Manual CIVIL DEFENSE PAYMENT CARD

Manual CIVIL DEFENSE PAYMENT CARD

Summary Introduction... 7 Target users... 7 Description... 7 Joining and opening accounts... 8 Services and benefits to the entity receiving the funds... 8 Services and benefits to the manager of the funds... 8 Use... 9 Prohibitions... 9 Information made available by Banco do Brasil at the Transparency Portal... 9 Limits of use... 10 Responsibilities of the legal representative of the state/municipality, or of its authorized representative, where applicable... 12 Additional responsibilities of the authorized representative of the state, when it sub-transfers the funds received from the Federal Union to municipalities... 13

Additional responsibilities of the authorized representative of the municipality, when it receives federal funds sub-transferred by the state... 14 Responsibilities of the card holder... 14 Step-by-step guide... 15 Before the occurrence of the disaster... 15 After the occurrence of the disaster... 18 Summary chart... 20 Frequently Asked Questions... 21 Glossary... 27 Doubts/information... 28 Legislation... 28 Annex I... 29 Annex II... 32

Introduction The Civil Defense Payment Card (CPDC) is a specific payment method for civil defense actions, which provides more agility, control and transparency of the expenses. Target users Management units of government bodies at the state, Federal District and municipal level that qualify for civil defense and protection actions under the terms of the legislation in force. Description The Civil Defense Payment Card is the exclusive method for payment of expenses with response actions, which comprise rescue, assistance to the victims and reestablishment of essential services, defined in Decree nº 7,257, of August 4, 2010, promoted by governments of the states, Federal District and municipalities with funds transferred by the Federal Union. The funds may only be transferred to federated units in state of emergency or state of public calamity recognized by the National Department for Civil Defense (Sedec). It characterizes a preventive action, as joining the CPDC and opening the accounts must occur before the disaster. Accounts opened after May 2013 are activated with the debit function, and accounts opened before such date will have the plastic card replaced to allow transactions in such function. However, such innovation will not apply to accounts that have already received funds and, therefore, are in operation. The CPDC accounts are exempt from joining fee and annual fee. 7

Joining and opening accounts The contract required to join is executed only once, at the time of opening of the first account, with the Banco do Brasil branch. There is no maximum number of accounts. We emphasize that, for each situation of natural disaster, i.e., for each event, it is necessary to open a specific account to receive the federal funds requested, as well as to pay expenses with the card. Services and benefits to the entity receiving the funds Online access to the use of the card through the Government Sector Service (AASP) of Banco do Brasil, allowing the management of the expenses, with statements, modification of limits of card holders, etc. Detailed control of the values transacted, allowing the monitoring of expenses incurred by the card holders. Various types of monthly reports, available as hard copy and electronically, with detailed information on the cost center, supplier or card holder. Services and benefits to the manager of the funds Better control of the expenses. Identification of the card holder as public servant of the state or municipal government. Security. 24-hour Call Center. 8

Use Acquisition of material, including via Internet, hiring of services for the rescue actions, assistance to the victims and reestablishment of essential services. Prohibitions Withdrawals in cash, purchases with payment in installments, use abroad and transfer of funds between accounts are prohibited. Information made available by Banco do Brasil at the Transparency Portal Identification of the transactions made with the card, containing: Name and CPF of the card holder. CNPJ of the supplier. Date and value used. Transfer instrument number at Siafi. 9

