2009 sbmpc annual report

Main Branch Bldg. 670 Main Gate Area, Subic Bay Freeport Zone

55TH ANNUAL GENERAL ASSEMBLY

AND ELECTION OF OFFICERS

S UBIC GYM , S UBIC BAY F REEPORT Z ONE , PHILIPPINES

26 MARCH 2010

SUBIC BAY MULTI-PURPOSE COOPERATIVE

ENERO 1—DISYEMBRE 31, 2009 COOP SERVICE AT ITS BEST

2009 ANNUAL REPORT

TEMA: “KOOPERATIBA, MAAASAHAN

NGAYON AT KAILANMAN”

Castillejos Branch D-2, Castillejos Public Market, Castillejos, Zambales

Dinalupihan Branch Gen. Luna St., Dinalupihan, Bataan

Iba Branch Zone 1, Iba, Zambales

PANGAKONG

KOOPERATIBA

Bilang Pilipino

Ako ay kaisa at lubusang

naniniwala sa Kooperatiba

Mahina ako kapag nag-iisa

Ngunit malakas sa pakikipagbigkis sa iba

Kaya’t inilalaan ko ang aking sarili

Na gagawa, na makikiisa

Para sa kaunlaran ng lahat

Ako ay dadalo sa mga gawaing pang-kooperatiba

Isasakatuparan ko lahat ng pananagutan

At patuloy na mamumuhay sa

pilosopiya ng Kooperatiba

Iisang pananaw

Iisang paniniwala

Iisang damdamin

Sa samahang kooperatiba

Ang aking buhay ay iaalay

Kasihan nawa ako ng Panginoon.

TABLE OF CONTENT

NOTICE OF THE GA & ELECTION 3

PALATUNTUNAN 4

M ESSAGES : MS . L ECIRA V. J UAREZ , CDA CHAIRPERSO N

MR . MAN UEL A. MAR , CDA, R EGION AL D IREC TOR

HON . M IT OS H. MA GSA YS AY , !ST D ISTRI CT , CO NGRESS WOM AN

A T TY . A M OR D. DEL OSO , GO VERNOR , I BA ZA MB AL ES

HON . A NN E MARI E C. GORD ON , V ICE GO VERNOR , I BA ZA MB .

HON . J A MES GOR DON J R . , MAYOR , O L ON GAPO C I T Y

HON . WIL M A D. BIL L M AN , M AYOR , C ASTIL L EJOS Z AM BAL ES

HON . J OEL J AIM E P. P AY UMO , MAY OR , D INAL UPIH AN BA TA AN

RADM FEL ICIAN O G. S AL ON GA , PCGA, SBMA C HA IRM AN

MR . A RMA ND C. A RRE ZA , SB MA A DMINIS TRA TOR & CEO

MS . L ETICIA M. DOROPA N , FCCR3 CHAIRMA N

5-15

M ESSAGE FROM THE CHAIRMAN 22

C ONSOLIDATED ANNUAL REPORTS 23-26

2009 AUDITED FINANCIA L STATEMENT 27-41

B UDGET FOR 2010 42

M INUTES OF THE 54 TH GENERAL ASSEMBLY 16-21

Paunawa:

TAKDANG ARAW NG PAGKUHA NG DIBIDENDO AT PATRONAGE REFUND NG TAONG 2009

Ang pamamahagi ng dibidendo at patronage refund ay may umiiral na patakaran. Ang kasaping kwalipikadong kumuha ng nasabing benepisyo ay dapat magsadya sa tanggapan ng SBMPC sa petsang nakatala sa ibaba:

Numero ng Libreta Petsa

8927-44518 Pebrero 19, 2010

44523-46630 22

46631-48100 23

48103-48903 24

48905-R-872 25

May problemang account 26

“Ang mga hindi kumuha sa takdang panahon ay may pagkakataon pang kumuha anumang oras na may opisina mula ika-1 ng Marso hanggang ika-30 ng Setyembre 2010 lamang.”

Ang mga hindi kinuhang benepisyo sa nasabing itinakdang panahon ay mapapaso (forfeited) at magiging kita ng Kooperatiba...

UNANG BAHAGI

• Misa ng Pasasalamat sa Tanggapan ng SBMPC

na Magsisimula sa ganap na 8:00 ng umaga………………….Opisyales, Kawani at Miyembro

• Pagpapatala ng mga Kasapiang Dadalo sa harapan ng

Subic Gym mula 9:00 ng umaga hanggang 2:00 ng hapon…….Kawani ng SBMPC

• Pulong Pangkahalatan ay magsisimula sa ganap ng 2:00 ng hapon…..Lupon ng Halalan

• Panalangin……………………………………………………...G. Rolando R. Alarcon, Lupon ng

Patnugutan

• Pambansang Awit ng Pilipinas…………………………………...Gng. Almira T. Capistrano, Lupon ng

Patnugutan

• Cooperative Hymn……………………………………………...Audio Visual Presentation

• Pangakong Kooperatiba………………………………………….Gng. Armila M. Alviz, Lupon ng

Patnugutan

• Bating Pagtanggap……………………………………………….Gng. Leticia M. Doropan, Tagapangulo

Lupon ng Patnugutan

• Pagpapakilala ng Panauhing Pandangal…………………………..Gng. Nancy M. Bernal, Lupon ng

Patnugutan

• Pananalita ng Panauhing Pandangal……………………………...Lion Remigio L. Alvarez, District Governor

• Paggawad ng Sertipiko ng Pagkilala at Pagpapahalaga……………..Lupon ng Patnugutan

IKALAWANG BAHAGI

• Pagtawag ng Kaayusan ng Pulong……………………………….Gng. Leticia M. Doropan

• Pagpapahayag ng Quorum, Pagpapatunay ng Paanyaya sa Pulong

At Pagbasa ng Katitikan ng ika-54 Taunang Pulong………….Gng. Jet T. Galarretta

• Pagpapatibay ng Ulat ng Lupon ng Patnugutan at Pamunuan……...Gng. Leticia M. Doropan

• Pagpapatibay ng Financial Statements at 2009 Budget…………….Lupon ng Patnugutan

• Mungkahing Resolusyon………………………………………..Lupon ng Patnugutan

• Pagtawag sa Pagtatapos ng Pulong……………………………….Gng. Victoria P. Corpuz, Tagapangulo

Lupon ng Halalan

IKATLONG BAHAGI

• Raffle Draw…………………………………………………….Lupon ng Halalan

• Scholarship Grand Draw………………………………………...Lupon ng Edukasyon at Pagsasanay

IKA-APAT NA BAHAGI

• Halalan at Pagpapahayag ng Resulta ng Halalan…………………...Lupon ng Halalan

Mga Guro ng Palatuntunan: G. Antonio Dela Cruz

PALATUNTUNAN

2009 ANNUAL REPORT

2009 ANNUAL REPORT

Republic of the Philippines

Department of Finance

COOPERATIVE DEVELOPMENT AUTHORITY

Pampanga Extension Office 2/F CLK Bldg. Dolores, City of San Fernando, Pampanga

M E S S A G E

My warmest greetings to the members, officers and staff of the Subic Bay MultiMy warmest greetings to the members, officers and staff of the Subic Bay MultiMy warmest greetings to the members, officers and staff of the Subic Bay MultiMy warmest greetings to the members, officers and staff of the Subic Bay Multi----Purpose Cooperative as you Purpose Cooperative as you Purpose Cooperative as you Purpose Cooperative as you

celebrate your 55celebrate your 55celebrate your 55celebrate your 55thththth Annual General Assembly on March 26, 2010. Annual General Assembly on March 26, 2010. Annual General Assembly on March 26, 2010. Annual General Assembly on March 26, 2010.

