MBCC ANNUAL GENERAL ASSEMBLYmbcc.info/wp-content/uploads/2018/03/Annual-Report-21st-GA-1.pdf · v....

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“Empowering members to lead the stability

of the Cooperative business and beyond”

Baguio City National High School Gov. Pack Rd., Baguio City

March 11, 2018

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21st MBCC ANNUAL GENERAL ASSEMBLY Baguio City National High School

Gov. Pack Rd., Baguio City March 11, 2018

I. REGISTRATION AND OPENING PROGRAM A. REGISTRATION AND ELECTION

i. Registration – 6:30 AM to 9:00 AM

ii. Presentation of Candidates

iii. Announcement of Election

Rules and Guidelines

iv. Election and Casting of Votes – 7:00 AM to 11:30 AM

*PROGRAM WILL START UPON THE DETERMINATION OF QUORUM

v. Invocation

vi. National Anthem

vii. Cooperative Pledge

viii. Welcome Address

ix. Introduction to Guest Speaker

x. Guest Speaker Hon. Arthur L. Allad-iw

Chairperson , Committee on Employment, Livelihood, Cooperative, Handicapped and Differently-Abled Persons

xi. Inspirational Message Atty. Franco G. Bawang Jr.

Regional Director, CDA-CAR

xii. Financial Talk Maria Fe Gerlie C. Mercado

Certified Financial Educator of Colorado USA (CFed)

Senior Marketing Director – International Marketing Group

II. BUSINESS PORTION A. Call to Order

B. Proof of Due Notice

C. Roll Call and Declaration of Quorum

D. Consideration and Approval of Minutes of the 20th General Assembly

E. Answers to open questions in the 20th General Assembly

F. Approval of the following

i. Result of External Audit Report

ii. Budget for CY 2018

G. Presentation of Reports

H. Changes to be Presented to the General Assembly

III. ADJOURNMENT of the 21st GENERAL ASSEMBLY

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Contents

Minutes of the 20th General Assembly _______________________ 1

Chairman’s Report _____________________________________ 12

Manager’s Report ______________________________________ 15

Treasurer’s Report _____________________________________ 19

Proposed Budget for CY2018 _____________________________ 20

Secretary’s Report _____________________________________ 21

Audit Committee Report _________________________________ 24

Election Committee Report _______________________________ 26

Ethics Committee Report ________________________________ 28

Education Committee Report _____________________________ 29

Conciliation and Mediation Committee Report ________________ 30

Office and Administration Report __________________________ 31

Business Tie-up Report _________________________________ 32

Corporate Social Responsibility Report _____________________ 33

Audited Financial Statements _____________________________ 36

Notes to Financial Statements ____________________________ 50

MBCC Services _______________________________________ 62

Truth in Lending Act ____________________________________ 66

Organizational Structure _________________________________ 68

Minutes of the 20th General Assembly

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Minutes of the 20th Gen eral Assembly

Held on March 12, 2017 at Moog Controls Corporation Covered Court

Emcee: Donnalyn Ascano and Marcus Enrico Valencia

Speaker: Mr. Rafael Gayaso CEO, NORLU-CEDEC

Part I:

Started accepting members for registration and election at 6:00 AM

At 8:00 AM, the Secretary announced the quorum.

Part II. PROGRAM PROPER

1. Invocation was led by Dir. Jerry Paras

2. National Anthem

3. MBCC COOP Pledge

4. COOP Anthem

5. Opening Remarks was delivered by Dir. Enrico Protacio

6. Secretary announced the quorum, 63% or a total of 638 members registered as of 8:00AM

7. Chairman Pauline Baba opened the General Assembly Meeting

8. Approval of the 19th General Assembly:

The minutes of the meeting for the 19th General Assembly was approved by Mr. Victoriano Buaquen and

seconded by Mr. Gilbert Awisen.

9. The speaker was introduced by Dir. Ryah Sarile

10. The Inspirational talk was delivered by Mr. Rafael Gayaso:

Mr. Gayaso thanked MBCC for inviting him as a speaker and congratulated MBCC for being financially viable

and becoming more visible in the Cooperative Sector.

He discussed about the Republic Act No. 9510 otherwise known as the “Credit Information System Act (CISA)”.

He presented the salient points of the CISA where he discussed the purpose, coverage, implementing agency, credit

data for submission, fines and penalties for non-submission of CISA information. He discussed the positive and negative

effects of the CISA to Cooperatives and shared the initiatives of NORLU CEDEC in order to address this new law.

Question and Answer Portion:

Mr. James Aquillo asked “How do you relate the secrecy law in CISA?”

Mr. Gayaso responded that “It’s same with the violations to their right of privacy”.

Mr. Jumel Baldonadi asked – “Is there a need of court order to open our information?”

Mr. Gayaso’s responded: “This is how I understood the presentation: RA9510 (CISA) have reiteratively called

out it’s applicability to Corporations, however, it required our Coops to submit the information of the members to

CIC. This conflicts with the provisions specified in RA9520 which also stated:” Autonomy and Independence -

Cooperatives are autonomous, self-help organizations controlled by their members”. With this, the worry of the


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members should be that their credit information and basic data therein might become accessible to and used by

Corporations or credit entities for their own interests”

Ms. Iris Bumalo asked – “Why should the members be concerned with the topic you presented? What is really

the issue?”

Mr. Gayaso responded: “As this case seems to be escalated to the Court of Appeals and it could take long, it is

very important to ensure to keep the members up to date as to the progress of the case”

Dir. Baba added that, “If the cooperatives will not comply, a penalty of Php 30,000 per day will be implemented.

There are costs involved in the implementation like set-up of equipment, hire new staff who will be in-charge of

updating the data in the CISA system. We’ll give update to members once the result is given by NORLU-

CEDEC.”

She also supplemented that after this General Assembly, the BODs will post the resolution on the bulletin board

with a duration of 5 days, as the Board would we need to know who among the member agrees or not and what

information will be given to NORLU and SEC.

11. Raffle drawn for 28 prizes by Ms. Consuelo Tominez.

12. Ms. Melissa Soriano introduced the external auditor.

13. Mr. Henson Eyeg presented his report to the General Assembly

Below are the highlights of Mr. Eyeg’s Report:

a. Net surplus decreased to 3% due to decrease on interest income

b. Total revenues decreased by 4%

c. Interest rate decreased by 4% from 14% to 10%

d. Expenses financing cost interest increased by Php 77,000.00 or 14%

e. Allocation of funds for 25%

f. Total asset increased by 13% or Php15M cash, investment increased by 5.7%, long term investment

increased by 4.5%, loans increased by 2%

g. Php259M asset, liability is Php68M (26%), 74% equity

h. Share capital increased by 11%

i. Total COOP indicators 99/100 due to no laboratory cooperative. (Include Laboratory Coop on long term

plan)

j. Total PESO Points is 86/100


Mr. Nathaniel Calapardo asked about the current asset which is 16M as other funds and deposit which he also

asked last 2015 GA.

Manager Maribel Pasngadan responded that “these are cash in bank funded but the purpose is as statutory

fund. The cash will not be use as payment for expenses. It will only serve as statutory fund.”


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14. Ms. Melissa Soriano proposed that Mr. Henson Eyeg remains to be the auditor of the Financial Statement for

Calendar Year 2017. Mr. Richard Laguisma made a motion to which Mr. Rafael Garcia seconded.

15. Another batch of 20 prizes was drawn by Mr. John Rey Abellera

Reports for General Assembly

1. Education Committee report was presented by Dir. Enrico Protacio

A. Trainings and Seminar

i. Conducted Pre-Membership seminar to members and non-members

ii. Sponsored and supported various trainings and seminars attended by MBCC officers and staff

as part of development.

iii. Participated in different activities such as Conferences and Assemblies

B. Membership: paved way for approval of 57 new MBCC Members in 2016

C. Financial Expense: total expenditure of the Education Committee for the year 2016 was at Php

352,164.70 against budget of Php 439,804.53

D. Future State:

i. Continuation of mandatory training for cooperative officers pursuant to Article 44 of RA 9520

and Rule 7 of its Implementing Rules and Regulations.

ii. Completion of the following:

Pre Membership Education Seminar (PMES)

Livelihood trainings for Members

Membership Education Seminar (MES)

MBCC website.