Limits of use When the funds are sent directly to the municipality, the limit of the account is the total value of the funds transferred by the Ministry of National Integration. The authorized representative of the account in the municipality may establish individual limits for each card holder. In case of funds sent directly to the states, the limit of the account is also the total value of the funds transferred by the Ministry of National Integration. The authorized representative of the account in the state shall establish the individual limits of each card holder. CPDC allows the state to transfer funds received from the Federal Union to municipalities. When the funds are transferred to the state and the state then sub-transfers funds to municipalities, the limit of the state s cost center is reduced in order to be transferred to the new cost centers created for the municipalities. The sum of the cost centers limits, with the same instrument number, cannot exceed the account limit registered for each event. Therefore, in case the state receives BRL 1,000,000.00, this is the value of its cost center. It may choose to use the funds directly or to sub-transfer funds to the municipalities. In case it chooses to sub-transfer funds, the sum of the cost centers of the municipalities cannot exceed such value, which is the total of the funds transferred. In case of sub-transfer, the authorized representative of the state shall inform to Banco do Brasil, in the branch where its account is based, which municipalities will be benefited, the value of the sub-transfers, the instrument number and the sub-instrument number for each municipality and the name of the authorized representative of each municipality. Having such information, Banco do Brasil generates a cost center number for each municipality and informs it to the authorized representative of the state. 10

The authorized representative of the state, using AASP, creates the J key (access key) and temporary password for the authorized representative of each municipality. Sub-transfers occur when the state transfers funds received from the Federal Union to municipalities. The instrument number corresponds to the number generated by Siafi after the issuance of the bank order. It is informed by the MI [Ministry of Regional Integration] to the beneficiary entity at the time when the funds are released to the account. The sub-instrument number corresponds to the Siafï code of the municipality that receives the transfer, and it shall be informed to Banco do Brasil by the authorized representative of the state at the time when the cost center of each municipality is registered. MI provides the complete list of the municipalities and their respective numbers with Siafi at www.integracao.gov.br/defesa-civil/solicitacao-de-recursos/cartao-de-pagamento-dedefesa-civil. Cost center: internal sub-division in the registration structure of cards used for distribution of usage limits to beneficiaries, in compliance with the following criteria: a) For municipalities: each account shall have only one cost center. b) For states that do not transfer funds to municipalities: each account shall have only one cost center. c) For states that sub-transfer funds to municipalities: the state account shall be sub-divided into cost centers, being one for the state and one for each beneficiary municipality. 11

Responsibilities of the legal representative of the state/municipality, or of its authorized representative, where applicable The legal representative of the state or of the municipality is the person that orders the expense - mayor or governor. Such legal representative may be the person responsible for spending the funds transferred, or they may appoint another person, who will be the authorized representative. Responsibilities of the legal representative or of the authorized representative appointed by the legal representative: Execute contract with Banco do Brasil, joining the Civil Defense Payment Card system. Open accounts with Banco do Brasil. Designate the card holders (there is no maximum or minimum number), who will receive their respective cards (plastic) to make payments. Card holders shall be public servants or persons holding the position of municipal/state secretary. Determine and modify the usage limit and the value for each card holder via Government Sector Service (AASP). Enter, at www.integracao.gov.br/defesa-civil/solicitacao-de-recursos/cartao-de-pagamento-de-defesa-civil, in the link register here, the bank details of the CPDC - branch number, account number and Cost Center number -, CNPJ of the account holder, name and CPF of the legal representative. This step is essential to ensure that Sedec has knowledge of such information before the occurrence of disasters. 12

Additional responsibilities of the authorized representative of the state, when it sub-transfers the funds received from the Federal Union to municipalities Register the sub-transfer of funds to municipalities with Banco do Brasil, informing to Banco do Brasil the limit of each municipality, the instrument number (number generated by Siafi after issuance of the bank order by MI) and the sub-instrument number (Siafi code of the municipality receiving the transfer). Register the authorized representatives of the municipalities cost centers, granting them access to the state s account at AASP. Inform to the authorized representative of each municipality: The branch number and the account number that was opened with Banco do Brasil. The identification number of the cost center registered for the municipality. The J key of the municipality s representative for access to AASP. 13

Additional responsibilities of the authorized representative of the municipality, when it receives federal funds sub-transferred by the state Register the six-digit password for use of the Civil Defense Payment Card (this is the only password that will be used for purchase transactions with the card) at the Banco do Brasil branch of its location. Request to their branch the modification of the address to which the cards of its cost center are to be sent, informing the address of their branch as the new address, so that the card may be picked up in their municipality. Change the AASP password that was informed by the representative of the State, in the first access to such channel, in order to manage the funds that were transferred to their municipality. Responsibilities of the card holder There is no limit for the number of card holders of the CPDC. However they must be public servants or public employees, with permanent employment relationship, and the state and municipal secretaries, who shall sign an Instrument of Responsibilities of the Card holder, containing their obligations and duties related to: I. Safekeeping of the card. II. Adequate use of the values. III. Prohibition of authorization for use by another person. 14

