What is it Transfer Bottom The Bottom and why it is the most suitable mechanism for Raising Funds for Small Non-Profit Institutions
The first thing we need to do is try to demystify federal budget legislation. Indeed, the legislation that regulates the General Budget of the Union, I will henceforth use the acronym OGU, is not so easy to understand because of its complexity, size, the many linked infra-constitutional legislations and mainly because, as it is a huge annual budget, the legislations end up not being able to cover all the technical details, despite the legislations being They put a lot of effort into trying to specify all the details and technical intricacies in these legislation, which actually ends up confusing more than actually explaining and clarifying.
But well, if YOU DON'T WANT TO READ THE WHOLE TEXT You can stop at the following two paragraphs, which contain the entire explanation of why the TRANSFER Bottom A Bottom is the simplest transfer for ORGANIZATIONS OF Civil society – OSCS, NON-PROFIT.
Our theme here is specifically the Transfer Bottom The Bottom and because this system constitutes the most appropriate mechanism for Fund-raising for Small Non-Profit Institutions? And more information BASIC is: because it is SIMPLER MECHANISM in resource transfer of Federal Public Power to the Organizations of Civil society – CSOs, Non-Profits.
He is SIMPLER, because it is a resource decentralization mechanism governed by specific laws that are characterized by the TRANSFER DIRECTLY, between different governmental bodies, WITHOUT REQUIRING THE CELEBRATION OF AGREEMENTS, i.e, IDEPENDS ON CELEBRATION OF AGREEMENT, ADJUSTMENT, AGREEMENT OR CONTRACT. That last sentence is the CAT LEAP, is the key to understanding why the Transfers from Bottom The Bottom are so interesting for CSOs. It is a transfer of resources that does not require the formalization of a Health insurance.
READY, THAT'S ENOUGH, IF YOU DON'T WANT IT, YOU DON'T NEED TO READ ANY MORE. THIS IS THE CORRECT ANSWER, but if you want, feel free.
And what is necessarily a Health insurance? One Health insurance is an agreement signed between a public administration entity federal and a state, district or municipal public entity of the direct administration or indirect or private non-profit entities, for achievement of objectives of common interest between participants (called participants).[1] They are not equipped with legal personality, as they depend on the will of each person and are not binding, that is, they do not lead to legal obligations.[1] At the federal level, the topic is partially regulated by the Decree No. 6,170/2007, which deals exclusively with onerous agreements. Matter is also regulated by Ordinance No. 127/2008 which gives other details from the perspective of National treasure.[1] The formation of a Health insurance is one of the possible ways of regulating the transfer of financial resources from allocations allocated to the Tax Budgets and from Union Social Security. [1]
Well, returning to our subject, the Special Funds were disciplined by Law No. 4,320/64, it's old, correct? but it is still the norm that regulates the Financial Law in the preparation and control of budgets and balance sheets of the Union, the States, the Municipalities and the Federal District, and, the Title VII of this legislation, provides for the Special Funds. Among other things the Art. 71 This title provides the following:
” constitutes Bottom Special O Product of specified revenues that by law are linked to achievement of certain objectives or services, allowing for the adoption of specific application standards.”
In this case, creating a Bottom Special depends on a law. Today there are several types of special funds, the most famous are: Bottom of Participation of States and the Federal District – FPE, Bottom of Participation of Municipalities – FPM, Bottom of Maintenance and Development of Basic Education and appreciation of Education Professionals – FUNDEB, Bottom National Health – FNS, and perhaps, a lesser known one, the Bottom National Social Assistance – FNAS.
In this text, I will focus mainly on three funds, health, education and social assistance, each with its own legislation and particular rules. I want to avoid being too technician, but it turns out that, to try to clarify, we end up being too wordy making the same mistakes that I reported at the beginning of this article, in relation to legislators who, due to the need to explain themselves too much, end up filling the sausage, so to speak.
