Guide on Cooperative Operation and Management

1. 1. Jo B. Bitonio CDA Dagupan Guidelines and Checklists for Cooperative

Operation and Management June 6, 2016
2. 2. The review of the CDA Memorandum Circulars, Social Audit Report (SAR) &
Performance Audit Report (PAR), PISO can result in introducing intervention
through a listing of programs, projects, policies, GA/Board Resolutions, manuals,
information facilities, Code of Governance and Ethical Standards and other
strategies intended to guide Philippine cooperatives in their operation.
3. 3. . Development Plan . Annual Plan and Budget . Acceptance of AFS . Hiring of
External Auditor GA Resolution MC 2014-02 - states the 5 year limit role in the
engagement of CEA - gap of 2 years - prohibition in the engagement and signing
of audit when the validity of accreditation is not valid or in question
4. 4. • Development Plan (DP) • Annual Plan (Art 33 RA 9520; Rule 7 Sec 4 of the
IRR) • Social Development Plan (SDP) • Education and Training Plan (ETP) •
Succession Plan (HRD Plan) • Gender and Development Plan (MC 2013-22)
Plans Note: - Annual plan is lifted from the Development Plan - SDP and ETP
can be incorporated in the DP
5. 5. Art 53 of RA 9520 Every cooperative shall draw up reports of its programs of
activities including those in pursuance of their socio- economic undertaking
sharing their progress and achievements at the end of fiscal year
6. 6. • Oversight functions • Performance evaluation/appraisal • Election guidelines •
Distribution of net surplus (Rate of Interest and patronage refund) • Provisions
and funding for statutory reserves • Utilization of statutory reserves • Provisions
of funding for Retirement Fund Board Resolutions
7. 7. • Monetary benefits (Performance Bonus, 13th • Month Pay, SSS, Phil Health,
Pag-ibig) • Non Monetary Benefits (Rice subsidy, uniforms) • Membership
subscription of capital • Compliance limitation of shares (10%) • Deposit for share
capital subscription • Issuance of Share Certificate • Conflict Mgmt/Mediation and
conciliation Program Policy/Board Resolutions
8. 8. • Conflict management – officers, employees, members • Associate members •
Laboratory cooperatives • Subsidiary coop • GAD and Gender Equality
Policy/Board Resolutions
9. 9. • Code of Governance and Ethical Standard • Conflict of Interest (engaged in
similar business) • Code of Ethics provisions for officers /staff /members • Policy
requiring all officers to comply with the mandatory trainings requirements (MC
2012-07) • Election Rules and Guidelines (MC 2013-02) Policy/Board Resolution
10. 10.  Manual of Operations (membership, business operation, branch, satellite) 
HR (Organizational and Functional Structure; compliance with labor standard,
adoption of performance standard)  Accounting ( maintenance of books of
accounts; updated recording); separate books per line of business;  Interim
financial – monthly, quarterly, annual  Internal Control System  Compliance
with BIR, DOLE, LGU, Etc. Manual
11. 11. • Code of Ethical Standard – Officers, staff-members • Compliance with SCA
• Savings Mobilization program • Institutionalization of financial and operational
Performance Appraisal System (PISO and PESOS) Manual
12. 12. • Capital Build Up • Gender Programs and Projects • Member Benefit
Program ( group insurance, medical and health assistance, education
assistance, burial assistance) • Retirement & Funding of Retirement Program •
Human Resource Program Programs and Projects
13. 13. • Nation Building Programs (SDGs, environment • Responsiveness to gender,
elderly, youth and person with especial needs • Collaborative Programs/projects
Programs/Projects
14. 14. • Education and Training Program – officers, employees, members (Calendar
of activities, compliance with mandatory training for officers) • Leadership
Development Program (retreats, succession planning, leadership session) •
Employee Support Program (Council, Insurance, Protection, Grievance
mechanism, Awards and Recognition, Scholarship, Seminar, training, • Social,
cultural, sports Programs/Projects
15. 15. • Suggestion/Grievance box • Newsletter • Freedom board • Email account •
Website • FB account Information Facilities
16. 16. Year 1 Year 2 Year 3 Year 4 Year 5 No. of Regular members No. of
Associate members No. of members patronizing the services of coops Service A
Service B Service C No. of members with additional share capital No of members
with deposits No of members participated in the AGA No of members
participated in membership events (e.g. tree planting, medical mission, etc)
Membership Growth and Expansion Program Recruitment of members based on
the AC/BL.