Lakbay Aral for Members and Officers

Continuous Education for Officers and Members.

Calendar of Cooperative related training opportunities for 2017

2. BODs Development Plan was presented by Chairman Pauline Baba

Special Projects coming from Optional Fund:

a) Financial Assistance to members for their medical needs short term plan

- Proposed that this will come from 10% of the optional fund amounting to Php 785,647.58. No

guidelines presented.

b) Laboratory Cooperative

- Need fund for the research, allotted fund is Php 392,823.64

c) Remaining of Php 6,678,004.60 for Land, Building and Infrastructure.

Chairman asked if there are any questions for the proposed project.

Allotment of Php 2M on Equity Fund

Treasurer Jess Ilagan explained the reason on the request for allotting 2M on equity fund.


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Ms. Mirasol Dapula – “How did you come up with the 10% proposal for financial assistance to member?”

Dir. Baba responded that “10% is an initial allocation considering our members count with a Php 1,000.00 each.

Still under review. This will increase or decrease next year depending on the budget.”

Mr. John Lapuz – “We already have fund but you don’t have the implementing procedure yet?”

Dir. Baba responded that, “this is not yet approved, it’s for GA’s approval. This amount is just an estimate and

assumptions”

Mr. Victoriano Buaquen – “What if a member has a catastrophic disease and he already exhausted benefits from

our service provider and still needs some financial assistance and will ask for the BODs financial support, will

that be coming from other special fund?”

Dir. Baba responded that, “This is what the BODs have done before. We released a Resolution on extending

financial assistance to members who are in a critical condition, however there has been a question raised about

the decision, so BODs suspended the assistance until further analysis. In line with this resolution, this Financial

Assistance is what the BODs are proposing.”

Ms. Novelyn Daya – “We need to see the guidelines and rules of Financial Assistance before we approve.”

Dir. Baba responded that, “BODs will create the guidelines and policy and will be released through a Resolution.

It will be approved after 7 days posting without raised questions.”

Mr. Jess Ilagan – “Same question on the 10%, what is the composition of the 5% allocation for Laboratory

Cooperative?”

Dir. Baba responded that, “Same process will be followed, BODs will create the guidelines and policy and will

be released through a Resolution. It will be approved after 7 days posting without raised questions.”

Mr. Richard Laguisma – “On the Php 6.6M for building and infrastructure, are we saving part of it yearly?”

Dir. Pauline Baba answered that “It’s allocated as mandated by law, it is fixed and depending on what comes

out of the computation, that is what we allocate. It is increasing every year as our funds are also increasing”.

Additional question by Mr. Richard Laguisma – “What is the status of the plan to put up a building?”

Dir. Pauline Baba responded that, “The plan was set aside, before we go with that we (BODs) would like to have

a firm plan that will be presented again to the General Assembly for approval.”

3. Community and Social Responsibility Report was presented by Dir. Christopher Estigoy

Below is the list of donations or financial support given by MBCC:

i. Financial support to Brookspoint Elementary School

ii. Financial support to Barangay Loakan Proper

iii. Financial support to Baguio Volleyball Team who represented the city in the Shakey’s Volleyball

League.


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MBCC participated in the Union of Cooperative of Baguio City Sports Fest.

Future plans for our Community Social Responsibility:

1. Donation of sports equipment to Mil-an National High School - Loakan Proper Barangay.

2. Livelihood projects for the 3 Barangays where our cooperative is located: Loakan Proper Brgy.,

Liwanag-Loakan Brgy. and Apugan Loakan Brgy. In this regard, the committee will meet with the

Barangay Captains to come up with proposal.

3. Sports participation for the members will also be continued [e.g. CUBC sport fest]

4. Other activities for our CSR will be addressed when need arises, e.g. Creek Clean-up Drive financing,

Sports Programs of Barangays, donations to calamity victims

4. Office and Administration report was presented by Dir. Ryah Claudette Sarile

The Office and Administration committee closely worked with the Manager and Staff in setting the direction and

improving the office operations.

For FY 2016, the O&A Objectives were as follows:

i. Financial Perspective

A. Eliminate cost on paper and printing of member's loan statement of account by providing loan passbook

for all member

i. Testing – Sept. 30, 2016

ii. Implementation – Jan. 1, 2017

B. Establish income generating tie-up with BENECO and BAWADI through bills payment

ii. Customer Perspective

A. Enhance capabilities of management personnel for efficient and effective delivery of quality service to

member

B. Complete performance appraisal of MBCC Staff by end of CY

iii. Internal Process Perspective

Strengthen Operations Management

i. Review policy on liquidation of cash advance

ii. Monthly report of collection vs. deposit

iii. Submit regular report to BOD every month

iv. Create a policy on mode of loan issuance (Cheque vs. ATM)

v. Create policy of record retention

vi. Establish operations metrics

vii. Implement subscription receivable certificate to members to address CDA Audit finding

viii. Comply with CISA (RA9510) requirements

ix. Complete MBCC HR Manual

iv. Learning and Growth Perspective

- Attend NATTCO E-Koop system familiarization training – As needed


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- Complete mandatory trainings

- Conduct financial literacy seminar to officers and members

v. Other Accomplishments:

a) Completed the policy on Confidentiality of Information.

b) Completed the Officer’s Performance Evaluation tool.

c) Initiated template for policy format

d) Established the process flow in the selection of appointive officers:

e) Conducted team building activity for the office staff, formed the MBCC Staff vision.

5. Ethics Committee Report was presented by Mr. Roger Bancilo

Below are the 7 action items Ethics Committee closed for CY2016.

i. Review existing MBCC Code of Ethics and identify what needs to be amended/revised in the code.

ii. Consolidate benchmarking documents from last year and complete the final draft revision of the

MBCC Code of Ethics.

iii. Present the final draft of the Revised Code of Governance and Ethical Standard to the Board for

evaluation, review and approval.

iv. Formulate a process flow chart/swim lane on cases involving ethical issues.

v. Develop process or checklist on how to monitor compliance to the Coop Code of Conduct and Ethical

Standards. (Internal process on Actual Case scenario)

vi. Finalize the Complaint Form.

vii. Revise the MBCC Code of Governance & Ethical Standards. (Art. 8, Sec. 1 - Sec. 3 of the Code).

Next Steps for FY2017

a. Benchmark with other coops on how they monitor compliance to their Coop Code of Conduct and

Ethical Standards.

b. Review of the MBCC Code

The MBCC Code needs an Implementing Rules and Guidelines as to the coverage of each offense

mentioned in Article 8, Section 1 to Section 3.

c. On Going Review on the monitoring tool (document) on the implementation of the MBCC Code of

Governance & Ethical Standards.

d. Implementing Rules and Guidelines of the MBCC Code.

Ongoing consolidation of reference materials for the Implementing Rules and Guidelines of the MBCC

Code specifically on the coverage of each offense mentioned in Article 8, Section 1 to 3.

6. Conciliation and Mediation Report was presented by Mr. Wilfredo Santiago

a) Con Med guidelines and implementing rules was submitted to BOD, now for final review.

b) Budgeting and committee budgeting activities was done November 29, 2016.

c) 3 delinquent members’ conciliation activities for closure.

d) 2 other incoming delinquent members for communication and process for conciliation.


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e) Trainings attended.

f) Summary CDA Quarterly reports, all submitted to Management office and was complied with.

7. Audit Committee Report presented by Ms. Melissa Soriano

Ms. Soriano discussed the general orientation of the Audit which is:

i. A system and independent examination to determine whether the organization’s activities and related

results comply with planned arrangements and whether these arrangements are implemented

effectively and are suitable to achieve objectives.

ii. It is conducted periodically.

iii. It should be documented for review purposes for future improvement.

iv. Conducted by competent persons not having direct responsibility of the areas being audited to ensure

total and complete objectivity.

v. Covers primarily both financial and management aspects.