Bottom of Maintenance and Development of Basic Education and appreciation of Education Professionals – FUNDEB
Initially, with the promulgation of the 1988 Constitution, no less than 18% of tax revenues (including transfers), in the case of the Union, and 25%, in the case of States, the Federal District and Municipalities, are linked to Education, in accordance with the provisions of art. 212 of the Magna Carta, and at least 50% of these resources should be allocated to eliminating illiteracy and universalizing primary education. However, this sub-destination, so to speak, has undergone modifications.
With the Amendment Constitutional No. 14/1996, the percentage and allocation of these resources were changed to take effect from 1997 The 2006, so that no less than 60% of the resources linked by the art. 212 of CF/88 began to be reserved for the maintenance and development of elementary education, with the aim of ensuring the universalization of its service and the Remuneration worthy of teaching, its distribution being ensured through the creation of the Bottom of Maintenance and Development of Elementary Education and Valorization of Teaching (FUNDEF).
FUNDEB, Bottom National Health – FNS
Established by Decree No. 64,867, on July 24, 1969, as a Bottom Special, O Bottom National Health – FNS and the Manager financial resources allocated to the Unified Health System – SUS, at the federal level. With the mission of contributing to the strengthening of citizenship, through continuous improvement in the financing of health actions, the Bottom National Health Search, on a daily basis, create mechanisms to make information available to the entire society, regarding costs, Investments and financing under the SUS.
Based on its institutional mission, the Bottom National Health prepared, in 2011, its Value Chain, reformulated for the Management Cycle 2016-2019.
The Value Chain represents the institutional identity of the FNS. The activities of this Administrative Unit are developed based on the assumptions of the Value Chain and the structuring axes of the Program management of Innovation – PGI, established by Ordinance MS/SE No. 819, of August 9, 2011.
The management of resources FNS is exercised by the executive director, under the guidance and supervision of the executive Secretary of Ministry of Health, observing the National Health Plan and the Annual Planning of the Ministry of Health, in accordance with the standards defining the Annual Budgets, of Budget Guidelines and Multi-Year Plans.
The Executive Board is responsible for planning, coordinating, developing and controlling the budgetary, financial and accounting execution activities of the Bottom National Health Service, including those carried out by decentralized units.
The execution of resources is carried out, at a central level, through the Management Unit of Executive Board of Bottom National Health and management units created alongside the technical areas from the Ministry of Health. All resources pass through a single account Bottom National Health in line with the constitutional precept of application of resources allocated to public health actions and services through Bottom of health.
The resources managed by FNS are intended for finance current expenses it's from capital of Ministry of Health, its bodies and entities of direct and indirect administration, members of the SUS.
The resources allocated to the FNS are also intended for transfers to the States, the Federal District and municipalities, so that these federative entities carry out, in a decentralized manner, health actions and services, as well as Investments in the service network and in healthcare and hospital coverage, within the scope of SUS. These transfers are carried out in the following ways: Bottom The Bottom, Agreements, Transfer Contracts and Cooperation Terms.
They make up the recipe for FNS, 45% of the resources of DPVAT insurance, as established in the Decree No. 2,867/1998, and on Law No. 8,212/91, aiming to provide care to accident victims in hospitals within the network SUS.
These resources are incorporated into the budget of the FNS in functional Medium and High Complexity programmatic. It also makes up the recipe for FNS the reimbursement made by health plan operators regarding health care services provided, provided for in the contracts of consumers and their respective dependents carried out in public or private institutions, affiliated or contracted, members of the SUS, in accordance with the Law No. 9,656/98. This recipe is also incorporated into programmatic functional of Medium and High Complexity.
A Amendment Constitutional nº 29/2000 it's the law Supplementary No. 141/2012 that regulated it, provide that the resources of the States, the Federal District and the Municipalities, destined to public health actions and services and those transferred by the Union for the same purpose will be applied through Bottom of health, which will be monitored and inspected by Health Council.
O Bottom of health It is a type of resource management of a financial and accounting nature. The Federal Revenue of Brazil published the Normative Instruction No. 1,005/2010, which provides for procedures relating to the National Register of Legal Entities – CNPJ.
