Guide on Cooperative Operation and Management
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Transcript of Guide on Cooperative Operation and Management
Jo B. Bitonio
CDA Dagupan
Guidelines and Checklists for
Cooperative Operation and Management
June 6, 2016
The review of the CDA Memorandum Circulars, Social Audit Report (SAR) & Performance Audit Report (PAR), PISO can result in introducing intervention through a listing of programs, projects, policies, GA/Board Resolutions, manuals, information facilities, Code of Governance and Ethical Standards and other strategies intended to guide Philippine cooperatives in their operation.
. Development Plan
. Annual Plan and Budget
. Acceptance of AFS
. Hiring of External Auditor
GA Resolution
MC 2014-02 - states the 5 year limit role in the engagement of CEA
- gap of 2 years- prohibition in the engagement and
signing of audit when the validity of accreditation is not valid or in question
• Development Plan (DP) • Annual Plan (Art 33 RA 9520; Rule 7
Sec 4 of the IRR)• Social Development Plan (SDP) • Education and Training Plan (ETP) • Succession Plan (HRD Plan)• Gender and Development Plan (MC 2013-22)
Plans
Note: - Annual plan is lifted from the Development Plan
- SDP and ETP can be incorporated in the DP
Art 53 of RA 9520
Every cooperative shall draw up reports of its programs of activities including those in pursuance of their socio-economic undertaking sharing their progress and achievements at the end of fiscal year
• Oversight functions • Performance evaluation/appraisal • Election guidelines • Distribution of net surplus (Rate of Interest
and patronage refund) • Provisions and funding for statutory reserves • Utilization of statutory reserves • Provisions of funding for Retirement Fund
Board Resolutions
• Monetary benefits (Performance Bonus, 13th • Month Pay, SSS, Phil Health, Pag-ibig) • Non Monetary Benefits (Rice subsidy, uniforms) • Membership subscription of capital • Compliance limitation of shares (10%)• Deposit for share capital subscription • Issuance of Share Certificate • Conflict Mgmt/Mediation and conciliation
Program
Policy/Board Resolutions
• Conflict management – officers, employees, members
• Associate members • Laboratory cooperatives • Subsidiary coop • GAD and Gender Equality
Policy/Board Resolutions
• Code of Governance and Ethical Standard • Conflict of Interest (engaged in similar business) • Code of Ethics provisions for officers /staff
/members• Policy requiring all officers to comply with the
mandatory trainings requirements (MC 2012-07)• Election Rules and Guidelines (MC 2013-02)
Policy/Board Resolution
Manual of Operations (membership, business operation, branch, satellite)
HR (Organizational and Functional Structure; compliance with labor standard, adoption of performance standard)
Accounting ( maintenance of books of accounts; updated recording); separate books per line of business;
Interim financial – monthly, quarterly, annual Internal Control System Compliance with BIR, DOLE, LGU, Etc.
Manual
• Code of Ethical Standard – Officers, staff-members • Compliance with SCA • Savings Mobilization program • Institutionalization of financial and operational
Performance Appraisal System (PISO and PESOS)
Manual
• Capital Build Up • Gender Programs and Projects• Member Benefit Program ( group insurance,
medical and health assistance, education assistance, burial assistance)
• Retirement & Funding of Retirement Program• Human Resource Program
Programs and Projects
• Nation Building Programs (SDGs, environment • Responsiveness to gender, elderly, youth and
person with especial needs • Collaborative Programs/projects
Programs/Projects
• Education and Training Program – officers, employees, members (Calendar of activities, compliance with mandatory training for officers)
• Leadership Development Program (retreats, succession planning, leadership session)
• Employee Support Program (Council, Insurance, Protection, Grievance mechanism, Awards and Recognition, Scholarship, Seminar, training,
• Social, cultural, sports
Programs/Projects
• Suggestion/Grievance box • Newsletter • Freedom board• Email account• Website• FB account
Information Facilities
Year 1
Year 2
Year 3
Year 4
Year5
No. of Regular members
No. of Associate members
No. of members patronizing the services of coops
Service A
Service B
Service C
No. of members with additional share capital
No of members with deposits
No of members participated in the AGA
No of members participated in membership events (e.g. tree planting, medical mission, etc)
Membership Growth and Expansion Program
Recruitment of members based on the AC/BL.