Achievements for the year:

a. Audit Manual – Done

b. Awareness on the following:

i. Loan policies (Ex. Net pay, Loan attachments, capacity to pay and re-evaluation of Net pay)

ii. Cash Management

iii. Budget Preparation Timeline

iv. Audit work on not only Cash count

v. Financial literacy – Understanding Audit process and impact to operations by other officers

c. Regular Committee monthly meetings-Regular, Ad hoc or on the spot

d. CDA Audit Award 100% Compliance in coordination with Management.

Future State:

• Continuation of Audit processes and Strat Plans in 2017

• Completion of the following:

• Obtain final documented and updated policies

• Regular Review of DOSRI accounts

• Creation of an Annual Audit Program (similar to a metric reporting system)

Open Findings:

• BOD – 11 items since 2015

• BOD / Management – 49 items for 2016

• BOD and Audit Committee meeting – Clarification of roles


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Open Recommendation based on findings includes the following:

a) Creation of resolution on the (7) Seven days posting of resolutions in the MBCC bulletin board and be included

in the policy since then Chairman Palispis mentioned in the Special GA (Sept 2015) that this is not a written

policy. Reference : Risk Management

b) BOD to discuss and review the elimination of the loanable amount 2x, 3x and 4x the CBU of the member to

eliminate unsecured loans. Majority of other coops are not practicing this scheme. This is with emphasis on the

members' capacity to pay. Increase if margin from Php2500 to around Php 5000 take home pay. Reference :

Risk Management

c) Create Policy on the payment of Share Capital for Associate members in case of Cooperative Closure.

Reference RA9520 Chapter VII: Dissolution of Cooperatives.

d) Creation of Officers’ Performance matrix.

e) LRF vs Outside Provider

For General Assembly approval for Audit Committee:

1. Creation of performance based matrix for Audit members with results monitoring:

a) Reports generation based on findings, improvements and ideas to be submitted to the committee chair

b) At least 1 project per year = 2 projects per term


Ms. Socorro Noble asked “What are the 11 open action items since 2015?”

Ms. Soriano answered that “5 out of 11 was discussed earlier while for the others are taken care of”

8. Investment Committee Report was presented by Mr. Jess Ilagan

CY2016 income from loans down by 6% from last year. The full impact of interest rate reduction from 14% to

10% effective mid of 2015 was felt this year. Following by reduced of loan releases from almost Php 400 Million down

to only Php Php 203 Million in 2016.

Total revenue is 4% lower than 2016 budget and 2015 actual revenue. Income from investments were up to 78%

while posted 56% higher than financing cost for member’s savings deposits.

Cash and other funds and investments, amount to Php 66,117,460.00 ending CY2016.

The increase on cash and investment s were visible to different backs. Also in 2016, MBCC started to expand exposure

to other investment vehicles for excess funds.

2016 represented a milestone in terms of cooperative’s cash position balance, closing the calendar year with

Php 66 Million. Back in 2014, cash and other deposits balance of Php 30 Million was 17% lower than the funds that

require readily available cash. But, over the last one and a half years, cash in banks, other funds and

deposits/investments has grown 121% due to consistent monthly cash allocation for savings liability funds, member’s

funds, and statutory funds, deposited to different banks and bank accounts. In CY2016, cooperative’s cash and

investments exceeded the funds by 38% for the first time in MBCC history.


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9. Treasurer’s Report was presented by Mr. Jess Ilagan

Mr. Ilagan presented the CY 2017 Budget and January – March 2018 interim budget for General Assembly’s

approval.

Below are the highlights of the budget.

Revenue

Total Revenues Php 20,569,240.00

Expenses

Interest Expense on Deposits Php 693,032.00

Total Administrative Cost Php 5,802,189.00

Total Expense Php 6,495,221.00

Net Surplus on Operations Php 14,074.020.00

Treasurer Ilagan also asked the GA to approve the Php 2M allotment of an equity fund for investment. It will be

used for a financial companies that could benefit the cooperative.


Ms. Maria Lovella Nugo asked “if the Php 2M will be invested on one Financial Institution only?”

Treasurer Ilagan explained that “BODs will issue a resolution to what Financial Institution to be use, this is

after the review of the Treasurer and Manager with the approval of the BODs on the recommendation.”

After the question were answered, Treasurer Ilagan asked again for the approval of the allotment of Php 2M on

the equity fund. Ms. Maria Lovella Nguddo approved the proposal and seconded by Ms. K-Anne Cabacungan.

10. Manager’s Report presented by Ms. Maribel Pasngadan

Ms. Pasngadan reported the accomplishments made by operations team for CY2016.

1. Operations

a) Procedures Manual, the management created procedures manual that contains the step by step

procedures on the day to day transactions which serve as a guide to employees.

b) Internal control, strictly implemented internal control on the dual control in opening the vault, keeping of

records, approving, disbursing, recording and collection of cash and signing of disbursement vouchers.

c) Management propose pre audit and post audit of disbursements and drafter guidelines for the

implementation.

d) Account Balances

e) Taxes and licenses

2. Customer Care

3. Financial highlights

a) Funds, statutory and funds payable are funded.

b) Loans, other factor was no calamity loan release during 2016.

c) Revenues. Net surplus for 2016 was lower by Php 410,890.00 as compared in 2015.


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4. Action Plans for 2017 – Management

a) To provide loan passbooks to members.

b) To upgrade the current system to continuously provide quality service to all members.

c) To venture into other kinds of services that will add revenues to the cooperative.

d) To involve members to all cooperative activities and promotion programs.

e) To facilitate submissions of payments and reports to government agencies.

f) To standardized savings withdrawal form.

5. Awards

MBCC was awarded as best performing cooperatives in the city of Baguio for the year 2015-2016 as one of the

Century Cooperative. For the year 2016 an additional award was given to MBCC as to one of the cooperatives

who achieved 100 percent compliance to the CDA inspection requirements.

Dir. Baba presented the following item for approval of GA:

1. Amendment of MBCC By-Laws to correct the registered name of MBCC from “The Moog Baguio Credit Cooperative”

to “Moog Baguio Credit Cooperative”

Ms. Socorro Noble moved to approve this change, Mr. Jan Michael Dacapias seconded.

Dir. Protacio presented the following item for approval of GA:

Creation of website of MBCC with budget of approximately Php25,000 for set-up and yearly maintenance fee of

Php500.00

Ms. Florie May Pamaylaon moved to approve the creation of MBCC website and the proposed budget, seconded by

Mr. Melchris Santos.

Treasurer Jess Ilagan presented the CY 2017 budget for the months April – December 2017 and interim budget for CY

2018 covering January to March 2018.

Treasurer Jess explained that there is a correction in the report presented versus what was printed in the annual report

on the item under revenue: Income/Interest from Investment because of revisions after the printing of the annual report.


Ms. Mary Ann Pingcas asked for verification on the 10% increase of the staff salaries and asked to show their

salaries for transparency. Treasurer Ilagan corrected that increase is 3%, to cover for inflation and merit and

showed the salary of the staff. Additional information given by Dir. Sarile that 1.5% is across the board increase,

1.5% is for merit, depending upon their performance.

Treasurer Jess explained that there is a correction with the report presented and what is printed in the annual

report on the item under expenses: Officer’s Honorarium because of positions that were not filled upon resignation

of officers


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Manager Pasngadan explained the item provision for probable losses.

Mr. Kirby Ang asked if the budget for website is included in the presented budget. Dir. Baba explained that budget

will be under CETF. Dir. Baba asked for approval from the GA. Kirby Ang moved that the proposed budget for

CY 2017 be approved, seconded by Mr. Mark Cyril Sim.

Treasurer Jess Ilagan presented the interim budget of 2018 for expenses on the period of January – March 2018.