A cooperative is a potent means of harnessing the scattered resources of people of limited means and opportu-A cooperative is a potent means of harnessing the scattered resources of people of limited means and opportu-A cooperative is a potent means of harnessing the scattered resources of people of limited means and opportu-A cooperative is a potent means of harnessing the scattered resources of people of limited means and opportu-

nities for a more productive economic undertaking. It shows how ordinary people, by helping one another, can gener-nities for a more productive economic undertaking. It shows how ordinary people, by helping one another, can gener-nities for a more productive economic undertaking. It shows how ordinary people, by helping one another, can gener-nities for a more productive economic undertaking. It shows how ordinary people, by helping one another, can gener-

ate sufficient capital and adequate volume of business to make an economic undertaking a viable and going concern.ate sufficient capital and adequate volume of business to make an economic undertaking a viable and going concern.ate sufficient capital and adequate volume of business to make an economic undertaking a viable and going concern.ate sufficient capital and adequate volume of business to make an economic undertaking a viable and going concern.

It is very commendable that your cooperative had withstands the test of time and grown into what it is to-It is very commendable that your cooperative had withstands the test of time and grown into what it is to-It is very commendable that your cooperative had withstands the test of time and grown into what it is to-It is very commendable that your cooperative had withstands the test of time and grown into what it is to-

day, responsive to members’ needs and the community as well. Being an active and stable cooperative for fifty five day, responsive to members’ needs and the community as well. Being an active and stable cooperative for fifty five day, responsive to members’ needs and the community as well. Being an active and stable cooperative for fifty five day, responsive to members’ needs and the community as well. Being an active and stable cooperative for fifty five

years is a manifestation of your tenacity of purpose worthy of emulation by others.years is a manifestation of your tenacity of purpose worthy of emulation by others.years is a manifestation of your tenacity of purpose worthy of emulation by others.years is a manifestation of your tenacity of purpose worthy of emulation by others.

With the theme of your cooperative, “KOOPERATIBA, MAASAHAN NGAYON AT KAILANMAN” for With the theme of your cooperative, “KOOPERATIBA, MAASAHAN NGAYON AT KAILANMAN” for With the theme of your cooperative, “KOOPERATIBA, MAASAHAN NGAYON AT KAILANMAN” for With the theme of your cooperative, “KOOPERATIBA, MAASAHAN NGAYON AT KAILANMAN” for

this year may continue the noble aims of cooperative movement and the upliftment of life of our fellowmen.this year may continue the noble aims of cooperative movement and the upliftment of life of our fellowmen.this year may continue the noble aims of cooperative movement and the upliftment of life of our fellowmen.this year may continue the noble aims of cooperative movement and the upliftment of life of our fellowmen.

Mabuhay! And God Bless you all…Mabuhay! And God Bless you all…Mabuhay! And God Bless you all…Mabuhay! And God Bless you all…

2009 ANNUAL REPORT

2009 ANNUAL REPORT

I would like to congratulate the entire workforce and members of Subic Bay Multi-Purpose Cooperative (SBMPC) on the occasion of your “55th Annual General Assembly Meeting and Election of Officers on Friday, 26 March, 2010.

I am certain that in the fifty-five (55) years that SBMPC has been in operation, it has weathered many storms and struggled through challenges, and yet has come out better that ever because of the firm determination of each and every-one of you to succeed and advance as a cooperative organization. Your association and the government unite to establish interactive linkages with the manifestation of the desire and commitment to help the masses to be more responsible, dis-ciplined and competitive through livelihood trainings. May you continually grow and extend aid not just financially but to educate our fellow cooperators, the proper management of the cooperatives’ resources and challenges them in setting the best cooperative performance standards. Let this event be a venue for members’ morale to be strengthened and boosted so that they can contribute effectively to the cooperative as well as the community’s development.

Cooperative creates an ideal environment for healthier economic activity and a better standard of living. Their noble mission to improve and uplift socio-economic condition by providing loans, livelihood programs, scholarships, and other services are great contributions to the community. Your organization’s battle cry, “Coop Service At Its Best”, cov-ers up three (3) functions namely; Coop Services in deposits and loans, Coop Benefits in damayan fund and loan produc-tion plan, and Coop Program in scholarship, livelihood training and cooperative education.

Cooperatives are at work in almost every country and economic sectors. The SBMPC continues empowering its members for the purpose of meeting their common needs and which they themselves manage control and share the eco-nomic benefits on the basis of participation and patronage. Continue to respond with flexibility and innovation to the challenges and changes posed by globalization making people continue to choose cooperatives to address their needs. True enough, cooperatives in the Philippines have gone a long way and are now utilized by the government as the more effective tools for economic development. It is very commendable that your cooperative had survived the test of time and has grown into what it is today – responsive to the members’ needs and the community as well. Being an active and stable cooperative for more than five decades is a manifestation of your tenacity of purpose worthy of emulation by oth-ers. Now more than ever is the time to prove your worth as an effective mechanism for the economic empowerment of your members.

Your chosen theme: “KOOPERATIBA, MAAASAHAN NGAYON AT KAILANMAN” provides the basic an-swer to your success.

MESSAGEMESSAGEMESSAGEMESSAGE

2009 ANNUAL REPORT

2009 ANNUAL REPORT

Some succeed by what they know; some by what they do; and a few by what they are. The success of Subic Bay Multi-Purpose Cooperative com-bines all of these elements, as proof, you are now fifty-five (55) years old.

I would like to congratulate each and every members, officers and pa-trons of SBMPC for your dedications and sterling commitments to see the cooperative meet its supreme goal-growth and progress to the lives of its members and the community around it.

With the numerous recognitions and citations received, SBMPC be-comes the frontrunner of cooperativism worthy of emulation and a model of inspire others who strives to become one.

With your presence in this town, I am sure that my constituents will share the benefits and could acquire services particularly in starting their business interest through lending assistance and membership.

Again, congratulation and may you reach further and become instru-ment to economic viability of our community. Mabuhay!


2009 ANNUAL REPORT

2009 ANNUAL REPORT

Mabuhay and congratulations to the Subic Bay Multi-Purpose Cooperative (SBMPC) on its 55th year of service to Filipino workers in Subic Bay Freeport, Olongapo City, and the towns of Dinalupihan, Castillejos and Iba!

A recent boost to the Philippine cooperative movement is the signing into law of Republic Act. No. 9520, by President Gloria Macapagal Arroyo, seeking to strengthen the operation of cooperatives and improve their services to members.

Through cooperatives, practically every need of ordinary households, families, farmers, fisher folks, and small entrepreneurs is serviced, thus spreading opportunities for the betterment of the major-ity. This, in turn, can be expected to redound to economic development, particularly in the Philippine countryside.