IV. Communication to the authorities in case of loss or theft, and request to the financial institution to block the card. V. Keep bills of sale, receipts or any other document that proves the expense paid with the CPDC, which shall contain, at least: a) Name of the beneficiary of the payment. b) Taxpayer Identification Number (CPF or CNPJ). It is important that the card holder checks, at the time of the purchase, the details of the establishment stated in the voucher printed by the card terminal, to make sure that such details match those of the establishment in question. STEP BY STEP GUIDE Before the occurrence of the disaster 1st step It is important that the legal representative creates the civil defense and protection agency or entity, with sufficient structure to fulfill its mission, as such agency or entity shall be the unit responsible for the actions of prevention, preparation, response and recovery, under the responsibility of the state and/ or the municipality in the National System for Civil Defense and Protection (Sinpdec). 2nd step The accounts may be opened on the initiative of the entity or indirectly by Sedec. Opening of account on the entity s initiative: The legal representative shall go to the closest Banco do Brasil branch to sign the bank forms. The contract required to join the Civil Defense Payment Card is executed one time only. 15

The account opening forms shall also be signed at the same time. There is no limit for the number of accounts. Each disaster shall have a specific account. Therefore, in case the entity receives funds to perform actions of response to a disaster, it shall take immediate measures to open a new account for the case of occurrence of other disasters. Mass opening of accounts by Sedec: At the discretion of the Ministry of National Integration, Sedec may arrange the opening of the CPDC accounts, on behalf of the federated units, with the bank branch where the federated units already has an account with the federal government financial institution responsible for the operation of the CPDC. The account shall have as authorized representative the legal representative of the federated unit - in case of municipalities, the mayor. The bank details - branch, account number and cost center number - shall be informed to the federated unit by Sedec via official letter. The account will remain blocked for transactions until the legal representative of the federated unit arranges the relevant formalization with their branch, by means of submission of necessary documents. In order for an account to be effectively opened, either directly by the federated unit or indirectly by Sedec, the legal representative or the authorized representative shall sign the following forms with the Banco do Brasil branch: I. Contract of the Civil Defense Payment Card. II. Proposal for Joining the CPDC. III. Registration of Cost Center. IV. Registration of Card holder(s). V. Inclusion of Authorized Representative (if applicable), for each cost center. VI. Signature cards for the Legal Representative and Authorized Representative(s). 16

After joining and opening of the account, Banco do Brasil will deliver to the federated unit the Cost Center Registration Report, containing the details of the branch, of the account and of the identification number of the cost center. The forms Joining Proposal, Registration of Cost Center and Registration of Card holder may be obtained via Internet at the address: www.bb.com. br/governo/estadual/dispendio/cartoes/defesa Civil/Forms or directly at the Banco do Brasil branch. The opening of the account must occur previously to the disaster, characterizing a preventive action. No funds will be available in the account when it is opened. The funds will be transferred, in case of disaster, after federal recognition, and a formal request by the federated unit is required. On this subject matter, it is also important to emphasize that the actions of the federal government are complementary to the municipality s and the state s actions. There is no limit for the number of accounts. The accounts may be opened on the initiative of the entity or indirectly by Sedec, simultaneously. 3rd step In case the account has been opened on the initiative of the federated unit, the authorized representative shall register at Sedec s website, in the CPDC Registration System - www.integracao.gov.br/defesa-civil/solicitacao-de-recursos/cartao-de-pagamento-de-defesa-civil in the link register here - the following data: Name, CPF and date of birth of the legal representative. CNPJ Number of the account holder. Branch number. Account number. Identification number of the cost center. 17