He focused on the GA expense with the increase to Php1.9M. Dir. Baba explained that MBCC will celebrate the

20th anniversary by 2018. Additional cost of Php1,000 will be given as token. Other factors of the increase will be

provisions for increase in price due to inflation. Mr. Rodel Benan moved that the proposed interim budget for CY

2018 be approved, seconded by Ms. Maureen Subala.

Announcement of Election Winners by Mr. Marlon Gerola, Committee Chairman

Closed registration at 10:00, closed casting of votes at 11:30

Election Committee:

Paulo Marquez 719 votes

Audit Committee:

Gene Encarnacion 707 votes

Board of Directors:

Tamayo, Anna Fe 488 votes

Ilagan, Jess Israel 471 votes

Paras, Jerry 444 votes

Total number of members = 1,026; Voted = 890

Meeting adjourned at 12:38 PM

Prepared by: Angeline F. Songsong Approved by: Pauline Aimee Baba

Secretary BOD Chairperson

Chairman’s Report

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Chairman ’s Rep ort

Dear fellow MBCC Officers, Members and Colleagues,

First of all, it is with great pleasure to acknowledge all our MBCC officers, employees and

members for their hard work, contribution and commitment in making our cooperative

successful once again.

I should say that this 2018 general assembly, we have plenty of reasons to celebrate.

20th Anniversary and Foundation

Yes, this 2018, we are celebrating our 20th foundation and anniversary as Moog Baguio

Credit Cooperative. It started with 15 cooperators and Php 3,000,000 initial capital. Beyond

expectation, and despite of all the crisis and challenges, our cooperative has proven its

stability, adaptability and credibility for two (2) decades inside and outside Moog premises.

Now with a total asset of over 270 million pesos and total member of more than 1,000 Moog

and former Moog employees, MBCC was recognized as one of the best cooperatives in

Baguio, CAR, and now, even in the National level.

In line with this celebration, I would like to pay tribute to those who started our cooperative,

especially to the cooperators, first batch of officers, employees and General Assembly

members who have been with our cooperative for the past 20 years. Your service, belief

and trust in our cooperative over these years have been exceptional.

And of course, to all MBCC members today, we will never reach this far without your

support, dedication, contribution and love for our cooperative.

With all my heart, Congratulations and Happy 20th Anniversary.

Recognition and Awards

As we celebrate our 20th anniversary and foundation, CY2017 has been another

remarkable year for our cooperative as we continue to be recognized and awarded in

Baguio as:

- Best Performing Cooperatives In the City of Baguio as one of the Century

Cooperatives (at least 100 Million Asset)

- Best Performing Cooperatives in the City of Baguio as one of the First Top 10

Cooperative to Comply with their Annual Report Requirements

- Best Performing Century Cooperative in the City of Baguio (Hall of Fame)

“We will never

reach this far

without your

support,

dedication,

contribution and

love for our

cooperative”

Chairman’s Report

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These acclaimed recognitions would not be possible without the cooperation and teamwork within the cooperative.

Kudos to MBCC Management Team (Maribel, Adril, Ruth and Mac) who lead us to accomplish these recognitions

and awards.

2017 in Summary

Aside from the external recognition, I can say that CY2017 was a good year for our cooperative in terms of revenue

and profit growth. Even with the continuous impact of the reduced interest rate in 2015, gross revenue was still

up by 4% from last year, and even slightly higher compared to 2015. The increase was greatly influenced by the

3% up on interest from loans, and 32% increase on interest from investment vehicles like Retail Treasury Bills,

Money Markets and high yield time deposits.

On the other hand, expenses were up by 5% from previous year. This was mainly driven by the increase in

Financing Cost by 40% due to the consistent savings made by our members. This is good news though, despite

this increase, total spending posted for the year was still 4% lower than the budgeted expenses.

Note that during our calendar year, we have implemented strategies for revenue growth and members’

satisfaction. We increased the Contingency Loan from Php 20,000 to Php 50,000 payable in 12 months, from the

original 6 months, implemented the Php10,000 Christmas Loan. This drove the increase in loan receivables.

Additional services like business tie ups with BENECO (for electricity bills payment) and Chevron (for gasoline

allowance) were started; the medical assistance policy and guidelines for MBCC’s medical financial support to our

members was likewise released. Due to improved revenues and controlled expenses over the course of the year,

Net Surplus was up by 3% from last year and 4% favorable over our budget.

MBCC PLAN 2018 and Beyond

Although our outlook for 2018 will be directed by our performance in 2017, with a forecast increase of only 3% in

Revenue, we are optimistic that future plans from 2018 onwards will be more exciting and attractive to all our

members to invest in MBCC. Here are few of our 2018 and beyond plans.

- Increase the Members Benefits: Focus more on giving member’s benefits rather than on dividends.

- Expand the Business Tie Up: Our Goal is to be a “one stop shop” cooperative on all financial

products and services, and help members with small businesses to tie up with our Cooperative to market

their business.

- Launching of Laboratory Coop

- Full implementation of MBCC Website

- Development of Business Loan Policy

- Start planning to be a Multi-Purpose Cooperative

- Other development plans (Automation of Loan Application, having our own Building)

Chairman’s Report

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Final Note

CY2017, same as our previous years, has represented a milestone in terms of

Cooperative’s financial performance, showing consistent increase in Assets, Revenue

and Profit. We expect challenges like taxation for cooperative, mandatory compliance to

CISA, emerging investment competitors, etc, will come our way as we gear towards our

future plans. With the right attitude, spirit of trust, integrity and teamwork, we will focus

and invest our energies and talents in serving the General Assembly and building our

bright future together.

In CY2018, let’s stay on track as we continue our journey to 20 years and beyond.

To God be all the Glory!

Jess Israel L. Ilagan

Chairperson, 2017

“With the right

attitude, spirit of

trust, integrity and

teamwork, we will

be able to

continue focus

and invest our

energies and

talents in serving

the GA and

building our bright

future together

with our

cooperative”

Manager’s Report

15

Manag er’s Repo rt

Management objectives for the year 2017:

Strategy Management Objective Status

Financial

Perspective

1. Provide new loan window for members

and increase interest income from loans

and other fees.

2. Increase income from investments.

Done

Done

Customer

Perspective

1. Provide loan passbook to members.

This will help members keep track their

loan balances.

2. Involve members in cooperative

activities and promotion programs.

Done

Done

Internal Process

Perspective

1. Upgrade the current system to

continuously provide quality service to

all members. This will facilitate technical

assistance in cases of critical situations.

2. Upgrade Internet/Change provider.

3. Standardize saving withdrawal form.

This will entail lower cost on the office

supplies.

4. Facilitate submissions of payments and

reports to government agencies.

5. Coordinate with the officers on the

installation of the computer’s anti- virus

system.

Done

In process

Done

Done

Done

Manager’s Report

16

Financial Highlights

The net surplus increased despite the decreased in interest rate from 14% in 2015 to 10% in June 2015 up to

present. The increase was attributed to the increase in the interest on loans and interest income from

investments.

Cash in Bank, Investments, Other Funds and Deposits

The cash in bank includes ordinary time deposits and cash being used in the operation. The short-term and long-

term investment are the statutory funds including the other funds and deposits. All are deposited to reputable

banks earning interest.

December 31, 2017 December 31, 2016

Cash in Bank 66,297,057.12 38,850,985.81

Short Term Investment 6,743,414.01 6,446,776.64

Long-Term Investment 6,671,425.99 4,557,565.93

Other Funds and Deposits 14,192,340.40 16,206,131.36

Total 93,904,237.52 66,061,459.74

Manager’s Report

17

Awards and Recognition

Manager’s Report

18

Maribel Pasngadan

Manager, MBCC

Treasurer’s Report

19

Treasu rer ’s Rep ort

Objectives for the year 2017:

Strategy Objective Status

Financial

Perspective

1. Ensure funds are available for the daily operations of the

Cooperative.