17. 17. No. of members benefitting from the members’ social benefit program/s Year
1 Year 2 Year 3 Year 4 Year 5 Group insurance benefit Medical & health
assistance Educational Assistance Burial assistance/aid Implementation of
education program No of members attended continuing education and training
program Values Education Cooperative Principles & Practices Ethics
Entrepreneurial skills Leadership Training Financial Literary Livelihood
Membership Growth and Expansion Program
18. 18. Training Trainings Conducted/ facilitated by cooperatives Year 1 Year 2 Year
3 Year 4 Year 5 PMES (Art 10 BL) Competency Course (Fed Affiliates) oBoard of
Directors oManager oMandatory Committees (Audit, Election, Ethics, MedCon)
oTreasurer & Secretary MC 2015-09
19. 19. Training Trainings Conducted/ facilitated by cooperatives Year 1 Year 2 Year
3 Year 4 Year 5 Mandatory Training (MC 2015-09) MICRO-COOPERATIVES
[cooperatives with total assets f P3 Million and below] Fundamentals of
Cooperatives (8) Governance and Management of Cooperatives (8) All other
cooperatives with total assets of more that P 3M Fundamentals of Cooperatives
(16) Governance and Management of Cooperatives (16)
20. 20. Training Optional Training Year 1 Year 2 Year 3 Year 4 Year 5 Additional
trainings for officers of COOPERATIVES ENGAGED IN SAVINGS AND CREDIT
with at least Five Million Pesos (Php5,000,000.00) worth of deposit liabilities
based on their latest AFS Financial Management (8) Risk Management (4) Credit
Management (4) Period of Compliance Cooperative officers shall complete the
required trainings within the first half of their term
21. 21. Training Additional Training Year 1 Year 2 Year 3 Year 4 Year 5 Financial
Management Policy Development Leadership and Values Re-Orientation Conflict
Management Strategic Planning and Management Orientation on Labor & Other
Related Laws Records Management (Financial/Non-Financial Transaction)
Cooperative Standards
22. 22. Training Additional Training Year 1 Year 2 Year 3 Year 4 Year 5 Investment
and Banking Procedures Basic Accounting for Non-Accountants Internal Control
including Inventory System Audit Management Rules Formulation Human
Resource Management Effective Communication Skills Entrepreneurship &
Business Management Skills Basic Computer Literacy
23. 23. A policy requiring all elective officers to comply with the mandatory training
requirement wherein the election committee shall be responsible to ensure
compliance thereon and in case of appointed officers, it shall be the Board of
Directors.
24. 24. Performance Audit Report MC 2013-0165 Std Accom Intervention Non
Financial (100 x 35%) 35 Financial (100 x 65) 65 Profitability Perf (25)
Institutional Strength (20) Structure of Assets (25) Operational Strength (30)
Total Points 100
25. 25. Social Audit Report SAR Components Std Accom Intervention Organization
15 Membership 35 Staff/Employees 10 Cooperation Among Cooperatives 10
Community and Nations 25 Network, Alliances & Linkages 5 Total Points 100 MC
2013-016
26. 26. Social Relevance 1. GAD (MC 2014-04) Year 1 Year 2 Year 3 Year 4 Year 5
• GAD Focal Person • GAD Committee • GAD Budget; • GAD Program; • GAD
Implementation 2. Environmental Protection and Conservation Program 3.
Community Involvement and Development Program 4. Cooperative Solidarity
and Partnership Program
27. 27. Others Signage MC 2012-15 BY are amended to conform with RA 9520 Art 14-15
Amended AC/BL Actual business in accordance with AC/BL Compliance to SSS, PhilHealth,
Pagibig, BIR, etc. Labor Code (min wage and 13th Mo. Pay) Art 135, RA 9520 Compliant
with SCA
28. 28. Books of Accounts registered with BIR Separate books of Accounts per business MC
2013-15 Location of cooperatives based on AC Branches/Satellite within the bounds of
regulations MC 2014-04 ; MC 2015-09 Term of existence shall be made 5 yrs prior to the
expiry date Art 13 RA 9520
29. 29. Registry of members MC 2012-16 Membership subscribed and paid up are covered by
subscription agreement Subscription Agreement 10% Limitation on Subscription Art 73 Rule
10 IRR/ BL Issuance of Preferred shares AC/BL; Rule 10 Same value for common shares
Issues Share Capital to members MC-2013-04 The Net Surplus is distributed BL Allocation
of Statutory Reserves Art n86 RA 9520
30. 30. Statutory funds are funded Art 85 Ra 9520 Organizational Structure MC-2011-7 The
accountable officers are covered by Surety Fund MC 2011-15 Compensation of the BOD MC
2013-17 AC contains Arbitral Clause Art 137; Rule 13 RA 9520 Affiliation Art 25; BL; MC
2011-16 Remits CETF Art 86, RA 9520
31. 31. All depends on You