4th step The card holders registered by the authorized representative shall go to any branch of Banco do Brasil to register their individual password, informing the branch number and account number opened for the Civil Defense Payment Card. The card (plastic) will be picked up later by the card holder, at their branch. In case of transfer of federal funds from the state to a municipality, the authorized representative of the municipality shall request to the branch the modification of the address to which the cards of its cost center are to be sent, informing the address of their branch, so that the card may be picked up in their municipality. After the occurrence of the disaster Sedec takes action in a complementary manner to assist the federated units affected by disaster. For such purpose, it is essential that Sedec recognizes the state of emergency or state of public calamity. The term to request the recognition is 10 days from the occurrence of the disaster, pursuant to Decree nº 7,257/2010. It should be noted that the request shall be made using the Integrated System for Information on Disasters (S2ID). S2ID is available at the address: www.integracao.gov.br/defesa-civil/s2id. Normative Instruction nº 1/2012, a user manual on the system and various video-classes with guidance for the use of S2ID are available at the same address. To request funds for response actions - rescue, assistance to the victims and reestablishment of essential services -, the federated unit shall send the Response Plan directly to Sedec - a template is available at ww.integracao.gov.br/defesa-civil/solicitacao-de-recursos. The Response Plan will be analyzed by Sedec and, in case of favorable technical opinion and availability of funds, the publication of an administrative order by the minister of National Integration authorizing the transfer of the funds will be organized. 18

5th step Using the Public Sector Service (AASP), access to which is made available by Banco do Brasil at the time when the accounts are opened (J key), the authorized representative of the cost center may: Register the card holders. Assign purchase limits to card holders. Monitor the expenses, the transactions of cost center(s) and card holders, by issuing online statements. Manage the expenses. Register new users for access to AASP. The limits granted to card holders are the responsibility of the authorized representative of the cost center. 6th step Card holders may incur expenses, within the limits of their cards, and they shall keep the bills of sale/receipts in order to render accounts later. It is important that the card holder checks, at the time of the purchase, the details of the commercial establishment stated in the voucher printed by the card terminal, to make sure that such details match those of the establishment in question. Data on the expenses will be sent by Banco do Brasil to the Office of the Comptroller-General (CGU) and published in the Transparency Portal (www.portaldatransparencia.gov.br). 19

SUMMARY CHART ACTIVITIES PERFORMED ONLY ONCE, PRIOR TO THE DISASTER 1. Create the civil defense and protection agency/entity. 2. Sign the contract with Banco do Brasil. ACTIVITIES PERFORMED PRIOR TO THE DISASTER 3. Open specific account with Banco do Brasil. 4. Send bank details - CNPJ of the account holder; name, CPF and date of birth of the legal representative; branch number, account number and the cost center number - in the CPDC Registration System in Sedec s website, for accounts opened on the initiative of the federated unit. For accounts opened indirectly, on the initiative of Sedec, the bank details will be informed to the federated units via official letter, at the time when the account is opened. OCCURRENCE OF THE DISASTER 5. Declare State of Emergency (SE) or State of Public Calamity (ECP). 6. Request recognition to Sedec via S2ID. 7. Sedec will analyze the request and, in case SE or ECP are recognized, the federated unit will be allowed to receive funds for response actions - rescue, assistance to the victims and reestablishment of essential services. 8. Request funds for response actions by means of submission of the response plan. 9. Sedec will analyze the request, in case it is approved; and, in case there is budgetary availability, the funds will be deposited into the account previously opened. 10. Use of CPDC as the exclusive means for use of the funds transferred for the response actions. 11. Monthly consolidation of invoices by Banco do Brasil and sending of data to the Office of the Comptroller-General. 12. Publishing of data at the Transparency Portal. 20

