Jo B. Bitonio

CDA Dagupan

Guidelines and Checklists for

Cooperative Operation and Management

June 6, 2016

The review of the CDA Memorandum Circulars, Social Audit Report (SAR) & Performance Audit Report (PAR), PISO can result in introducing intervention through a listing of programs, projects, policies, GA/Board Resolutions, manuals, information facilities, Code of Governance and Ethical Standards and other strategies intended to guide Philippine cooperatives in their operation.

. Development Plan

. Annual Plan and Budget

. Acceptance of AFS

. Hiring of External Auditor

GA Resolution

MC 2014-02 - states the 5 year limit role in the engagement of CEA

- gap of 2 years- prohibition in the engagement and

signing of audit when the validity of accreditation is not valid or in question

• Development Plan (DP) • Annual Plan (Art 33 RA 9520; Rule 7

Sec 4 of the IRR)• Social Development Plan (SDP) • Education and Training Plan (ETP) • Succession Plan (HRD Plan)• Gender and Development Plan (MC 2013-22)

Plans

Note: - Annual plan is lifted from the Development Plan

- SDP and ETP can be incorporated in the DP

Art 53 of RA 9520

Every cooperative shall draw up reports of its programs of activities including those in pursuance of their socio-economic undertaking sharing their progress and achievements at the end of fiscal year

• Oversight functions • Performance evaluation/appraisal • Election guidelines • Distribution of net surplus (Rate of Interest

and patronage refund) • Provisions and funding for statutory reserves • Utilization of statutory reserves • Provisions of funding for Retirement Fund

Board Resolutions

• Monetary benefits (Performance Bonus, 13th • Month Pay, SSS, Phil Health, Pag-ibig) • Non Monetary Benefits (Rice subsidy, uniforms) • Membership subscription of capital • Compliance limitation of shares (10%)• Deposit for share capital subscription • Issuance of Share Certificate • Conflict Mgmt/Mediation and conciliation

Program

Policy/Board Resolutions

• Conflict management – officers, employees, members

• Associate members • Laboratory cooperatives • Subsidiary coop • GAD and Gender Equality

Policy/Board Resolutions

• Code of Governance and Ethical Standard • Conflict of Interest (engaged in similar business) • Code of Ethics provisions for officers /staff

/members• Policy requiring all officers to comply with the

mandatory trainings requirements (MC 2012-07)• Election Rules and Guidelines (MC 2013-02)

Policy/Board Resolution

Manual of Operations (membership, business operation, branch, satellite)

HR (Organizational and Functional Structure; compliance with labor standard, adoption of performance standard)

Accounting ( maintenance of books of accounts; updated recording); separate books per line of business;

Interim financial – monthly, quarterly, annual Internal Control System Compliance with BIR, DOLE, LGU, Etc.

Manual

• Code of Ethical Standard – Officers, staff-members • Compliance with SCA • Savings Mobilization program • Institutionalization of financial and operational

Performance Appraisal System (PISO and PESOS)

Manual

• Capital Build Up • Gender Programs and Projects• Member Benefit Program ( group insurance,

medical and health assistance, education assistance, burial assistance)

• Retirement & Funding of Retirement Program• Human Resource Program

Programs and Projects

• Nation Building Programs (SDGs, environment • Responsiveness to gender, elderly, youth and

person with especial needs • Collaborative Programs/projects

Programs/Projects

• Education and Training Program – officers, employees, members (Calendar of activities, compliance with mandatory training for officers)

• Leadership Development Program (retreats, succession planning, leadership session)

• Employee Support Program (Council, Insurance, Protection, Grievance mechanism, Awards and Recognition, Scholarship, Seminar, training,

• Social, cultural, sports

Programs/Projects

• Suggestion/Grievance box • Newsletter • Freedom board• Email account• Website• FB account

Information Facilities

Year 1

Year 2

Year 3

Year 4

Year5

No. of Regular members

No. of Associate members

No. of members patronizing the services of coops

Service A

Service B

Service C

No. of members with additional share capital

No of members with deposits

No of members participated in the AGA

No of members participated in membership events (e.g. tree planting, medical mission, etc)

Membership Growth and Expansion Program

Recruitment of members based on the AC/BL.