This normative instruction presents new codifications for the public funds, and also provides, in its Article 11, Item X, that public funds of a purely accounting nature are required to register with the CNPJ.
A Organic Health Law – Law No. 8,080/1990 – and the Law that regulated intergovernmental transfers of financial resources in the health sector – Law No. 8,142/1990 – establish that the financial resources of the Unified Health System – SUS They will be deposited in a special account, in each sphere of activity, and moved under the supervision of the respective Health Councils.
A Law no. 8,142/90 establishes that the Health Council is responsible for controlling the implementation of health policy in the corresponding instance, including economic and financial aspects. It also provides that, to receive the resources referred to in Article 3 of this Law, municipalities, states and the Federal District must have: (…) I – Bottom of health.
Strengthening principles emanating from legislation, Arts. 1st and 2nd of Decree No. 1,232/1994 establish that the transfer of resources, intended to cover health services and actions, is conditioned on the existence of Bottom health plan and the presentation of a health plan approved by the respective health council, which includes the Counterpart of resources in the state, Federal District or municipal budget. The requirement for maintenance and operation of health funds is also present in the operational standards of the SUS.
When defining how to finance hospital and outpatient care, the Basic Operational Standard (NOB/SUS No. 1/1996) conceptualizes regular and automatic transfer, Bottom The Bottom, such as the modality that consists of transferring values directly from the Bottom National Health Fund to state and municipal health funds, regardless of agreements or similar instrument, according to the established management conditions.
A NOB/SUS No. 1/1996 and the Health Care Operational Standard - NOA No. 1/2002, when dealing with the criteria for qualifying states and municipalities for the management conditions of the SUS, maintain the requirement for proof of operation of the Bottom municipal or state health system, through the presentation of instruments to the process.
Bottom National Social Assistance – FNAS
A Basic Operational Standard of the Unified Social Assistance System (NOB-SUAS/2012) presents social assistance funds as instruments for the budgetary and financial management of the Union, the States, the Federal District and the Municipalities. Income and expenses related to the set of social assistance actions, services, programs, projects and benefits must be allocated.
Its management is the responsibility of the public administration body responsible for coordinating the respective policy. Always under the guidance and control of the Social Assistance Council.
With the aim of providing greater Transparency in the identification and control of the accounts linked to them, without characterizing administrative and management autonomy, the NOB recommends that they be registered in the National Register of Legal Entities (CNPJ), as Headquarters, in accordance with the Normative Instructions of the Federal Revenue of Brazil in force.
A Law No. 4,320, of March 17, 1964, order General Standards of Financial Law to prepare and control the budgets and balance sheets of the Union, the States, the Federal District and the Municipalities. In your article 71, it defines what constitutes Bottom Special O Product of specified revenues that by law are linked to the achievement of certain objectives or services, allowing for the adoption of specific application standards.
Therefore, funds are important financial management tools to carry out value transfers with the intention of achieving an already stipulated purpose.
It is good to remember that the Constitution of the Federative Republic of Brazil of 1988 (CF/88), through article 167, item IX, prohibits the institution of funds of any nature without prior legislative authorization.
A Transfer Bottom The Bottom It is a resource decentralization mechanism governed by specific laws that are characterized by the transfer of resources directly between different government bodies, without requiring the signing of agreements.
Bottom National Social Assistance (FNAS)
A Organic Social Assistance Law – LOAS, Law No. 8,742, of December 7, 1993, establishes the FNAS, regulated at that time, by the Decree No. 1,605, of August 25, 1995, which through the changes generated by the Law No. 12,435, of July 6, 2011, was revoked with the ratification of the Decree No. 7,788, of August 15, 2012.
O Decree No. 7,788/2012 created the alternative for financing social assistance to occur through Financing Blocks, which allow greater flexibility in the use of money and facilitate financial management.
In line with item 30 from the LOAS, it is known that there are conditions for the transfer of resources from the Union to other entities, which are the effective institution and operation of:
- Social Assistance Council, with equal composition between government and Civil society;
- Bottom Social Assistance, with guidance and control from the respective Social Assistance Councils;
- Social Assistance Plan;
- Budgetary proof of own resources allocated to Social Assistance, allocated in their respective Social Assistance Funds.