FREQUENTLY ASKED QUESTIONS 1. How does the formalization of joining occur? By means of signature of forms by the representative of the state or municipality, at the Banco do Brasil branch. 2. Does the card operate as a credit card or as a debit card? Debit card, for accounts opened after May 2013. Accounts opened before such date will have the plastic cards replaced, except for accounts that received funds and will finalize the use of the funds in the credit function for the supplier. 3. Does the card have any value available when the account is opened? No, the opening of the account is a preventive action and all accounts are opened with zero balance. 4. Will card holders be able to withdraw cash? Cash withdrawals are not allowed. 5. Is it possible to pay in installments for purchases made with the card? No, payment in installments of purchases is prohibited. 6. Is there any possibility of making transfers of funds to another account as a payment method? No, payment may only be made directly to the supplier using the appropriate equipment. 7. Is it possible to use the card abroad? No, the Civil Defense Payment Card is exclusively for use in Brazil. 21

8. Is it possible to use the card for both purchases and services? Yes, the card is the exclusive method for use of federal funds transferred for response actions. 9. After joining the CPDC and issuing the cards, are the municipalities or states required to update data? Yes, data shall be updated when there are modifications of the legal representative, of the authorized representative or of card holders. Such modifications occur mainly after elections. 10. Is it possible to use the CPDC for reconstruction of bridge damaged by a disaster? No, the card is used exclusively for funds transferred for response actions. With respect to reconstruction actions, the federated unit shall submit a work plan to Sedec, within 90 days from occurrence of the disaster - pursuant to Act nº 12.608/12. Such work plan shall include the bank details, and the opening of an account exclusively for transactions with such funds, with a federal official financial institution, is required. 11. Are the users of the card only the legal representative or authorized representative? No, any public servant appointed by the legal representative or by the authorized representative may be a card holder, and each card is for personal and non-transferable use of the card holder identified in the card. 12. How long is the card valid for? The plastic card is valid for 36 months, with renewal and automatic issuance of a new plastic card 30 days before its expiration. 13. Are the persons appointed by the government or the mayor as card holders required to have personal account with Banco do Brasil? Not, but they must be public servants or state or municipal secretaries. 14. Where are the card holders allowed to pay expenses with the card? In accredited places, based on the card s flag. 22

15. How will the expenses paid with the card be monitored by the representative of the state or municipality? Via Internet, using the Public Sector Service program (AASP), of Banco do Brasil, which is made available by the Banco do Brasil branches to states and municipalities. 16. Are there any management fees charged? No management fee is charged to the beneficiary federated unit. There is a fee charged to the supplier, negotiated contractually between the supplier and the card operator. 17. In case of sub-transfer of funds from the state to a municipality, is it possible for the state to monitor the expenses of the municipality? Yes, the state will be able to monitor the expenses incurred daily for all cost centers, by means of the Public Sector Service (AASP). 18. What is the deadline for payments to be made? Payment must be made with the card during the term of the instrument, established in the administrative order that authorized the transfer. 19. How is the rendering of accounts made? Even paying with the card, it is necessary to keep the bills of sale with CNPJ/CPF of the service provider and render accounts in accordance with the specific legislation. 20. In case of a state of emergency, is it possible for the federated unit to purchase materials without a request for tenders? The legal basis for the CPDC did not modify Act nº 8.666/93. Said Act provides on cases in which a request for tender may be waived or may not be required. In the specific case of the question asked, the request for tender may be waived, but the request for tender process has to be opened and the justification for waiver or non-requirement shall be included in such process, as well as evidence of the minimum procedures that demonstrate diligence with public expenses. 23

