Technical Standards to Authorize Savings and Credit Cooperatives to Collect Public Savings and for the Gradual Adaptation of Cooperatives Exceeding the Deposit and Contribution Limit

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT Approval: 10/06/2022 Validity: 29/06/2022

THE COMMITTEE OF NORMS OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR,

CONSIDERING:
I. That Article 2 of the Law of Cooperative Banks and Savings and Credit Societies establishes that Savings and Credit Cooperatives are regulated by said Law when the sum of their deposits and contributions exceeds six hundred million colones, updated value in accordance with Article 173 of the aforementioned Law.
II. That Articles 5 and 6 of the Law of Cooperative Banks and Savings and Credit Societies establish that cooperatives wishing to collect public deposits must request authorization from the Superintendency of the Financial System.
III. That Article 5, second paragraph, of the Law of Cooperative Banks and Savings and Credit Societies establishes that an instruction must be issued for the authorization to collect public deposits, a faculty that, in accordance with Article 101 of the Law of Supervision and Regulation of the Financial System, has been transferred to the Committee of Norms of the Central Bank of Reserve of El Salvador.
IV. That Article 164 of the Law of Cooperative Banks and Savings and Credit Societies establishes that cooperatives that exceed the figure mentioned in Article 2 of the aforementioned Law must inform the Superintendency and present a Regularization Plan to adjust their social capital to that referred to in Article 16 of the cited Law, and to the other requirements established therein.
V. That Article 99, letter a), of the Law of Supervision and Regulation of the Financial System establishes that it will be the responsibility of the Committee of Norms of the Central Bank of Reserve of El Salvador to approve technical norms, instructions, and provisions that the laws regulate supervised entities must issue to facilitate their application.

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law of Supervision and Regulation of the Financial System, AGREES to issue the following:

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT Approval: 10/06/2022 Validity: 29/06/2022

TECHNICAL STANDARDS TO AUTHORIZE SAVINGS AND CREDIT COOPERATIVES TO COLLECT PUBLIC SAVINGS AND FOR THE GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT

CHAPTER I
OBJECTIVE, SUBJECTS, AND TERMS

Objective
Art. 1.- These Standards aim to establish the procedure to be followed before the Superintendency of the Financial System for the authorization of the collection of public deposits by Cooperative Banks, as well as the gradual adaptation of savings and credit cooperatives that reach the figure established in the Law of Cooperative Banks and Savings and Credit Societies.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are:
a) Savings and credit cooperatives constituted, which request authorization from the Superintendency of the Financial System to collect public deposits; and b) Savings and credit cooperatives whose deposits and contributions reach the figure established in Article 2 of the Law of Cooperative Banks and Savings and Credit Societies, which is updated every two years in accordance with Article 173 of the cited Law.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Shareholders of a cooperative: Owners of the shares of the subjects obliged to the application of these Standards; the term will also serve to refer to the members of Cooperative Associations subject to the application of these Standards; b) Central Bank: Central Bank of Reserve of El Salvador; c) Cooperative Bank: Savings and credit cooperatives that, in addition to collecting money from their members, do so from the public; as well as savings and credit cooperatives when the sum of their deposits and contributions exceeds the amount established in letter a), a.2, of Article 2 of the Law of Cooperative Banks and Savings and Credit Societies; d) Cooperative: Associations and cooperative societies of savings and credit, including Credit Unions and Workers' Banks; e) Law: Law of Cooperative Banks and Savings and Credit Societies; and f) Superintendency: Superintendency of the Financial System.

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT Approval: 10/06/2022 Validity: 29/06/2022

