Internal Control Checklist for Cooperatives

Organization and Human Resources Ye No NA

s
Educational qualifications and industry experience are rigidly examined in
hiring personnel
Officer, management staff, and members are given regular trainings on
cooperative operations and on trends and innovations of the cooperative
organization
Orientation program is given to new employees and members on their
responsibilities
Personnel handbook/manual are given all personnel upon entry to the coop
organization
Reward and recognition is given to the officers, management staff, and
members for their exemplary actions
Disciplinary actions are given to erring officers, management staff, and
members
There is enough manpower to attend to the needs of the members
A committee is set to screen and to select applicants to fill up vacant
positions
Employees are well compensated
The vision and mission statement of the cooperative is properly posted and
disseminated

Production and Operations Ye No NA

s
Services and products offered by the cooperative satisfy the needs of the
members
Services offered by the cooperative are handled by competent
manpower/personnel
Policies on granting of loans and credits are strictly followed and implemented
Amnesty program is given to delinquent members
Reports are regularly prepared and submitted
Financial statements are presented during meetings or assembly
Maintenance program on physical facilities and tools equipment is in place
and implemented
Appropriate tools, equipment, and facility and the desired specifications are
purchased
Appropriation for capital expenditures are prepared and made available when
needed
Canvass and requisition slips are prepared prior to acquisition/purchase.
Policies on credit and loan collection are strictly followed.
Furniture, fixtures, and equipment issued to employees are covered by a
memorandum receipt
Accountable officer or employee is assigned for the receipt and maintenance
of acquired property and equipment
Accountable personnel is assigned to check incoming and outgoing
inventories
All inventories and checked against delivery receipts and invoices.
Obsolete, damaged, and slow moving items are reported to responsible
personnel
All shipments and deliveries are accompanied by invoices and delivery
receipts
Inventory count is done by a separate personnel other than the one in charge
of recording
Only the designated accountable personnel have access to the store room
The store room is adequately secured

Marketing Ye No NA
s
Designated personnel or officer is in charge of the marketing program of the
cooperative
Incentives are given to members and employees in relation to the marketing
efforts of the cooperative
Budget for sales promotion and marketing strategies are approved and
appropriated.
Marketing programs are regularly evaluated and properly implemented by
designated officer
Feedback mechanisms are designed to determine the level of satisfaction of
clients/members
Prices of goods and services (interest) are comparable and can compete with
the industry
Quality control measures are designated to monitor and to check any
deficiencies of services and products offered to members.
Pricing policy on services and products offered are regularly evaluated and
properly adjusted
Products and services are undergoing innovations and improvement
Evaluation is made on the implementation and result of the marketing
activities of the cooperative

Cash Receipts Ye No NA
s
The treasurer/cashier and other employees authorized to handle cash are
bonded
The treasurer/cashier and other employees authorized to handle cash do not
handle the books of account
All cash receipts are acknowledged with pre-numbered official receipts
Collections during the day are deposited not later than the next banking day.
Employees other than the treasurer/cashier authorized to receive cash
turnover daily to the latter all collections together with copies of the issued
official receipts and the unused ones
The treasurer/cashier prepares a collection report covering all collections
during the day
Post dated checks are accepted as payment but official receipt is issued only
at the date of check.
A petty cash/revolving fund is set up for minor disbursements consisting of
day to day expenses limited to a certain amount in accordance with the board
policies.
All disbursement except those that are paid from the petty cash fund are paid
by checks.
Each check prepared is covered by a pre-numbered cash voucher & supported
by documents
All checks are issued in numerical sequence
All checks are made payable to specific person or identity
Unused check booklet are under the custody of the accountant/accounting
head.
Signing of blank checks is strictly prohibited
Bank reconciliation is done monthly
The audit committee audits all disbursement transactions
Disbursement from the petty cash are covered by a pre-numbered petty cash
voucher and supported by documents.
A surprise audit by the audit committee of the petty cash is done from time to
time
All loan transactions are made in accordance with the duly approved loan
policy
All loan applications are approved by the credit committee except those of
the BOD members, senior officers which are approved by the BOD en banc.
All loan disbursements are covered by a promissory note signed by the
borrower and a co-maker.
Appropriate charge slips signed by the member-purchaser cover credit
purchases from the cooperative store.
Aging of accounts receivable is periodically done.
Invoice are checked for accuracy before payment
The bookkeeper is the only person doing posting in the subsidiary ledger
Schedules of payables are periodically prepared
Accrued expenses are settled immediately