MASS SPECC Annual Report PDF

2016 ANNUAL REPORT
COVER
VISION
A strong and sustainable Mindanao-based confederation
of viable and people-oriented cooperatives.
MISSION
To foster and strengthen the financial cooperation
among cooperatives towards the long-term institutional
and financial stability of the cooperative sector;
To promote cooperatives as a distinct sector in the

economy and as a People’s Movement bound by shared
values and philosophy; and
To promote dialogues and establish linkages with

stakeholders on the basis of partnership and mutual
respect—for greater impact on peace and development,
for and with the tri-people of Mindanao.
2016 ANNUAL REPORT
COVER
About the Cover
Fifty years ago, a cooperative movement was born
in Mindanao and spread its influence throughout
the Philippine archipelago, inspired by successful
cooperatives around the world. As we move
forward in the next fifty years, there is a need even
more for cooperatives to work and pull themselves
together. Cooperate, collaborate, differentiate. This
will be key to their success as a movement.
table of
3
contents
About the Theme
4 Messages
11 Performance Reports
12 Central Fund (CF)
14 Information and Technology (ICT)
16 MASS-SPECC Consultancy Unit (MCU)
18 Institute of Cooperative Studies (ICS)
20 Membership and Networking
22 Gender and Development
24 Youth
26 Environment
28 2016-2017 BOD Resolution Highlights
Milestones
50th Anniversary Highlights
30 Audit Committee Report
31 EXTERNAL AUDIT REPORT
32 Statement of Management’s Responsibility

for Financial Statement
33 Independent Auditor’s Report
36 Audited Financial Statements
40 2016 MASS-SPECC Awardees
42 2016 MICMA Award
48 2016-2017 Board of DIrectors & Key Officers
49 2016-2017 Committees
50 2016-2017 Regional Steering Committee Officers
51 MASS-SPECC Strategic Plan 2017-2021
53 2017 Action Plans and Targets
56 2017 Budget
about the
theme 3
“
THEME:
2 0 1 6 A N N UA L R E P O R T
Growing Cooperatives
into a Movement
”
W
e are continuing last year’s theme – Growing Cooperatives into
a Movement – in this year’s General Assembly to focus on one
important goal and to see that same goal from two perspectives.
As we prepared to celebrate last year our 50th anniversary (August 9, 2016),

the theme was meant to capture the continuous effort of the Federation
to grow co-operatives and to develop services that were relevant to their
growing needs. Part of this effort was the strengthening of its governance
system, allowing for greater member participation in its decision-making
process.
To grow the movement, MASS SPECC established structures and processes to

strengthen collaboration among co-operatives, such as the pooling of reserve
funds and retirement funds, conceptualization of the stabilization fund and
other support systems, and discussions on self-regulation.
The same theme in the 2017 General Assembly serves to emphasize the need
and urgency for co-operatives to work together. The increasing pressures
from a competitive market and political environment prompt us to do so. The
building blocks that MASS SPECC has put in place to grow the movement
must now be institutionalized, if co-operatives are to secure their future and
ensure the success of cooperatives in the country.
4
message fRom the
chairperson
G
reetings on the 43rd MASS SPECC General Assembly!
Is MASS-SPECC an epitome of courage, strength, and empowerment? Yes, because for 43 years, MASS-
SPECC stood firm as it established its roots among primary cooperative affiliates. SPECC started in
educating its members on cooperatives while MASS concentrated on bookkeeping and auditing services. We can
recall that MASS-SPECC came into existence when the leaders of both institutions merged MASS and SPECC.
SPECC, being organized earlier, celebrated its 50th year in August 2016.
Through the years, MASS-SPECC grew immensely in terms of membership, assets, and in the quality of its services.
Recognized internationally through its membership with the International Cooperative Alliance (ICA), it has become
the biggest regional cooperative federation in the Philippines with over 300 primary cooperatives as members,
mainly in Mindanao. We abide by the precepts of democracy in the conduct of our organizational processes, where
the voice of the primary cooperatives guides the hand that steers the wheel of governance and management.
Our strategic plan for 2017-2021 has set in motion the dream of growing cooperatives into a movement, backed by
the common vision of coop members enjoying better quality of life. Our overarching strategy to pursue this vision is
to cooperate, collaborate and differentiate.
We continue to strengthen the present services of MASS-SPECC to meet the demands of our members, particularly
in the areas of information and communication technology, membership and networking, consultancy, and
education under the Institute of Cooperative Studies. We continue to promote our Sustainable Coops Programs
(SCOOPS) by integrating the Environment Management System and Disaster Risk Reduction Management (DRRM),
Credit Information System (CIS), and the Agribest Program.
President Duterte’s vision 2040 of a high-income economy is a challenge. MASS-SPECC must be ready to face the
realities of the fast changing times in the coming years. All cooperatives, regardless of size, must work with a unified
purpose. This can be achieved through the cooperation, vigorous contribution, and support of primary cooperatives
for the sustainability of MASS-SPECC’s programs and projects. The constant practice of good governance,
transparency, and adherence to cooperative values will be the guiding tool for MASS SPECC in its pursuit of growing
cooperatives into a movement and helping members enjoy better quality of life.
Let the Lord be the captain of our journey in the coming years. God bless us all.
Congratulations!
EVELIA R. SATOR, Ph.D.
Chairperson
5
message from the

president of the philippines
M
y warmest greetings to the Mindanao Alliance of Self-Help Societies-
Southern Philippines Educational Cooperative Center (MASS-SPECC) as it
holds its 43rd General Assembly and 47th Co-op Leaders’ Congress.
For years, the MASS-SPECC has been a reliable partner in the government’s thrust to
fortify cooperatives in Mindanao. It continues to offer a wide range of support to its
affiliates’ various needs. The success of community-based businesses like these greatly
impact peace and development programs in our localities.
Thus, I laud the federation for its efforts to advocate for inclusive growth among
members. By encouraging small cooperatives to grow together with their bigger
counterparts, we ensure lasting institutional and financial stability in the region. I hope
that the managers and Board of Directors will uphold the principles pf excellence,
efficiency and productivity in guiding their respective cooperatives towards success.
RODRIGO ROA DUTERTE

The President of the Philippines
6
message fRom the

House of Representatives
(Coop natcc0 partylist)
C
ongratulations on your 43rd General Assembly and 48th Coop Leaders Congress!
May this special occasion provide you an opportunity to discuss fresh and
relevant ideas that can contribute to the growth of MASS-SPECC federation and its
coop affiliates.
The federation’s role in national development is very valuable. Being the unifying force
for 300 member cooperatives mostly in Mindanao, MASS-SPECC play a key role in
strengthening the cooperative movement in the country.
MASS-SPECC is in fact recognized as the biggest regional cooperative federation and I

am proud of all your achievements. You deserve to be recognized for your great efforts in
boosting the cooperative spirit of cooperators.
Continue your pursuit of excellence and growth. Together with the coop affiliates, keep on
growing coops into a movement. Certainly, you can also build communities and take part in
nation-building.
Today we are facing the challenge of defending the tax exemption privileges of
cooperatives. We apreciate your support and commitment to actively partake in this
campaign against the government’s plan to tax our cooperatives.
Let us continue our partnership in advocating cooperative development and people

empowerment.
God bless and more power!
HON. ANTHONY M. BRAVO, Ph.D.

Representative, Coop-NATCCO Party-list
7
message fRom the

House of Representatives
(Coop natcc0 partylist)
W
armest cooperative greetings!
It is my honor and privilege to extend my heartfelt felicitations to the Officers,

Management, Staffs, and the members of MASS-SPECC on the occasion of
your 43rd General Assembly and 47th Co-op Leaders’ Congress, celebrating the theme:
Growing Co-operatives Into a Movement.
I salute your continuous commitment to the developmental growth of the industry and
ensuring sustainable business for your members. Let us continue to be partners in the
cooperative development efforts for together we can do more.
As your partner and voice in the House of Representatives in this 17th Congress, I am
very proud to count you as an active member of COOP NATCCO Party-list. I do hope our
partnership will continue for the long-term. Let’s work collectively to seize opportunities
and ensure that our gains are preserved.
Congratulations and mabuhi kamo!
HON. SABINIANO S. CANAMA

Representative, Coop- NATCCO Partylist
8
message from the office of the president of the phil.

cooperative development authority
F
elicitations to MASS-SPECC Cooperative Development Center on the occasion of
your 43rd General Assembly and 47th Co- op Leaders’ Congress as well as your 50th
Anniversary (Golden Anniversary).
Empowerment is the call of the times because when people are empowered, it will give way
to social restructuring. That looming structure called cooperativism is now considered the
people’s preferred development model as the cooperatives are now seen globally as the
acknowledged leaders in the economic, social and ecological sustainability.
In essence, what cooperatives now are advancing is a kind of development that is holistic, pro-
people, community-based and with a popular participation. It is an approach that puts man at
the center and in the mainstream of the processes. These are well-pronounced in the principles
we live by.
It has been said that the past or the present does not shape the future; your vision does
coupled with the single-minded determination to work for it and put it to reality. Mere intention
alone creates its own energy, how much more if it is pursued with a strong will.
MASS-SPECC Cooperative Development Center has shown the way on what a cooperative
should be. Its accomplishments are the concrete and tangible manifestations of the driving
forces that are in the realm of the intangibles. The good governance exemplified by its
Board of Directors, the industry and innovativeness poured-in by its management and the
values of cooperation and participation of its members are the pillars of its strength in the
long and arduous journey towards making life better for the people. Innovativeness coupled
with industry, good governance and cooperation from members are the values that have
catapulted the cooperative to achieve an indelible mark of success.
More power and kudos to MASS-SPECC Cooperative Development Center!
ORLANDO R. RAVANERA
Chairman
9
message from
Association of asian
confederation of credit unions
Team Spirit in a Movement—the power to cooperate.
I
am delighted to know that you will continue vigorously to put in place the building blocks
of a coop movement in the areas of governance practice, programs and services. No doubt,
you are building a coop movement with a good cause and a common mission, a coop
movement for constructive change, a movement to give people meaningful participation
and an opportunity through ownership to become masters of their own destinies.
Last August, I had the honor of attending your Grand Anniversary Celebration and I brought
back with me your booklet entitled “Member Care” which I have been quoting at credit
union seminars and meetings comparing it with the ACCU course on “Basics in World Class
Customer Service”.
Also, I have learned that you are interested in the ACCU course of “Managing Yourself for
Others”. This confirms our shared belief that a coop movement is made up of cooperators
committed to work for and with others for socio economic development and for the
development of people.
In your effort to growing cooperatives into a world class movement, you will find that
cooperation leads to cooperation. You will also find that team spirit connects people who
share the same value system and that the power to cooperate makes the great task easy and
enjoyable!
(SGD) ANDREW SO
Founding President of ACCU
10
message from
développment international
desjardins
O
n behalf of the entire team of Développement International Desjardins (DID),
we wish to extend our most sincere congratulations for the 50th anniversary of
MASS-SPECC.
DID is so proud to have become a MASS-SPECC partner since the early 90s. Today, it is
very impressive to see how a cooperative organization like MASS-SPECC has achieved
those amazing results in 50 years. We know how much it was, and it remains very
demanding for the members, the managers, and the leaders of MASS-SPECC to reach such
results.
We salute that!
Once again, please accept our warmest congratulations for these 50 years and receive our
best wishes for the future.
(SGD) JULIE VEILETTE