It is my hope, therefore, that the SBMPC would endure in serving the good of its members and impact positively on the lives of many by promoting the principles of cooperation, volunteerism and self-reliance.

Mabuhay kayong lahat!


C OOP SER VIC E AT IT S B EST

FEDERATION OF CREDIT COOPERATIVES IN REGION III (FCCR3) Bldg. 670, Main Gate Area, Subic Bay Freeport Zone 2222

Reg. No. KAT-068 – May 17, 1983

MESSAGE

Warmest Greetings to the 55th General Assembly Meeting of the Subic Bay Multi-Purpose Cooperative.

Very few cooperatives exist for years like you; most died a natural death usually because of members and leadership failure.

Success often comes to those who dare and act and I salute the men and women behind SBMPC’s success. This country needs you to continue with the growth and development of the cooperative movement.

Your theme “Kooperatiba, maaasahan ngayon at kailanman” only shows how effective and efficient the members and the leaders have been working and cooperating together.

Again my Congratulations and Mabuhay!

2009 ANNUAL REPORT

MINUTES OF THE 54TH

ANNUAL GENERAL ASSEMBLY MEETING HELD ON FRIDAY

13 MARCH 2009 AT SUBIC GYM, SUBIC BAY FREEPORT ZONE, PHILIPPINES

PART I – OPENING CEREMONY

Registration of attendees for determination of the quorum started at 9:00 a.m. At around 3:00 p.m., the meeting was formally opened with prayer followed by the singing of National Anthem led by Director Armila M. Alviz and Pangakong Kooperatiba led by Director Nancy M. BernaL.

As for the welcome address, Director Leticia M. Doropan acknowledged the presence of the coop members who are employed / working with SBMA, FSC, Fedex, Olongapo City Local Government, Muslim Brothers Association, market vendors, sari-sari store owners and various locators.

Director Leticia M. Doropan also introduced the Guest of Honor as a distinguished person known for his outstanding leadership qualities and capabilities. His genes are a mixture of two of the most remarkable and highly respected personalities in political and community service in the City of Olongapo.

He is married to the incumbent Zambales Vice-Governor and Olongapo City First Lady Anne Marie Cunada-Gordon and blessed with a daughter, Amelia Jane who is a consistent honor student at Mary Mount University, where she is studying as a scholar. This energetic and musically gifted Mayor graduated from Ateneo de Manila University with a degree of Bachelor of Art in Political Science. He pursued his graduate studies in the United States where he took up Master of Arts at the Loyola University in Chicago, Illinois.

Mayor Gordon is highly praised not just for his political achievements but for his musical feat as well having been awarded the Gold Record for his first album “Fighting for Excellence”. His second album “Bonggo: Deep Inside My Mind” has topped national record sales, with the hit single “You Say”.

One of his major programs is the reinforcement of the disaster response and management of Olongapo City. Owing to the risk posed by climate change and other environmental factors, he has taken great pains to address these problems and has been successful so far. This success is proven by the major awards received by the city on disaster response, particularly the Gawad Kalasag given by the President Gloria Macapagal Arroyo for which the city has been elected to the Hall of Fame for winning three years in a row. Owing to the numerous citations of the city with regards to excellent disaster management and response, he was appointed by the President Gloria Macapagal Arroyo as the head of training on disaster response in Luzon. He is also the acting chairman of the Philipphine National Red Cross – Olongapo City.

Ladies and gentlemen, it is with utmost pride that I introduce to you the Mayor of Olongapo City – Honorable James “Bong” Gordon, Jr.

The general membership warmly welcomed Honorable James “Bong” Gordon, Jr.

Honorable James “Bong” Gordon, Jr. acknowledged and gave thanks to the SBMPC Board of Directors, Officers, Staff and the general membership. Mayor Gordon noted that our cooperative is so lucky to be one of the successful cooperatives here in Olongapo. Moreover, he reiterated that honesty and hard work are the key to success of every sector.

2009 ANNUAL REPORT

He samples his parents, who put up a Jimmy’s Little Kitchen which was started at Castillejos during the war, and after the war his family has nothing. Upon the success of Jimmy’s Little Kitchen his father thought of other business, they put up an Admiral Theater which was the first theater after World War II – 1947, and from there chains of admiral restaurant and hotels and other businesses came up.

He noted the progress of SBMA, Olongapo and Zambales, and one of the indicators of progress, he informed the general membership is that the Ayala Corporation would be putting up a commercial center. Moreover, he still inaugurates opening of the hotels and banks here in Olongapo. He encourages the general membership to prepare our cooperatives in the up coming progress of the community and to increase the revenue. The general membership, officers and staff should promote the good things about the cooperatives. He encouraged Cooperatives to venture to different kind of business. He congratulated SBMPC for its continued existence since 1954, surviving all odds and still growing with assets of more than 100M.

As last word, he ended up reminding the general membership to choose the right, deserving, hard working and honest officers for the cooperative. He said, “Success is a Journey it is not a Destination”.

Director Leticia M. Doropan, assisted by Director Armila M. Alviz, Director Nancy M. Bernal, Director Almira T. Capistrano and Director Rolando R. Alarcon, awarded a certificate of recognition to Hon. James “Bong” Gordon, Jr., in sincere recognition, gratitude and admiration for graciously serving as guest speaker for sharing his time, knowledge, expertise and experience.

PART II – THE BUSINESS MEETING

1. Call to Order – BOD Chairman Leticia M. Doropan again welcomed and thanked each and every member of the SBMPC for actively participating in today’s annual general assembly meeting and called the Annual General Assembly meeting to order and gave the floor to the Board Secretary for the proof of due notices.

2. Proof of Due Notice – The Board Secretary confirmed that GA Notices dated 17 February 2009 were personally delivered by the management staff at the members’ business addresses and some were sent via mail. Furthermore, the Board Secretary confirmed that the Election Committee announced this gathering through streamers that were posted infront of the SBMPC office and other conspicuous places in Olongapo City and Subic Bay Freeport Zone.

3. Certification of Quorum – The Board Secretary informed the body that based on the record of the Finance Section; the cooperative had a total of 1,556 members in good standing (MIGS) as of 31 December 2008. As per SBMPC by-laws, determination of quorum is based on the 25% of the total number of members entitled to vote or participate; thus, the presence of 404 members in good standing is required. The Board Secretary asked the Chairman of the Election Committee to report to the body if the required quorum was attained. EleCom Chairman Victoria P. Corpuz publicly announced that there were 685 active members who have registered as of 2:07 p.m. With the reported figures, the Board Secretary certified the presence of the quorum and the general assembly was declared capable of conducting its business.

4. Reading and Approval of the Minutes of the 53rd Annual General Assembly Meeting – The Board Secretary Jet T. Galarretta presented the minutes of the 53rd annual general assembly meeting printed from pages 11 to 12 of the 2008 Annual Report. Ms. Estrella Bundang, OCLG Employee with Passbook No. 45580 moved and duly seconded by Ms. Aida Fuerte the minutes of the 53rd Annual General Assembly Meeting dated 07 March 2008 printed on page 11 to 12 was approved as presented.

2009 ANNUAL REPORT

On motion duly made and seconded, the General Assembly unanimously approved the following resolution:

GA Resolution No. 01, Series of 2009:

Resolved, as it is hereby resolved, that the minutes of the 53rd Annual General Assembly meeting dated 07 March 2008 be approved.

