The recast text of the General Budget Law adopted by the Royal Legislative Decree 1091/1988, of 23 September, submits to its article 122 the autonomous agencies of the State to the system of public accounting and establishes in Article 125, the condition of the General Intervention of the State Administration as a director of the public accounts, collecting, among its powers, in paragraph (c) of that Article, that of approving the partial plans or (a) special public accounting to be drawn up in accordance with the General Plan.

In the same sense, Royal Decree 2145/1985, of 23 October, provides in Article 1 (a) of Article 1 (a), the competence of the General Intervention of the State Administration to approve the individual accounting plans apply to each autonomous body, drawn up in accordance with the General Public Accounting Plan.

By Order of the Ministry of Economy and Finance of 6 May 1994 the new version of the General Plan of Public Accounting was approved, having been requested by the autonomous body General Judicial Mutual approval of the corresponding adaptation of the new accounting plan.

Making use of the powers conferred by these provisions this General Intervention has the right to resolve:

First, the adaptation of the General Plan of Public Accounting to the autonomous body of the Judicial General Mutual General, which is published as an annex to this provision, is approved.

Second. -This adaptation of the General Plan of Public Accounting will be implemented with effect from 1 January 1995.

Madrid, August 31, 1995. -General Interventor, Gregorio Manez Vindel.

Ilmo. Mr. President of the Judicial General Mutuality.

ANNEX

The General Judicial Mutuality (MUGEJU) is an autonomous administrative body assigned to the Ministry of Justice and Interior and was created by Royal Decree-Law 16/1978 of 7 June.

Taking into account the provisions of the aforementioned Royal Decree-Law as well as the provisions of other provisions governing its activity, which include the Royal Decree 3283/1978 of 3 November 1978 on the Regulation of the MUGEJU, said autonomous body has powers for the coverage of the following contingencies:

Alterations of health.

Transient incapacity for service arising from illness, accident, common accident or act of service or as a result of it.

Provisional or permanent invalidity in the same previous assumptions.

Family loads.

For which the following benefit system is set:

a) Healthcare.

b) Pharmaceutical benefits.

c) Prothesis.

d) Miscellaneous benefits.

e) Marriage and birth allowance.

f) Social assistance.

g) Work disability allowance.

h) Retired by permanent invalidity.

i) Great Invalidity.

j) Help the invalid large.

k) Help physically and mentally handicapped people.

l) Help for Sepelium Expenses.

m) Aid for forced retirees on account of age.

n) Compensation for death in accident.

or) Other than those that could be established to meet the needs of the mutualists.

Within the process of adapting its accounting plan to the new accounting plan approved by the Order of the Ministry of Economy and Finance of 6 May 1994, the MUGEJU requested, to collect unique characteristics of its activity, the approval of the corresponding accounts reflecting the movement and situation of the following aspects:

1. Fund for levelling and guarantee and loan insurance premiums.

2. Health care concerts and pharmaceutical services.

3. Pensions.

4. Social contributions.

5. Current transfers.

With regard to the level and guarantee funds, the MUGEJU Regulation approved by Royal Decree 3283/1978 of 3 November, when regulating the financial system, notes " ... that the corresponding funds will be levelling and guarantee in cases where the nature of the benefits so requires ... '. For its part, Royal Decree 3349/1981 of 18 December, which regulates the investment activity of the MUGEJU indicates that " ... The financial accumulation which has to occur with the annual differences between the average and the natural quota envisaged, where compliance with the regulatory obligations is not immediately applicable, requires appropriate investments which ensure, at the same time as the increased profitability, in the framework of the necessary security, sufficient fluid liquidity so that the established benefits are not compromised at any time ... ".

By accounting for the concepts referred to in the above rules, the level of levelling and guarantee funds must be treated as technical provisions, which are constituted by the insurance institutions as a liability for the said provisions. economic units and subject to the legislation governing them to a specific investment scheme, by which the insured guarantees are to be strengthened.

Within those provisions, it is necessary to differentiate the so-called mathematics, whose conceptual profile would include those constituted by the figure that represents the excess of the present value of the future obligations of the entity on the current value of the premiums to be met by the policyholder. From an actuarial perspective, these provisions arise as a result of the capitalisation of the savings premiums, the difference between the average premium calculated in the multi-annual insurance and the premium corresponding to the risk effectively covered.

Consequently, the accounting treatment of the funds we are mentioning will be analogous to that provided for in the PGCP for the risk and expense provisions contained in subgroup 14 of the table of accounts. However, given the specialty of these contingent liabilities, a specific account, number 145, called "levelling and guarantee funds" is enabled.