Senior Director
Finance & Administration
(SGD) SERGE GOSSELIN

Director
Market Development
reports
performance
11
11
central fund
“
12
We have to stay relevant
to our members. Systems
thinking, overarching
strategies, and a common
vision are necessary in

the operations of co-
operatives for their
members to enjoy better
quality of life. Together
”
we can achieve much,
especially when we live
out the basic co-op values.
A
H ig h lig h ts o f th e Cen tr a l
s the Philippines becomes an emerging
market in Asia, the cooperative Fu n d O p er atio n s
industry in the country follows suit.
Our pursuit of helping individual • Outstanding Deposits of Php 1.045B in
members enjoy better quality of life requires us 2016 exceeded the Php 875M target
to develop creative and dependable business
models that would consequently help us • Cumulative Share Capital increased to Php
achieve our purpose. We aim to imbed the 245M from Php 225M in 2015
Agribest program, which promotes agricultural
• Loans Payable decreased to Php 221M
value-chain undertaking within the co-operative
from Php 410M in 2015
network, in our members’ operations.
• Loan Releases of Php 706M in 2016, higher
We continue to provide dependable financial than Php 564.8M released in 2015
and technical assistance to our members
through timely and customized loan assistance • No. of borrowers decreased by 21% to 50
and savings and investment windows, which in 2016 from 63 qualified borrowers in
have better earning opportunities for their liquid 2015
funds. Our financial packages are combined • Portfolio Quality slightly decreased to
with relevant interventions that add value to our 5.9% from 5.07% in 2015
members’ needs.
• Compliance for loan losses sustained at
100%
13
H ig h lig h ts o f th e
Ag r iBES T P r o g r am
Piloting of the program in four cooperatives

with the following results:
1. Conceptualization of Business
Development Service for participating
coops with assistance from ACDI/VOCA
2. Formation of 13 Clusters of farmers with
91 farmers in 4 cooperatives
3. 54 modules or 540 heads of hogs
produced and marketed by participating
We noted, however, that members’ patronage
coops
of our loan products decreased from 63
cooperatives in 2015 to 50 cooperatives in 2016,
as some banks continue to extend loans to co- Partnership/Linkages with the following
operatives at a lower price. With the increasing institutions:
demand of labor service co-operatives for loan
1. DA-Region X for technical support and
assistance, loan releases in 2016 exceeded the
vegetable seeds worth P100K;
target for the year. We continue to improve
2. DTI-Region X for trainings
our loan delivery system and aim to reduce
3. Nat’l Meat Inspection Section R-10 for
interest rates based on credit risk. We strongly
technical assistance in meat shop and
encourage members to build up share capital
meat cutting plant
and invest in the Federation to allow us to offer
4. LGU of Lantapan – endorsement to MAO
loans at more competitive rates.
which gave technical support to HIVAOC
MPC (Coop partner in piloting)
5. FSSI for financial support for HIVAOC MPC
and grant to MASS-SPECC
6. XU College of Agriculture for research and
product development
7. ACDI/VOCA- for BDS conceptualization
and framework
8. Hineleban Foundation- for management
support to HIVAOC MPC & technical
support on vegetable production
9. FEEDPRO – for animal feeds distribution &
technical assistance in hog production
information &
communication technology
“
14
Technology helps
create efficient systems,
thereby conserving
time and other

resources that could
be devoted to more
significant activities and
services. Our standards
”
aim to set the norm in
the industry.
Our purpose in the development and simulation of MSRTE-Core,

The European Commission sums up the importance MASS-SPECC’s online banking system. We have kept
of ICTs as that which lies less in the technology up with the standards of the banking industry by
itself than in its ability to create greater access to migrating our ATMs to the new EMV platform.
information and communication in underserved
populations. We at MASS SPECC (MSP), believe in The work of the different sub-ICT units does not
this precept and continue to develop ICT systems come without challenges as the demand for time
that would benefit our members and consequently and coordination with other units come into play.
create a positive impact on the lives of their individual With the on-boarding of new IT-based applications
members. focused on e-banking, we are hopeful that the ICT
Unit would be able to provide innovative services
Setting standards, developing the norm that would respond to the growing needs of co-
In line with standardization, we developed a standard operatives. MSP ICT continues to pursue this noble
dividend and patronage distribution system, which mandate with the endeavors of the following units:
our members can use in generating reports on their
own. We also succesfully implemented the first Management Information Systems (MIS) – We
electronic voting for the Sta. Catalina Credit Co- innovate software solutions to equip MASS SPECC
operative during its General Assembly, where the members with productivity tools for their operation.
winners’ list for their raffle was generated within 30
minutes – a novel experience for the members. Education & Training – We provide continuous
training and IT information to enable co-operatives to
We coordinated with MASS-SPECC CISA Project maximize the use of technology.
Team in the development of a computer system that
would facilitate compliance by co-operatives with CoreBanking – Our new centralized system enables
CISA requirements and provided technical assistance fast, secure and real time financial transactions by
15
co-op members, find it difficult to give up their own processes
with inter-branch and business practices. Further, the inferior state
capabilities. of internet access in the Philippines continues to
be a great challenge in connectivity and online
Data Center – We efficiency.
ensure reliability,
availability and
security of your data, M S RTE Use r s
24/7. We make sure
that your data is safe
with us. 2015 2016
189 195
Cloud Services– Cooperatives Cooperatives
We provide shared
computer processing 561 sites or 558 sites or
branches branches
resources and data to
facilitate intra- and inter-co-op connectivity.
MASS-SPECC STANDARD RUN TIME EDITION (MSRTE)
Hardware & Security –We deliver competitive and is the most widely used cooperative accounting
effective IT solutions for hardware, software and software in the Philippines
endpoint security.
ICT Projects – We initiate and execute new ATM s

technology to support co-operatives with
electronic services.
2015 2016
In step with the dynamics of technology
A key factor in the success of software deployment 37 coops 39 coops
in a multi-institution and multiple products and
60 ATM 64 ATM
services scenario is the standardization of system Gold Edition Terminals Terminals
parameters. This requires synchronization of
services, identical procedures and process flows 164, 795 210, 009
across institutions, and the integration of multiple cards issued cards issued
user types. 3,839, 697 4,427,551
transactions transactions
The drawback in this desired setup is the readiness
and capability of co-operatives to align their
system infrastructure with industry standards. This
remains a challenge since some co-operatives
mass-specc
CONSULTANCY UNIT
“
16 We are the soul and
conscience of the Federation.
Our end goal is to be
relevant to our members. We
need to employ a dynamic

communication mechanism
for us to gain a better
understanding of their needs.
We hope that our services
would consequently alleviate
their members’ lives; only
”
then can we experience the
co-op movement.
Our brand of service handle, and instead started collaborating with the Institute
We are committed to offer quality consultancy of Cooperative Studies (ICS) with our advisers as trainers
services in financial intermediation, credit, marketing, or resource persons. We also serviced non-affiliates and
human resource, strategic planning and business assisted them with their concerns.
planning. Our member-cooperatives expect us to
develop and build well-balanced business systems Internal collaboration
through actual, on-site accompaniment, in order to We continue to work closely with the different MASS
produce more tangible results and achieve desired SPECC units and assist them through various means - as
financial standards. resource persons in training and as analysts assisting the
Savings and Loans unit in assessing cooperatives that avail
A pool of co-op practitioners
The presence of co-operative practitioners,
specialists, and advisors with practical experience P e r fo r man c e H ig h li ght s
on co-op matters strengthens our resource pool.
Our associates from the academe and the corporate
• 62 co-operatives (15 new coops) accessed
sector ensure that the co-op experience is enriched
services compared to last year’s 58
and updated with the practices of mainstream
cooperatives (22 new coops)
industry.
• 79 co-operatives assessed using Capacity
The ties that bind and strengthen Assessment Tool (CAT) out of 12 target
We mostly assisted in the mid-year and year-end planning co-operatives
of those co-operatives for which we conducted Strategic • Two (2) new solutions menu completed
Planning sessions in the past years. We modified the cluster (one in Credit and one in Finance)
training, which our Davao-based South Team used to
of the Federation’s loan products. We also contribute
Polomolok Multi-Purpose Cooperative
materials for the Co-op Monitor. 17
We’ve become more competent, stable and organized
The Capacity Building Program: through the guidance of the Consultancy Unit of MASS
Developing people for stronger co-operatives SPECC. They helped us set clear directions and realistic
We are pleased to report that the CB Program has been strategies that improved our operations, specifically with
the development of our Coop Credit and Internal Control
replicated in Southern Mindanao when we conducted
Manuals.
Regional Capacity Building Workshops for Regions 11 Our member-focused programs were strategically
and 12 in July 2016. Mentors’ Training and Financial developed with the help of the MCU. Their support
Analysis Training for Mentors were held in Davao for encouraged us to pursue objectives and programs
Regions 11 & 12 in August and September. We have also that would ultimately empower our members to
started conducting validation workshops in the South for become financially independent.
the co-operatives in Regions 11 and 12 and we checked
on the progress of those co-operatives that signed up —Teresa Balmores
for the CB Program. Through our collaboration with the Manager
Institute of Cooperative Studies (ICS), we conducted the
first training on Governance and Leadership and held
cluster interventions for the mentees. CB mentees and
Iligan Cement Multi-purpose Cooperative
other cooperatives also attended the training in Risk
Management. Think big – this was how the MCU motivated us to
become an open-type co-operative after operating
We are hopeful that the CB Program would gain ground as a multi-purpose cooperative. We’ve been availing
after 13 more co-operatives signed the Memorandum of the services of the MCU since 2008 and they’ve
of Understanding (MOU) indicating their interest to served us well, guiding us as we develop our business
participate in the CB Program. plans and our products and services. With education
and training of our officers and staff plus constant
Strengthening ties coaching from MCU, we are able to run our operations
The year started with much anticipation to serve and professionally. All these have benefited our members
engage more members. Mechanisms were improved greatly.
to ensure better member engagement in consultancy We’ve broken down barriers and overcome borders
services. While there were fewer interventions in 2016, seeing our members develop into entrepreneurs
the potential for reaching out and spreading these and striving hard to attain financial freedom. As
services to more cooperatives remain. We noted that we a testament to their hard work, we won as Grand
have served more medium and large co-operatives than Winner in the 2014 MICMA Mauswagon Category
the smaller ones. and 2nd runner-up in the 2016 MICMA Nanlimbasog
Category. The MCU builds up our capacity to grow,
We, at the MCU, resolve to reach out to member co- develop, and evolve and we see the fruits of our
operatives that have yet to respond to our initiatives. collaborative work in the lives of our members.
We shall be relentless in finding and improving ways
to help address their organizational needs, further —Asuncion Mabano
demonstrating to them our commitment to their growth Manager
and development.
INSTITUTE OF
COOPERATIVE STUDIES
“
18
There are essentials

that make co-operatives
what they are and
different from other

enterprises. This is what
we need to emphasize
in our training so that
co-operatives succeed
as socio-economic
”
enterprises, and fulfill
their purpose in society.
Accessible training, socialized pricing

T r ai n in g Our decision to localize training with cluster partners has
made training more accessible and affordable to both
members and non-members. Equipping the Education
2016 2015 Committees of co-operatives with learning materials has
made training more accessible and affordable to our
Total training conducted 107 106 members. We hope that more would join this effort.
Number of participants 3,013 2,013
Continuing education
Acting as the center of learning for officers, managers,
and staff of cooperatives, we develop and implement
training programs designed to equip our members
with competencies required in the fulfilment of their
respective functions. We advocate for the promotion of
the co-operative values and principles, and we aim to
guide cooperatives towards achieving the real purpose of
cooperatives as socio-economic enterprises.
Tr ain in g E v e n ts
Number of Number of Pax
Training Events Total Pax
Training MSP Member Non-Member
CDA-related 70 1,481 416 1,897
Specialized
8 324 15 339
(Coop Officers)
Specialized (Mgt/Staff) 27 653 70 723
Management
1 23 0 23
Development Program
Other training 1 31 0 31
Totals 107 2,512 501 3,013
No. of Coops
148 110
Patronizing
19
Re g io n al D istr ib u tio n
# Mgt/
Region # Training # Officers Members
Staff
Region 9 18 216 313 5
Region 10 33 334 290 21
Region 11 13 128 159 0
Region 12 14 279 280 0

Caraga 18 241 429 119
ZBST 5 37 39 4
Visayas 6 47 72 0
TOTALS 107 1,282 1,582 149
A total of 107 training events were conducted in 2016.