2. Monitor investments of excess funds are done timely and

efficient.

Done

Done

Internal

Process

Perspective

Create a standard work for the Treasurer position to enable easy

transition for next officer.

Done

Jennifer Estrada

Treasurer, MBCC

Proposed Budget for CY2018

20

Propo sed Budg et for C Y2018

REVENUE ITEMS

CREDIT OPERATION

INTEREST INCOME FROM LOANS 20,271,808.78 19,597,132.22 19,458,001.84 674,676.56 3%

SERVICE FEES 4,635.00 - 6,389.00 4,635.00 100%

FILING FEES 53,420.00 49,680.00 52,685.05 3,740.00 7%

FINES, PENALTIES AND SURCHARGES 51,525.22 54,998.49 86,924.62 (3,473.27) -7%

TOTAL INCOME FROM CREDIT OPERATION 20,381,389.00 19,701,810.71 19,604,000.51 679,578.29 3%

ADD: OTHER INCOME

INCOME/INTEREST FROM INVESTMENT 1,174,697.33 827,535.82 1,261,193.70 347,161.51 30%Significant increase due to earnings done in 2017 from

our investments

MEMBERSHIP FEES 10,600.00 12,000.00 17,400.00 (1,400.00) -13%Reduction due to no significant increase in Moog

employee last year

COMMISSION INCOME 17,894.40 - 23,218.19 17,894.40 100%Increase due to our commissions from our

Gasoline/Grocery tie ups

MISCELLANEOUS INCOME 12,882.24 46,588.58 5,475.51 (33,706.34) -262%

TOTAL OTHER INCOME 1,216,073.96 886,124.40 1,307,287.40 329,949.56 27%

TOTAL GROSS REVENUES 21,597,462.97 20,587,935.11 20,911,287.91 1,009,527.86 5%

LESS: EXPENSES

FINANCING COST

INTEREST EXPENSE ON DEPOSITS 994,314.39 693,327.29 859,289.00 300,987.10 30%

Under budgeted last year, correcting this year to align

with projected increase of members saving in our

cooperative

OTHER FINANCING CHARGES - - -

TOTAL FINANCING COST 994,314.39 693,327.29 859,289.00 300,987.10 30%

ADMINISTRATIVE COSTS

SALARIES AND WAGES 1,312,309.55 1,235,585.34 1,221,546.98 76,724.21 6% Annual increase of our employees

EMPLOYEES BENEFITS 356,738.48 259,284.07 269,682.54 97,454.41 27% Clothing allowance and a service incentive (5yrs)

SSS/ECC/PHILHEALTH, PAG-IBIG CONT. 79,175.06 76,167.60 76,292.60 3,007.46 4%

RETIREMENT BENEFIT EXPENSE 85,444.28 46,713.67 46,875.13 38,730.61 45%

OFFICERS HONORARIUM AND ALLOWANCES 947,288.13 913,048.80 906,502.57 34,239.33 4%

OFFICE SUPPLIES 122,337.08 178,967.10 123,354.79 (56,630.02) -46%Due to projected reduction in paper consumption as

we lean out our operation

TRAVEL AND TRANSPORTATION 1,007,648.75 682,825.00 561,730.00 324,823.75 32%Inclusion of 2 new committees that requires training

(GAD and Lab Coop)

INSURANCE 40,000.00 40,000.00 5,805.00 - 0%

REPAIRS AND MAINTENANCE 25,000.00 10,000.00 764.00 15,000.00 60%

TAXES AND LICENSES 144,488.00 12,000.00 6,927.00 132,488.00 92% Tax for our Amendment in our Capitalization

PROFESSIONAL FEES 170,000.00 110,000.00 94,000.00 60,000.00 35% NATTCO (CISA)

COMMUNICATION EXPENSES 30,456.00 19,788.00 15,394.56 10,668.00 35%

REPRESENTATION - - - -

GENERAL ASSEMBLY MEETING EXPENSES 1,903,988.00 640,650.00 556,140.30 1,263,338.00 66%

MEETINGS AND CONFERENCES 123,950.00 108,225.00 71,748.00 15,725.00 13% Increase due to additional committees created

AFFILIATION AND LITIGATION FEE 52,000.00 - (52,000.00)

PROMOTIONAL EXPENSES - - 2,000.00 -

MEMBERS BENEFITS EXPENSES 2,861,000.00 1,141,000.00 1,090,596.83 1,720,000.00 60%

Significant increase due to 20th anniversary

celebration (foundation day in May incentive, Birthday

Cards)

MISCELLANEOUS EXPENSE 3,600.00 - 5,774.57 3,600.00 100%

DEPRECIATION AND AMORTIZATION 136,630.64 95,468.82 76,882.06 41,161.82 30%

PROVISION FOR PROBABLE LOSSES ON LOANS 202,258.93 200,944.09 200,944.08 1,314.84 1%

TOTAL ADMINISTRATIVE COST 9,552,312.91 5,822,667.49 5,332,961.01 3,729,645.42 39%

TOTAL EXPENSES 10,546,627.31 6,515,994.78 6,192,250.01 4,030,632.53 38%

NET SURPLUS/(NET LOSS) BEFORE OTHER ITEMS 11,050,835.66 14,071,940.33 14,719,037.90 (3,021,104.67) -27%

OTHER ITEMS:

PRIOR YEAR'S ADJUSTMENT - - 78,926.41

TOTAL OTHER ITEMS - - 78,926.41

NET SURPLUS/(NET LOSS) 11,050,835.66 14,071,940.33 14,640,111.49 (3,021,104.67) -27%Almost 30% reduction in our bottomline but mostly

distributed as members benefit

MOOG BAGUIO CREDIT COOPERATIVEBudgeted Statement of Operation for the CY 2018

2018 BUDGET 2017 BUDGET 2017 ACTUAL Increase (Decrease)% Inc

(Dec)Remarks

Secretary’s Report

21

Secretary’s R eport

Attendance on the Monthly Officer’s Meetings

Attendance is taken from the month of April 2017 to January 2018.

POSITION NAME PRESENT EXCUSED ABSENT REMARKS

Board of

Directors

Jess Israel L. Ilagan 10 0 0

Enrico N. Protacio 10 0 0

Jerry P. Paras 9 1 0

Susie Ann A. Cuilan 10 0 0

Ryah Claudette Q. Sarile 6 4 0

Christopher A. Estigoy 10 0 0

Ana Fe C. Tamayo 9 0 1

Audit

Committee

Melissa M. Soriano 9 1 0

Mary Grace D. Solomon 5 2 3

Gene U. Encarnacion 8 1 1

Election

Committee

Gerola, Marlon 9 0 1

Garcia, Geronimo 7 1 2

Marquez, Paulo 4 0 0 Resigned July

2017

Ana May Laranang 4 1 0 Started

September 2017

Education

Committee

John Rey C. Abellera 10 0 0

Kate L. Ardonia 6 1 3

Shirley E. Saludo 9 1 0

Adrian B. Dalao 9 1 0

Ethics

Committee

Roger K. Bancilo 10 0 0

Mabell R. Bacon 7 2 1

Edralyne L. Lee 9 1 0

Conciliation

and

Mediation

Committee

Girly B. Betito 9 1 0

Almeo Riego 9 1 0

Jonas Lumase 9 1 0

Treasurer Jennifer T. Estrada 9 1 0

Secretary Angeline F. Songsong 8 0 0

Resigned December

2017

Shirley G. Jacob 4 0 0 Started

October 2017 Manager Maribel S. Pasngadan 7 3 0


22

Attendance to BOD Meetings

Attendance is taken from the month of April 2017 to February 2018.

