External Circular 003
MODIFICATION OF THE BASIC ACCOUNTING AND FINANCIAL CIRCULAR

February 15, 2013

Through External Circular 003 on February 13, the Superintendence of the solidary Economy performed some adjustments to Basic Accounting and Financial Circular No.004 issued in August 2008, taking into account that the National Government, has issued new provisions in respect of granting credits and that the Superintendence is reorienting his scheme of supervision of compliance with standards, to a monitoring risk system; hence considers that is  necessary perform this first changes, in order to go closer to the entities to a new form of supervision.

The chapters that were subject of review and change are: chapters II, III, and 12th in what has to do with credit portfolio, accounts receivable and presentation of information previous validation to the transmission of financial statements.

In terms of credit portfolio, the Superintendence established to the organizations that offers credit service, the obligation to verify the capacity of payment, solvency of the obligor, warranties and how to constitute provisions with charge to the statement of income among other aspects.

Similarly, the management Board, Board of directors or who acting, shall establish methodologies and analytical techniques that allowing to measure the risk to future potential changes in the initial conditions of credit portfolio in force, creating an evaluation Committee of credit portfolio, who must assess at least once a year, all of the credits portfolio.

In relation to chapter III, accounts receivable, was modified the numeral 3.1 accounts receivable derived from credit operations. Indicates the instructions about rating, classification and provision described in chapter II of the Circular, and is modified the numeral 4.2 related with provision of debtor’s employer establishing permanent control that must be made to the items, taking into account the following:

Those items that exceed 30 days of posted, should be provisioned in 25%, to meet 60 days a minimum of 50% and meet 90 days, will provisioned to 100%.

When this situation occurs, the first expiration (i.e. within 30 days of posted), the Solidary Organization shall inform to the partner in writing about the breach of the employer debtor, in order to seek alternatives that will allow payment of the obligation and avoid the associated is affected in the negative report to risk centrals.

To 90 Days be accounted the employer debtor and transferred to 100%, it shall suspend causation of this account receivable, and start from that date, the individual credit rating.

After 90 days be transferred to 100% the employer debtor, the solidary organization should proceed to provide the unpaid amount of the credit portfolio with warrant to 100%.
On the issue of reporting information, in the numeral 2.2 periodicity of reports, is added the format 57 on Conventions of collection, applicable only to entities that sign conventions of mandate for collections operations; and is modified the format 42 on operations of Not Bank correspondents, only applicable to cooperatives that exercising financial activity. The entities will report these formats in accordance with the level of supervision that corresponds to them since the first quarter of 2013.

This report must be presented taking into account the following considerations:Solidary organizations of first level of supervision, the first report of the formats will be performed with cut to 31 March 2013.

• Solidary organizations of second level of supervision, the first report of the formats will be performed with cut to 31 March 2013.
• Solidary organizations of third level of supervision, the first report of the formats will be performed with cut to 30 June 2013.

The External Circular 003 is available on the regulations (Normatividad) menu of the internet portal www.supersolidaria.gov.co.
Link http://sirio.supersolidaria.gov.co/normativa/cir_ext.php?m=2

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