B OLSA F AMÍLIA P ROGRAM C ASH T RANSFER P AYMENTS Abuja, October 21 st, 2009

B OLSA F AMILIA - B ASIC FLOWS Ministry of Social Development (MDS) Municipalities Caixa (Federal Bank) municipalities registry potential beneficiaries based on geographic quotas 2. MDS determines eligibility 3. CEF pays directly to beneficiaries

R EGISTRY, GENERATION OF CARDS AND PAYMENTS Registring of Beneficiaries Generating payroll list and electronic card

M ANAGEMENT OF B ENEFITS Management of BenefitsRegular payments Bloqueia, desbloqueia, cancela, reverte cancelamento

Payment 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 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 (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 agent

Fonte: CAIXA Total: 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 benefits

Bolsa Familia Program Payments Payment Amounts: 9.9 million (February 2009)

BFP seeks to open accounts to 5 million families

PBF' S P AYMENT E FFECTIVENESS (2003 TO M ARCH 2009)

Payment process: Oversight and Control 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 Regarding 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