Since 1 January 1999 the currency of the national monetary system is the euro, as this currency is defined in Council Regulation (EC) No 974/98 of 3 May and in Law 46/1998 of 17 December on the introduction of the euro. of the euro.

These rules provide for a transitional period until 31 December 2001 during which the peseta may be used as a unit of account for the monetary system in any legal instrument. Therefore, during this period, the peseta and the euro will co-exist as units of account of the monetary system.

This duality of account units raises the need for a set of rules to regulate the accounting obligations of public subjects in this period. Taking into account that the regulatory norms of the accounting obligations of the business public entities are established by the Government, it becomes necessary to regulate in this norm the accounting obligations of the State entities subject to the Plan General of Public Accounting.

The institution of the budget for public administrations has a legal value that is not given in the budgets of the business public.

In this sense, budgetary appropriations are subject to the principle of both quantitative and qualitative specialisation, that is to say, they are of a restrictive and binding nature, as set out in Article 59.2. of the recast text of the General Budget Law.

Taking into account the importance that the budgetary institution has in those public entities subject to the General Public Accounting Plan, it is logical that the accounting records and the annual accounts to be drawn up for these entities are expressed in the same unit of account in which their respective budgets are approved. For this reason, this rule conditions the performance of the accounting records and the compilation of the annual accounts of these accounting subjects in euros for the approval of their budgets in the said unit of account.

According to the above, it is established that, during the transitional period of the introduction of the euro as a single currency, the entities subject to the General Public Accounting Plan and included in the scope of the This rule shall bear its accounts and draw up its annual accounts in the unit of account in which its budgets are approved. As soon as the General Budget of the State is drawn up in euro, and in any event as from 1 January 2002, all entities within the scope of this Ministerial Order shall keep their accounts and draw up their accounting information exclusively in euro.

The accounts are also defined to be issued to the Court of Auditors which will be expressed in euro during the transitional period of its implementation, in accordance with the authorisation given to the Minister for Economic and Financial Affairs in the the second final provision of Law 46/1998 of 17 December on the introduction of the euro.

During the transitional period the expenditure files may be processed in both pesetas and euro, which implies the need to regulate those situations where the unit of account for the processing of an item does not coincide. file with the approval of the budget.

The text also regulates the effects that the duality of account units during the transitional period will have on accounting and accounts to be held by the paying cashiers.

Finally, an additional provision amending the General Plan for Public Accounting, approved by the Order of the Ministry of Economy and Finance of 6 May 1994, in which it is reviewed, is incorporated into this Order. the accounting treatment of the provisions of funds for the benefit of the paying agents and the paying teller and the accounts necessary for the recording of the rounding differences occurring as a result of the conversion operations.

In its virtue, on the proposal of the General Intervention of the State, in agreement with the State Council and in use of the powers granted to this Ministry by Article 125 of the recast text of the General Budget Law and the paragraph one of the second provision of Law 46/1998, of 17 December, on the introduction of the euro, I come to have:

First. Scope of application. The rules contained in this Order are applicable to the General Administration of the State, its Autonomous Bodies and all entities integrated in the State Public Sector that are to be accountable under the General Plan. Public Accounting.

Second. Unit of account in which the accounting records are made and the accounting information is expressed.

1. During the transitional period for the introduction of the euro, the accounts of the entities incorporated in the scope of this Order must be kept in the unit of account in which their respective budgets are approved.

2. During the transitional period, the documents to be used as a support for the accounting records of transactions shall be completed in the unit of account in which the budget of the accounting institution is expressed.

The General Intervention of the State Administration shall regulate the rules for the completion, content and format of the accounting documents of the General Administration of the State for adaptation to the transitional period of introduction of the euro.

3. The annual accounts to be paid to the Court of Auditors shall be expressed in the same unit of account in which the budgets of the respective accounting entities are approved.

As long as the budgets are drawn up in pesetas, each of the states relating to the Public Debt will contain the information in pesetas and in euros.

The annual accounts for those financial years in which the budgets have been approved in pesetas shall also include the following statements expressed in euro for their surrender to the Court of Auditors:

Situation Balance.

Account of the economic outcome.

Budget Settlement Status. Summary.

The Balance Sheet and the Economic Outcome Account shall, in any case, include the figures for the preceding financial year in euro.

4. In the field of the General Administration of the State, the information in euro referred to in the preceding paragraph shall be drawn up only for the Account of the General Administration of the State governed by Rule 83 of the Accounting Instruction for the General Administration of the State.