POSITION NAME PRESENT EXCUSED ABSENT REMARKS

Board of

Directors

Jess Israel L. Ilagan 12 0 0

Enrico N. Protacio 9 0 3

Jerry P. Paras 11 1 0

Susie Ann A. Cuilan 11 1 0

Ryah Claudette Q. Sarile 8 4 0

Christopher A. Estigoy 11 0 1

Ana Fe C. Tamayo 7 2 3

Secretary

Angeline F. Songsong 8 0 0 Resigned

December 2017

Shirley G. Jacob 5 0 0 Started October

2017 Manager Maribel S. Pasngadan 9 2 1

Released Board Resolutions for CY2017:

SERIES DATE OF

ISSUE BR No. TITLE

2017 03/07/2017 03_01 Resolution for Opening of eGov ATM Account and

Designating the Authorized Signatories

2017 4/25/2017 04_01 In the Matter of Updating the Authorized Signatories for Metro

South Cooperative Bank

2017 4/25/2017 04_02 In the Matter of Updating the Authorized Signatories for Sun

Life Asset Management Co. Incorporated

2017 4/25/2017 04_03 In the Matter of Updating the Authorized Signatories for

Philippine National Bank, Rizal Park Branch


Banco De Oro, Baguio Session Branch


Banco De Oro, SM Baguio Branch


Metrobank Magsaysay Branch


23

2017 4/25/2017 04_07 Appointment of new officer for committees for the calendar

year 2017

2017 4/25/2017 04_08 Appointment of Secretary and Treasurer for the calendar year

2017

2017 4/26/2017 04_09

Strongly Opposing the Repeal of Cooperatives Tax

Exemptions in Article 60 and 61 of Republic Act. No. 9520, As

proposed in Senate and House Bills.

2017 5/24/2017 05_11 In the Matter of Increasing the Amount and Terms of

Contingency Loans

2017 5/24/2017 05_12 In the Matter of Increasing the Minimum Take Home Pay of

Members

2017 6/15/2017 06_12 Guidelines on the Financial Assistance for Members with

Critical and Life-Threatening Illness

2017 10/02/2017 09_13 In the Matter of Increasing the Minimum Mandatory Capital

Build-up(CBU)

2017 9/20/2017 09_14 In the Matter of Documenting a Codified Approval and Signing

Authority(CASA)

2017 9/20/2017 09_15 In the Matter of Setting Guidelines on Officers as Co-makers

2017 9/20/2017 09_16 In the Matter of Creating Gender and Development (GAD)

Committee

2017 12/5/2017 11_17 In the Matter of Creating A Steering Committee for Laboratory

Cooperative

2017 12/1/2017 12_17 A Resolution Designating the Representative of this

Cooperative to the BCCDC as Member

Shirley Jacob

Secretary, MBCC

Audit Committee Report

24

Aud it Committee R eport

It is our commitment to serve and help the cooperative in achieving it vision and mission, sustain awareness on

risks and controls, ensure transparency and good governance and most of all ensure growth of members on their

financial needs, we present our report for the year 2017 as follows:

Strategy Objectives Status

Financial

Perspective

To Assure stability of Cash Flow and Ensure that all

that requires Funding are met for FY2017

a. Conduct Cash Count / Cash Audit bi-monthly.

b. Conduct Spot/Random audit checking in the

office - as needed/Daily

Annual / Regular work

Internal Process

Perspective

Internal Process

Perspective

Strengthen Operations Management:

c. To diligently provide status reports, projects ,

improvements and monthly reports to GA

d. To Comply with Audit procedures based on

policies and RA9520 during actual audits.

To review Annual Reports - Ensuring compliance

and accuracy of data.

Done annually

Reports – included in the

monthly meeting minutes

a. To conduct Review of Accounting manual and other Office Manuals monthly to assure manuals are up to date.

Spot checking

To Prepare / Complete an audit program/calendar

which will serve as a guide for the audit committee in

performing their responsibilities and followed by

members by end of August 2017

Continue to CY2018

To manage External Audit Activities Done / Annual

Learning and

Growth

Perspective

Sustain development of human capital through

trainings, seminars and benchmarking.

Continuous educational improvement for FY2017:

a. Continuous education through attending

trainings and seminars. - includes Non-

Mandatory Trainings

Done

b. Familiarization of the NATTCO system and

documents process flow. Continue to CY2018

Audit Committee Report

25

c. Semi-annual visit to CDA- visit/forum with

CDA for updates and bench markings.

Done - through CDA Audit May 2017 and updates January

2018

d. Semi-annual meetings with Secondary

coops - NORLU/NORWESLU Continue to CY2018

Actions / Achievements for the year:

1. Regular Committee monthly meetings-Regular, Ad hoc or on the spot

2. Increased Awareness on the following:

a. Audit findings : External Auditor, CDA

b. Budget Preparation Timeline

c. Regular Audit on disbursements

d. Understanding Audit process and impact to operations by other officers

e. Adherence to annual reports

Future State:

• Continuation of Audit processes and Strat Plans in 2018

• Adherence to the new Performance Audit report or Governance and Management Audit Report

Open Findings:

• Closed findings 39, Open 21 : Waiting for BOD updates

• BOD and Audit Committee meeting – Clarification of roles

Open Recommendations (GA 2017) based on findings includes the following:

1. Create Policy on the payment of Share Capital for Associate members in case of Cooperative Closure.

Reference RA9520 Chapter VII: Dissolution of Cooperatives.

2. LRF vs Outside Provider

For General Assembly approval for Audit Committee:

1. Presentation of new External Auditor for the calendar year 2018 to be included in the minutes of meeting

upon presentation

Melissa Soriano, Mary Grace Solomon, Gene Encarnacion

Audit Committee

Election Committee Report

26

Election Committee R eport

The committee closely worked with the BOD in setting the direction and improving the committee.

For FY 2017, Election Committee Objectives:

Strategy O&A Objectives Status

Financial Perspective

Implement activities within allocated budget.

Allotted for the Election

Done

From last year’s 2017 election of officers,

the EleCom had an allocated budget of

24,000.00 pesos for the rentals of 20

computers, 1 printer, technical staff/support

and installation fee. Actual expense was

19,000.00 pesos.

Customer Perspective

Provide election process guidelines to ensure

smooth election process.

Done

Provided voting process instruction that will

be visible at every table during election day,

to ensure members are clearly aided while

they cast their votes.

Complete performance appraisal of the

committee by end of CY Completed

Internal Process Perspective

Strengthen Operations Management

1. Install Anti-Virus in our Computers

Done

Review and improve the MBCC Election

Code

1. Incorporate the retraining of

Cooperative Officers every 5 years

2. Include section 6 of CDA

Memorandum Circular No.2015-09

On-going

Amendment on Disqualification of Candidates On-going

Awareness Campaign

Done

EleCom is continuously implementing and

searching for various approaches to

improve the members’ awareness about

MBCC leadership. The goal is to strengthen

our CALL TO SERVICE and be an MBCC

officer.

Election Committee Report

27

With the concurrence of the BOD, Elecom

was able to implement the following:

3. Posting of each committee’s Duties

and Responsibilities.

4. Posting of mandatory trainings that a

new officer will be required to

undergo.

5. Posting of the Honoraria and RATA

(Representation Allowance and

Transportation Allowance), of

MBCC officers, both elected and

appointed.

6. Posting of election campaign

(posters).

7. By using the MBCC webmail,

EleCom sent an invitation to file a

certificate of candidacy via email to

members who were able to join at

least one seminar/training that was

sponsored by our cooperative.

8. Personal invitation to members.

9. Early posting of the memo for the

filing of the Certificate of Candidacy

(December 15, 2017 to February 1,

2018).

10. Extension of the filing of Certificate

of Candidacy to February 23, 2018.

Learning and Growth Perspective

Comply with all the mandatory trainings for

Election Committee On-going

Succession Policy Not Started

Marlon Gerola, Geronimo Garcia, Anna May Laranang

Election Committee

Ethics Committee Report

28

Ethics Co mmittee Rep ort

The Ethics committee is tasked to receive and hear complaints on any violations of the MBCC Code of

Governance and Ethical Standards (Ethics Code), and closely worked together with the Board of Directors and in

collaboration with the Conciliation and Mediation Committee.