CHAPTER II
PROCEDURE FOR APPLICATION AND AUTHORIZATION OF COLLECTION OF PUBLIC DEPOSITS

Application for authorization to collect public deposits Art. 4.- If a cooperative or cooperative bank wishes to collect public deposits, it must present an application for authorization to the Superintendency accompanied by the following documentation:
a) Deed, minutes, or bylaws of the constitution of the cooperative, as applicable; b) Agreements of the corresponding body, regarding modifications to its deed of constitution and bylaws, as well as the draft of the aforementioned reforms; and c) List of the cooperative's shareholders, with specification of their general data, nationality, and shareholding participation; which shall not be fewer than one hundred and none shall subscribe to more than ten percent of the paid-up social capital. When future shareholders are natural persons and hold more than 1% of the paid-up social capital, they must present the following information:
i) Copy of the Unique Identity Document (DUI); ii) Copy of the Tax Identification Number (NIT), which shall be in accordance with what is established by the Tax Administration; (1) iii) Certified copy of passport or residence card, in the case of foreigners; and iv) Sworn declaration of not being in a state of bankruptcy or insolvency. When shareholders are legal entities, they must present the following information:
i) Name or trade name; ii) Nationality and domicile; iii) Documentation accrediting legal personality; iv) Copy of the Tax Identification Number (NIT), which shall be in accordance with what is established by the Tax Administration; (1) v) Audited financial statements of the last fiscal year; vi) Testimony of deed of constitution and bylaws, or creation law, as applicable, in both cases with their reforms; vii) Power of attorney granted to be represented as a shareholder; and viii) Certification of the minute point, where the acquisition of shares is authorized; d) Description of the source of resources for the acquisition of shares; e) List and general data of the directors, with the following information:
i) Sworn declaration of not having the disqualifications indicated in Article 15 of the Law, according to the model in Annex No. 1 of these Standards;

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT Approval: 10/06/2022 Validity: 29/06/2022

ii) Certificate issued by the Directorate of Penal Centers of not having criminal records or Sworn declaration to that effect; and iii) Curriculum vitae and testimonials accrediting their experience, as well as the presentation of documents supporting their knowledge in financial and administrative matters in accordance with what is stated in Article 15 of the Law. (1) f) Scheme of organization and administration of the cooperative; g) Opinion and audited financial statements of the last three fiscal years and financial projections of its operations; h) Detail of the portfolio of risk assets qualified in accordance with the applicable norms currently in force for Cooperative Banks with reference to the last day of the immediately preceding month, which must include the regularization reserves that will be required in accordance with said norms; i) Detail of the collection from its members or associates carried out in the last two years; j) Detail of the number of shares subscribed and paid by each of its members or of the total contributions of the associates as applicable; k) Name or trade name of the audit firm that will carry out the external audit of the cooperative bank. This must be registered in the Register of External Auditors kept by the Superintendency; l) List of managers and other persons who have authorization to decide on the granting of loans, with the same information referred to in letter e) of this article; and m) Business Plan in which changes in the business scope arising as a consequence of public fund collection operations are contemplated. This plan must include the financial bases of the operations planned to be developed, financial projections of at least two years, the scheme of organization and administration of the cooperative, and other topics considered important. This business plan must include compliance with the requirements of the Information on Equipment and Declared Computer Programs and the Manuals of Functions and Operational Procedures, as indicated in Annexes Nos. 2 and 3 of these Standards. The application and documentation may be presented through the means made available by the Superintendency, which may be electronic. In any case, the time limit referred to in the first paragraph of Article 5 of these Standards will begin to run from the next business day after the application has been presented.

Authorization procedure for the collection of public deposits Art. 5.- Upon receipt of the application for authorization to start the collection of public deposits in accordance with what is established in Article 4 of these Standards, the Superintendency will proceed to verify compliance with the requirements defined by the Law and in these Standards, having a period of up to sixty days for the authorization or denial of the corresponding application. If the application is not accompanied by the information detailed in Article 4 of these Standards, the Superintendency, due to the lack of necessary requirements, may require the applying entity to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the interested entities when there are reasons justifying it. The Superintendency in the same notice will indicate to the entity that if it does not complete the information within the aforementioned period, it will proceed without further formality to archive the application, leaving its right to present a new application intact. If after the analysis of the documentation presented in accordance with Article 4 of these Standards, the Superintendency has observations or when the documentation or information presented does not prove sufficient to establish the facts or information intended to be accredited as requested, the Superintendency may notify the respective applying entity to remedy the deficiencies communicated or present additional documentation or information required. The applying entity will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendency. The Superintendency may, through a reasoned resolution, extend by another ten business days, the period indicated in the previous paragraph, when the nature of the observations or deficiencies notified so requires.

Extension period
Art. 6.- The applying entity may present to the Superintendency a request for extension of the period indicated in the fifth paragraph of Article 5 of these Standards, stating the grounds on which it is based and proposing, if applicable, the pertinent proof. The extension period may not exceed ten business days and will begin from the next business day after the expiration date of the original period.