The summary of the budget settlement state will present the same structure and content as the one set out in the Accounting Instruction for the General Administration of the State with the following level of disaggregation:

For the settlement of the expenditure budget, information shall be drawn up by section, by function and by chapter.

For the settlement of the revenue budget, the information will be prepared by chapters.

5. In the Institutional Administration of the State and in the other integrated entities within the scope of this rule, the summary of the State of the settlement of the budget shall present the same structure and content as the one prepared in pesetas with the next level of unaggregation:

For the settlement of the expenditure budget, the information by functions and chapters shall be drawn up.

For the settlement of the revenue budget, the information will be prepared by chapters.

6. In all the reports expressed in euro, obtained from the accounting records in pesetas by applying the fixed conversion rate and the rounding rules provided for in Law 46/1998 of 17 December on the introduction of the euro, differences may arise, as a result of the conversion and rounding procedure, for the same accounting state, between the information derived from the same statement in pesetas and in euro.

The following caption must be shown in these reports:

"EUR amounts obtained in accordance with the provisions of the Order of the Ministry of Economy and Finance of 18 February 1999."

7. The General Intervention of the State Administration will dictate the instructions necessary to regulate what information, which is not given to the Court of Auditors, should be prepared in euros.

Third. Operation to be followed in the expenditure files processed in unit of account other than that in which the budgets are approved.

1. Where, during the transitional period, expenditure is incurred in a unit of account other than that of approval of the institution's budget, the accounting-budgetary follow-up of all stages of the processing of the expenditure file shall be be performed on the same unit of account in which the budget was approved.

2. Where administrative acts are issued in a unit of account other than that in which the budget is expressed, together with the amount of the act, in the unit of account used for its preparation, the amount of the act shall be shown in the unit of account in which the budget is expressed.

3. The General Intervention of the State Administration shall dictate the instructions necessary to regulate the operation to be followed in the processing of the expenditure files referred to in the preceding paragraphs.

Fourth. Accounting imputation of the rounding differences. The differences that are generated by rounding in the conversion regulated in Law 46/1998 of 17 December on the introduction of the euro shall be collected in the accounts of the financial year in which they originate, in accordance with the instructions to the effect dictate the General Intervention of the State Administration.

Fifth. Accounting imputation of the differences of exchange. In accordance with the provisions of the thirteenth valuation rule contained in the fifth part of the General Plan for Public Accounting, approved by the Order of the Ministry of Economic Affairs and Finance of 6 May 1994, the differences in change from In the case of transactions in the currencies of participating States, they were to be read on 31 December 1998, with the disappearance of any fluctuation with these currencies, in recognition of the economic and financial result at that time.

The exchange rate to be considered for calculating such differences shall be the irrevocable conversion rate defined with effect 1 January 1999.

Sixth. Effects on the states to be paid or to be drawn up by the paying agencies or boxes.

1. During the transitional period for the introduction of the euro, the accounts of the paying agents must be kept in the same unit of account in which the budgets of the entities to which they are assigned are approved.

2. The General Intervention of the State Administration shall dictate the precise instructions for adapting the accounts of the payment boxes and the models of accounts supporting the effects of the introduction of the euro.

Additional disposition first.

By way of derogation from point 2 of the second paragraph, the Social Security may also fill in euro the supporting documents used for the accounting records of its operations while its budgets are approved in pesetas. In this case, the appropriate mechanisms must be available for automatic conversion to pesetas, to all the effects foreseen in this Order.

Additional provision second. Amendment of the General Public Accounting Plan.

The following modifications are approved in the General Plan of Public Accounting, approved by the Order of the Ministry of Economy and Finance of 6 May 1994:

1. Account 441 "Debtors for provisions of funds to be justified" is deleted.

2. Account 558 shall be referred to as 'Provisions of funds for payments to be justified and fixed cash advances' and shall have the accounting definition and relationships set out in the Annex to this Standard.

3. The account 570 "Box" is broken down in the sub-accounts 570.0 "Box" and 570.8 " Box. Provision of funds " which shall have the definitions and accounting relationships set out in the Annex to this Standard.

4. The account 575 " Banks and credit institutions. Payment restricted accounts " shall have the accounting definition and relationships set out in the Annex to this Standard.

5. Account 669 'Other financial expenditure' is broken down in sub-accounts 669.8 'Expenditure on differences arising from the rounding of euro' and 669.9 'Other financial expenditure', which shall have the accounting definitions and relationships set out in the Annex to the this rule.

6. Account 769 "Other Financial Income" is broken down in sub-accounts 769.8 "Income from differences arising from the rounding of euro" and 769.9 "Other financial income", which shall have the accounting definitions and relationships set out in the Annex of this rule.