5. Annual Reports – The Chair presented to the general membership the consolidated annual accomplishment report of the following officers and committees and asked the body for any clarification, comments and approval:

a. Board of Directors – Mr. Joselito Querido, FSC Fire (45035) moved and duly seconded by Ms. Sherrylyne Jurado, SBMA PWTSG (47735) for the approval of the report of the Board of Directors printed on pages 13-14 as presented.

On motion duly made and seconded, the General Assembly unanimously approved the following resolution.


Resolved, as it is hereby resolved, that the report of the Board of Directors printed on page 13-14 be approved.

b. Audit & Inventory Committee – Mr. Joselito Querido, FSC Fire (45035) moved and duly seconded by Ms. Sherrylyne Jurado, SBMA PWTSG (47735) for the approval of the report of the Audit & Inventory Committee printed on page 14 as presented.



Resolved, as it is hereby resolved, that the report of the Audit & Inventory Committee printed on page 4 be approved.

c. Credit Committee – Ms. Estrella Bundang, OCLG Employee (45580) moved and duly seconded by Ms. Aida Fuerte, FSC-GB (44581) for the approval of the report of the Credit Committee printed on page 15 as presented.



Resolved, as it is hereby resolved, that the report of the Credit Committee printed on page 15 be approved.

d. Election Committee – Upon reading the election committee report printed at pages 16-21. The presiding Officer opens the floor for recommendation, motion or approval of the report.

2009 ANNUAL REPORT

Mr. Edgar Allan Pajaro made a clarification on election guidelines in determining the members in good standing.

The Presiding Officer reiterated the responsibility of members to patronize coop service and regularly pay their obligation to the cooperative in order for them to be considered members in good standing. It is the privilege of the members in good standing to participate in the General Assembly and to elect the SBMPC officers. She also read the guidelines printed on 2008 Annual Report on pages 16 – 17 under Article II (Registration).

The general membership unanimously agreed / accepted the explanation of the Presiding Officer regarding the in determination of the members in good standing as stated in the election guidelines.

However, Mr.Edgar Allan Pajaro, SBMA-Acctg (44946) moved for the deferment of the approving and reading of the reports printed at the 2008 Annual Report from pages 16-46 and which was abruptly seconded by Ms. Elizabeth Quino, SBMA-LADD (21050) for the deferment of the approval of the remaining committee reports printed from pages 16 to 46 for further study of the general membership.

However, Ms. Criselda Pascual, SBMA Labor (48703) contested the motion of Mr. Edgar Allan Pajaro and instead moved for the approval of the concerned reports to continue the meeting proper which was seconded by Ms. Lucila Filipino, SBMA-PWTSG (47625).

With the said scenario considering that there was an existing motion and duly seconded by aforementioned members on the deferment and approval of reports as printed in the annual report, Ms. Olivia Dizon, FSC-GB suggested to divide the house.

The Election Committee asked the general membership regarding the suggestion for the division of the house and majority of the members agreed with the said suggestion through raising the right hand. After the division of the house procedure, the general membership unanimously voted for the continuation and approval of the remaining reports, which was printed at 2008 Annual Reports from pages 16 to 64 as presented.


Resolved, as it is hereby resolved, that the 2008 Annual Report printed from pages 16 to 46 was approved.

6. Raffle Draw – The Education and Training Committee held a grand raffle draw of Scholarship and the results were as follows:

Prizes: Name: Ticket No.

Blue Bag (Grocery Item) Joel Arzadon 42989

Ernesto Ramos Sr. 44181

Teresita Miguel 34204

Lolita Esteban 49261

2009 ANNUAL REPORT

Gray Bag (Grocery Item) M.G. Dungog 40287

Silvina Acierto 52516

Imelda De Leon 53874

Veronica Eclarinal 52607

Marrianne Hannigan 53700

Carmelita Mellendrez 53122

Ludevico Todavia 47524

Ernesto Santos 50288

M. Lagman 52434

Juice Container Rosita Gloria 50725

Flat Iron Marcelina Acero 47581

Mercy Diago 55042

Water Jug Armando Rumeral 44739

Melody Villamanto 46389

Kettle Carolina Pamintuan 54008

Ma. Dolores Dagta 48565

Gas Stove Araceli Jimenez 55096

Airpot Wilfredo Ecleo 46931

Electric Fan Carlos Dela Cruz 50364

Television Corazon Ortiz 47915

1/2 Cavan of Rice Aida Fuerte 47433

Angelito Del Cuzar 55046

Eva Abraham 48966

Renato Ching 53201

20 Half Cavan of Rice:

Merly Idanan - 0344 Violeta Viejo - 0503

Almira Capistrano - 0286 Teofilo Mangaoang - 0332

Leonila Aurel - 0360 Liza Tenerife - 0713

Norbelita San Juan - 0645 Erlinda Ignacio - 0365

Margarita Abadia - 0104 Asuncion Bandolon - 0021

Miguela Domingo - 0175 Elna Aurel - 0499

Marilou Esguerra - 0543 Anita Aseras - 0019

Fred Delos Santos - 0329 Zenaida Mina - 0547

Dolores Diomino - 0194 Erma Nusellas - 0486

Elma Biando - 0004 Carmen Calubhay - 0255

2009 ANNUAL REPORT

7. Election Result – The Election Committee under the chairmanship of Ms. Victoria P. Corpuz, Vice Chairman William M. Dulay and Secretary Jomar S. Ebardo conducted the election of officers. As a result of the foregoing election, the name of the candidates as stated below, duly certified by the Election Committee were proclaimed winners, as follows:

Position/Name Total Votes Board of Directors

Rolando Alarcon 392 Elected Nancy Bernal 311 Elected Almira Capistrano 439 Elected Edgar Layco 220

Audit & Inventory Committee

Stephen Ferrer 323 Elected Gloria Gadiano 426 Elected Edgar Allan Pajaro 239

Credit Committee Leo Frondarina 163 Ranny Magno 475 Elected Joel Viray 375 Elected

Election Committee

Joemando De Vera 172 Vincent Esteban 439 Elected Renato Gayondato 425 Elected

8. Adjournment – The meeting adjourned at 6:00 p.m.


LET TER TO THE SHAREHO LDERS….. .

But it pains me so much that despite of our efforts to help members, these efforts are not enough to satisfy them.

Through the years of my stay as the Chairman of the SBMPC, it gives me joy to be working with officers and staff who served and protect the ideals of cooperativ-ism. There might be some disagreements at times but these often lead us to agree on things for the common good that will benefit the ma-jority.

To the members I en-couraged you to keep on patronizing our SBMPC for this will be our road to progress and with SBMPC around our eco-nomic hardships will al-ways be taken cared of.

To the management staff, I thank you for bearing with me, keeping up with my management style and leadership. Re-member that there is al-ways room for improve-ment and this will lead to a very progressive coop-

erative.

And to the officers, I cannot find words to tell you how much I appreci-ated the very much needed support you have extended to me as Chair-man. I believe that this is the best working group so far and without your cooperation, understand-ing and support, we could not have lived up with our name as “Achievers”

Let us not make our indifference hinders a working progress instead let us make it a tool to move forward to a higher level of service.