21. In a state of emergency or state of public calamity, is it necessary to create a disbursement commitment ( empenho ) in order to incur the expenses? The legal basis for the CPDC did not modify Act nº 4.320/64 or Decree nº 93.872/86. The card is only a payment method. When funds are transferred, the extraordinary credit for appropriation of revenue shall be opened, by means of executive decree, and from then on the all stages of the expense procedure must be observed: disbursement commitment, settlement and payment. Please note Act nº 4,320/64, in its article 60, define two types of disbursement commitment: global or by estimate; and Decree nº 93,872/86, in article 24, sole paragraph, provides: In case of urgency characterized in the legislation in force, it shall be admitted that the act establishing the disbursement commitment be made simultaneously with the expense. However, in cases of SE or ECP, in which there are demonstrable serious and irreparable risks to the population, if it is not possible to make the disbursement commitment before the expense, the expense may be incurred first and the disbursement commitment made later, informing the justification for such procedure, at the first opportunity possible. 22. In case of use of the card, after the disbursement commitment, settlement and payment, how should I proceed with respect to the bank order? For government entities that use computerized system for budget and finances, the bank order may be generated in the system. However, it shall not be sent to the bank, as the payment has already been made using the card. 23. What should be made with the remaining balance not used? The balance shall be returned, using a GRU [Collection Form - Federal Union], together with income generated by the financial investment. 24. What are the advantages of the card? Identification of the card holder as public agent. 24-hour Call Center. Monitoring of the expenses using Banco do Brasil s service. Security. Transparency. 24

25. How will the expenses made with the card be controlled? The legal representative/authorized representative of the government entity and the card holder may control the expenses by means of the monthly statements received via postal service and online, in the Public Sector Service. 26. How to proceed for payment of social rent, boatman or water truck providers? For payments to individuals, as payment of social rent, boatman or water truck providers, a payment solution was developed using the Benefit Payment Card (CPDC), which works as follows: The municipal or state agency for civil defense and protection contacts the Banco do Brasil branch (with which it has already executed the Proposal for Joining the CPDC) and requests, via official letter, the opening of an agreement for payment using the Benefit Payment Card (CPB), informing the purpose (payment of social rent, boatman or water truck provider) and also informing that the origin of the funds for payment of the benefit is the Civil Defense Payment Card (CPB). It is important to emphasize that, for each purpose, a specific agreement shall be executed for payment using the CPB. Concerning the CPB, it should be noted that the registration of beneficiaries, the generation of payment cards and the sending of credits to the cards shall all be made entirely by electronic means. For such purpose, the bank shall make available, free of charge, a specific application for generation, transmission, receipt and treatment of files to be exchanged between Banco do Brasil and the person executing the agreement. The debits related to CPB files for payment of social rent, boatmen and water truck providers will be shown in the CPDC statement. Once they have their card, the beneficiary of the payment intended for social rent, boatman or water truck provider may withdraw the funds at any bank terminal of Banco do Brasil or use their benefit making purchases in the debit function in the accredited network. 25

27. How to proceed for payment of taxes and return of funds by means of GRU? The payment of Darf and GRU with bar code may be made using Banco do Brasil s Internet service, in the webpage of Public Sector Service (AASP), with the user s key and password. In the upper bar of the menu, when selecting the option Management of Funds, a new sub-menu will open, where you will find the option Payments. Selecting the option Payments, a new menu will open on the left side of the ASP screen, with the first option being the item With bar code. Clicking in the item With bar code, the options for payment under agreements will be shown: Darf (5th option) and GRU (7th option) are among such options. Selecting any one of the two options, a screen will appear for entering payment details (Payment Options: select Charge to credit card ; enter the 16 numbers of the CPDC s plastic card; number of installments: 1; enter the bar code of the Darf or GRU, as applicable). More information and guidance may be obtained at the Banco do Brasil branch. 26

GLOSSARY: Public Sector Service (AASP) Service channel, via Internet, developed by Banco do Brasil exclusively for public sector clients. It integrates financial solutions, bank transactions and management in one environment. Cost Center Internal sub-division in the cards registration structure, used for distribution of usage limits to beneficiaries. In principle, each account shall have only one cost center. In case the state sub-transfers funds to a municipality, the account will have one cost center for the state and one for each municipality receiving sub-transfers. J Key Numerical code that grants access to the Public Sector Service for management and monitoring of the funds transacted with the card. The J key is an access code used with a password. The J Key is created at the Banco do Brasil branch of the public entity or by the authorized representative, when registering the cost center. MI Ministry of National Integration. Instrument Number Number that identifies the transfer of fund in the scope of Siafi, informed by the Ministry of Integration. There may be various remittances of fund with the same number. The identification with such number characterizes the direct transfer from the Federal Union to municipalities or states. Sub-instrument Number This is the Siafi code of the municipality. It shall be informed to Banco do Brasil by the state when it chooses to sub-transfer the funds received from the Federal Union. Card holder Public servant or holder of position of municipal/state secretary, authorized to pay expenses with the card. Authorized Representative This is the person authorized by the legal representative, who is responsible before Banco do Brasil for the opening of the account, for the registration of the cost center, for the limit of the cost center and for permissions for transactions made by the government unit. The Authorized Representative may register and exclude card holders for the entire unit and establish limits for card holders. Legal Representative This is the person that orders the expenses of the federated unit, the mayor or state governor, who may appoint an authorized representative. Sedec National Department for Civil Defense Sinpdec National System for Civil Defense and Protection 27