Suspension of the period
Art. 7.- The sixty-day period indicated in the first paragraph of Article 5 of these Standards will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of the aforementioned article of these Standards, until the observations required by the Superintendency are remedied.

Art. 8.- The Superintendency within the period established in the first paragraph of Article 5 of these Standards will analyze the cooperative's capacity to carry out collection operations, as well as the honorability and personal responsibility of its shareholders, directors, and administrators, with the purpose that they offer protection to the interests of the public. Resolution Art. 9.- Once the complete documents have been presented in due form, the Superintendency will proceed to respond whether it authorizes or denies the application for authorization to collect public deposits, which it will notify within a maximum period of three business days from the date the resolution is issued. In the case that the resolution is denying, the notification must contain the causes for which the request is denied. Qualification of modification of the deed of constitution Art. 10.- Prior to the presentation of the reforms of the deed of constitution or its bylaws as applicable, in the Registry kept by the Salvadoran Institute of Cooperative Promotion in the case of cooperative associations, or in the Commerce Registry in the case of cooperative societies, these must be presented to the Superintendency so that it qualifies whether the terms stipulated in the modification of the social pact are in conformity with the previously authorized projects, and if the social capital has been effectively integrated in accordance with the authorization. Art. 11.- The modification referred to in the preceding article may not be presented for inscription in the Registry kept by the Salvadoran Institute of Cooperative Promotion or in the Commerce Registry, without carrying a reason signed by the Superintendency, in which the favorable qualification of said testimony is recorded.

Start of operations with the public
Art. 12.- Once the requirements established in the Law and these Standards are met, the Superintendency will certify within a period not greater than fifteen business days from when the cooperatives have met the requirements, that they may start their operations in the collection of public deposits in accordance with the regulations of the Law. The Superintendency will notify the cooperatives within a maximum period of three business days from the date the certification is issued.

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT Approval: 10/06/2022 Validity: 29/06/2022

Publication of Superintendency certification
Art. 13.- The certification issued by the Superintendency, indicating the name of the cooperative, the amount of paid-up social capital, and the names of the directors, will be made known through publication at the expense of the cooperative, once in the Official Diary and in a printed medium of national circulation or another digital publication platform with greater or equal coverage, or on its website, in accordance with what is established in the current legal framework. From this certification, the cooperative will be authorized to use the expression “THIS ENTITY HAS BEEN AUTHORIZED BY THE SUPERINTENDENCY OF THE FINANCIAL SYSTEM FOR THE COLLECTION OF PUBLIC FUNDS”, contemplated in Article 35 of the Law.

CHAPTER III
ON THE GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE DEPOSIT AND CONTRIBUTION LIMIT

Art. 14.- When the sum of the deposits and contributions of savings and credit cooperatives reaches the limit established in Article 2 of the Law, they must inform the Superintendency that they have exceeded said limit within ten business days following the occurrence of such circumstance. Additionally, these cooperatives must present to the Superintendency within thirty days thereafter the information contained in the letters of Article 4 of these Standards; as well as a regularization plan to comply with the requirements of the Law, which must be fulfilled within a maximum period of three years, counted from its presentation. (1) The limit of the sum of deposits and contributions referred to in the previous paragraph is updated every two years in accordance with Article 173 of the Law.

Art. 14-A.- The regularization plan referred to in Article 14 of these Standards must be signed by the Legal Representative of the entity accompanied by the following information: (1) a) Economic-financial projections demonstrating the entity's capacity to meet the capital requirements established in the Law. The study will take as a base the audited financial information as of December 31 of the year immediately preceding the presentation of the plan and will include the most recent financial statements; (1) b) Listing of activities other than financial intermediation and subject to accounting separation; (1) c) Names of debtors whose balances exceed the risk assumption limits in accordance with Article 48 of the Law; (1) d) List of related persons whose balances exceed the risk assumption limits in accordance with Article 49 of the Law; (1) e) Calendarization of compliance with the capital, solvency, and liquidity requirements indicated in the Law, as well as the provisions established in the technical norms related to these and the regulations related to risk management, which have been issued by the Committee of Norms of the Central Bank. Detailing at minimum, the norms to be complied with, the activities to be carried out with their respective responsible persons and deliverables or evidence of compliance, in addition, establishing the estimated completion dates, submission to the Superintendency, and degree of progress as of the date of presentation. (1) Art. 14-B.- Upon admission of the application with the information described in Articles 14 and 14-A of these Standards, the Superintendency may require the interested parties for other information it deems pertinent to establish the facts or information intended to be accredited as requested, within a period of twenty business days counted from the date of presentation of the documents. (1) Once all the requirements established in Chapter III of these Standards are met, the Superintendency will issue a resolution authorizing the Regularization Plan, which will be notified to the applying cooperative within a maximum period of three business days from the date the resolution is issued. (1) On non-compliance with the regularization plan (1) Art. 14-C.- Cooperatives that have initiated the gradual adaptation process and presented the regularization plan and do not finalize it within the maximum period of three years referred to in Article 14 of these Standards, will be subject to the application of what is provided in Article 350 of the Code of Commerce, from the date on which the Superintendency notifies that compliance with the period established in Article 164 of the Law of Cooperative Banks and Savings and Credit Societies was not given. (1)