As we progress, we the members behind the SBMPC can always say that Kooperatiba maaasa-han ngayon at kailan-man!!

Dear Fellow Coopera-tors,

Simpleng pananalita which describes how much cooperation among members in the coopera-tive works. Such has been proven by most of us especially during hard times. Ako mismo ay magpapatunay na mula ng makilala ko ang koop-eratiba, it has greatly changed my life and my views on how this or-ganization can be de-pended upon not only by myself but my family and friends as well. The co-operative is still helping the members cope up with all the economic problems today and I am pretty sure that this co-operative will still be there to help us tomor-row.

There is nothing more rewarding for us than to see a member relieved from the burden of finan-cial problems it might not be in the form of gift or donation but defi-nitely the reality that there is an organization we can lean on during the times of our needs.

T HE CO O PERATIVE

IS S TIL L HEL PING

THE M EM BERS CO PE

UP WITH AL L THE

ECO NO M IC

PRO BL EMS TO DAY

AND I AM P RETTY

S URE THAT THIS

CO O PERATIVE WIL L

S TILL BE THERE TO

HEL P US

TO M O RRO W . . .


Consolidated Annual Report - Board of Directors,

Committees and Management: Ang buong pamunuan ng Subic Bay Multi-Purpose Cooperative ay malugod na bumabati ng mapayapa at makabuluhang 55th General Assembly sa lahat.

Napakabilis lumipas ng panahon parang kailan lamang naririto rin tayo at matagumpay nating idinaos ang 54th General Assembly pati na ang eleksiyon ng mga opisyales, ngayon nandito tayong muli, umaasa ng isang matagumpay na pagpupulong at eleksiyon ang magaganap.

Sa nakaraang isang taon ng aming panunungkulan bilang inyong mga opisyales, we are very pleased to report to you, that we were able to overcome all the economics challenges no mat-ter how complex they are and we can very well say that the overall operations have been stressful but yet very successful.

WHAT WE HAVE DONE…

1. We have augmented our income. We have put up investment with other progressive cooperatives which gave us interest of 10% to 12% per annum tax exempt. This totaled to P5,500,000.00 broken down as follows:

2. We expanded our operations and increased membership. We have opened additional branches in Zambales, which was coordinated with the LGU where branch is located.

To encourage more members’ participation we have distributed body bags to members in good standing last December

2009.

3. We have facilitated payroll deduction collections from our members’ employees. We have also signed up Memorandum of Agree-ment (MOA) with different employers/locators including SBMA.

NAME OF C OOPERATIVES INVESTMENT

Federation of Credit Cooperatives in Region III 100,000.00

Olongapo Government Employees MPCI 2,000,000.00

Angeles City Government Employees MPC 1,000,000.00

Clark Manpower Cooperative 1,000,000.00

Overseas Filipino Workers MPC 400,000.00

Ospital Ning Angeles MPC 1,000,000.00

DATE OPENED LOCATION

August 2009 Iba Branch – near Iba Public Market

October 2009 Castillejos Branch – Castillejos Public Market

Locators/Employers Signatory

SBMA Mr. Armand Arrezza, Administrator

Provincial Capitol Office of Iba Hon. Amor Deloso, Governor

Magellan’s Galleon Marine, Inc. Mr. Brian J. Homan, President

Xerographics Mr. Allan Provindido, General Manager

From left: Nancy Bernal, Armila Alviz, Rolando Alarcon, Leticia Doropan & Almira Capistrano.


4. We provided additional services to our members. We have signed up MOA with Star Botika represented by Mr. Joaquin R. Buenaflor, Proprietor, a locator that can provide goods and services to our members at a very low cost and easy payment terms.

We also put up “Ukay Ukay” sale in observance of the cooperative month for members to avail quality goods and materials at the lowest possible price ever.

5. The Audit and Inventory Committee has been consistently conducting surprised cash counts, operations and financial audit to ensure that all transactions are recorded and accounted for in accordance with the generally accepted accounting procedures and using the Standard Chart of Accounts (SCA).

For the year 2009, ang kabuuang kinita (gross receipts) ay P11,493,851.00 at P5,234,778.00 para sa gastusin (expenses). Lahat tayong mga kasapi ay tatanggap ng dibidendo na 6% at 14% patronage refund bilang balik-tangkilik sa ating kinita.

6. Ang Credit Committee naman po ay patuloy na pinag-aaralan kung paano pa natin matutulungan ang mga miyembro sa mga financial na pangangailangan. Nag open po tayo ng bagong loan windows tulad ng Financing and Credit Card Refinancing Loan at Lucky Seven Loan.

So far ang kabuuang na-process nating loans ay 4,658 na umabot sa halagang P92,470,649.90 broken down as follows:

7. Sa pamumuno ng Election Committee, matagumpay naman po nating nairaos ang at-ing halalan at General Assembly ng 2009. Sa kabuuan mayroon po tayong naitalang 685 miyembrong nagrehistro at 680 miyembrong bumoto out of 1,556 members in good standing. Namahagi rin tayo ng MIGS T-shirt sa lahat ng bumoto at nagbigay din tayo ng raffle prizes sa mga miyembrong nag-participate sa ating General Assembly at Eleksiyon. Wala po tayong naitalang election protest sa taong 2009 at ang naidekla-rang nanalo sa halalan ay nakapaglingkod ng maayos sa SBMPC.

TY PES O F LOA N MAI N IBA DI NALU PIH A N Financing Loan 1,834,533.08 0.00 103,505.00

Secured Loan 31,361,320.00 0.00 0.00

Regular Loan 32,862,000.00 0.00 0.00

Lucky Seven Loan 1,840,000.00 0.00 0.00

Salary Loan 438,000.00 0.00 35,000.00

Hundred Days Loan 5,185,000.00 205,000.00 4,851,000.00

Real Estate Loan 4,530,000.00 0.00 0.00

Emergency Loan 7,102,000.00 0.00 0.00

Mini Loan 1,976,000.00 0.00 0.00

Credit Card Refinancing Loan 26,721.98 0.00 0.00

MEAL 120,569.84 0.00 0.00

From Left: Renato Gayondato, Victoria Corpuz & Vincent Esteban.

From Left: Joel Viray, Erwin Cabe & Ranny Magno.

From Left: Fernando Aquino, Gloria Gadiano, Stephen Ferrer.


8. Ang atin pong Education and Training Committee ang siyang patuloy na naglilinang at nagbibigay ng kaalaman sa ating mga miyembro at nakapag-conduct ng 24 seminars sa 480 miyembro. Sa kasalukuyan mayroon tayong 3,920 active members. Note that we have lost membership from the closing of FedEx, Subic Bay Satellite Inc. and retrenchment of FSC employees.

Mayroon din tayong ginanap na livelihood trainings tulad ng cassava making and accessory making to help members augment their income.

Nagkaroon tayo ng lakbay aral at teambuilding workshop for the career development of our officers and staff.

These resulted to the efficient and effective performance in conducting our operations and resulted to minimal com-

plaints from our members.

May naitala po tayong anim (6) na miyembro, who died in the year 2009 and we were able to pay the beneficiaries P120,000.00 as damayan benefits. Such amount was a great help to the survivors in their time of mourning.