The number of CDA required trainings also increased
Jobnet Service Cooperative in the same period from 42 to 70, thanks to the active
ICS helped us diagnose our weaknesses involvement of ICS’s cluster partners in the provinces.
as an organization and this had significant Training participants in 2016 increased by 64% from 2015.
impact on our systems and operations. We Our succession program, the Management Development
felt empowered with a heightened sense Program (MDP) that runs for six months, had 23 managers
of ownership and belongingness in our from 11 cooperatives composing the 5th batch of
organization. The training and mentoring management trainees.
that we received from ICS allowed us
to implement our plans, expand our Co-op principle in practice
operations, and increase our membership, Only 48% of our members took part in the training we
particularly through our genuine members’ conducted last year. Many of those that did not participate
care program. Consequently, this boosted were small co-operatives, presumably because of resource
our principal’s trust and confidence in us. constraints. Yet this is an opportunity for bigger co-
operatives to help smaller ones, and put into practice the
—Diego Palacat principle of “cooperation among co-operatives”. With
Manager the regular and consistent remittance of the Cooperative
Education Training Fund (CETF), we see the possibility of
providing training at least cost to all our members.
NETWORKING &
membership
“
20
We’re focusing on reviving
member-cooperatives that
need our support rather than
recruiting new members. Let’s
go back to basics – who are
we? What do we represent? We

endeavor to help our members
through technical assistance so
they can develop their members
in becoming self-sufficient for
”
them to attain better quality
of life. After all, that is a
cooperative’s main goal.
Our guiding principle Gordon, and to Coop-NATCCO representatives.

Cooperation among co-operatives – we put this Considered as a serious threat to co-operatives,
co-operative principle forward both as a primary the attempt to repeal the tax exemptions comes at
objective and a business proposition, especially a time when co-operatives in the Philippines mark
for those within the network of MASS-SPECC. their centennial.
Corollary to our mission of promoting cooperation
among cooperatives is our drive to enhance MASS- We continue to institutionalize and strengthen the
SPECC’s external linkages to non-government and mechanism for membership engagement seen
government organizations and institutions. As in the active involvement of Regional Steering
a secondary objective, we believe that linkages Committees (RSC) headed by MASS-SPECC
galvanize meaningful cooperation – the kind that Director Representative in the region, the regular
enables authentic collaboration and breeds positive conduct of Ownership Meetings, the increased
results. attendance in the Annual General Assembly and
Coop Leaders’ Congress, and the organization of
Member engagement the cluster team approach within the MASS-SPECC
Expressing the spirit of cooperation in the exercise management structure to enhance coordination.
of the right of suffrage is one perfect example of
cooperation in concrete action and in 2016, we
applied this principle through the national election
campaign for the coop sector representatives in
Congress, through the Coop-NATCCO Partylist.
In the same breadth and intensity, the signature
campaign that we initiated against a legislative
attempt to repeal the tax exemptions of co-
operatives yielded more than 30,000 signatures,
which were then presented to Senators Zubiri and
21
We actively participated in the discourse on
good governance and federalism as part of
our sectoral advocacy and actively engaged in
the debate on “endo” (contractualization) and
proposed the workers’ co-operative or service
co-operative as an alternative model.
Quality over quantity

As much as we would like to aggressively recruit
members, our focus has been on reviving the
membership of those co-operatives whose
affiliation with the Federation has somehow waned.
Currently, our members total to 330. To update
members’ data, the Networking Unit established
basic profile of member-cooperatives.
Open Letter to
the President of the Philippines P e r fo r man c e H ig h lig h ts
published in the Philippine Daily
Inquirer on December 30, 2016
• 13 member cooperatives recruited in 2016
compared to 23 recruits in 2015
• CETF remittance increased from Php

11.977 in 2015 to Php 11,982 in 2016
• MIGS members increased from 93 coops

in 2015 to 110 in 2016
• GA attendance sustained at 148
cooperatives with 665 delegates in 2016
versus 148 cooperatives with 611 delegates
in 2015
• Attendance in bi-annual Ownership
Meetings reached 182 cooperatives (458
participants) in 2016 from 176 cooperatives
(428 participants) in 2015
gender & development
22
“
There is a need to
institutionalize gender and
development in our members’

operations and systems, where
equal opportunity in accesing
training and education or
financial services and even
”
board representation, is given
to all gender types.
Gender and Development (GAD)

Mainstreaming Manual
We have started developing the manual, which
our members may use as reference for gender
mainstreaming in accordance with CDA MC 2013-22.
The framework was modified to suit the co-operatives
here in Mindanao. Success stories of co-operatives
mainstreaming gender are documented in the manual
to inspire other co-operatives. The manual also
contains the details of the Gender Mainstreaming
Framework inspired by the past projects of Asian
Women in Cooperative Development Forum (AWCF)
and the Gender Equality Resource Center Philippines,
Inc. (GERC, Inc.)
• Held Design Conference for the Gender Mainstreaming

Manual on March 6, 2016 in Cagayan de Oro City; 10
representatives (three (3) men and seven (7) women) from
Regions 9, 10, 11, and 12 co-operatives attended
• Conducted two (2) validation workshops for co-operatives
that started establishing their own Gender Equality (GE)
related initiatives; 12 participants (two (2) men and 10
women) from Regions 9, 10, 11, and 12 and ZamBaSulTa co-
operatives attended
23
Gender Congress 2016 Gene r al

Assem bly Resolution and Update
UPDATES/ACTION TO
GENDER RESOLUTION
BE TAKEN
Gender Mainstreaming
Approval of the development
Manual for co-operatives
of the Gender Mainstreaming
was developed through
Manual for a standard GAD
validation workshops to
program in member co-
Accreditation of GAD Facilitators operatives
be piloted in selected
We conducted an Orientation on the cooperatives in 2017
Accreditation of the MASS-SPECC Gender and
Development (GAD) Facilitators. As of late 2016,
we had nine (9) potential candidates that our
panel of evaluators, composed of MASS-SPECC Ac tio n P lan fo r 2 017
GAD committee members and the ICS Managing
Director, will be evaluating. By the end of 2017, the following shall have
been implemented:
Living out GAD
• Piloted Gender Mainstreaming Manual in three (3)
Although we understand the reluctance of
selected co-operatives
some of our members to integrate Gender
and Development in their operations due to • Conducted two (2) regional workshops to
various reasons, we exhort them to do so as implement the Gender Mainstreaming Manual to
co-operatives
it would benefit their organization, primarily,
their members. We’ve started to standardize all • Accredited at least 10 GAD facilitators to conduct
manuals, modules, and other tools and resources Gender Sensitivity Training and other GAD
for gender mainstreaming to assist our members relevant activities.
to adapt GAD. • Conducted four (4) GAD Committee meetings.
• Appointed one (1) MASS-SPECC GAD focal person
We will strive to provide significant data to our to ensure implementation of gender-related
members to help them assess the social impact initiatives and policies in MASS-SPECC
of gender equality in co-operatives, which • Conducted two (2) joint meetings with Regional
links to the need for effective monitoring and Gender Focal Persons (GFP) and GAD Committee
evaluation processes and tools. We at MASS to gather cluster concerns and issues for
SPECC have started institutionalizing our internal discussion during Regional Steering Committee
gender mainstreaming and are currently developing meetings
our committee members so they can mobilize their
regional counterparts as well.
Youth
“
24
Who are the youth? Are they
the ones in school or are they
those who are about to leave
school and are in the prime

of their lives? This we know:
the youth are the future of
our country. We start with
them, we develop them. The
co-operatives cannot hope
to grow without them. No
”
movement should happen
without them.
T
he Youth sector holds vast potential Strengthening the Cooperative Youth Parliament
for education and perpetuation of the Two (2) CYP meetings were conducted during
values and principles of cooperativism the year. In these meetings, they elected the
and volunteerism and we at MASS SPECC new set of CYP Officers for 2016-2018. The new
remain steadfast in striving to achieve this Youth Program Coordinator was introduced
vision of youth organizations, empowered with and a planning session was held to assess the
leadership and entrepreneurial skills engaged performance and agree on doable action points
in building a movement of young cooperators. for the year.
We shall achieve this through holistic leadership
formation and youth member training. Exposure Visit to Tallahassee-Leon Federal
Credit Union (TLFCU), Florida, USA
The BOD Youth Sector Representative, Ms.
Thea Janica Gwenn Handumon benchmarked
with TLFCU to learn about their unique annual
youth camp that could also be adapted in the
Philippines. It was also an avenue to exchange
best practices about youth development
programs that MASS-SPECC could use to develop
quality products and services for the youth sector.
2016 Youth Congress General Assembly
Resolutions and Update
GA RESOLUTION NO. 20 UPDATES/ACTION

SERIES OF 2016 TO BE TAKEN
On-going
1. Adopt the new youth dissemination to
program as succession member cooperatives
strategy to train the second during 1st and 2nd
liners of cooperative leaders round of Ownership
Meetings
On-going drafting of
2. MASS-SPECC to develop a the policy guidelines
policy requiring all member to support the
1st Junior Cooperators’ Camp cooperatives to adopt the implementation of the
Held on November 25-27, 2016 at Highland Stone new youth program youth program to co-
Chapel Adventure Park, Brgy. Hoyohoy, Tangub City, operatives 25
Misamis Occidental, 13 representatives from various 3. Approve the CYP 2016-
youth cooperatives in the country participated in the Implemented
2020 Strategic Plan
camp. Chief Executive Officer of Tallahassee-Leon
4. Allocate budget to
Federal Credit Union, Florida, USA, Ms. Liza Brown
support the implementation
and youth leaders, Mr. Dawson Brown & Ms. Lauren Implemented
of CYP’s 2016-2020
Mosley, assisted in the camp. We’re pleased to note Strategic Plan
the campers’ enthusiastic participation in personal
Clustering approach
development, teambuilding, and financial literacy will be adopted in
activities, as these were designed to suit the Filipino 5. Adopt a clustering
the 2017 conduct of
culture. The participants from Regions 11 & 10 crafted approach in conducting
the Fundamentals of
youth formation and training
their own plans as the national team developed plans Cooperatives for the
for the national level. Youth
6. Assign or hire Youth
INCULCATING THE VALUE OF VOLUNTEERISM Program Coordinator Hired one (1) Youth
Annual Volunteers’ Gathering to handle CYP program Program Coordinator
The CYP, together with the Youth Savers’ Club of Oro implementation
Integrated Cooperative (OIC), participated in the
gathering held on December 23, 2016 at the Capitol
University Gymnasium in Cagayan de Oro City. The Actio n P lan fo r 2 0 17
VOICE Network and the Department of the Interior
and Local Government (DILG) – R10 organized this By the end of 2017, the following shall
activity with the theme Volunteer for Sustainable have been implemented:
and Inclusive Development: Isulong, Ibahagi, I-ugnay,
Isagawa!. Our CYP representatives, as well as those • Developed a Youth Program Manual
from the OIC Youth Savers’ Club, shared with the
• Conducted one (1) Youth Leadership and
other participants, the nature and programs of their
Entrepreneurship Seminar
organizations.
• Conducted one (1) Youth Camp on Financial
Literacy for Youth and Environmental
Management Seminar
• Conducted six (6) localized seminars on
Fundamental of Co-operatives for the Youth
• Assisted at least 10 Youth Co-operative

Laboratory in their formation, orientation, and
evaluation
• Conducted three (3) CYP meetings
• Conducted three (3) community outreach
activities
environment
“
26 No one is spared these
days from the effects of
climate change. Every
operation ought to
consider disaster risk
reduction management.
We at MASS SPECC
Sustainable Cooperatives encourage our member
cooperatives to
”
collectively participate in
the SCOOPS program.
T
he vulnerability of co-operatives to climate
change drives MASS-SPECC to appeal for
sustainability through the integration of
environmental management systems in our
members’ operations and to encourage them to
take a proactive role in addressing social concerns
and environmental issues. Adopting SCOOPS
(Sustainable Co-operatives) as the implementing
program for the CCA-DRRM would develop
resiliency from natural disasters and strengthen
sustainable development in the co-operatives.
Mainstreaming SCOOPS Program