For CY 2017, the Ethics Committee Objectives were as follows:


Financial

Perspective Work within the allocated budget. Within budget

Customer

Perspective

Enhance the MBCC Code of Governance

and Ethical Standard (Ethics Code) by

creating Implementing Rules and

Regulations and Guidelines (IRR) of the

Code.

Partially done

The initial draft will be endorsed to the

next set of Ethics Committee officers.

Incorporate the Code of Governance and

Ethical Standards (Ethics Code) on the

PMES and MES.

Done

PMES/MES-Ethics presentation Module

was forwarded to the MBCC Education

Committee.

Disseminate, promote and monitor

compliance with the approved MBCC Code

of Governance and Ethical Standard.

Done

Monthly Ethics Trivia board will be

posted on the MBCC bulletin board.

Learning and

Growth

Perspective

Complete the MBCC Mandatory trainings

imposed by CDA.

Ethics Chair and Vice-Chair –

completed trainings.

Ethics secretary – one training left for

completion.

Roger Bancilo, Edralyne Lee, Mabell Raymundo

Ethics Committee

Education Committee Report

29

Education Committee R eport


Strategy Objective Status

Financial

Perspective

Implement activities within the

allocated/approved budget Within budget

Internal

Process

Perspective

Increase membership by 5% Done

Complete Social Audit Survey (Section II.

Membership) Done

Make MBCC website live by July 2017 Done

Create, review and revise a policy on trainings

(Record retention, waiver, etc.) Partially done

Learning and

Growth

Perspective

Provide NATTCO Introduction Training to all

officers Not completed

Provide 100 % of mandatory trainings to all

officers

Partially done

Fundamentals of Cooperatives

and Basic Governance trainings

completed

Provide at least 1 session of Membership

Education Seminar

Done

2 sessions of PMES conducted

Provide 2 sessions of Financial Literacy Training Not completed

Attend all General Assemblies of Affiliate

Cooperatives

Done

Participated in NORLU-CEDEC

and NORWESLU GA

Attend 100% of CDA Mandated Activities Done

Provide at least one training for each committee

and members Done

Complete 2 livelihood trainings Not completed

Enrico Protacio, John Rey Abellera, Kate Ardonia, Adrian Dalao, Shirley Saludo

Education Committee

Conciliation and Mediation Committee Report

30

Concil iat ion and M ediation Co mmittee Rep ort



Financial

Perspective

Increase collection from the delinquent members

- 3 on-going cases

On-going

Communication efforts on-going

with the delinquent members and

their co-makers

Customer

Perspective

Review drafted Conciliation and Mediation Program for

modifications/improvements is such a way that it will

be beneficial to the members and the cooperative.

On-going

Waiting for initial review schedule

with the BODs.

Design and fabricate feedback box to encourage more

ideas/questions/suggestions from members. Done

Internal

Process

Perspective

Submit monthly report on collection updates of

delinquent members.

Done

Comply with the required semi-annual report of

cooperative cases to the CDA through the Manager. Done

Learning and

Growth

Perspective

Complete mandatory trainings

On-going

1 member without Financial Risk

Management training – waiting

for training schedule

Attend training on Basic Mediation Course/ADR

Training Program

Done

All members attended

One member to apply for accreditation to be a

Recognized Conciliator-Mediator by the CDA

On-going

Immersion on barangay and other

coop’s cases

We strive to continually advocate constructive resolution of conflict amongst officers and members, whenever it

arises.

Girly Betito, Almeo Riego, Jonas Lumase

Conciliation and Mediation Committee

Office and Administration Report

31

Office and Ad ministration R eport

The Office and Administration committee closely worked with the Manager and Staff in setting the direction and

improving the office operations.

For FY 2017, the O&A Objectives were as follows:

Strategy O&A Objectives Status

Financial

Perspective

Monitor provision of loan passbook to members Completed

Monitor establishment of tie-up with gasoline

service provider Done, tie-up existing with Caltex

Customer

Perspective

Establish operations metrics:

1. Membership growth

2. Turnover of members

Not yet started

Complete performance appraisal of MBCC

Staff by end of CY Completed

Internal Process

Perspective

Create policy for record retention Done, monitored completion c/o

Manager

Monitor conduct of quarterly evaluation and

group discussion Done

Conduct/participate in team building

activity/recollection

Done , conducted Effective Customer

Service training to MBCC Staff

Complete MBCC HR Manual Complete

Complete the Officer’s Performance Evaluation

tool Complete

Learning and

Growth

Perspective

Attend NATTCO E-Koop system familiarization

training – As needed Not yet started

Attend developmental trainings Done, attended-“Improving Your

Performance in the Board”

Establish Laboratory Cooperative Turned-over to Lab Coop Committee

Thank you fellow Coop members for the opportunity to serve you for the past 2 years. There were hurdles along

the way, but I take away the learnings from those challenges. Let us continue to support the endeavors of the

cooperative and we look forward to more growth and success in the coming years.

Happy 20th Anniversary to us! Mabuhay MBCC!

Ryah Claudette Sarile

Member, Board of Directors

Business Tie-up Report

32

Busin ess T ie-up Rep ort

For FY 2017, the Business Tie-Up Objectives were as follows:

Strategy Business Tie- up Objectives Status

Financial

Perspective

Having External Business partners who offers Quality Products and Services to members.

- Additional Income ( giving the cooperative discounted price for the product and services offered)

Tiongsan = Grocery and Merchandise

(Gift Check at 5k and Merchandise Loan)

SM= Grocery and Merchandise

(Gift Check at 5k maximum)

Waiting for the on-going policy making for the Business Tie- up.

Internal (members) as Business partners, offering their quality products and services to fellow members.

- Additional income for the cooperative and at the same time helping cooperative members to be productive and educating to be Entrepreneurs.

On- going review and policy making.

Customer

Perspective

Enhancing the credibility of Business Tie-up policy.

- Quality of the Products and Services

Offered by the partners.

- Delivery of products

- product and services warranty

Policy making on- going

Creation of Memorandum of Agreement

Internal

Process

Perspective

Creation of standard selection plan and requirements for External Business tie-up partners.

On-going

Creation of Standard selection plan and

Requirements for Internal Business Tie-up partners.

On-going

Plan for Business Tie- Up day, during Coop. Month, December, and General Assembly.

For proposal

Implementation of MOA as requirement with the partners.

On-going with the Policy

Learning and

Growth

Perspective

Planning for possible Livelihood Trainings for the Officers and members.

Not yet started

Encourage members to be more focus on entrepreneurship skills.

Anna Fe Tamayo


Corporate Social Responsibility Report

33

Corporat e Social R espo nsibil it y R eport

With a respectable history, MBCC has gained a lot of success especially in our Cooperative Social Responsibility,

our cooperative is so much connected to the communities, that it made a big impact by giving back.

For 20 years we’ve been helping our communities whether it is in our area of responsibility or outside. Some of the

actions that our cooperative has done in helping our community are:

MBCC members,

Loakan Proper

Barangay officials

and Moog Controls

Corp. employees all

helped in the clean-

up of Loakan Proper

creek. MBCC also

donated boots, and

tools for clean-up

drive.

Environment


34

MBCC donated

sports equipment to

this year’s Moog

Reaching Out

Program recipient

which is Mauro P.

Lauran Elementary

School in

Banayakeo, Atok,

Benguet.

Donations


35

We, as a cooperative, still need to exert more effort in the future in fulfilling our social responsibility. We need to

focus on areas such as:

1. Setting up of a cooperative society.

2. Social Empowerment including assistance to our communities in developing small scale businesses,

employment opportunities.

3. Vocational trainings for the youth.

4. Special attention also is given to education through scholarships and trainings.

5. Rehabilitation of mentally and physically challenged persons.

6. Legal awareness to those who are deprived of their rights.

These are only examples to which our cooperative has to work on to help the community.