At present we also have the following scholars (sons and daughters of members) which we have paid tuition fees and with monthly allowances:

9. Ang Property Management and Delinquency Control Committee ay patuloy na sumusubaybay sa ating mga pautang upang ito ay mabayaran lalo na ng mga miyembrong may delinquent accounts. Mayroon po tayong total na koleksiyon na P4,501,879.63 mula sa ating miyembrong nagkaroon ng kaunting problema sa kanilang bayarin. Sa kasalukuyan ang ating past due rate ay 13% at ang current accounts rate ay 87%. Nangangahulugan po lamang na maayos na pagmamanage pinansyal ng ating mga miyembro sa kanilang loans.

May sampung (10) collection cases na rin po tayong nai-file sa korte at ang mga ito ay nakipag-ugnayan na sa ating pamunuan at nag submit ng proposal kung papaano nila mababayaran ang kanilang hiniram sa ating kooperatiba.

Mayroon na din po tayong ipina-process na dalawang (2) Real Estate foreclosure sa mga hindi nakakabayad ng kanilang Real Es-tate Loan.

10. Through our Personnel Management Committee, we have hired three (3) new personnel to augment our staffs assigned at Iba and Castillejos Branch. The three- (3) additional staff appointment started from trainee and currently being paid as contractual employees. Position descriptions of all management staffs have been reviewed and updated as well as the SBMPC Personnel Manual which has been reviewed and revised. We have also managed our own Health Insurance Program to maximize health benefits for our officers and staff. In addition, annual physical examination has been required to all our staff.

11. Our Community and Business Development Committee continuously coordinates for the improvement of the services we are providing to members. To promote SBMPC globally, we have created our website for members to access wherever they are. Updates and happenings regarding SBMPC operations can be viewed in the web (www.subicbaympc.org).

We have on going talks with SM Appliance Store, Sun Cellular, Royale Business Club International, Bio Nutrient and other income generating business.

Name School Course

Myla Lei Pablo Mondrian Aura College Associate in Accountancy

Ma. Victoria Cabarles Subic Lyceum Associate in Computer Technology

Leonel Enriquez St. Joseph College High School


We also have conducted community outreach programs. We donated goods to the Missionary of Charity, an institution taking care of abandoned children and senior citizens. We also donated goods to Botolan residents who have been badly affected by typhoon “Kiko”.

We did participate in a joint project with Lions Clubs International in extending help through medical mission and providing goods to Botolan Zambales when the place was subsequently hit by typhoon “Ondoy”.

We joined SBMA in the observance of the Misa De Gallo and offered goods.

12. Ang Cleanliness and Beautification Committee ay matiyagang nag-maintain ng kabuuan ng ating coop building upang ito ay manatiling malinis at safe para sa ating lahat. Naiayos ang mga kawad ng kuryente at ang mga sirang bulletin boards ay masinop na. They have ensured also that leaks during rainy season are prevented and/or corrected. Patuloy po nilang iniaayos ang ating kapaligiran.

13. The Grievance and Conciliation Committee is studying the revision of our guidelines on handling grievance and conciliation in accordance with the new cooperative code of the Philippines RA9520. So far the committee received no complaint for the year 2009.

WHAT WE PLAN TO DO IN THE COMING YEAR…

Last August 2009 we have our strategic planning to revisit what we have planned in the past and to review and check what needs to be improved and what we need to do. We came up to agree on the following:

1. Mamili ng sariling lupa costing P5M, to where the SBMPC will stand in the future.

2. Expand our operations to other towns of Bataan, Pampanga and Zambales to reach out more members in their financial needs.

3. Go into franchising business worth P10M in the near future to further increase our revenues.

4. Conversion of the SBMPC Training Room into SBMPC Training Center, where we can conduct more courses/seminars for members.

5. Open new loan windows like Agri Loan / Housing Loan / Car Loan depending on members’ capacity to pay.

6. Venture into Rent-A-Car business and Tie-up with different locators.

7. Go on full computerization and upgrade the existing accounting system to better serve our members.

What we have done and whatever we plan to do in the near future are all geared towards providing the best coop services a mem-ber could get. And we are looking forward that SBMPC will be there forever for us to lean on in times of needs. We are very proud to say that inspite of the global recession we are still here doing business and serving our members.

SBMPC maasahang tunay ngayon at kailanman!!!


SUBIC BAY MULTI-PURPOSE COOPERATIVE

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2009 AND 2008

____________________________________________________________________________________

1. Cooperative Information

Subic Bay Multi-Purpose Cooperative (“the Cooperative”) was registered with the Cooperative Development Authority on September 30, 1991 with principal

office at Building 670, Subic Bay Freeport Zone.

The Cooperative is engaged in providing goods and services and granting of loans exclusively to members and other similar services for productive and

providential purposes.

In 2009, the Cooperative opened two branches in Iba and Castillejos, Zambales. The first branch was established in Dinalupihan, Bataan in 2008.

As a registered multi-purpose cooperative, the Cooperative enjoys certain privileges provided under R. A. 6938, otherwise known as the Cooperative Code of

the Philippines, such as exemption from all taxes both local and national. Consequently, a new law known as R.A. No. 9520 or the Philippine Cooperative Code

of 2008 was approved in 2009 to amend R.A. No. 6938.

Under Bureau of Internal Revenue Memorandum Circular No. 48-91, cooperatives dealing and transacting business with members and non-members and with

accumulated reserves and surplus of not more than P10 million are exempt from all taxes of whatever name and nature on their transactions with members,

among others. For cooperatives with accumulated reserves and undivided net savings of more than P10 million, exemption from income tax shall be for a period

of 10 years reckoned from the date of its registration with the CDA.

The financial statements of the Cooperative for the year ended December 31, 2009, including the comparatives for the year ended December 31, 2008, were

authorized for issue by the Board of Directors (BOD) on February 16, 2010.

____________________________________________________________________________________

2. Basis of Preparation

The financial statements are presented in Philippine Pesos. The financial statements have been prepared on a historical cost basis. Property, plant and equipment

were not measured at fair value since the carrying values as of report date are still higher than the replacement costs.

The preparation of financial statements in conformity with Philippine Financial Reporting Standards (PFRS) requires management to make judgments, estimates

and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the

basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from

these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the

estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The accompanying financial statements were also prepared in accordance with the principles and practices as mandated by Cooperative laws, principles and

practices.

The Company’s adoption of the Philippine Accounting Standards and PFRSs did not result in material adjustments to the financial statements of the current and prior years, except for the reclassification of certain accounts in the 2008 financial statements to be consistent with the 2009 financial statement presentation as

set forth in Note 20.

Summary of Significant Accounting Policies

The following summary explains the significant accounting policies which have been adopted in the preparation of the financial statements:

Cash and Cash Equivalents

Cash includes cash on hand and cash with banks.

Cash accounts with the banks generally earn interest at rates based on daily bank deposit rates.

2009 ANNUAL REPORT

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities of three months or

less and that are subject to an insignificant risk of change in value.

Receivables

Loans Receivable. Loans to members are stated at the outstanding principal balance, reduced by allowance for probable losses on loans. The Cooperative offers

various types of loans, which are peg with different interest rates based on the term, or maturity of the loan.

