a clause by which the administrator commits to make available to the consortium member a copy of the financial statements provided for in this Circular, of the administrator and the group, duly authenticated by the signatures of the directors and the person responsible for accounting, accompanied by the explanatory notes and the opinion of the independent auditor, when applicable.

Art. 17. The consortium administrator must have its financial statements of the semester and the fiscal year and those of the respective groups examined by independent auditors registered with the Securities and Exchange Commission (CVM), observing the provisions of Resolution No. 1.007, of 02.05.85, and Circular No. 1.957, of 10.05.91.

Art. 18. The administrator must register, in the respective minutes of the constitution of the group, the name, address, and professional registration of the persons responsible for the contracted external audit, and, in case of change, note in the minutes of the assembly following the event the name of the new auditor.

Art. 19. Associations and non-profit civil entities authorized to administer consortium or that may be authorized must observe the following regarding their financial statements:

I - are exempt from preparing the Trial Balance and General Analytical Balance Sheet (document No. 1 of COSIF, codes CADOC 4010 and 4016);

II - are obliged to prepare the Statement of Consortium Resources (Document No. 6 of COSIF, code CADOC 4110) and the Statement of Variations in Group Availability (Document COSIF No. 7, code CADOC 4350), by group and consolidated;

III - are exempt from publishing the financial statements of themselves and the groups (documents CADOC 4010, 4016, 4110, and 4350);

IV - are exempt from hiring independent audit for the examination of consortium group operations;

V - are obliged to submit to the Central Bank the consolidated statements of the consortium groups (CADOC 4110 and 4350), observing the deadlines provided for in regulations, subjecting themselves to fines in case of non-compliance;

VI - must send to consortium members, monthly, together with the contribution collection document, the Statement of Consortium Resources of the respective group, as well as the Statement of Variations in Group Availability of the respective group, which served as the basis for the preparation of the consolidated documents delivered to the Central Bank;

VII - must make available to the consortium member at the assembly or deliver, if requested, a copy of the Statement of Variations in Group Availability of the respective group, relating to the period comprised between the date of the last consortium members' assembly and the previous day.

Art. 20. Associations or non-profit entities authorized to administer consortium are exempt from meeting the minimum limits of paid-in capital and net equity established for consortium administrators.

Art. 21. The bookkeeping and statements of the consortium groups are subject, regarding mandatory books, to the same legal and regulatory norms applicable to the administrators.

Art. 22. The documents related to the bookkeeping of the administrator, the groups, and the consolidated groups, as well as the accounting statements, must be archived at the administrator's headquarters.

Art. 23. Documents nos. 6 and 7 of the COSIF must be sent to the Central Bank starting from the base date of June 30, 1993, inclusive.

Art. 24. The norms, criteria, and procedures provided for in the COSIF apply to consortium administrators and their respective groups, insofar as applicable.

Art. 25. In the balance sheets for March, June, September, and December, starting from the base date of December 31, 1993, inclusive, the values classified in Current and Long-Term Assets and Liabilities must be segregated into those realizable and payable within 90 days and those payable after 90 days.

Art. 26. Documents no. 3 CONSORTIUM RESOURCES STATEMENT - Publication Model, no. 6 CONSORTIUM RESOURCES STATEMENT - Remittance Model, and no. 7 GROUP AVAILABILITY VARIATIONS STATEMENT, Publication and Remittance Model, of the COSIF, will be updated through a Circular Letter.

Art. 27. The consortium administrator, in the bookkeeping of its groups, must use the Chart of Accounts contained in the COSIF and Scheme no. 29 - Consortium Group Operations, of the COSIF, which will also be updated through a Circular Letter.

Art. 28. This Circular enters into force on the date of its publication.

Art. 29. Circular no. 2,271, of January 29, 1993, Article 4 of Circular no. 2,074, of October 31, 1991, Circular no. 2,151, of April 2, 1992, and the sole paragraph of Article 6 of Circular no. 2,195, of June 30, 1992, are hereby revoked.

Brasília, November 18, 1993

Cláudio Ness Mauch
Director of Norms and Organization of the Financial System

Note: The annexes will be published in the Official Gazette and will be available to interested parties at the Regional Delegacies of this Bank.