No. of members benefitting from the members’ social benefit program/s

Year 1

Year 2 Year 3

Year 4

Year5

Group insurance benefit

Medical & health assistance

Educational Assistance

Burial assistance/aid

Implementation of education program

No of members attended continuing education and training program

Values Education

Cooperative Principles & Practices

Ethics

Entrepreneurial skills

Leadership Training

Financial Literary

Livelihood

Membership Growth and Expansion Program

Training

Trainings Conducted/ facilitated by cooperatives

Year 1

Year 2

Year 3

Year 4

Year 5

PMES (Art 10 BL)

Competency Course (Fed Affiliates)

oBoard of DirectorsoManageroMandatory Committees (Audit, Election, Ethics, MedCon)

oTreasurer & Secretary

MC 2015-09

Training

Trainings Conducted/ facilitated by cooperatives Year 1

Year 2

Year 3

Year 4

Year5

Mandatory Training (MC 2015-09)

MICRO-COOPERATIVES [cooperatives with total assets f P3 Million and below]

Fundamentals of Cooperatives (8)Governance and Management of Cooperatives (8)

All other cooperatives with total assets of more that P 3M

Fundamentals of Cooperatives (16)Governance and Management of Cooperatives (16)

TrainingOptional Training Year

1Year 2 Year

3Year

4Year

5

Additional trainings for officers of COOPERATIVES ENGAGED IN SAVINGS AND CREDIT with at least Five Million Pesos (Php5,000,000.00) worth of deposit liabilities based on their latest AFS

Financial Management (8)

Risk Management (4)

Credit Management (4)

Period of Compliance

Cooperative officers shall complete the required trainings within the first half of their term

Training

Additional Training Year 1

Year 2

Year 3

Year 4

Year 5

Financial Management

Policy Development

Leadership and Values Re-Orientation

Conflict Management

Strategic Planning and Management

Orientation on Labor & Other Related Laws

Records Management (Financial/Non-Financial Transaction)

Cooperative Standards

Training

Additional Training Year 1

Year 2

Year 3

Year 4

Year 5

Investment and Banking Procedures

Basic Accounting for Non-Accountants

Internal Control including Inventory System

Audit Management

Rules Formulation

Human Resource Management

Effective Communication Skills

Entrepreneurship & Business Management Skills

Basic Computer Literacy

A policy requiring all elective officers to comply with the mandatory training requirement wherein the election committee shall be responsible to ensure compliance thereon and in case of appointed officers, it shall be the Board of Directors.

Performance Audit ReportMC 2013-0165

Std Accom Intervention

Non Financial (100 x 35%) 35

Financial (100 x 65) 65

Profitability Perf (25)

Institutional Strength (20)

Structure of Assets (25)

Operational Strength (30)

Total Points 100

Social Audit Report

SAR Components Std Accom Intervention

Organization 15

Membership 35

Staff/Employees 10

Cooperation Among Cooperatives

10

Community and Nations 25

Network, Alliances & Linkages 5

Total Points 100

MC 2013-016

Social Relevance

1. GAD (MC 2014-04) Year 1

Year2

Year 3

Year 4

Year5

• GAD Focal Person• GAD Committee• GAD Budget; • GAD Program; • GAD Implementation

2. Environmental Protection and Conservation Program

3. Community Involvement and Development Program

4. Cooperative Solidarity and Partnership Program

OthersSignage MC 2012-15

BY are amended to conform with RA 9520

Art 14-15 Amended AC/BL

Actual business in accordancewith AC/BL

Compliance to SSS,PhilHealth, Pagibig, BIR, etc.

Labor Code (min wage and 13th Mo. Pay)

Art 135, RA 9520

Compliant with SCA

Books of Accounts registered with BIR

Separate books of Accounts per business

MC 2013-15

Location of cooperatives based on AC

Branches/Satellite within the bounds of regulations

MC 2014-04 ; MC 2015-09

Term of existence shall be made 5 yrs prior to the expirydate

Art 13 RA 9520

Registry of members MC 2012-16

Membership subscribed and paid up are covered by subscription agreement

Subscription Agreement

10% Limitation on Subscription Art 73 Rule 10 IRR/ BL

Issuance of Preferred shares AC/BL; Rule 10

Same value for common shares

Issues Share Capital to members MC-2013-04

The Net Surplus is distributed BL

Allocation of Statutory Reserves Art n86 RA 9520

Statutory funds are funded Art 85 Ra 9520

Organizational Structure MC-2011-7

The accountable officers are covered by Surety Fund

MC 2011-15

Compensation of the BOD MC 2013-17

AC contains Arbitral Clause Art 137; Rule 13 RA 9520

Affiliation Art 25; BL; MC 2011-16

Remits CETF Art 86, RA 9520

All depends

on You