Allowance for Probable Losses on Loans. The Cooperative provides an allowance for probable losses on loans based on a fixed predetermined rate on the

outstanding loan balance. An allowance for probable loan losses is provided if there is objective evidence that the Cooperative

will be unable to collect all amounts due on a claim according to the original contractual terms or the equivalent value. An allowance for probable losses is

reported as a reduction of the carrying value of a claim on the statement of condition. Additions to the allowances and provisions for

probable losses are made through provision for credit losses.

Trade receivables. Trade receivables are recognized and carried at original invoice amount less an allowance for any uncollectible amount. Provision is made

when there is objective evidence that the Cooperative will not be able to collect the debts. Doubtful accounts are written off when identified.

Inventories

Inventories are valued at lower of cost or net realizable values.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation, amortization and impairment losses, if any.

Initially, an item of property, plant and equipment is measured at its cost, which comprises its purchase price and any directly attributable costs of bringing the

asset to working condition and location for its intended uses. Subsequent expenditures are added to the carrying amount of the asset when it is probable that

future economic benefits, in excess of the originally assessed standard of performance, will flow to the Cooperative. All other subsequent expenditures are

recognized as expenses in the period in which they are incurred.

Property, plant and equipment are stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in

value. Such cost includes the cost of replacing part of such property and equipment when that cost is incurred if the recognition criteria are met.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may

not be recoverable. Valuations were performed to ensure that the fair value of an asset does not differ materially from its carrying amount as of December 31,

2009.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or

loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the

income statement in the year the asset is derecognized.

Depreciation and amortization are computed on the straight-line method over the following estimated useful lives:

_______________________________ Number of years

Land Improvements 15

Building and Improvements 25

Office Furniture, Fixture and Equipment 2 - 5

Transportation Equipment 4_______

Leasehold improvements are being amortized over the estimated useful lives of the assets or the term of the lease, whichever is shorter.

Financial Liabilities

Financial liabilities include bank loans, trade and other payables, as well as Interest on Share Capital and Patronage Refund Payable to the Cooperative’s

members.


These are recognized when the Cooperative becomes a party to the contractual agreements of the instrument. All interest related charges are recognized as an

expense in the Statement of Operations under the caption Finance Costs.

Trade payables are recognized at their nominal value. Interest on Share Capital and Patronage Refund Payable are recognized as financial liabilities based on the

Cooperative’s By-Laws as well as Cooperative laws and regulations.

Financial liabilities are derecognized from the balance sheet only when the obligations are extinguished either through discharge, cancellation or expiration.

Retirement Fund

The Cooperative has not established a formal retirement fund. However, it accrues the estimated cost of retirement required by the provision of RA No. 7641 -

Retirement Law.

Equity

Share capital is determined using the nominal value of shares that have been issued to members as stated in the by-laws.

Undivided net surplus includes undistributed portion of all current and prior period results as disclosed in the statement of operations.

Donated capital is carried at original cost.

Statutory funds are determined as discussed in Note 14.

Revenue Recognition

Income is recognized to the extent that it is probable that economic benefits will flow to the Cooperative and the income can be reliably measured.

(a) Credit Activities

Interest. The Cooperative derives its revenue from credit activities extended exclusively to members. Revenue is recognized based on the terms and type of

loans where interest income calculated is deducted in advance from the principal of the loan.

The Cooperative grants rebates to regular loans renewed before its maturity date based on a policy adopted by the Board of Directors allowing borrowers who

have paid at least 50% of the original loan to qualify to a new regular loan.

Interest income from loans are recognized as income over the term of the loans using the modified accrual method.

Interest on interest-bearing deposits and placements are recognized as the interest accrues.

Service Charges, Fines and Penalties. Service fees, fines and penalties are recognized only upon

collection or accrued when there is reasonable degree of certainty as to its collectibility.

(b) Trading Activities

Sale of Goods. Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

Operating Lease Payments

Leases which do not transfer to the lessee substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease

payments are recognized as expense in the statement of operations. Associated costs, such as maintenance and insurance, are expensed as incurred.

Judgments

In the process of applying the Cooperative’s accounting policies, management has made the following judgments, apart from those involving estimation, which

have the most significant effect on the amounts recognized in the financial statements:

2009 ANNUAL REPORT

Contingencies. Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed in the notes to the financial statements

when an inflow of economic benefits is probable.

Estimates

The estimates and assumptions used in the financial statements are based upon management’s evaluation of relevant facts and circumstances of the

Cooperative’s financial statements. Actual results could differ from those estimates.

Useful Life of Property and Equipment. The Cooperative estimates the useful lives of property and equipment based on the period over which the assets are

expected to be available for use. The estimated useful lives of property and equipment are reviewed periodically and are updated if expectations differ from

previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets. In addition, estimation of the useful lives of property and equipment is based on collective assessment of industry practice, internal technical evaluation and experience with similar

assets. It is possible, however, that future results of operations could be materially affected by changes in estimates brought about by changes in factors

mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in

the estimated useful lives of property and equipment would increase recorded operating expenses and decrease non-current assets.

Property and equipment net of accumulated depreciation and amortization P1.53 million and P1.31 million as of December 31, 2009 and 2008, respectively (see

Note 9).

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Cash and Cash Equivalents

This account consists of:

2009 2008_________

Cash on hand P 595,582 P 1,154,974

Cash in bank 12,200,777 20,427,657

Cash in other cooperatives 5,400,000 1,016,736

Cash in cooperative federation – FCCR3 100,000 100,000________

P 18,296,359 P 22,699,367____

____________________________________________________________________________________________________________________

4. Loans Receivable


2009 2008__________

Loans P 56,549,747 P 58,439,605

Allowance for probable losses on loans (1,373,709) (1,102,447)_____

Loans – net P 55,176,039 P 57,337,158___

The aging analysis of loans receivable is presented as follows:

2009 % 2008 %_____

Current P 47,871,573.42 84.65% P 49,840,813.78 80.95%

1 – 30 days past due 324,445.60 0.57% 223,530.00 0.42%

31 – 60 160,685.00 0.29% 121,119.00 0.56%

61 – 90 256,349.05 0.45% 3 07,278.64 0.39%

91 – 360 1,326,810.00 2.35% 1,607,470.29 2.56%

Over 360 days 6,609,884.37 11.69% 6,339,392.96 15.12%__

TOTAL P 56,549,747.44 100.00% P 58,439,604.67 100.00%

2009 ANNUAL REPORT

Movements in the allowance for probable losses on loans are as follows:

2009 2008____

Balance at the beginning of year P 1,102,447 P 859,393

Provision during the year 271,262 246,585

Accounts written off during the year - (3,532)___

Balance at the end of year P 1,373,709 P 1,102,447

____________________________________________________________________________________________________________________

5. Other Receivables


2009 2008____

Interest P 7,549,887 P 7,523,924

Due from accountable officers and employees 37,292 58,283

Due from PFCCO 102,475 102,475

Trading 279,209 147,341

Miscellaneous 1,316,542 839,834

Allowance for doubtful accounts (1,810,313) (1,353,411)