Additional provision third.

For the application of the additional provision of this Order, the affected entities must make the following adjustments:

(a) Account 441 "Debtors for provisions of funds to be justified" shall be cancelled by transferring their balance to the following accounts:

To account 5585 "Bookings for the provisions of funds outstanding", for the amount of the bookings issued for "payments to justify" that are pending entry into the current account restricted payments.

To account 575 " Banks and credit institutions. Payment restricted accounts ", for the amount of the" payments to justify " bookings, entered into the current account restricted payments, which have not yet been paid to the final creditors.

To sub-account 5580 "Provisions of funds outstanding to justify", for the amount of the bookings for "payments to justify" satisfied to the final creditors and in respect of which the approval is pending supporting account.

(b) The balance of the account 558 "Fixed cash advances to be replenished" shall be transferred to sub-account 5580 "Provisions of funds outstanding to justify".

Final disposition.

This Order shall enter into force on the day following its publication in the Official Gazette of the State with effect from 1 January 1999.

Madrid, 18 February 1999.

HANGING OUT AND FIGAREDO

ANNEX

Definitions and accounting relationships of accounts and sub-accounts that are created or modified in the General Public Accounting Plan

558. Provisions of funds for payments to be justified and fixed cash advances

Collects, through its divisionaries, the following situations in which funds can be found for "payments to justify" and "fixed cash advances" issued in favor of decentralized paying boxes:

When the amount freed has not been entered into the bank accounts of funds provisions opened by the aforementioned paying boxes.

When the payment box has already disposed of the funds, in whole or in part, but has not yet submitted the corresponding supporting account or, having presented it, that account has not yet been approved, in the case of payments to to justify, or have not been ordered, the replenishment of the funds from the fixed cash advance.

558.0 Provisions of Funds Pending to Justify

Collects the provisions of funds that are pending to justify or approve the corresponding supporting account at the end of each regularisation period and, in any case, at the end of the financial year.

This account only has movement on the dates of the regularization of the cash balances corresponding to payments to justify and fixed cash advances. His movement is as follows:

1. The 575 " Banks and credit institutions shall be charged or paid with credit or charge respectively. "Payment restricted accounts", at the end of each regularisation period, by the difference between the accounting balance of the account 575 to that date and the actual balance of the current accounts representing the latter on the same date.

2. Where the institution uses cash cash for payments to justify and fixed cash advances, the following entry shall be made at the same time:

The account 570.8 "Caja" will be charged or paid with credit or charge. Provision of funds ", at the end of each regularisation period, by the difference between the accounting balance of the account 570.8 to that date and the actual stocks of cash for the provision of funds in the decentralised pager.

At the end of each regularisation period, and in any event, at the end of the financial year, the amount of the funds freed shall be collected by the debtor balance with the character of 'payments to be justified' or 'fixed cash advances' which have been used and which are pending to be justified or to approve the relevant supporting account.

Note. -When the entity's organizational procedures advise or when the amounts deposited in the cash box for fund provisions are scarcely significant, this account shall also collect the balance existing in that box at the date of regularisation. In this case, the regularisation of the situation of the funds for fixed cash advances and payments to be justified by the institution shall be carried out only with the first of the accounting records provided for in the movement of this account.

558.5 Bookings for Payment Pending Funds Provisions

Collects the bookings issued for fund provisions to justify or repositions of fixed cash advances that are pending payment.

Your move is as follows:

(a) Account 400 " Creditors for recognised obligations shall be debited. 'Current expenditure budget', at the time of the processing of the payment proposal for the payment of funds with the character of 'payments to be justified or for repositions of fixed cash advances'.

(b) The account 575 " Banks and credit institutions shall be paid out of the account. Payment restricted accounts ", for payments made from the operating account for bookings issued to justify and for repositions of fixed cash advances.

Your debtor balance collects the amount of the bookings issued for provisions of funds that have not been made effective and, therefore, the income of the same in the current account of payments has not been produced.

570. Box

Liquid media disposal.

It works through your divisionaries.

570.0 Box

Liquid media disposal.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It shall be charged, at the entry of liquid means, with credit to the accounts which are to be used as a counterpart according to the nature of the operation giving rise to the recovery.

(b) It shall be paid upon departure from the accounts which are to be used as a counterpart in accordance with the nature of the transaction giving rise to the payment.

570.8 Box. Provision of funds

Liquid Disposal for payments to justify and existing fixed cash advances in the decentralized pager.

It will appear in the balance sheet asset.