To popularize SCOOPS Program, the Institute of
Cooperative Studies (ICS) has developed a training
module on Building Sustainable Cooperatives
through the Integration of Environmental
Management System (EMS) and Disaster Risk Funding for disaster prevention and mitigating
Reduction Management (DRRM). The first training measures will be sourced from 17% of the
workshop was conducted on September 8-9, 2016 Community Development Fund (CDF) of the
at the SAFRAGEMC Function Hall in San Francisco, member-cooperatives, which MASS-SPECC will
Agusan del Sur where 11 member representatives manage. A massive campaign is being conducted to
from the CARAGA Region participated. encourage members to support this.
27
Partnership with institutions
Payments for Ecological Services (PES)

Payment for Ecosystem Services (PES) for Mt.
Kalatungan Natural Park and the Miarayon–
Lapok–Lirongan–Tinaytayan Tribal Association
(MILALITTRA) is a multi-sectoral initiative with
the goal of rehabilitating and preserving the forest
resources in the upland areas and rewarding the
Indigenous People communities that act as the
forest managers. In 2016, 150 hectares of the
degraded portions of Mt. Kalatungan were devoted
for rehabilitation. MASS-SPECC actively supported
this undertaking as a staunch stakeholder of the through the theme Healthy Watersheds, Clean Rivers,
MILALITTRA, Safer Communities. This captured the call to action
on revitalizing rivers as an economic imperative. The
Last July 29, 2016, PES launched the forum Payments summit highlighted the socio-cultural significance of
for Ecosystem Services: Opportunities in Protecting the rivers and focused on the resiliency of the people
Biodiversity in Mt. Kalatungan in partnership with within the river ecosystem and the communities,
Philippine Tropical Forest Conservation Foundation, which the ecosystem supports. The summit enjoined
Inc. and Department of Science and Technology the most important river stakeholders – the global,
(DOST). The latest status report showed that 42.09 national, and local authorities.
hectares has been rehabilitated out of the target of
30 hectares. The tribal communities that are partners
of MASS-SPECC in this endeavor are Awang, Actio n P lan fo r 2 0 17
Lirongan, and Talakag, Bukidnon.
By the end of 2017, the following shall have
been implemented:
Cagayan de Oro River Basin Management Council
(CDORBMC)
• Promoted SCOOPS program in the Bi-Annual
MASS-SPECC is one of the stakeholders of the
Ownership Meetings
Cagayan de Oro River Basin Management Council
(CDORBMC), a multi-sectoral group of concerned • Conducted members’ survey on environmental
initiatives and plan activities with other co-
individuals, agencies and institutions that has
operatives
dedicated themselves in protecting, preserving,
rehabilitating, and managing the Cagayan de Oro • Conducted six (6) sessions on Building Sustainable
river basin. Cooperatives through the Integration of
Environmental Management System (EMS) and
Disaster Risk Reduction Management (DRRM)
Our attendance in the 3rd International River
Summit held on November 24-26, 2016 at the Pryce • Developed Employee Health Safety and Security
(EHSS) Manual for co-operatives
Plaza Hotel in Cagayan de Oro City, encouraged us
HIGHLIGHTS OF THE
bod RESOLUTIONS 2016-2017
28 A. MEMBERSHIP 3. Approval to hire investment consultant to assist
Approval of the acceptance of thirteen (13) new in improving management of investible funds
members and the withdrawal of three (3) co-operatives 4. Approval to engage in on-line trading platform
from membership. with Philstocks Financial Inc.
5. Approval to revise the Investment Policy

B. ACCESSING OF LOAN FUNDS Statement (IPS) related to preferred method of
1. Approval to increase the CCT Line with recording the investment
Landbank of the Philippines from Php 994 million
to Php 1.5 billion E. 50TH YEAR CELEBRATION AND THE 2017-2021
2. Approval of the LBP renewal with increased STRATEGIC PLANNING
rediscounting line from Php 300 million to Php 1. Approval of the 50th Anniversary activities
500 million 2. Approval of the research and message
development report entitled: Perceptions of
C. ADVANCING THE INFORMATION Cooperatives and Cooperative Federations
COMMUNICATION AND TECHNOLOGY OPERATIONS 3. Approval of the Strategic Communication Plan
1. Approval of the MOA between MASS-SPECC and for 2017-2027
Bancnet, Inc. for the availment of Bancnet Online 4. Approval of the Strategic Plan for 2017-2022
(BOL) Services
2. Approval of the Revenue Sharing Agreement F. NEW PROGRAMS, PROJECTS, AND ACTIVITIES
between MASS-SPECC and Coreware 1. Approval to implement the Cooperative
Technologies, Inc. for the web-based banking Information System (CIS) to member
solutions. cooperatives and connect with Credit
3. Approval of the new generic,co-branded and Information Corporation (CIC) to comply with
50th anniversary Pinoy Coop ATM Card Credit Information System Act (CISA)
4. Approval of the MOA between MASS-SPECC and 2. Approval to create special project committee
EPH Secure Systems, Inc. for the hosting facilities responsible for upscaling Agri-based Enterprise
and other related outsourcing services System (AgriBEST) program
5. Approval of the Master Outsourcing Service 3. Approval to endorse to TESDA the inclusion of
Agreement with ALLCARD Plastics Philippines, governance, management, and operation among
Inc. the priority qualifications for training regulations
6. Approval of seven (7) new policies on development, assessment and certification for
Information Technology Risk Management cooperatives
System
G BOARD AND COMMITTEE REPORT
D. INVESTIBLE FUND MANAGEMENT 1. Acceptance and approval of the Chairperson and
1. Approval to revise the overall investment BOD Reports
portfolio allocation 2. Acceptance and approval of the Treasurer’s Report
2. Approval to revise the investment portfolio 3. Acceptance and approval of the Youth Sector
allocation of Trust Accounts Report
4. Acceptance and approval of the Credit Committee J. HUMAN RESOURCE DEVELOPMENT
Report 1. Approval to send three (3) staff to inspect the co-
5. Acceptance and approval of the Audit Committee located datacenter in Singapore.
Report 2. Approval to send six (6) staff to attend the
6. Acceptance and approval of the Election Information Technology Infrastructure Library
Committee Report (ITIL) Foundation Training and take the ITIL
7. Acceptance and approval of the Investment Certification Exam in Cagayan de Oro City
Committee Report 3. Approval to send two (2) IT staff to attend
8. Acceptance and approval of the Mediation and the World Council of Credit Union Technical
Conciliation Committee Report Workshop Technology-Based Strategies in
9. Acceptance and approval of the Unification and Bangkok, Thailand
Consolidation Committee Report 4. Approval to send one (1) staff to participate in 29
10. Acceptance and approval of the Asset Liability the Credit Union League of the Republic of China
Committee Report (CULROC) Exposure Trip to Taiwan
11. Acceptance and approval of the Ethics 5. Approval to send the BOD Youth Sector
Committee Report representative as speaker at the Microfinance
12. Acceptance and approval of the Gender and Council of the Philippines (MCPI) Annual
Development (GAD) Committee Report Conference in Manila
6. Approval of the BOD Youth Sector representative
H. AFFILIATIONS, LINKAGES, AND PARTNERSHIPS to participate in the Summer Youth Camp
1. Confirmation of the re-appointment of MASS- in Tallahassee, Florida USA sponsored by
SPECC to the Foundation of Peoples’ Sustainable Tallahassee Leon Federal Credit Union
Development Cooperative (FPSDC) Mediation and 7. Approval to send the Chairperson, Vice
Conciliation Committee Chairperson, and the Chief Executive Officer to
2. Approval of the MOA between MASS-SPECC the Asian Credit Cooperative Union Forum 2016
and Philippine Cooperative Center (PCC) for the in Incheon, Korea
hosting of the 14th National Cooperative Summit 8. Approval to send three (3) participants to the
3. Approval of the partnership with VICTO National CLIMBS 45th Annual General Assembly in Davao
Cooperative Federation and Development Center City
to extend technical assistance to the Philippine
Cooperative Central Fund Federation (PCF) K. ADVOCACY AND LOBBYING INITIATIVES
4. Approval of membership fee payment to the 1. Confirmation of a resolution strongly requesting
International Co-operative Alliance (ICA) for the exclusion of RA 9520, particularly Article
60 and 61 thereof, from the laws to be repealed
I. OPERATIONS under House Bill 4774, Section 28, items B and C
1. Approval of MASS-SPECC building renovation in in the Final Tax Reform Program of Government
Cagayan de Oro and Davao and to conduct information dissemination, to
2. Approval to engage tax consultant to negotiate initiate a signature campaign among Federation
the settlement of 2000 Tax Case with the Bureau members, and to lobby with congressmen and
of Internal Revenue (BIR) senators on this issue
3. Approval to amend policies on Procurement 2. Approval of the position paper that supports
and Codified Approving and Signing Authority the call to end “ENDO” and promote the value
(CASA) of Labor Service Cooperative as an alternative
4. Approval on the amendments and additional model to empower workers to become real
policies related to MASS-SPECC Officers stakeholders in the industries they are engaged
5. Approval to hire an FS compiler for 2016 financial in, working hand in hand with companies in
reporting creating wealth for the nation, establishing long
6. Approval of one (1) vehicle acquisition lasting industrial peace, and promoting full
7. Approval to use the Philippine Financial employment at the same time
Reporting Standards (PFRS) in 2016 instead of
Philippine Financial Reporting Framework (PFRF)
for Cooperatives
M il e s t o n e s
1 decade
st
MASS-SPECC traces its beginnings to the 1950’s when
co-operatives started to take root in the country.
1962 - the Misamis

Orienal-Bukidnon-
Camiguin Federation of
Cooperatives (MBC) was
formed.
Leaders of the MBC

spearheaded the
organization of the
Southern Philippines
Educational Cooperative
Center (SPECC) on
August 9, 1966.
SPECC pioneered
the Pre-Membership
Education Seminar
(PMES), which was
later adopted in law
as a requirement for
membership in primary
cooperatives in the
Philippines.
50th
anniversary
celebration
August 9, 2016
2 decade
nd
1973 - SPECC
led povincial
federations
in forming
the Mindanao
Cooperative
Alliance, renamed
later to Mindanao
Alliance of Self-
Help Societies
(MASS); it
provided auditing
services to its
members.
1971 - SPECC introduced the country’s first

co-op mutual protection system, which is now
known as CLIMBS Life and General Insurance
Cooperative.
1978 - MASS ventured into its first business

undertaking when it started the Central Fund
Program, a deposit-taking and lending facility for its
members.
3 decade
rd
MASS-SPECC
July 1, 1984 - MASS and
SPECC consolidated into MASS COOPERATIVE
DEVELOPMENT
SPECC
MASS SPECC Cooperative CENTER
Development Center to
streamline the operations
of both organizations.
61
MASS SPECC started the

computerization program with
primary cooperatives, enabling
them to move from manual
to computer system, with the
introduction of the General
Ledger Systems.
Partnership with international

development agencies re-focused on
financial intermediation in the areas of
information technology, consultancy,
and central fund operations.
4th decade
1997 - construction of the six-storey office building of
MASS SPECC in Cagayan de Oro City with investments
from primary cooperatives and grant fund from
MISEREOR. It also houses a cooperative hostel. The
building serves as training and meeting venue for co-op
leaders.
MASS-SPECC was re-ingeneered to

focus on rural savings and financial
intermediation. The Central Fund and the
computerization of financial co-operatives
became the holding unit with the other
departments as subsidiaries.
1996 - in partnership with Développement International