A conceptually similar case occurs in relation to the loan insurance premium funds regulated in circular number 21 which is part of the provisions of Royal Decree 3349/1981. This circular establishes in paragraph 7. º that " If during the term of the loan the mutualist who has obtained it dies, the obligation of amortization and interest payment to be reintegrated shall be cancelled. In order to cover this risk, the amount of the loan, in terms of depreciation of the claim, will be secured from its concession and effectiveness. The premium for this insurance, determined by the age of the mutualist, the amount of the loan and the repayment time, shall be taken into account and paid. "

To account for the movements and the situation in this type of technical provisions, the account to be used must be the 146 "Fund of loan insurance premiums". With regard to health care and pharmaceutical concerts, the system chosen by the MUGEJU to cover this type of benefits and to represent up to 55 per 100 of its expenditure budget, the contents of the table of accounts of the PGCP is not adequate to reflect these operations, since it has to be framed in the subgroup 62 "External services", the alternatives presented by the current structure, either through the use of account 623 " Services independent professionals ", or sub-account 6299" Other services ", do not comply truthfully to the true nature and importance of these items.

Consequently, given the reasons stated, it is enabled, with a more specific designation and definition of the activity developed by the MUGEJU, account 623 "Health care and pharmaceutical benefits", for reflect this type of trransactions.

Finally, with respect to other aspects, pensions, social contributions and current transfers, the request made by the MUGEJU is focused on enabling new sub-accounts to facilitate monitoring. more disaggregated of these concepts and, therefore, allow an improvement of the management of the organism.

Therefore, pursuant to all the foregoing, the Plan to be applied by the autonomous body of the General Judicial Mutual Association is the one approved by the Order of the Ministry of Economy and Finance of 6 May 1994, with the following modifications:

First. -They are incorporated into the second part of the "Chart of Accounts" Plan, the following:

145 leveling and warranty funds.

146 Loan insurance premium funds.

623 Health care and pharmaceutical benefits.

6230 Healthcare provided by INSS.

6231 Healthcare provided by private entities.

6232 Pharmaceutical Prstations.

645 Social benefits (development).

6450 Pension pensions. 6451 Pensions for widowers.

6452 Orphan's pensions.

690 Endowment to technical provisions.

729 Social contributions (development).

7290 Mandatory State Contribution.

7291 Mandatory input from other bodies.

7292 Quota of active officials.

7293 Quota of officials in special services.

7294 Quota of surplus volunteer officials.

7295 Quota of Municipal Justice Officials.

7296 Quotas of Officials Mutual Insurance.

7297 Cuotas de functionaries Mutualidad de Auxiliares.

750 Current Transfers (development).

7500 General Fund.

7501 Special Fund.

Second. -The following are incorporated into the third part of the "Definitions and Accounting Relations" plan:

145 leveling and warranty funds:

Technical provision constituted to deal with the obligations incurred as a result of the established benefits.

You will appear on the liability side of the Balance sheet, in the "Provisions for Risks and Expenses" grouping.

Your move is as follows:

(a) It shall be paid by the estimates of the annual accruals to the account 690 "Endowment to technical provisions".

b) You will be charged for excess provision with credit to account 790 "Provision of provision for risks and expenses".

146 Loan insurance premium funds:

A technical provision for the coverage, in the case of the death of the mutualist, of the principal and outstanding interest in repayment of the loans granted. It shall appear on the liabilities side of the balance sheet, in the group 'Provisions for risks and expenses'. Its motion is analogous to the one described for account 145 "leveling and warranty funds".

623 Health care and pharmaceutical benefits:

Amount of expenses incurred for assistance provided in concert with public and private entities in cases such as those arising from common or professional illness and injury arising from accidents, any which is their cause, as well as in pregnancy, childbirth and puerperium.

They will also understand the contribution made by MUGEJU to the costs of pharmaceutical benefits agreed in the health care agreements.

The movement of this account, performed, if any, by its divisionaries, is analogous to the one described for subgroup 62 "External Services".

690 Dotting to technical provisions:

Estimated allocation to be made to the technical provisions for the capitalization of the savings premiums corresponding to the close of the financial year.

Your move is as follows:

(a) It shall be charged, for the amount of the estimate made, with credit to the representative accounts for technical provisions such as the account 145 "leveling and guarantee fund" and 146 "Loan insurance premium fund".

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

Third.-The allocation to technical provisions (account number 690) shall be added to the model of the account of the economic result-assets as item 1.g.