DOUBTS/INFORMATION Banco do Brasil Ombudsman: 0800 729 5678 Call Center in Brazil: 0800 979 0909 Public Sector Service (AASP) Technical Support: 3003-0500 (capitals and metropolitan regions) and 0800 729 0500 (other locations) www.bb.com.br/governo LEGISLATION Act nº 12,340, of December 10, 2010: www.planalto.gov.br/ccivil_03/_ato2007-2010/2010/lei/l12340.htm Decree nº 7,257, of August 4, 2010: www.planalto.gov.br/ccivil_03/_ato2007-2010/2010/decreto/d7257.htm Decree nº 7,505, of June 27, 2011: www.planalto.gov.br/ccivil 03/Ato2011-2014/2011/Decreto/D7505.htm MI Administrative Order nº 607, of August 18, 2011: www.defesacivil.gov.br/recursos/transferencia.asp MI Administrative Order nº 37, of January 31, 2012: www.defesacivil.gov.br/recursos/transferencia.asp MI Administrative Order nº 274, of July 3, 2013: www.defesacivil.gov.br/recursos/transferencia.asp 28

ANNEX I Step by step guide for entering bank details in the CPDC Registration System, required in cases of accounts opened directly by the entity. In case it is the first time that the person making the registration accesses the system, they must click on New User. At this first moment, it is not necessary to inform the password. 29

1st Enter the data requested. 2nd Inform an email address to which the password generated by the system will be sent. 3rd After entering the data of the person making the registration, click on Create and the system will send a password to the email address informed. 4th After receiving the password, access the system again, using your CPF and the password received. 5th Click on Log-in. 30

6th Click on Joining Registration. 7th Enter the CPDC account details. 31

ANNEX II Relevant tax law aspects IT IS IMPORTANT that the persons responsible for the use of the funds obtain information from the state/municipal finance departments, or equivalent bodies, concerning tax withholding and payment of taxes. In view of the complexity of the subject matter, and considering that CPDC does not modify, in any way, any tax provision, see below some notes. Tax withholding: Payment to legal entity: ü Social Security withholding - INSS. ü There are no withholdings for the Federal Revenue Service - IRPJ, Pis-Pasep, Cofins and CSLL. ü ISS Withholding - depends on municipal legislation. Payment to individuals: ü Social Security withholding INSS + INSS Charge Payable by Employer. ü IRPF withholding. ü ISS Withholding - depends on municipal legislation. 32

Legal basis: INSS Withholding Act nº 8,212/91, Decree nº 3,048/99, Act nº 10,666/2003, IN RFB nº 971/2009, Inter-ministerial Administrative Order MPS/MF nº 15, of January 10, 2013. Income tax withholding RIR nº 99, Decree nº 3,000/1999, Act nº 11,482/2007, Act nº 12,469/2011, IN RFB nº 1,215/2011, IN SRF nº 480/2004, IN SRF nº 971/2009, Normative Instruction RFB nº 1,142, of March 31, 2011. ISS withholding Supplementary Act nº 116/2003 and Municipal Tax Code, rate from 2% to 5% on the value of the service. 33

Office of the Comptroller General Ministry of National Intregation BRAZILIAN GOVERNMENT