Desjardins (DID), MASS SPECC introduced the MASS
SPECC Standard Run Time Edition (MSRTE), an
integrated banking software for savings and credit
cooperatives.
MSRTE is now installed in over 200 primary cooperatives

with 528 sites throughout the country.
1997 - MASS SPECC led

the formation of the
Coop NATCCO Partylist,
which has now two (2)
representatives in the House
of Representatives.
5 decade
th 2006 - launching of the first
Pinoy Coop ATM, becoming
the first non-bank member of
The 5th decade saw MASS SPECC launch
several pioneering initiatives to deepen MEGALINK (now BANCNET);
its services to cooperatives and to their currently with 39 ATM sites
individual members, as well as strengthen and 210,009 cards issued.
member participation in the affairs of the
Federation.
2008 - the Mindanaw

Microentrepreneur Award
(MICMA) was launched to
recognize the exemplary
achievements of model co-
op members.
Organized Regional Steering

Committees to deepen
engagement with members
Engaging the youth through the

Coop Youth Parliament (CYP).
Innovations in programs
included the Agri-Best
Enterprise Systems
Program (Agri-
Best) for farmers,
and Management
Development Program
(MDP) for the next
generation of co-op
managers, with 97
graduates after four (4) Capacity Building Program
batches that allows cooperatives
to assess their own
performance and develop
solutions with practitioner
mentors, and contribution
to the environment through
SCOOPS program.
Audit Committee
Report
30 Dear Valued Cooperators and Esteemed Members:
W
e are pleased to report that the Audit Committee has made a series of discussions
with both our internal and external auditors regarding their audit findings and
recommendations and has made representations to the Board during its meetings for the
said findings and recommendations.
The Committee, likewise, confirms the financial highlights, financial position, and cash flow of MASS-
SPECC for the year then ended, December 31, 2016, as our external auditor reported
RECOMMENDATIONS:
1. The Committee recommends that Management should take the initiative in the following:
a) Review the amount of Php 184 million as Accounts Receivables and subject the said
amount to aging analysis, so that an appropriate amount could be provided as estimated
allowance for probable losses.
b) Review accounts with overdue loan receivables with loan loss provision and
correspondingly write-off these accounts which cannot be collected anymore. Moverover,
these written off accounts should be monitored from time to time for possible recoveries.
c) Follow-up with member-cooperatives the collection of share capital with less than Php
25,000.00.
2. On latest mandate of the CDA regarding compliance with the preparation and reporting of
the Federation’s financial statements: after due consideration, the Committee agreed with
Management to retain the same principles and procedures in the preparation of its financial
statements.
3. The Committee recommends to rehire BDO Roxas, Cruz, Tagle and Co. as outsourced Internal
Auditor.
4. The Committee also recommends the re-appointment of SGV & Co. as External Auditor.
Our sincere appreciation to the management and staff for their efforts to comply with
the recommendations of internal audit on all its recurring findings such as increasing cash advances,
improper doumentation of CTD’s, loan releasing, the incomplete signatories in check vouchers, and
deficiences in other supporting doucments.
We would also like to extend our heartfelt gratitude and appreciation to all member-cooperatives and
everyone working behind the success of MASS-SPECC for the year 2016 and for the years to come.
Happy 43rd General Assembly and may God bless us all!
SONIA L. CHUA, CPA REY GABILAGON

Chairperson Vice Chairperson
EXTERNAL
AUDIT REPORT
31
Tiano-Yacapin Sts.
Cagayan de Oro City
Telefax +63 88 856-2339
Email: admin@mass-specc.coop
Anahaw Road, Dinaville Village

Ma-a, Davao City
Telefax +63 82 244-1096
STATEMENT OF MANAGEMENT’S RESPONSIBILITY

32
FOR FINANCIAL STATEMENT
T
he management of MASS-SPECC COOPERATIVE DEVELOPMENT CENTER is
responsible for the preparation and fair presentation of the financial statements
including the schedules attached therein, for the years ended December 31, 2016
and 2015, in accordance with Philippine Financial Reporting Standards, and for such
internal control as management determines is necessary to enable the presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the

Cooperative’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Cooperative or to cease operations, or has no realistic alternative but
to do so.
The Board of Directors is responsible for overseeing the Cooperative’s financial reporting
process.
The Board of Directors reviews and approves the financial statements including the
schedules attached therein, and submits the same to the stockholders.
Sycip Gorres Velayo & Co., the independent auditor appointed by the Board of Directors, has
audited the financial statements of the Cooperative in accordance with Philippine Standards
on Auditing, and in its report to the Members and Board of Directors, has expressed its
opinion on the fairness of presentation upon completion of such audit
EVELIA R. SATOR, Ph.D. SONIA L. CHUA, CPA

Chairperson Chairperson of the Audit Committee
ALETA A. GICOLE EMMA A. NIEVA, DM, CPA

Treasurer Treasurer
BERNADETTE O. TOLEDO, CPA

Chief Executive Officer
Signed on the 3rd day of March, 2017.

33
34
35
MASS-SPECC COOPERATIVE DEVELOPMENT CENTER
STATEMENTS OF FINANCIAL POSITION
December 31
2016 2015
ASSETS
Current Assets
Cash and cash equivalents (Note 6) P
=435,877,438 =245,970,840
P
Loans and other receivables - net (Note 7) 487,285,276 606,741,322
Other current assets (Note 11) 63,113,442 27,852,637
Total Current Assets 986,276,156 880,564,799
36 Noncurrent Assets
Loans and other receivables - net (Note 7) 214,808,936 216,240,000
Available-for-sale securities (Note 8) 396,683,791 386,544,856
Property and equipment - net (Note 9) 45,925,111 46,930,492
Investment property (Note 10) 2,455,495 3,451,233

Retirement benefit asset (Note 20) 7,959,106 10,200,592
Other noncurrent assets (Note 11) 94,993,196 30,628,456
Total Noncurrent Assets 762,825,635 693,995,629
TOTAL ASSETS =1,749,101,791 P
P =1,574,560,428
LIABILITIES AND MEMBERS’ EQUITY

Current Liabilities
Interest-bearing loans and borrowings (Note 12) P
=182,818,274 P41,103,508
=
Accounts payable and accrued expenses (Note 13) 109,629,477 273,350,414
Short-term members’ deposits (Note 14) 270,633,043 250,826,025
Interest on share capital and patronage refund payable (Note 16) 17,721,954 13,176,385
Total Current Liabilities 580,802,748 578,456,332
Noncurrent Liabilities
Interest-bearing loans and borrowings (Note 12) 38,165,146 10,821,429
Long-term members’ deposits (Note 14) 814,099,191 686,587,879
Other noncurrent liabilities (Note 15) 2,581,389 2,972,360
Total Noncurrent Liabilities 854,845,726 700,381,668
Total Liabilities 1,435,648,474 1,278,838,000
Members’ Equity (Note 16) 313,453,317 295,722,428
TOTAL LIABILITIES AND MEMBERS’ EQUITY =1,749,101,791 P

P =1,574,560,428
See accompanying Notes to Financial Statements.
SGVCAG*S16*IND001
STATEMENTS OF COMPREHENSIVE INCOME
AND DISTRIBUTION OF NET SURPLUS
Years Ended December 31

2016 2015
REVENUES
Interest income on loans and other receivables (Note 7) P55,626,904
= P61,133,488
=
Consulting and service fees (Note 17) 39,653,607 44,911,454
Income from bank deposits and investments 24,007,317 11,960,478
Services fees - conditional cash transfer (Note 18) 21,340,688 21,104,149
Education and training 10,308,903 10,423,925
Donation – 2,221,613
Other income 5,490,567 37
2,852,138
153,789,557 157,245,674
COSTS AND EXPENSES
Interest on members’ deposits (Note 14) 40,667,077 50,604,903
Employee benefits (Note 20) 30,289,328 31,258,922
Interest on borrowed funds (Note 12) 13,041,822 14,229,246
Depreciation and amortization (Note 9) 7,118,356 6,440,684
Impairment losses (Notes 7, 9 and 10) 3,068,718 2,221,613
Other operating expenses (Note 19) 31,723,148 30,664,844
125,908,449 135,420,212
NET SURPLUS BEFORE INCOME TAX 27,881,108 21,825,462
PROVISION FOR INCOME TAX (Note 22) 616,563 1,554,101
NET SURPLUS 27,264,545 20,271,361
OTHER COMPREHENSIVE INCOME

Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Fair value losses on available-for-sale securities (Note 8) (6,169,809) (8,580,471)
Other comprehensive income not to be reclassified to
profit or loss in subsequent periods:
Remeasurement loss on retirement benefit asset (Note 20) (4,589,226) (4,980,991)
Increase in fair value of land (Note 9) – 5,340,900
(10,759,035) (8,220,562)
TOTAL COMPREHENSIVE INCOME =16,505,510

P =12,050,799
P
DISTRIBUTION OF NET SURPLUS (Note 16)

General reserve fund P5,452,909
= P4,054,272
=
Cooperative education and training fund 1,363,227 1,013,568
Land and building fund 1,090,583 810,854
Information and communication technology development fund 817,936 608,141
Community development fund 817,936 608,141
Interest on share capital and patronage refund 17,721,954 13,176,385
=27,264,545
P =20,271,361
P
SGVCAG*S16*IND001
STATEMENTS OF CHANGES IN MEMBERS’ EQUITY
2016 2015
SHARE CAPITAL (Note 16)

Common:
Balance at beginning of year P
=218,002,794 P
=194,086,773
Additional members’ contributions 20,312,115 23,916,021
Balance at end of year 238,314,909 218,002,794
Preferred:
Balance at beginning of year 7,222,083 11,119,094
Additional members’ contributions - net of transfers from
(to) time deposits 37,070 (3,897,011)
Total share capital 245,574,062 225,224,877
38 OTHER COMPONENTS OF EQUITY (Note 16)
Unrealized loss on available for sale securities:
Balance at beginning of year (8,396,565) 183,906
Fair value losses on available for sale securities (Note 8) (6,169,809) (8,580,471)
Balance at end of year (14,566,374) (8,396,565)
Remeasurement loss on defined benefit plan:

Balance at beginning of year (8,626,965) (3,645,974)
Actuarial losses on defined benefit plan (Note 20) (4,589,226) (4,980,991)
Balance at end of year (13,216,191) (8,626,965)
Revaluation increment on land:
Increase in fair value of land (Note 9) – 5,340,900
Total other components of equity (13,587,660) (2,828,625)
STATUTORY FUNDS (Note 16)

General reserve fund:
Allocation from net surplus 5,452,909 4,054,272
Adjustments 690,602 3,574,003
Cooperative education and training fund:
Disbursements (1,013,568) (1,506,326)
Land and building fund:
Allocation from net surplus 1,090,583 810,854
Information and communication technology development fund:
Allocation from net surplus 817,936 608,141
Community development fund:
Allocation from net surplus 817,936 608,141
Disbursements (1,078,886) (816,522)
Interest on share capital and patronage refund:
Balance at beginning of year – –
Transfer to interest on share capital and patronage refund payable (17,721,954) (13,176,385)
Balance at end of year – –
Total statutory funds 81,466,915 73,326,176
TOTAL MEMBERS’ EQUITY P

=313,453,317 P
=295,722,428
SGVCAG*S16*IND001
STATEMENTS OF CASH FLOWS

2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES

Net surplus before income tax =27,881,108
P =21,825,462
P
Adjustments for:
Interest expense on borrowed funds (Note 12) 13,041,822 14,229,246
Depreciation and amortization (Note 9) 7,118,356 6,440,684
Impairment losses on property and equipment and investment
property (Notes 9 and 10) 419,880 2,221,613
Net change in retirement benefit asset (Note 20) (2,347,740) (11,903,854) 39
Operating income before working capital adjustments 46,113,426 32,813,151
Decrease (increase) in:
Loans and other receivables (Note 7) 120,887,110 (781,090)
Other current assets (Note 11) (35,260,805) (25,329,687)
Increase (decrease) in:
Accounts payable and accrued expenses (Note 13) (165,085,487) 217,362,441
Members’ deposits (Note 14) 147,318,330 211,928,759
Net cash generated from operations 113,972,574 435,993,574
Interest paid (12,293,835) (15,518,089)
Net cash flows from operating activities 101,678,739 420,475,485
CASH FLOWS FROM INVESTING ACTIVITIES