No. of members benefitting from the members’ social benefit program/s
Year 1
Year 2 Year 3
Year 4
Year5
Group insurance benefit
Medical & health assistance
Educational Assistance
Burial assistance/aid
Implementation of education program
No of members attended continuing education and training program
Values Education
Cooperative Principles & Practices
Ethics
Entrepreneurial skills
Leadership Training
Financial Literary
Livelihood
Membership Growth and Expansion Program
Training
Trainings Conducted/ facilitated by cooperatives
Year 1
Year 2
Year 3
Year 4
Year 5
PMES (Art 10 BL)
Competency Course (Fed Affiliates)
oBoard of DirectorsoManageroMandatory Committees (Audit, Election, Ethics, MedCon)
oTreasurer & Secretary
MC 2015-09
Training
Trainings Conducted/ facilitated by cooperatives Year 1
Year 2
Year 3
Year 4
Year5
Mandatory Training (MC 2015-09)
MICRO-COOPERATIVES [cooperatives with total assets f P3 Million and below]
Fundamentals of Cooperatives (8)Governance and Management of Cooperatives (8)
All other cooperatives with total assets of more that P 3M
Fundamentals of Cooperatives (16)Governance and Management of Cooperatives (16)
TrainingOptional Training Year
1Year 2 Year
3Year
4Year
5
Additional trainings for officers of COOPERATIVES ENGAGED IN SAVINGS AND CREDIT with at least Five Million Pesos (Php5,000,000.00) worth of deposit liabilities based on their latest AFS
Financial Management (8)
Risk Management (4)
Credit Management (4)
Period of Compliance
Cooperative officers shall complete the required trainings within the first half of their term
Training
Additional Training Year 1
Year 2
Year 3
Year 4
Year 5
Financial Management
Policy Development
Leadership and Values Re-Orientation
Conflict Management
Strategic Planning and Management
Orientation on Labor & Other Related Laws
Records Management (Financial/Non-Financial Transaction)
Cooperative Standards
Training
Additional Training Year 1
Year 2
Year 3
Year 4
Year 5
Investment and Banking Procedures
Basic Accounting for Non-Accountants
Internal Control including Inventory System
Audit Management
Rules Formulation
Human Resource Management
Effective Communication Skills
Entrepreneurship & Business Management Skills
Basic Computer Literacy
A policy requiring all elective officers to comply with the mandatory training requirement wherein the election committee shall be responsible to ensure compliance thereon and in case of appointed officers, it shall be the Board of Directors.
Performance Audit ReportMC 2013-0165
Std Accom Intervention
Non Financial (100 x 35%) 35
Financial (100 x 65) 65
Profitability Perf (25)
Institutional Strength (20)
Structure of Assets (25)
Operational Strength (30)
Total Points 100
Social Audit Report
SAR Components Std Accom Intervention
Organization 15
Membership 35
Staff/Employees 10
Cooperation Among Cooperatives
10
Community and Nations 25
Network, Alliances & Linkages 5
Total Points 100
MC 2013-016
Social Relevance
1. GAD (MC 2014-04) Year 1
Year2
Year 3
Year 4
Year5
• GAD Focal Person• GAD Committee• GAD Budget; • GAD Program; • GAD Implementation
2. Environmental Protection and Conservation Program
3. Community Involvement and Development Program
4. Cooperative Solidarity and Partnership Program
OthersSignage MC 2012-15
BY are amended to conform with RA 9520
Art 14-15 Amended AC/BL
Actual business in accordancewith AC/BL
Compliance to SSS,PhilHealth, Pagibig, BIR, etc.
Labor Code (min wage and 13th Mo. Pay)
Art 135, RA 9520
Compliant with SCA
Books of Accounts registered with BIR
Separate books of Accounts per business
MC 2013-15
Location of cooperatives based on AC
Branches/Satellite within the bounds of regulations
MC 2014-04 ; MC 2015-09
Term of existence shall be made 5 yrs prior to the expirydate
Art 13 RA 9520
Registry of members MC 2012-16
Membership subscribed and paid up are covered by subscription agreement
Subscription Agreement
10% Limitation on Subscription Art 73 Rule 10 IRR/ BL
Issuance of Preferred shares AC/BL; Rule 10
Same value for common shares
Issues Share Capital to members MC-2013-04
The Net Surplus is distributed BL
Allocation of Statutory Reserves Art n86 RA 9520
Statutory funds are funded Art 85 Ra 9520
Organizational Structure MC-2011-7
The accountable officers are covered by Surety Fund
MC 2011-15
Compensation of the BOD MC 2013-17
AC contains Arbitral Clause Art 137; Rule 13 RA 9520
Affiliation Art 25; BL; MC 2011-16
Remits CETF Art 86, RA 9520
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