HAPPY 20th.ANNIVERSARY TO OUR COOPERATIVE ‘MABUHAY ANG MBCC’

Christopher Estigoy


Audited Financial Statements

36



37


38


39


40


41


42


43


44


45


46


47


48


49

Notes to Financial Statements

50



51


52


53


54


55


56


57


58


59


60


61

MBCC Services

62

MBCC Services

I. Loans

CALAMITY LOAN

Purpose: For repairs of devastated property during a natural calamity or any calamity

expense

Requirements: Capital Build-up (CBU) Passbook

One month pay slip

At least four (4) solvent co-makers for loans in excess of share capital

Who can avail? Maximum Loanable Amount Payment

Terms

Interest

Rate

All members 15,000.00 1 year 10 %

CONTINGENCY LOAN

Purpose: For any contingent, health or emergency expense


One month pays lip



Terms

Interest

Rate

0 to 3 months member 5,000.00 or 2X of CBU whichever is lower

1 year 10 % 3 months & above

member 50,000.00

BUSINESS TIE-UP LOAN

Purpose: To buy appliances(s) or any related commodities from any supplier/dealer with

which MBCC has an official tie-up arrangement


One month pay slip



Terms

Interest

Rate

3 months to 1 year

member

2X of CBU or plus 100,000 whichever is

lower 2 years 10%

1 year & above member 3X of CBU or plus 100,000 whichever is

lower

EDUCATIONAL LOAN

Purpose: To help finance the educational needs.


One month pay slip


School assessment or receipt of tuition fee

Receipts of school supplies and or uniform

MBCC Services

63


Terms

Interest

Rate

3 months & above

member 50,000.00 18 months 10 %

GROCERY LOAN

Purpose: To buy basic grocery needs


One month pay slip


Terms

Interest

Rate

All members 5,000.00

Tiong San- 2

months 10 %

SM- 1 month

REGULAR LOAN (without Collateral)

Purpose: For provident or productive purposes


One month pay slip



Terms

Interest

Rate

3 months to 1 year

member 2X of CBU or plus 100,000 whichever is lower

3 years 10 %

1 year & above member 3X of CBU or plus 100,000 whichever is lower

REGULAR LOAN (PDC)



One month pay slip



Terms

Interest

Rate

5 years & above member 3X of CBU or plus 250,000 whichever is lower 3 years 10 %

REGULAR LOAN (Long-term)



One month pay slip


Collateral (Title only)

Annotate collateral with registry of deeds

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Terms

Interest

Rate

1 year & above member x4 of CBU 10 years 10 %

II. Savings

Account Type Amount Interest

Savings Deposit 2,000.00 and up 0.75% per annum

Special Deposit 1.00 and up 0.75% per annum

Mandatory Savings 50.00 and up 2.00% per annum

Time Deposit Interest

2,000.00 to 49,999.99 1.75% per annum

50,000.00 to 99,999.99 2.00% per annum

100,000.00 to 149,999.99 2.25% per annum

150,000.00 and above 2.50% per annum

Mandatory Savings Mechanics:

1. Deposits within the current year are non-withdrawable.

2. Savings withdrawal from this account is on the next calendar year.

3. Maintaining balance is Php 1,200.00 from the previous year.

Sample:

Total Deposits December 31, 2017 Php 10,000.00

Withdrawable amount starting January 2018 – December 2018 Php 8,800.00

Maintaining Balance Php 1200.00

III. Membership Education

Developmental Trainings and Livelihood Trainings

MBCC Services

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Loan Flow Chart

Truth in Lending Act

66

Truth in L end ing Act

REPUBLIC ACT No. 3765

AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION WITH

EXTENSIONS OF CREDIT

Section 1. This Act shall be known as the "Truth in Lending Act."

Section 2. Declaration of Policy. It is hereby declared to be the policy of the State to protect its citizens from

a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view

of preventing the uninformed use of credit to the detriment of the national economy.

Section 3. As used in this Act, the term

(1) "Board" means the Monetary Board of the Central Bank of the Philippines.

(2) "Credit" means any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract;

any contract to sell, or sale or contract of sale of property or services, either for present or future delivery,

under which part or all of the price is payable subsequent to the making of such sale or contract; any rental-

purchase contract; any contract or arrangement for the hire, bailment, or leasing of property; any option,

demand, lien, pledge, or other claim against, or for the delivery of, property or money; any purchase, or other

acquisition of, or any credit upon the security of, any obligation of claim arising out of any of the foregoing;

and any transaction or series of transactions having a similar purpose or effect.

(3) "Finance charge" includes interest, fees, service charges, discounts, and such other charges incident to

the extension of credit as the Board may be regulation prescribe.

(4) "Creditor" means any person engaged in the business of extending credit (including any person who as a

regular business practice make loans or sells or rents property or services on a time, credit, or installment

basis, either as principal or as agent) who requires as an incident to the extension of credit, the payment of a

finance charge.

(5) "Person" means any individual, corporation, partnership, association, or other organized group of persons,

or the legal successor or representative of the foregoing, and includes the Philippine Government or any

agency thereof, or any other government, or of any of its political subdivisions, or any agency of the foregoing.

Section 4. Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of

the transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules

and regulations prescribed by the Board, the following information:

(1) the cash price or delivered price of the property or service to be acquired;

(2) the amounts, if any, to be credited as down payment and/or trade-in;

(3) the difference between the amounts set forth under clauses (1) and (2);

(4) the charges, individually itemized, which are paid or to be paid by such person in connection with the

transaction but which are not incident to the extension of credit;

(5) the total amount to be financed;

(6) the finance charge expressed in terms of pesos and centavos; and

Truth in Lending Act

67

(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual

rate on the outstanding unpaid balance of the obligation.

Section 5. The Board shall prescribe such rules and regulations as may be necessary or proper in carrying

out the provisions of this Act. Any rule or regulation prescribed hereunder may contain such classifications

and differentiations as in the judgment of the Board are necessary or proper to effectuate the purposes of this

Act or to prevent circumvention or evasion, or to facilitate the enforcement of this Act, or any rule or regulation

issued thereunder.

Section 6. (a) Any creditor who in connection with any credit transaction fails to disclose to any person any

information in violation of this Act or any regulation issued thereunder shall be liable to such person in the

amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection

with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit

transaction. Action to recover such penalty may be brought by such person within one year from the date of

the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in

which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court

costs as determined by the court.

(b) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation

contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or

transactions.

(c) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be

fined by not less than P1,000 or more than P5,000 or imprisonment for not less than 6 months, nor more than

one year or both.

(d) No punishment or penalty provided by this Act shall apply to the Philippine Government or any agency or

any political subdivision thereof.

(e) A final judgment hereafter rendered in any criminal proceeding under this Act to the effect that a defendant

has willfully violated this Act shall be prima facie evidence against such defendant in an action or proceeding

brought by any other party against such defendant under this Act as to all matters respecting which said

judgment would be an estoppel as between the parties thereto.

Section 7. This Act shall become effective upon approval.

Approved: June 22, 1963

Organizational Structure

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69

COOPERATIVE PRINCIPLES

VOLUNTARY AND OPEN MEMBERSHIP

DEMOCRATIC MEMBER CONTROL

MEMBER ECONOMIC PARTICIPATION

AUTONOMY AND INDEPENDENCE

EDUCATION, VOLUNTARY TRAINING AND

INFORMATION

COOPERATION AMONG COOPERATIVES

CONCERN FOR COMMUNITY

MBCC VISION

A WORLD CLASS COOPERATIVE

SERVING AS A CATALYST

EFFICIENTLY DELIVERING ECONOMIC

OPPORTUNITIES TO THE DELIGHT OF ITS

MEMBERS.

TO UPLIFT THE SOCIAL AND ECONOMIC

WELL-BEING OF THE MEMBERS BY

PROVIDING COMPETITIVE SERVICES AND

OPERATING IN A LEAN AND EFFECTIVE

WAY THROUGH RELEVANT

TECHNOLOGY AND MANAGEMENT

PRINCIPLES.

MBCC MISSION

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