Your move is as follows:

To be charged or paid, at the time of the regularization of the situation of funds for fixed cash advances and payments to justify, with credit or charge to the account 558.0 "Provisions of funds pending to justify" by the difference between the accounting balance that presents the account to that date and the actual cash balance for provisions of existing funds in the decentralised pager.

The balance of this account, after its regularisation, and in any case at the end of the financial year, represents the liquid funds for provisions of existing funds to that date in the decentralised paying agencies.

575. Banks and credit institutions. Payment restricted accounts

Collects, after each regularization of the situation of funds for "fixed cash advances" and "payments to justify", the balances in favor of the entity in restricted accounts of funds provisions.

The regularization will occur with the periodicity that is established and, in any case, at the end of each exercise.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded with credit to:

a.1) The cash account that corresponds, in the case of cash transfers or operating accounts, to the initial provision of funds to the "fixed cash" or increases thereof.

a.2) The account 558.5 "Bookings for provisions of funds outstanding" for payments made from the operating account for the bookings issued to justify and for the repositions of fixed cash advances.

a.3) Account 400 " Creditors for recognised obligations. "Current expenditure budget", for the reintegrating of the amounts not invested in the accounts to be justified, where according to the rules applicable to the institution those are applied to the budget of the year's expenditure. This seat shall be a negative sign.

b) Be paid from:

b.1) The representative account of the expenditure incurred, in the event of the replacement of the fixed cash advance or the approval of the supporting accounts of the book to be justified.

b.2) Account 430 " Debtors for recognised rights. Current income budget ", for the reintegrating of the amounts not invested from bookkeeping to justify, when according to the regulations applicable to the entity those are applied to the revenue budget.

b.3) The account 571 " Banks and credit institutions. Operating accounts ", by the movements of funds corresponding to cancellations or decreases in the fixed cash advance.

(c) It shall be paid or charged at the end of each regularisation period, payable or credited, respectively, to account 558.0 "Provision of funds outstanding to justify", for the difference between the accounting balance that is present in that account the actual date and balance of the current account of the funds that it represents. The purpose of this transaction is to ensure that the accounting balance of the 575 account, after the adjustment, represents the balances in favour of the institution in the restricted accounts of funds provisions.

669. Other financial expenses

Expenses of a financial nature not collected in other accounts of this subgroup, including, among others, the interest on deposit, interest on late payment, and expenses of issuance and formalization of debts.

This account will work through your divisionaries.

669.8 Expenses for differences arising from euro rounding

Collects expenses of a financial nature that have occurred as a result of the rounding out in the conversion of euros to pesetas or pesetas to euros.

Your move is as follows:

(a) The amount of the differences in the rounding of euro to pesetas or pesetas to euro resulting from the conversion shall be charged with credit to the account that proceeds.

(b) The account shall be paid to the account 129 "Results of the financial year".

669.9 Other financial expenses

Other expenses of a financial nature not collected in the other sub-accounts of this account.

Your move is as follows:

a) It will be loaded with credit to:

a.1) Account 400 " Creditors for recognised obligations. Current expenditure budget ', for the amount of expenditure incurred.

a.2) The account 270 "Debt formalization expenses", for the amount to be charged in the exercise of the expenses of formalization of debts.

(c) It shall be paid, for the balance, at the end of the financial year, under the account 129 "Results of the financial year".

769. Other financial income

Revenue of financial nature not collected in other accounts of this subgroup. It is possible to cite, among others, a commission by guarantees and insurance in financial transactions with the outside; interest on late payment for all the concepts; interest on bank current accounts opened in credit institutions; surcharge.

769.8 Income from differences arising from euro rounding

Collects income of a financial nature that has occurred as a result of the rounding made in the conversion of euros to pesetas or pesetas to euros.

Your move is as follows:

a) The account for 129 "Exercise Results" will be charged with credit.

(b) It shall be paid for the amount of the differences in the rounding of euro to pesetas or pesetas to euro arising from the conversion, from the account to be taken.

769.9 Other financial income

Revenue of financial nature not collected in other sub-accounts of this account.

Your move is as follows:

(a) It shall be paid, for the amount of revenue accruing, from account 430 " Debtors for recognised rights. Current revenue budget ".

b) It will be loaded with credit to:

b.1) The account 433 "Rights cancelled from current budget", through its divisionaries, for the amount of the rights cancelled for the cancellation of settlements.

b.2) Account 408 "Creditors for return of income", at the time the return agreement is issued.

b.3) The account 129 "Results of the financial year", at the end of the financial year, for its balance.