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Sanctions
Art. 15.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law of Supervision and Regulation of the Financial System.

Repeals
Art. 16.- These Standards repeal the “Standards to Authorize Savings and Credit Cooperatives to Collect Public Savings” (NPNB1-01), approved in Session CD-43/2001, of September 5, 2001, by the Board of Directors of the Superintendency of the Financial System, whose Organic Law was repealed in accordance with Legislative Decree number 592 containing the Law of Supervision and Regulation of the Financial System, published in the Official Diary No. 23, Volume No. 390, of February 2, 2011.

As of October 11, 2023, the “Standards for the Elaboration of Regularization Plans for Savings and Credit Cooperatives” (NPNB1-05) are repealed, approved in Session CD-43/2001, of September 5, 2001, by the Board of Directors of the Superintendency of the Financial System, whose Organic Law was repealed in accordance with Legislative Decree number 592 containing the Law of Supervision and Regulation of the Financial System, published in the Official Diary No. 23, Volume No. 390, of February 2, 2011. (1)

Transitory
Art. 17.- Authorization applications presented in accordance with what is established in the “Standards to Authorize Savings and Credit Cooperatives to Collect Public Savings” (NPNB1-01), which were in process at the time of entry into force of these Standards, will continue and conclude in accordance with the regulations under which they began. Art. 17-A.- Regularization Plans presented in accordance with what is established in the “Standards for the Elaboration of Regularization Plans for Savings and Credit Cooperatives” (NPNB1-05), which were in process as of October 11, 2023, will continue and conclude in accordance with the regulations under which they began. (1)

Unforeseen Aspects
Art. 18.- Aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Committee of Norms.

Validity
Art. 19.- These Standards will enter into force as of June 29, two thousand twenty-two.

MODIFICATIONS:
(1) Modifications in articles 4, 14, and 16 and incorporation of articles 14-A, 14-B, 14-C, and 17-A, approved by the Central Bank through its Committee of Norms, in Session CN-09/2023 of September 26, two thousand twenty-three, with validity as of October 11, two thousand twenty-three. (2) Modifications in Annex No. 1, approved by the Central Bank through its Committee of Norms, in Session No. CN-05/2026, of June 30, two thousand twenty-six, with validity as of July 15, two thousand twenty-six.

Annex No. 1

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GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022 MODEL OF SWORN DECLARATION FOR DIRECTORS OF COOPERATIVES SUBJECT TO THE COOPERATIVE BANKS LAW AND SAVINGS AND CREDIT SOCIETIES To:
Superintendence of the Financial System
Present.
I, ________________________________, aged _______ years, profession or occupation ______________________, nationality, _________________________ residing at ___________________________, with Unique Identification Document (DUI) No.
_______________, Tax Identification Number No. (NIT) _____________________ _________________, in view of being part of the governing body of the cooperative _____________________, declare under oath that:

1. I am not a director, official, or employee of any other institution in the financial system,
   of institutions regulated by the Cooperative Banks and Savings and Credit Societies Law or of persons who engage in activities similar to those of financial intermediaries, including the placement of assets among private parties of those not exempted by the Cooperative Banks and Savings and Credit Societies Law.
2. I have not obtained in my favor, as a director of a financial institution, the approval of a credit without the unanimous vote of the governing body or that said credit was approved without having recorded my withdrawal from the corresponding session.
3. I am not in a situation of bankruptcy, suspension of payments, nor creditors' agreement and that I have never been judicially qualified as responsible for fraudulent or negligent bankruptcy.
4. I am not a debtor of credits in the financial system, to which a reserve for sanitation of fifty percent or more of the balance has been constituted.
   For a better analysis of my debtor situation, below I detail the credits that I currently have in the financial system:
   Credit No. Amount granted Financial Entity
   ____________ ________________ ___________________________________ ____________ ________________ ___________________________________ ____________ ________________ ___________________________________ ____________ ________________ ___________________________________ I also declare that I am a shareholder of twenty-five percent or more of the social capital of the entities detailed below:

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Annex No. 1

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022
5. During my function as director, official, or administrator of an institution in the financial system, since the validity of the Law on Privatization of Commercial Banks and Savings and Loan Associations, the same did not incur in patrimonial deficiencies of twenty percent or more of the minimum required by the Law, nor received contributions from the State, the Deposit Guarantee Institute for its sanitation or that it was intervened by the competent supervisory regulatory body.
For further information about that institution, below I detail the entities in which I was an administrator (or official if applicable) and the period in which I served as such:
Financial Institution Period

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6. I have never been convicted of crimes or for having participated in the commission of any intentional crime.
7. I have not participated directly or indirectly in activities related to drug trafficking, connected crimes, and those typified in the Special Law for Prevention, Control and Sanction of Money Laundering, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction. (2)
   .
8. I have not been administratively or judicially sanctioned for participation in serious infractions of laws and norms of a financial nature, especially the collection of funds from the public without authorization, the granting or receipt of loans related beyond the permitted limit and crimes of a financial nature.
9. I do not hold any of the following government positions: President or Vice President of the Republic, Minister or Vice Minister of State, Proprietary Deputy, Proprietary Magistrate of the Supreme Court of Justice or Proprietary Chamber Magistrate, nor President of one of the Autonomous Institutions.
   I also declare that my spouse and relatives in the first degree of consanguinity are:
   Name Class of kinship
   ________________________________ __________________________ ________________________________ __________________________ ________________________________ __________________________ ________________________________ __________________________ ________________________________________ ________________________________ Signature Date

Annex No. 2

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022 INFORMATION REQUIREMENTS ON EQUIPMENT AND COMPUTING PROGRAMS For any computing system designed to operate active and passive transactions and accounting, it is a requirement to present to the Superintendence the following basic information:
a) General description of the system and main processes. b) Relational design of files. c) Description and detailed design of files and fields (Data Dictionary). d) User manual:
List of the type of users who will have access, specifying the hierarchical level of the user and the type of access they will have to each of the options of the system; as well as the frequency with which it is generated and the number of copies as they are distributed. If the systems are being developed, describe the procedure to test and approve the programs as well as the responsibilities of these activities. e) Printed copy of source programs or make tape back-up copy. f) Characteristics of central and peripheral equipment, mentioning their storage capacity. g) Detailed characteristics of development tools. h) Copy of the warranty or maintenance contract of the central and peripheral equipment. i) Copy of the warranty or maintenance contract of the programs, if these have been contracted to consultants. j) Procedures to perform back-up. k) Contingency plan in case of loss of information and/or failures in the computing equipment. l) Authorized procedures for the handling of access keys. m) Hygiene standards for computing equipment and its peripherals. n) Software license to be used. NOTE: It is necessary that the new institution have an electronic communication system (Example: MODEM or GBNet) for sending and receiving information with the Superintendence.

Annex No. 3

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022 MINIMUM REQUIREMENTS OF FUNCTION MANUALS AND OPERATIONAL PROCEDURES

1. Function Manual
   It must contain the organizational chart and describe the functions of each of the components related to the operation of deposit capture withdrawable by means of checks or other means, even that of temporary units, as in the case of credit committees of which, moreover, it must be exposed how they are integrated. The organization plan must contain the adequate segregation of operations and the functions necessary for the control and supervision of transactions. For such purposes it is necessary to create as a minimum the following units or positions:
   a) Cash; b) Deposits; c) Credit processing; d) Loan control; e) Loan recovery through the judicial route; f) Informatics; g) Accounting; h) Internal Audit; i) Portfolio qualification; and j) Compliance Officer.