Additions to:
Available-for-sale securities (Note 8) (16,308,744) (182,586,617)
Property and equipment (Note 9) (6,112,975) (5,265,506)
Proceeds from disposal of investment property (Note 10) 575,858 –
Increase in other noncurrent assets (Note 11) (64,364,740) (13,814,692)
Net cash flows used in investing activities (86,210,601) (201,666,815)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from:
Interest-bearing loans and borrowings (Note 12) 442,207,654 191,720,936
Issuance of share capital - net of transfers from (to)
time deposits (Note 16) 20,349,185 24,036,407
Payment of interest-bearing loans and borrowings (Note 12) (273,149,171) (368,822,509)
Decrease in:
Other noncurrent liabilities (Note 15) (390,971) (8,467,300)
Statutory fund (14,578,237) (18,331,084)
Net cash flows from (used in) financing activities 174,438,460 (179,863,550)
NET INCREASE IN CASH AND CASH EQUIVALENTS 189,906,598 38,945,120
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 245,970,840 207,025,720
CASH AND CASH EQUIVALENTS AT END OF YEAR (Note 6) P

=435,877,438 P
=245,970,840
N.B. Notes to FS are found in the GA kit. SGVCAG*S16*IND001

2016 MASS-SPECC AWARDEES
40 MINDANAO CO-OP LEADERSHIP AWARD 2016 SIPAG AWARD (SIPAG – Social Institute for
Evelia R. Sator, Ph.D Poverty Alleviation and Governance)
Maragusan Growers Multi-Purpose Cooperative
PIONEER SHARE CAPITAL CONTRIBUTORS ICTUS Premier Multi-Purpose Cooperative
Sta. Ana Multi-Purpose Cooperative Tago Agro-Industrial Development Cooperative
Kiblawan Multi-Purpose Cooperative

Oro Integrated Cooperative BILLIONAIRE CO-OPS’ CIRCLE AWARD
CLIMBS Life and General Insurance Cooperative Sta. Ana Multi-Purpose Cooperative
Notre Dame of Jolo Multi-Purpose Cooperative Sta. Catalina Credit Cooperative
Nabunturan Integrated Cooperative Panabo Multi-Purpose Cooperative
Nabunturan Integrated Cooperative
TOP 5 OUTSTANDING CO-OP TIME DEPOSITORS Agdao Multi-Purpose Cooperative
Oro Integrated Cooperative
Tagum Cooperative CENTURY CO-OPS’ CIRCLE AWARD
MSU-IIT National Multi-Purpose Cooperative Inter-Office Employees and Businessmen Credit
Sta. Ana Multi-Purpose Cooperative Cooperative
Aurora integrated Multi-Purpose Cooperative Allied Services Multi-Purpose Cooperative
Cannery Multi-Purpose Cooperative
TOP 5 SHARE CAPITAL CONTRIBUTORS
Bukidnon Government Employees Multi-Purpose SERVICE AWARDEES
Cooperative Roberto U. Padilla
Lorenzo Tan Multi-Purpose Cooperative Rey F. Gabilagon
Pantukan Chess Club Cooperative Atty. Jose Agerico R. De Guzman
ICTUS Premier Multi-Purpose Cooperative Democrito A. Buladaco
Alamada Multi-Purpose Cooperative Eleonor A. Dillena
Sanny D. Seco
TOP PERFORMING ATM SITES Arnulfo L. Murro
Tagum Cooperative Sonia L. Chua
Oro Integrated Cooperative
Manuel Guianga and Sirib Growers and Employees MAASDANGON AWARDEES
Multi-Purpose Cooperative Mier Matalines Semitara (15 years in service)
Baug CARP Beneficiaries Multi-Purpose Cooperative Ermie L. Hilario (20 years in service)
ACCESS (A ONE COMPETITIVE CHOICE FOR

EXCELLENCE IN SERVICE AND SOUNDNESS)
SILVER BRAND AWARD
Tagum Cooperative
FULL CETF REMITTANCE
1. Aurora Integrated Multi-Purpose Cooperative 42. Micro-Entrepreneurs’ Multi-Purpose Cooperative

2. Alicia Neighborhood Multi-Purpose 43. Midsalip Farmers Multi-Purpose Cooperative
3. Ampayon Multi-Purpose Cooperative 44. MOCRECO Multi-Purpose Cooperative
4. Banga Agrarian Reform Community Cooperative 45. MUST Employees Multi-Purpose Cooperative
5. Bayside Multi-Purpose Cooperative 46. MSU-IIT National Multi-Purpose Cooperative
6. Batus Farmers Multi-Purpose Cooperative 47. MSU-SULU Multi-Purpose Cooperative
7. Bukidnon Development Multi-Purpose Cooperative 48. Notre Dame of Jolo Multi-Purpose Cooperative
8. Bukidnon Government Employees Multi-Purpose 49. News Multi-Purpose Cooperative
Cooperative 50. Oro Integrated Cooperative
9. Buklod Multi-Purpose Cooperative 51. Oro Court Employees Multi-Purpose Cooperative
10. CARAGA State University Administrative Personnel 52. Oro Savings and Sharing Cooperative 41
Multi-Purpose Cooperative 53. Ozamis City Peoples Multi-Purpose Cooperative
11. Cooperative Bank of Agusan Norte Butuan City 54. Pacement Multi-Purpose Cooperative
12. Coops for Christ Multi-Purpose Cooperative – Mindanao 55. Pagadian City Government Employees Multi-Purpose
13. Cooperative Union of Iligan City Cooperative
14. DENR CARAGA and Community Multi-Purpose 56. Paglaum Multi-Purpose Cooperative
Cooperative 57. Pagtinabangay Multi-Purpose Cooperative
15. Davao Oriental Health Personnel Multi-Purpose 58. Panabo Multi-Purpose Cooperative
Cooperative 59. Pantukan Chess Club Cooperative
16. Dujali Free Farmers Multi-Purpose Cooperative 60. PNP Bantek Kasunayan Development Cooperative
17. El Grande Multi-Purpose Cooperative 61. Polomolok Multi-Purpose Cooperative
18. First Agrarian Reform Credit Cooperative 62. Ramon Magsaysay Employees Multi-Purpose
19. Glan Multi-Purpose Cooperative Cooperative
20. Greater Midsayap Area Multi-Purpose Cooperative 63. Sacred Heart Multi-Purpose Cooperative
21. Hinatuan Government Employees Multi-Purpose 64. Salug Valley Compact Farm Multi-Purpose Cooperative
Cooperative 65. Servus Savings and Credit Cooperative
22. Human Resource Multi-Purpose Cooperative 66. SCI Multi-Purpose Cooperative
23. ICTUS Premier Multi-Purpose Cooperative 67. Socorro Empowered Peoples’ Multi-Purpose
24. Iligan Dealers Multi-Purpose Cooperative Cooperative
25. Iligan Cement Multi-Purpose Cooperative 68. SRT Tacurong City Cooperative
26. Iligan City Government Employees Multi-Purpose 69. SRT Digos Cooperative of Davao del Sur
Cooperative 70. Sta. Ana Multi-Purpose Cooperative
27. Iligan Light Employees Multi-Purpose Cooperative 71. Sta. Catalina Credit Cooperative
28. Initao National Comprehensive High School Teachers 72. Sta. Catalina Multi-Purpose Cooperative
and Employees Cooperative 73. St. Michael Multi-Purpose Cooperative
29. Inter-Office Employees and Business Credit Cooperative 74. Sto. Nino Teachers and Farmers Multi-Purpose
30. Jobnet Service Cooperative Cooperative
31. Kauyagan Savers Multi-Purpose Cooperative 75. Surigao Employees and Entrepreneurs Multi-Purpose
32. Kauswagan Community Multi-Purpose Cooperative Cooperative
33. Lake Sebu Countryside Development Multi-Purpose 76. Tagnanan CARP Beneficiaries Cooperative
Cooperative 77. Tagum Cooperative
34. Loreszon Tan Multi-Purpose Cooperative 78. Tibud sa Katibawasan Multi-Purpose Cooperative
35. Mahayag Farmers Multi-Purpose Cooperative 79. Timbermines Multi-Purpose Cooperative
36. Mahayahay Credit Cooperative 80. Toril Community Cooperative
37. Makilala Multi-Purpose Cooperative 81. Zamboanga del Sur Government Officials and
38. Maramag Community Multi-Purpose Cooperative Employees Cooperative
39. Malimuni Municipal Employees Multi-Purpose 82. Zillovia Womens Multi-Purpose Cooperative
Cooperative 83. Zamboanga del Sur Agricultural College Multi-Purpose
40. Mambajao Credit Cooperative Cooperative
41. Mediatrix Multi-Purpose Cooperative 84. 634 Multi-Purpose Cooperative
2016
Mindanaw Micro-entrepreneur
Award (MICMA)
42
OBJECTIVES
1. To acknowledge the contribution of cooperatives in reducing
poverty through the coop’s support for micro-enterprises and
showcase the best practices on how cooperatives responded

to members’ needs and preferences, and achieved the desired
changes in their lives
2. To create public awareness to gain strong and create massive
impact in microenterprise sector
CATEGORIES
Nanlimbasog Mauswagon Micro-Agri

The NANLIMBASOG The MAUSWAGON Category is The MICRO-AGRI Category
Category is open to micro- open to micro-entrepreneurs is open to farmers whose
entrepreneurs whose that have grown their agribusinesses are now their
businesses are now their businesses to a level that is families’ reliable source of
families’ reliable source of now generating employment income. Asset size of the
income. Asset size of the for people apart from the agri-enterprise must have
microenterprise must have household or family members. a market value of not more
a market value of not more Asset size of the micro- than P300,000.00. The
than P300,000.00, inclusive enterprise must have a market enterprise may include farm
of those rising from loans, but value above P300,000.00 up practices, such as mono-crop
exclusive of the land on which to a maximum amount of P 1 farming, diversified farming, or
the particular business entity’s million, inclusive of those rising integrated farming system. The
office, plant and equipment from loans, but exclusive of the category also considers value-
are situated. land on which the particular adding practices for product
business entity’s office, plant differentiation and increased
and equipment are situated. revenues.
RUTH’S TRUTH:
Buko Pie Goodness
for Success
GRAND WINNER
43
RUTH M O D E Q UI LLO
MSU-IIT NMPC, Palao, Iligan City
CATEGORY:
NANLIMBASOG
F
rom small beginnings to a bigger, more
definitive journey in business, Ruth
Modequillo never knew that selling food for
snacks in schools would lead her to start a
more serious venture in food production, until it
became true.
Now focused on Buko Pie production, Ruth has