P 7,475,092 P 7,318,446

____________________________________________________________________________________________________________________

6. Inventories


2009 2008________

Mini grocery P 418,865 338,580

Pharmacy (Note 16) 6,941 13,196_______

P 425,806 P 351,776____

____________________________________________________________________________________________________________________

7. Prepayments and Other Current Assets


2009 2008_______

Unused office supplies P 205,277 P 104,710

Refundable deposit 27,500 15,000

Prepaid expenses 178,757 98,764_____

P 411,534 P 218,474___

____________________________________________________________________________________________________________________

8. Long-term Investments


2009 2008_______

Cooperative Bank of Zambales P 1,152,000 P 1,142,000

FCCR3 133,237 127,237

Others 5,112 4,753______

P 1,290,349 P 1,273,990_

2009 ANNUAL REPORT

9. Property. Plant and Equipment

The rollforward analysis of this account consists of:

Land Buidling and Office Furniture Transporatation Leasehold Total

Improvements Improvements and Equipments Equipments Improvements __________

At December 31, 2008

Acquisition cost P 19,800 P 3,749,474 P 2,700,513 P 829,505 P 24,226 P 7,323,518

Accumulated depreciation (14,520) (3,715,896) (1,486,794) (798,317) - (6,015,527)

Net book value - beginning P 5,280 P 33,578 P 1,213,719 P 31,188 P 24,226 P 1,307,992

Year ended December 31, 2009

Net book value - beginning P 5,280 P 33,578 P 1,213,719 P 31,188 P 24,226 P 1,307,991

Additions - 61,227 275,488 - 73,637 410,352

Depreciation (3,960) (10,468) (133,269) (12,475) (29,329) (189,501)

Net book value - end P 1,320 P 84,337 P 1,355,937 P 18,713 P 68,534 P 1,528,842

At December 31, 2009

Acquisition cost P 19,800 P 3,810,701 P 2,976,001 P 829,505 P 97,863 P 7,733,870

Accumulated depreciation (18,480) (3,726,364) (1,620,064) (810,792) (29,329) (6,205,028)

Net book value - end P 1,320 P 84,337 P 1,355,937 P 18,713 P 68,534 P 1,528,842

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10. Other Assets


2009 2008_______

Computerization costs – net P 192,000 P 121,790

Other receivables 818,499 624,707

Other funds and deposits 13,938,156 13,438,957

Miscellaneous assets - 688________

P 14,948,655 P 14,186,142

The fund set aside as guarantee fund for a labor case involving an employee of SBMPC was reclassified to this account pending the final

resolution of the case which is presently being contested by the legal counsel for certain considerations.

___________________________________________________________________________________________________________________

11. Deposit Liabilities


2009 2008_________

avings deposits P 4,028,026 P 3,565,822

Time deposits 6,072,464 5,944,328

Instant kwarta 3,312,076 4,490,178_____

P 13,412,566 P 14,000,328___

2009 ANNUAL REPORT

Deposits Portfolio

Type Minimum Minimum Holding Interest Rate

Investment Period (p.a.)____

Time deposit P 50,000 12 months 5%

Instant Kwarta 5,000 90 days 4%

Savings deposit 1,000 1 month 1%

____________________________________________________________________________________________________________________

12. Other Current Liabilities


2009 2008_______

Savings allotment P 4,250,954 P 4,250,954

Others 114,329 145,295_____

P 4,365,283 P 4,396,249__

____________________________________________________________________________________________________________________

13. Donated Capital

This amount represents the incentives given by the Cooperative Bank of Zambales (CBZ) to Mr. Ranny D. Magno for the years 2005- 2 0 0 9 . T h e

incentives were voluntarily donated by Mr. Magno to SBMPC as additional investment in the shares of CBZ.

____________________________________________________________________________________________________________________

14. Allocation and Distribution of Net Surplus

The Cooperative’s articles of cooperation, as amended, explicitly provides that its net surplus at the end of the fiscal year shall be distributed in

the following manner:

a) Ten percent (10%) shall be set aside for the reserve fund. This general fund is created to provide for the stability of the Cooperative and to absorb

losses, if any, in its business operations.

b) Five percent (5%) for education and training fund.

c) Four percent (4%) for optional fund.

d) The remaining net surplus shall be made available to the members in the form of interest on share capital not to exceed the normal rate of return

on investments prescribed by CDA and patronage refunds.

____________________________________________________________________________________________________________________

15. Income from Credit Activities


2009 2008_________

Interest income from loans P 8,996,357 P 9,568,419

Service fees 1,726,882 1,663,365

Fines, penalties and surcharges 646,447 977,614_______

P 11,369,686 P 12,209,398___

2009 ANNUAL REPORT

16. Income from Trading Activities


2009 2008___________

Mini-grocery

Sales P 1,188,953 P 1,149,460

Less – Cost of sales

Merchandise inventory, beginning 338,580 107,176

Purchases 1,149,529 1,290,043

Merchandise inventory, end (418,865) (338,580)

Spoilage, breakage and other losses - 26,103_________

P 119,708 P 64,718________

Pharmacy

Sales P 22,757 P 38,188

Less – Cost of sales

Merchandise inventory, beginning 13,196 4,242

Purchases 12,045 39,953

Merchandise inventory, end (6,941) (13,196)_______

P 4,457 P 7,189________

P 124,165 P 71,907_______

___________________________________________________________________________________________________________________________________

17. Administrative Expenses


2009 2008

Salaries and wages P 2,288,265 P 2,022,450

Employees' benefits 1,092,451 791,630

Officers honorarium & allowances 597,787 319,999

Provision for doubtful accounts 456,902 415,365

Power, light and water 319,198 240,602

Meetings and conferences 294,177 326,632

Provision for retirement benefits 284,633 577,650

Office supplies 274,505 302,388

Provision for probable losses on loans 271,262 246,585

General assembly meeting 249,580 126,685

SSS, Philhealth, Pag-ibig & EC contributions 192,462 171,169

Depreciation and amortization 188,260 244,529

Transportation and travel 187,711 111,159

Collection 172,714 198,770

Professional fees 161,997 121,000

Trainings and seminars 158,670 -

Promotions and advertisements 121,121 120,853

Communication 103,662 70,504

Repairs and maintenance 95,182 106,892

(forward)

2009 ANNUAL REPORT

2009 2008______________

General support services 80,332 99,943

Insurance 74,015 79,735

Representation and entertainment 50,149 57,419

Members' benefits 17,054 7,600

Periodicals, magazines and subscription 16,789 31,398

Rental 2,000 28,000

Taxes and licenses 5,135 11,500

Others 122,930 325,570_____________

P 7,878,943 P 7,156,027__________

___________________________________________________________________________________________________________________________________

18. Prior Period Adjustments

The balance of undivided net surplus has been restated from amount previously reported to reflect retroactive adjustment of Scholarship and Damayan

Fund transactions.

___________________________________________________________________________________________________________________________________

19. Retirement Benefits

Republic Act No. 7641 (New Retirement Law) took effect on January 7, 1993. Under the new law, the Cooperative is required to provide minimum retirement benefits to qualified retiring employees. At present, the Cooperative has accrued the estimated retirement costs pertaining to R.A. No. 7641.

The Cooperative intends to establish in the future a formal, tax qualified retirement plan to comply with the law.

___________________________________________________________________________________________________________________________________

20. Reclassification

Certain accounts in 2008 were reclassified to conform with the 2009 presentation of financial statements.

2009 ANNUAL REPORT

2009 sbmpc annual report

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