It must also include a section referring to the administration of the manual, which must have the modification procedures, the subjects who can propose modifications and who are authorized to keep it under their custody.
2. Operational Procedure Manual
This manual must describe the internal control procedures (administrative, accounting and of the computer systems) for each of the active, passive and complementary operations that the cooperative will carry out.
Internal control must be described by transaction cycles, preferably using the flowchart technique combined with narratives.
It must also include a section referring to the administration of the manual, which must have the modification procedures, the subjects who can propose modifications and who are authorized to keep it under their custody.
2.1 Main transaction cycles
The cycles considered mandatory, depending on the operations carried out by the cooperative, are the following:
a) Cycles for deposits

Annex No. 3

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022 It must comprise the following stages: opening of the deposit, withdrawals and remittances, inactive accounts, restricted, seized and cancellation of accounts, replacement of passbooks and safeguards and settlement of the deposit. b) Loan cycles It must comprise the following stages: processing of the application and its respective controls, processing of deed drawing and its controls, granting, authorization of disbursements, processing of registration of guarantees with their respective controls, and recoveries. In addition to the above, special recovery procedures through the judicial route must be drawn up, with the description of the corresponding controls; as well as the policies to initiate this process and those relating to the recognition of losses when the results of the judicial process determine the uncollectability of debts. c) Collection cycles From the receipt of documents until the return of the collected sum. d) Foreign currency purchase-sale cycle It must include the procedures relative to the purchase and those of the sale. e) Investment portfolio cycles It must comprise the acquisition, sale and redemption of securities and repo transactions. Each of the cycles described above must comprise the following aspects:
a) Adequate segregation of functions; a) Description of the distribution of the original and copies of accounting documents; b) Timeliness in which transactions or accounting operations will be registered; c) Quantification of transactions and operations; d) Systems of authorization and approval of transactions and operations; e) Informatics procedures. (General activities that will be performed by computers, by electronic means, indicating the base documents to introduce information into the system, authorizations to access the system and reports that will be issued); and f) The form of organization of document files.
2.2 Accounting Systems and Procedures
In addition to the cycles described above, procedures must be designed on the following aspects:
a) The way in which accounting operations will be recorded, in each of the legalized books and generally in auxiliary accounting records; b) The manner in which to relate accounting vouchers with entries in books and previous records; c) Authorization processes of accounting vouchers, generated by each operational department and by the accounting department; and d) Calculation and accounting of interest and commissions to be received (assets) and to be paid (liabilities).

Annex No. 3

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022

2.3 Information Systems
This section of the manual must deal with data processing systems that will be used in different activities of an economic nature and must deal at least with applications for deposits, loan portfolio, accounting and cash operations.
In each of those programs, at least the following must be described:
a) General description of the system and main processes; b) Relational design of files; c) Description and detailed design of files and fields; d) User manual for the systems of:
i. Unique client identification number
ii. Accounting
iii. Cash
iv. Loans
v. Checking deposit account
vi. Savings deposit account
vii. Fixed-term deposits
e) List of users who will have access, indicating the hierarchical level of the user and the type of access they will have to each of the options; f) Detail of the reports generated by the system, specifying for each one the frequency with which it is generated, the number of copies and how they are distributed; and g) If the systems are being developed, describe the procedure to test and approve the programs, as well as the responsibilities of these activities. It is also a requirement to add the following information:
a) Characteristics of central and peripheral equipment; b) Detailed characteristics of development tools; c) Printed copy of source programs or tape back-up copy; d) Copy of the warranty or maintenance contract of the central and peripheral equipment; e) Copy of the warranty or maintenance contract of the programs, if these have been contracted to consultants; f) Procedures to perform back-up; g) Contingency plan in case of loss of information and/or failures in the computing equipment; h) Procedure for handling access keys; i) Hygiene standards for computing equipment and its peripherals; j) Authorized standards for system maintenance; and k) Graphical scheme on the interrelation and data communication of the central system and its peripheral systems (Agencies).

Annex No. 3

GRADUAL ADAPTATION OF COOPERATIVES EXCEEDING THE LIMIT OF DEPOSITS AND CONTRIBUTIONS Approval: 10/06/2022 Validity: 29/06/2022
2.4 Annexes
This section must contain the different forms that the entity will use to contract with the public, to attend transactions with its clients and for the registration of accounting operations, but especially what relates to:
a) Application forms, contracts, remittances, withdrawals and other documents that will be used in active and passive operations; b) Models of the legalized accounting books that will be used; and c) Forms of income accounting documents (credit notes, debit notes, receipts, cash summaries), expenses (checks, etc.), journal entries and others.