come a long way in maximizing her talent, effort,
and resources to grow her family business and
increase production volumes. “Nothing gives me
“
more delight than to see my Buko Pie product
becoming available to more and more people”, she
We utilize 200 pieces reveals.
of young coconut to A member of the MSU-IIT Cooperative, Ruth
produce 90 boxes believes that seven years of coop membership has
taught her the value of saving.
of Neneng’s Buko
Pie everyday. I look
forward to increasing
those numbers to
”
reach as many people
as we can.
—Ruth Modequillo
44 FIRST PLACER SECOND PLACER
MICHAEL FLORES ANTONIETA SAGUINDANG
Servus MPC, Initao Gata Daku MPC, Clarin
Misamis Oriental Misamis Occidental
CATEGORY: CATEGORY:
NANLIMBASOG NANLIMBASOG
Michael’s Brand of a leap of faith
A
Customer Care member of GATA DAKU Multipurpose
A
Cooperative in Clarin, Misamis
pplying what he learned in school, Occidental since 2008, Antonieta
Michael Flores started as an ordinary Saguindang attributes her business
car mechanic. But with help from success to having become a cooperative
friends, he started his own car repair member. It was during this time when she
shop. Never letting his speaking disability prevent decided to take a shot at expanding her small
him from effectively dealing with clients, Michael sari-sari store through a loan that GATA Coop
is able to build his customer base and enjoys a granted her.
significant patronage of his car care services.
The move proved to be wise, for not only did
A member of Servus Savings & Credit she become successful in growing her business
Cooperative in Initao, Misamis Oriental, Michael into a full-scale sari-sari store. She had also
acknowledges the big boost the cooperative has been able to venture in hog raising and rice
given his business through its financial assistance growing. Antonieta, a 55-year old widow and
programs, as well as its endorsements to coop mother of four children, could not thank GATA
members of his car repair services. “As a coop Coop enough for trusting her and helping her
member, I see to it that I take diligence in my succeed.
obligations and to regularly save for my future With her flourishing businesses, she is able
to send her children to school and is able
“
needs”, Michael says.
to provide for their other needs as well. She
believes in hard work and in building good
Disability is not a hindrance customer relationships.
“
to our ambition. With hard
work and with help from
”
our God almighty, nothing is I see to it that I
impossible. am always a coop
”
—Michael Flores member of good
standing.
—Antonieta Saguindang
Looking Forward,
Paying Forward
GRAND WINNER
ARVI N Q UI JADA 45
MSU-IIT NMPC, Palao, Iligan City
CATEGORY:
MAUSWAGON
T
he MSU- persistence in building a strong customer base,
IIT NMPC consistently opening growth opportunities for their
in Pala-o, business to naturally diversify. Arvin acknowledges
Iligan City the greatly significant boost in their business that
has seen significant came from the MSU-IIT Coop. “I had three options;
success in helping whether to borrow money from the bank, from
Arvin Quijada grow his the loan sharks, or from the coop—and the choice
business from a single entity became clear to me that it had to be from the coop.
of providing office supplies to We’re really thankful to the coop for what we have
schools and cooperatives, to branching out into food achieved in our business”, Arvin narrated.
deliveries; an additional line of business established
as a separate entity under one ownership. Now owning two companies (one in the office
Arvin’s foresight complements his wife’s supplies business and the other in food deliveries),
“
Arvin and his wife, Janusa, are firm in their belief in
the importance of taking care of their employees and
to be constantly seeing to their welfare. “Aside from
From my simple providing them with working clothes, we make sure
skepticism on what the in providing them with Vitamin C supplements. They
need to be protected from the sun and the rain”, he
coop’s aims are, we explains.
have come a long way
It seems like the Quijadas are paying it forward—that
in experiencing the they’re actually passing on to their employees the
benefits the coop can help and support they’re receiving from the MSU-IIT
Cooperative. For such a good thing, it should go a
deliver to its members. long way.
”
We’re no less than
grateful for that.
—Arvin Quijada
46 FIRST PLACER FIRST PLACER
MARIVIC BULAYBULAY RHODORA OLADO
Gata Daku MPC, Clarin MSU-IIT NMPC, Palao
Misamis Occidental Iligan City
CATEGORY: CATEGORY:
MAUSWAGON MICRO-AGRI
hard work beats Adversity a golden goal in coal
F F
rom a life of farming pepper and bananas, or twenty years, Rhodora Olado,
Marivic Bulaybulay and her husband could together with husband Nestor, stuck
hardly make both ends meet. But when to her chosen business of charcoal
she decided to embark on selling a whole production.
range of vegetables and root crop products, not
as a farmer but as a full time trader, things began Using crude transport (a carabao-driven
to look up Marivic’s prospects became even rosier carriage) in buying and gathering coconut
when she got invited by some local teachers to shells from around the areas of Lanao del
join their grouping as members of the Gata Daku Norte, Rhodora kept her faith in the great
Multipurpose Cooperative in Tukuran, Zamboanga promise of the charcoal business.
del Sur.
Now with three trucks hauling coconut shells
Today, thanks to the valued assistance and support from faraway sources, they are able to take
of the Gata Daku MPC, Marivic is able to expand by stock of these shells on larger volumes, giving
selling groceries and more spices. She has also been their business a big boost in revenue margins.
“
able to venture into selling livestock, maximizing
“
her market I am proud to tell
presence. I always make it a habit
to wake up very early anyone that the MSU-
in the morning to serve IIT Coop really help
as many customers as people who are willing
possible. I also make to strive to make their
sure that I strictly
fulfill my obligations at businesses better, and
”
the coop, since it has eventually improving
helped me so much in the quality of their lives.
”
expanding our family —Rhodora Olado
business.
—Marivic Bulaybulay
Passion Leads to
Diversification
GRAND WINNER
NEMIA BUHIAN
Servus MPC, Initao, Misamis Oriental
CATEGORY: 47
MICRO-AGRI
B
oth an agriculturist and a licensed teacher,
Nemia Buhian found it easy to decide
which path to pursue in life. With a fierce
passion for agriculture development,
Nemia has poured all the hard work and her
energies into managing their farm.
From growing coconuts to establishing a

diversified farm, Nemia’s hard work is all painted
on the walls of the Buhian Diversified Farm. Aside
from maximizing the farm’s coconut produce, she
developed livestock propagation and the growing
of vegetables and herbs.
The farm’s applied methods have encouraged

visitors from nearby academic institutions as well
“
as farmers who intend to widen their knowledge
and exposure in diversified farming.
The Servus Multi-Purpose
Cooperative has helped
me a lot. The financial
opportunity they have
”
given me has tremendously
helped me as a farmer.
—Nemia Buhian
48
2016-2017 KEY OFFICERS

board of directors
BACK (left to right):
Roberto U. Padilla (Elected-at-Large), Arnulfo L. Murro
(Representing Region IX), Bernadette O. Toledo (Ex –
Officio), Pacienciano A. Tomarong (Elected-at-Large), Aleta A. Gicole Emma A. Nieva
Sanny D. Seco (Representing Caraga Region) Treasurer Treasurer
FRONT (left to right):

Nora A. Clar (Vice Chairperson & Representing Region
X), Evelia R. Sator (Chairperson), Ninfa B. Macabenta
(Representing Region XII), Thea Janica Gwenn C.
Handumon (Youth Sector)
Maricelle M. Nueva Bernadette O. Toledo
BOD Secretary Chief Executive Officer
NOT IN PHOTO: Donato A. Almador (Representing Region XI),

Eleonor S. Dillena (Representing ZBST), Ronnie Feliano (Women Sector)
49
2016-2017
committees
BACK (left to right):
Rey F. Gabilagon (Audit Committee), Democrito A. Buladaco (Secretary, Election
Committee), Daven P. Gamolo (Investment Committee), Joselito S. Enot (Mediation &
Conciliation Committee), Jose Agerico R. De Guzman (Chairman, Election Committee),
Efren M. Bravo (Ethics Committee), Mansueto V. Dela Peña (Credit Committee)
FRONT (left to right):

Dr. Rhodora S. N. Englis (Investment Committee), Miriam R. Baloyo (Women Sector,
Investment Committee), Sonia L. Chua (Audit Commttee)
NOT IN PHOTO: Romeo R Busalla (Chairperson, Mediation and Conciliation

Committee), Mario A. Baterna (Vice-Chairperson, Mediation and Conciliation
Committee), Edgar G. Amoronio (Chairperson, Ethics Committee), and
Jimmy E. Beray (Secretary, Ethics Committee)
50
2016-2017
REGIONAL STEERING COMMITTEE OFFICERS
POSITION Region 9 Region 10 Region 11 Region 12 CARAGA ZBST
Donato A.
Arnulfo L. Murro Nora A. Clar Ninfa B. Macabenta Sanny D. Seco Eleonor S. Dillena
Chairperson Almador
BAFAMCO MSU-IIT NMPC Polomolok MPC News MPC MEMPCO
El Grande MPC
Vice Marilou Banding Julius Haganas Roberto U. Padilla Rodolfo A. Batoy Edelito Sangco Hja Rohina Adju
Chairperson MWIMPC ICGEMPC PCCC ICTUS Premier MPC SOEMCO MSU Sulu MPC
Coraninfa G. Glory Grace C. Romulo

Jinky Flores Agripino L. Torres Antonio Matias
Secretary Vivar Albaran Salvador
GDMPC MAGSIGE MPC PMFC
MCC SRT Tacurong MPC CARSUADPMCO
Porferia A.
Willy G. Buquis Caridad C. Aribe Jovita Felongco, Luxmi B. Auxilio Leonor A. Aizon
Treasurer Sayson
NEMPC Laak MPC NDMPC BCBMPC ZCGEMPCO
USDMPC
Wilfe Quimno Edwin P. Quisido Riza Mae Velasco Leopoldo Dulay Mario S. Paver Juliun Jailani
Auditor
AICO ICMPC DIMAVEMC MakMPC Mahayahay MPC MSU Sulu MPC
MASS-SPECC
STRATEGIC PLAN 2017 - 2021 51
O
ur 50th anniversary celebration in August
2016 prompted us to embark on a strategic Clearly, the path to success in the future has to be taken
thinking process to map out a new direction by all cooperatives working together in uplifting the lives
for the future. of their members.
The process that we undertook involved three steps: Based on this framework, MASS-SPECC puts forward its
1. An independent research was commissioned to Strategic Plan for 2017-2021:
determine the primary cooperatives’ perception
of MASS SPECC as a federation, using selected
coop leaders as key informants. VISION:
2. During the Ownership Meetings, we consulted All members enjoy better
the general membership from all the regions,
on important issues facing them as primaries
quality of life
and the coop movement as a whole. The economic success of primary cooperatives
3. We gathered a select group of coop leaders to must be seen in the improved lives of their
analyze the results of the regional consultations individual members, even as they contribute to the
and to translate these results into actionable development of the community as a whole.
agenda.
4. The Federation’s Board, committees, and the
management formulated a strategic plan to
guide us in the next five (5) years, using the OVERARCHING
ideas from the consultations as key inputs.
STRATEGY:
Our strategic thinking process resulted in two major
Cooperate, Collaborate, Differentiate
points:
1. That individual members of cooperatives are Cooperatives must work together to achieve
the key measure of success and must now significant market presence throughout
be the focus of cooperative promotion and the country and differentiate themselves to
development; and increase visibility in the marketplace.
2. That, given the significant internal and external
challenges that cooperatives face in the
country, cooperatives must think, act, and move
forward as a movement.
GOALS
Goal 1: Goal 5:
Strengthen the Scale up services, programs, and
cooperative identity shared financial services
This goal shall have been achieved when: This goal shall have been achieved when:
• all members adopt one vision • 60% of member cooperatives subscribe to
• all members adopt a common brand most of MSP services and programs
• all members including MASS SPECC • individual members can cross-transact
experience an increased number of quality business with other cooperatives (i.e.
members deposits, payments, withdrawals,
52 • 60% of Federation members are rated remittances)
‘mature’ on Cooperative Essentials in the
CB program
Goal 2: Goal 6:
Strengthen cooperative Set up collaborative programs
governance and management
This goal shall have been achieved when: and enterprises in key social and
• membership participation in MSP is economic sectors
increased to 90%
• 20% of MSP members are rated ‘mature’ in This goal shall have been achieved when:
all capacity areas of the CB program • one (1) social enterprise serving the
• MSP is ISO certified agricultural sector within MSP membership
is set up
• one (1) federation (for agricultural or
workers’ cooperatives) is set up
Goal 3: • the MSP mortuary system covers 80% of
coop members
Institutionalize support systems • Joint project with coop investments in
This goal shall have been achieved when: agriculture and health sectors is set up
• 90% of member cooperatives participate in
the CB program
• the Stabilization Fund is operational
• the Deposit Guarantee Fund is operational
• SCOOPS is operational Goal 7:
• 20% annual increase in pooled GRF & Ensure viability and sustainability
Retirement Fund is realized
• 60% of MSP members are inter-connected of the cooperative movement
in one IT system This goal shall have been achieved when:
• all members remit 100% CETF
• the subscribed share capital in MSP is
Goal 4: paid in full
• excess funds of member cooperatives
Institutionalize self-regulatory are deposited in MSP
mechanisms
This goal shall have been achieved when:
• CDA or Bangko Sentral ng Pilipinas (BSP)
shall have deputized MSP to regulate
cooperatives
• MSP has aquired self-regulatory power and
authority
• 60% of member cooperatives adopt
standardized processes and products
2017
ACTION PLANS
& targets 53
By the end of 2017, the following plans shall have been achieved:
CENTRAL FUND
• P 800 million worth of loans released to 60 INVESTMENT
qualified borrowers • Consultant to set-up 2017-2022 Investment
• Five (5%) percent of less Portfolio at Risk Plan hired
(PAR-1 day) • Investment Officer to manage the
• 100% loan loss provision complied with Investment Unit hired
• P500 million loan fund from funding • Investment Workshop and Planning
institutions made available (to be drawn conducted
anytime) • Investment policies and guidelines
• P900 million outstanding deposits reached approved and implemented
• P320 million share capital accumulated • At least one (1) Investment project piloted
• Product Bundling implemented
• Risk Management System implemented INSTITUTE OF COOPERATIVE STUDIES
• Interest rate based on credit risk set • Learning materials to promote and
• Agri-BEST program implemented in 12 strengthen cooperative identity revised
member co-operatives • 80 CDA-required training conducted
• Eight (8) co-operatives established • 20 specialized training for co-operative
Business Development Service (BDS) on officers conducted
Agri-BEST program • 20 specialized training for co-operative
• At least two (2) co-operatives per region managers and staff conducted
facilitated with DTI training for MSME • 15 HR competency-based training for co-
members operative staff conducted
• At least four (4) partnerships/linkages • Competency-based training system for
established with Government line agencies, cooperative sector in the Philippines
NGOs and Private institutions developed with TESDA, CDA, and other co-
• At least one (1) type of product sold and operative organizations
produced by several coops marketed under • 30 active education committees in-place in
a common brand all regions
• A social enterprise, developed as marketing • 10 active cluster partners operating in all
arm of coops engaged in Agri regions
• 15 active facilitators present in all regions • 25 co-operatives availed Backup services
• 40 co-operative managers completed • 60 co-operatives availed SMS services
Management Development Program • Five (5) co-operatives availed hardware and
• One (1) youth leadership development security services
program conducted • Upgraded datacenter complied with required
• Master’s program for CEO/ GMs in standards
partnership with the University of Asia and • One (1) Disaster Recovery site implemented
the Pacific (UA&P) conducted • Infrastructure Monitoring Solutions
• Four (4) quarterly issues of the Coop implemented
MONITOR published • Datacenter hardware components made
• Co-operative industry data analyzed and available 24/7
disseminated to MSP members • Knowledge-based processes, procedures,
• 75 % of the financial data of MSP members and training for all IT services implemented
updated in the database • Standard system manuals and templates
54 • One (1) evaluation study on the effectiveness developed
of enhanced learning materials conducted • ICT Service Portfolio branded
CONSULTANCY ICT PROJECT

