Guide on Cooperative Operation and Management
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This document provides guidelines and checklists for cooperative operations and management in various areas. It outlines policies, programs, plans and manuals that Philippine cooperatives should have in place to properly guide their operations. These include development plans, annual plans and budgets, social development plans, education and training plans, board resolutions on human resources, finances and more. The document also provides templates to track performance indicators over multiple years.
![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)](https://image.slidesharecdn.com/cooperativeoperationandmanagementjune6-160606071828/85/Guide-on-Cooperative-Operation-and-Management-19-320.jpg)
Guide on Cooperative Operation and Management
- 1. Jo B. Bitonio CDA Dagupan Guidelines and Checklists for Cooperative Operation and Management June 6, 2016
- 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. . 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. • 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. 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. • 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. • 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. • Conflict management – officers, employees, members • Associate members • Laboratory cooperatives • Subsidiary coop • GAD and Gender Equality Policy/Board Resolutions
- 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. 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. • 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. • 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. • Nation Building Programs (SDGs, environment • Responsiveness to gender, elderly, youth and person with especial needs • Collaborative Programs/projects Programs/Projects
- 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. • Suggestion/Grievance box • Newsletter • Freedom board • Email account • Website • FB account Information Facilities
- 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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