- Transfer of resources in the modality Bottom The Bottom
Before anything else, it is important to highlight that LOAS outlined the basis of the resource transfer system in the modality Bottom The Bottom. Regardless of the celebration of Health insurance, adjustment, agreement or contract. However, this process was only consolidated after the promulgation of Law No. 9,604, of February 5, 1998. Once again in this item, I can reiterate that there is a big deal for the transfer of resources to the CSOs.
Social assistance is organized based on political-administrative decentralization and single command of actions in each governmental field; in the participation of the population and the primacy of the State's responsibility in conducting politics.
As a result of this reality, the actions of the spheres of government are carried out in an articulated manner and financial management is no exception. The management model designated by the Unified Social Assistance System – SUAS provides for shared financing between the Union, the States, the Federal District and the Municipalities, made possible through regular and automatic transfers between social assistance funds.
O single paragraph from the article 30-A from the LOAS, clarifies that the automatic transfers of resources between social assistance funds made to the social security budget account, in accordance with the article 204 of CF/88, are characterized as Public Expenditure with social security.
In the meantime, the mandatory allocation of resources is observed, which must be used to operate, provide, improve and enable comprehensive services, programs, projects and benefits. Without failing to consider the priorities established in the social assistance plans approved by the relevant councils. As well as the allocation of their own resources by the respective state entities so that they can fulfill their responsibilities provided for in that same legal provision.
Aware that it is up to all federative figures to implement social assistance funds and list transfers in the modality Bottom The Bottom, there is the discernment that both the own treasury and those received from other layers of government must be allocated and executed in the budgetary unit of the Bottom of assistance from the relative territory.
Expenses incurred with financial capital received in this way must meet legal requirements regarding processing, commitment, Sale off and implementation of the Payment, maintaining the respective administrative and tax documentation for the legally required period. Soon, it is worth highlighting that monitoring regarding the execution of resources occurs at three levels, namely: inspection by control bodies, analysis of accountability by the Manager Federal and social control.
The benefits made possible by social assistance funds
Based on everything we saw, we can claim that the funds effect the following positive points:
- They concentrate the resources to be used to achieve the social assistance objectives set out in the LOAS through regular and automatic transfers;
- Simplify work processes;
- Improve the control and evaluation of services and actions;
- They allow the reprogramming of balances and the non-return of these at the end of the year to the Union;
- They help advance the process of political-administrative decentralization;
- They provide opportunities for the implementation of a single command in each sphere of government;
- They enable shared financing in SUAS;
- Strengthen Social Control;
- Improve expense verification processes;
- They provide publicity for social assistance expenditures;
- They facilitate monitoring of actions and inspection of spending by the population, social assistance councils and local, state and federal managers.
Therefore, it is clear that funds play an essential role in the evolution of social assistance policy, as they provide means for transparent and rationalized management of resources. Furthermore, it expands the possibilities for popular participation, leveraging the scope of effective promotion of social protection, social assistance surveillance and the defense of rights.
Another clarification that is necessary is that each institution of the Organizations of Civil society Non-profit, he must RAISE FUNDS in your PRIMARY AREA OF ACTIVITY, that is, where more than 60% of your expenses are linked, health education or social assistance. This aims to ensure that the linking of the resource adheres to the main objectives of the institution and the transfer occurs without any hitches or with the lowest possible friction limit.
CONCLUSION
OK, so, all of this was said to clarify that, transfers Bottom The Bottom is the system for transferring resources from federal public power to organizations in the Civil society non-profit, easier to carry out as they do not require any Counterpart sick Convenient (OSCs)¸ not even creating a Project or proposal to be approved and transferred, with some exceptions.
Furthermore, regarding this matter, if there are still doubts, and perhaps they have actually increased, please call me at my Whatsapp and I will be pleased to provide any and all clarifications. And, if I don't know how to answer, I will look for the appropriate techniques and legal guidelines to guide them.
Success to all.