• Three (3) Mentors’ training conducted • Two (2) Federations/Unions in ICT services
• 13 volunteer mentors actively engaged in engaged

mentoring • One (1) co-operative with multi-branches
• 10 new co-operatives mentored implemented Koop Konnect Solutions
• Two (2) Mentor learning sessions conducted • Two (2) new Koop Konnect Channels
• 21 co-operatives assessed using Capacity developed and ready for implementation
Assessment Tool (CAT) • Project Management System implemented
• Two (2) leadership fora initiated • New IT systems projectized:
• 10 co-operatives with increased CAT scores in R Data Analytics system
at least three (3) capacity areas of Capacity R Document Management system
Building assessed R Cloud backup system
• 100% mentored co-operatives adopting
manuals and tools MEMBERSHIP AND NETWORKING
• At least four (4) bundled services for mentee • 75 co-operatives or 25% of membership
co-operatives facilitated adapting a common vision for the movement
• 22 co-operative CEOs/General Managers • 150 member-co-operatives are in Good
coached Standing
• 36 co-operative engagements on strategic • 70% of total membership in the region
planning, operations review, mid-year and participate in OMs and GA
year-end planning, coaching, and conduct of • MSP deputization lobbied with CDA and
feasibility studies legislature
• SCOOPS and Stabilization Fund strengthened
INFORMATION & COMMUNICATION TECHNOLOGY • Discussion on the creation of a workers’ co-
• Two (2) co-operatives connected to Koop operative federation through the workers’ desk
Konnect initiated
• 100% compliant with Europay, MasterCard, Visa • Assisted in planning the set-up of a network of
(EMV) Security Standard hospitals and/or housing projects
• Four (4) BancNet On-line (BOL) services • 20% increase of capitalization, deposit, and
implemented CETF remittance
• Five (5) new ATM terminals installed • At least five (5) new members per region
• 10% increase in e-services transactions recruited
• 30 MBWin sites installed • Assisted in the compliance for ISO certification.
• 10 co-operatives installed with e-Registration • At least one (1) implementation of adopted co-
and e-Voting system operative integration model per region
• 100% of MIGS co-operatives installed with • Assisted in the development of standards and
Coop Information System (CIS) adaption by the members
• Two (2) new MBWIN MIS application • Proposed network mortuary program
implemented revisited and concept paper drafted
ENTERPRISE RISK MANAGEMENT GOVERNANCE
• 70% Standard ITRMS co-operative policies The following activities/events conducted:
implemented • Three (3) BOD and two (2) Joint
• 90% of MSP ITRMS policies approved and Officers meeting
implemented • Three (3) Executive Committee
• 50% MSP units risk processes assessed and meetings
mitigating controls implemented • Two (2) Audit Committee activities
• 100% support to MSP Units on various • Two (2) Election Committee meetings
capacities extended • Two (2) Investment Committee
meetings
PROJECT DEVELOPMENT UNIT • One (1) Mediation and Conciliation
• Nine (9) MICMA winners awarded (three (3) Committee meeting
winners each in three (3) award categories) • One (1) Ethics Committee meeting
and their stories published • Two (2) Managers’ Club meetings
• Agri-BEST program relevant tools developed • One (1) Chairperson’s forum 55
• At least four (4) CB Program manuals • Two (2) CYP meetings
finalized • Two (2) GAD Committee meetings
• At least seven (7) CB Program tools finalized • Two (2) Special Committee meetings
• At least three (3) project proposals
completed and submitted to funders
FINANCIAL TARGETS
ADMIN & SUPPORT GROUP • Total Assets of at least P 2 billion achieved
• Talent and Career Management program • Net Surplus of P 28 million realized
implemented • Total Capital Expenditures P 26.9 million
• Regulatory requirements complied with spent
• At least 30% increase in investible funds • Dividends and patronage refund above
• Asset Management sub-unit (AMSU) created prevailing market rates given
• One (1) consultant to assist in the
establishment of AMSU
• Fund investment ROI to reach above inflation
rate and WACC
• Improved and implemented policies,
processes and procedures for:
R Accounting system
R Cash management system
R Fund Management system
R Property disposal system
R Maintenance, Safety and Security of
properties
R Human Resource System
R Internal Control
R Disaster Risk and Reduction
Management (DRRM)
• Php 1.5 billion Conditional Cash Transfer
(CCT) for 631,000 beneficiaries in six (6)
regions in Mindanao released
MASS-SPECC Cooperative Development Center
2017 Budget
2017 REVENUES
Interest on Loans
Consulting and service fees
64,173,214
51,448,141
budget
Education and Training 14,000,000
Interest from bank deposits and investments 26,886,978
Miscellaneous 17,541,828
Total Revenues 174,050,162
EXPENSES
Personnel Cost
Salaries and Wages 23,888,371
56 Employees benefits 7,983,733
SSS Contribution 1,053,204
Philhealth Contribution 196,374
CERP Contribution 246,600
HDMF contribution 129,750

Total Personnnel Cost 33,498,032
Interest expense on deposits 15,932,969
Interest on borrowed funds and other charges 44,805,886
Meetings and conferences 7,646,765
Depreciation and amortization 7,590,483
Trainings and seminars 4,916,016
Travel and Transportation 5,556,430
Staff development 3,345,762
Provision for retirement benefits 6,952,773
Communication 2,016,537
Professional fees 2,887,731
License Fee 1,500,000
Provision for doubtful accounts 2,151,393
Light and Power 1,371,447
Security and Janitorial 1,288,568
Materials and Supplies 830,211
Repair and maintenance 977,021
Marketing expenses 690,024
Taxes and Licenses 350,000
Rental expense 325,000
Collection and Litigation expense 219,418
Insurance 100,000
Miscellaneous 1,097,695
146,050,162
NET SURPLUS 28,000,000

COMMITMENT TO SDG
I
n June 2016, a big gathering of representatives of MASS SPECC members gave special attention
to the United Nation’s Sustainable Development Goals, a global call to action for Transforming
Our World: the 2030 Agenda for Sustainable Development. It soon came to light that, on their
own, many cooperatives have already taken concrete steps in addressing some of the Goals. At
the same time, there was a realization that cooperatives can do much more, in all 17 goals. Concrete
action points were identified that if pursued by cooperatives, individually and as a movement, could
reinforce their commitment to the achievement of their social goals, thereby contributing to world
peace and prosperity.
64
Contact us:
MAIN OFFICE
MASS-SPECC
Tiano-Yacapin Sts. Cagayan de Oro City
Telefax +63 88 856-2339
Email: admin@mass-specc.coop
DAVAO OFFICE
MASS-SPECC
Anahaw Road, Dinaville Village
Ma-a, Davao City
Telefax +63 82 244-1096
www.mass-specc.coop

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2016 ANNUAL REPORT

To promote cooperatives as a distinct sector in the

To promote dialogues and establish linkages with

2016 ANNUAL REPORT

12 Central Fund (CF)

14 Information and Technology (ICT)

16 MASS-SPECC Consultancy Unit (MCU)

18 Institute of Cooperative Studies (ICS)

20 Membership and Networking

22 Gender and Development

28 2016-2017 BOD Resolution Highlights

50th Anniversary Highlights

30 Audit Committee Report

31 EXTERNAL AUDIT REPORT

32 Statement of Management’s Responsibility

33 Independent Auditor’s Report

36 Audited Financial Statements

40 2016 MASS-SPECC Awardees

42 2016 MICMA Award

48 2016-2017 Board of DIrectors & Key Officers

50 2016-2017 Regional Steering Committee Officers

51 MASS-SPECC Strategic Plan 2017-2021

53 2017 Action Plans and Targets

As we prepared to celebrate last year our 50th anniversary (August 9, 2016),

To grow the movement, MASS SPECC established structures and processes to

message from the

RODRIGO ROA DUTERTE

message fRom the

(Coop natcc0 partylist)

MASS-SPECC is in fact recognized as the biggest regional cooperative federation and I

Let us continue our partnership in advocating cooperative development and people

God bless and more power!

HON. ANTHONY M. BRAVO, Ph.D.

message fRom the

It is my honor and privilege to extend my heartfelt felicitations to the Officers,

Congratulations and mabuhi kamo!

HON. SABINIANO S. CANAMA

message from the office of the president of the phil.

cooperative development authority

More power and kudos to MASS-SPECC Cooperative Development Center!

(SGD) JULIE VEILETTE

(SGD) SERGE GOSSELIN

vision are necessary in

Piloting of the program in four cooperatives

time and other

Our purpose in the development and simulation of MSRTE-Core,

co-op members, find it difficult to give up their own processes

ICT Projects – We initiate and execute new ATM s

need to employ a dynamic

There are essentials

different from other

Accessible training, socialized pricing

Number of participants 3,013 2,013

Region 11 13 128 159 0

Region 12 14 279 280 0

TOTALS 107 1,282 1,582 149

A total of 107 training events were conducted in 2016.

we? What do we represent? We

Our guiding principle Gordon, and to Coop-NATCCO representatives.

Quality over quantity

• CETF remittance increased from Php

• MIGS members increased from 93 coops

development in our members’

N.B. Notes to FS are found in the GA kit. SGVCAGS16IND001