BOLSA FAMÍLIA PROGRAMCASH TRANSFER PAYMENTS

Abuja, October 21st, 2009

BOLSA FAMILIA - BASIC FLOWSMinistry of Social

Development (MDS)

Municipalities

Caixa(Federal Bank)

1. 5.564 municipalities registry potential beneficiaries based on geographic quotas

2. MDS determines eligibility

3. CEF pays directly to beneficiaries

REGISTRY, GENERATION OF CARDS REGISTRY, GENERATION OF CARDS AND PAYMENTSAND PAYMENTS

Registring of Beneficiaries Generating payroll list and electronic card

MD

SFA

MIL

IAPR

EFEI

TUR

ACA

IXA

Define Políticas eDiretrizes

Atribui NIS e envia arquivo

retorno

Apropria naBase Local

Envia dados

Digitadados

famílias

CADUN

ExtraiDados

Famílias

Informahabilitados

por UFe Município

Aplica regrase identificahabiliitados

GeraFolha

SIPAS

SICIDGera

Cartão

Busca valorbenefício

MANAGEMENT OF BENEFITSMANAGEMENT OF BENEFITS

Reflete nobenefício

disponibilizadoSIPAS

Management of Benefits Regular payments

MD

SFA

MIL

IAPR

EFEI

TUR

ACA

IXA

Define regraspara manutenção

do benefício

DisponibilizaSistemas

SIBES

Alterasituação do Beneficio

(ON LINE)

SIBES

Busca valorbenefícioBloqueia,

desbloqueia, cancela, reverte cancelamento

Payment processPayment process• Municipalities register poor families•After quality analysis, registered families are validated to receive benefits prioritizing according to income per capita•Prioritization made by the Federal Government through an information system .• Once benefits are defined, payment cards are generated and sent to beneficiary families through mail.•Beneficiary families are included in the payroll list for payment and verification of compliance•Families receive a payment calendar• MDS disburse funds to payment agency to pay benefits •Municipalities monitor co-responsibilities through an information system

Withdrawal of benefitsWithdrawal of benefits• Families withdraw benefits using an electronic card• It serves as an identification document of

enrollment in the BFP • It takes up to 4 months for a family to receive its

electronic card but the goal is reducing the time in half

• Main causes of slow disbursement of electronic cards: • Problem with families’ addresses• Families’ mobility• Inefficiencies in handling and

activation of cards

•The CEF, a public federal bank is the payment agent of BFP•The CEF is responsible to struture, managament and updating the database of the registry of beneficiaries and execute payment routines following the guidelines of the Ministry of Social Development.

The Caixa Economica Federal The Caixa Economica Federal (Payment Agent)(Payment Agent)

• Provide the required infrastructure and organization to manage the Cadatro Único• Develop information systems for data processing• Organize and carry out payment logistics• Prepare reports for payment reconciliation

Responsibilitis of CEF as payment agentResponsibilitis of CEF as payment agent

7.482

5.569

24.3691.125

Fonte: CAIXA

Total: 38.545

• Official Caixa Economica bank agencies and branches

• Lottery ticket outlets, which, in Brazil, also perform several financial transactions

• Commercial establishments authorized by Caixa to perform financial transactions; must display the “Caixa Here” sign.

• Automated Teller Machines (ATM) connected to Caixa's network under another bank's supervision.

Outlets to cash benefitsOutlets to cash benefits

Bolsa Familia Program Bolsa Familia Program PaymentsPaymentsPayment Amounts: 9.9 million (February 2009)

Pagamentos por Canal 1% 12%

62%

12%

13%

Agência Auto-AtendimentoUnidade Lotérica Correspondente CAIXA AquiCrédito em conta

BFP seeks to open accounts to 5 BFP seeks to open accounts to 5 million familiesmillion families

4.233

295.429

579.547

601.010

548.597

623.887

1.045.034

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

Mar. Jun. Jul. Ago. Set. Out. Nov.

PBF'S PAYMENT PBF'S PAYMENT EFFECTIVENESSEFFECTIVENESS(2003 TO MARCH 2009)(2003 TO MARCH 2009)

Payment process: Oversight and Payment process: Oversight and ControlControl

• Internal:• Quality tests (spot checks) to the Cadastro Unico database• Cross checks with other Federal Government databases• Audits to identify multiple identities• Incentive to update Cadastro Unico• Monitoring program coverage

• External:• Social Control at local level• Oversight and control at Federal level

Current Logistic Challenges Current Logistic Challenges Regarding Payment of BenefitsRegarding Payment of Benefits

• In the region covered by the Amazon Forest there is a pressing need for expansion of payment channels available to the families

• About 5% of beneficiaries can not withraw their benefits either because they do not receve their card or because there is not available payment point at a reasonable distance

• Using the BFP to promote banking inclusion, creating more than 1.4 million checking accounts by beneficiaries in less than a year (2009)

• Teaching families about financial matters in order to empower them how to use their benefits in the most effective manner