Part - II Policy Formulation for CDA R11

Organizational Policies
o GAD
o Confidentiality
(DPA)
o Flexible
Work
o The Directors,
Officers, Staff
and Related
Interest (DOSRI)
accounts
o Associate
Membership
o SMCBUp
Program
o Election Rules
and Guidelines
o Mandatory
Training for
Officers
o Compensation
o Surety Bond
o Labor Law (Min
wage, 13th
Month Pay,
Retirement
Fund, Goodwill
Fund)
o Monthly
remittances
(SSS,
PAGIBIG),
PhilHealth,
BIR)
o Lab Coop
o Donation &
Grants received
o Cash
Management
o Community
Development
Projects

Organizational policy makers i.e.
Board of Directors, and Management,
must go about the process of policy
formation in a careful way. Policy
makers must engage, and be seen to
engage, in the process of consultation.
A charge of 'failing to consult' is a
charge of considerable magnitude.
While much information can be
gleaned by listening to people, there is
also often a need to conduct research
i.e. statistical surveys, monitor events,
etc.

Always consistent with the vision, mission and
goals of the cooperative
Always accordance with the existing laws and
regulations
Must be reviewed and that changes or updates
must be properly discussed and documented
Implemented and regularly monitored
Policies must be thoroughly discussed in the board meeting

5
A third party who can objectively evaluate the strengths and weaknesses of the cooperative
and provide advice as to the legality and appropriateness of the current policies should be
involved in the writing process of new ones.

This is to certify that that the
foregoing is true and correct from
the minutes of the Board regular
board meeting
Approved by the by the
Board of Directors on
Policies are typically promulgated through official written
documents. Policy documents often come with the
endorsement or signature of the executive powers within
an organization to legitimize the policy and demonstrate
that it is considered in force. Such documents often have
standard formats that are particular to the organization
issuing the policy. While such formats differ in form,
policy documents usually contain certain standard
components.

The implementation of the
policy should be monitored.
The policy may still require
further adjustments and
furthermore the reasons for
the policies existence may
change.
A general practice is to set a
date for the policy to be
reviewed, this might be one
a year or once in every three
years. It just depends on the
nature of the policy.

WHAT WE DO
Evaluation is simply one component of the policy cycle and an overall
performance management framework. As an initiative is implemented,
the outputs and outcomes are monitored, refined and then evaluated.
Findings from the evaluation results will allow for adjusting and
modifying the various outputs and outcomes of an initiative and the
process gets repeated.
Evaluation as Part of a Larger Process

Policies are
reviewed every year
or immediately after
a major structure
change such as a
merger, expansion,
or buyout and
changes or updates
properly discussed
and documented.
Implementation of
policies is regularly
monitored.

Board of Director’s Policy
Subject: Community Development Projects Policy No. 005
Original Issue
January 5, 2022
Last Revised
February 10, 2023
Last Reviewed:
January 5, 2024
page 2 of 5

1.Subject of Title
2.Policy Statement
3.Purpose
4.Scope
5.Responsibility
6.Effectivity
Optional:
1. Background
2. Definition of Terms
Policy statements indicating the specific regulations,
requirements, or modifications to organizational
behavior that the policy is creating. Policy
statements are extremely diverse depending on the
organization and intent, and may take almost any
form
Traditional Lending System
To ensure effective and efficient lending operations of the
cooperative and provide the best possible work environment to
employees, the University expects employees to adhere to the
attendance standards as outlined in this policy.
Digital Lending System
The cooperative will automate and optimize the whole
loan origination process, including marketing, origination,
and servicing. It will provide a user-friendly and efficient loan
application process and will customize loan offers based on
customer needs. This provides greater visibility into the
end-to-end workflow as well as actionable insights to help
improve operational efficiency.
Policy Content

Policy Content
1.Subject of Title
2.Policy Statement
3.Purpose
4.Scope
5.Responsibility
6.Effectivity
Optional:
1. Background
A purpose statement, outlining why the
organization is issuing the policy, and what
its desired effect or outcome of the policy
should be.
This policy provides guidelines governing the
approval, processing and collection of loans
receivable from members of Sta. Cruz Multi-
Purpose Cooperative. The policy is drawn from CDA
Regulations, pertinent provisions of the
Cooperative’s By-laws, and policies and procedures
approved by the Board of Directors for the orderly
implementation of cooperative programs and
services.

Scope
An applicability and scope statement, describing who the policy affects
and which actions are impacted by the policy. The applicability and
scope may expressly exclude certain people, organizations, or actions
from the policy requirements. Applicability and scope is used to focus
the policy on only the desired targets, and avoid unintended
consequences where possible..
The scope of this policy covers acceptance
criteria; (5 Cs: character, capacity, condition,
capital, collateral); basic lending policy ( loan
purpose, loanable amount, interest rate, term
of loan, acceptable collaterals/securities) and
documentary requirements (application for
loan, project proposal)

Credit
Committee
Board of
Directors General manager Cashier
Responsibility
Formulation of
sound lending and
collection policies,
systems and
procedure.
Art 5 Committees
Section 11 Duties
and
Responsibilities
Art VI Officers and
Management Staff
of the Cooperative
(e) Provide systems
and procedures in
the implementation
of policies
Treasure
r
Art VI Officers
and
Management
Staff of the
Cooperative (c)
Art VI Officers
and
Management
Staff of the
Cooperative,
Section 5
• Keeping track of
assigned accounts to
identify outstanding debts
• Planning course of action
to recover outstanding
payments
• Locating and contacting
debtors to inquire of their
payment status
Collector
Board of
Directors
Credit
Committee
General Manager
Treasure
r Collector

Who Writes and Enforces Policies?
It is primarily the responsibility of the board of directors to write policies as
well as maintain and update them. Credit Committee and Management also
has a role in developing specific policies that pertain to the management of
the cooperative. A chairperson should be appointed to a committee to make
an initial review of the policies and draft needed policies. These policy
changes should be presented before the board as a whole at the next
board meeting to be adopted and recorded in the minutes.
It is also the board’s responsibility to evaluate how
well the policies are being used within the
cooperative; yet, it is the responsibility of the
manager to implement them. Even the best policies
are absolutely useless unless they are implemented
and used effectively. Employees of the cooperative
should be thoroughly aware of the policies in place
and a hard copy of cooperative policy should be
available for use at all times. However, while the
manager is responsible for implementing policies it is
still the responsibility of the board to evaluate the
implementation.

The process of writing down a new policy (documenting) is very
necessary. If this does not occur, then there is likely to be
confusion about the decision made, what was agreed and what
actions should be taken.
At the very least the policy decisions should be noted in
the minutes of the meeting during which they were
made. However it is very unlikely that members of the
organization, or customers, will ever read the minutes of
meetings. Therefore it is fundamentally necessary that
the makers of the new policy ensure that it is put into
writing and then find ways to communicate it to the
anyone who needs to be aware.
Therefore it is fundamentally necessary
that the makers of the new policy ensure
that it is put into writing and then find
ways to communicate it to the anyone
who needs to be aware

An effective date
which indicates when
the policy comes into
force. Retroactive
policies are rare, but
can be found
Some policies may contain additional
sections including:
Background, indicating any reasons, history, and
intent that led to the creation of the policy, which
may be listed as motivating factors. This
information is often quite valuable when policies
must be evaluated or used in ambiguous
situations, just as the intent of a law can be
useful to a court when deciding a case that
involves that law.
Definitions, providing clear and unambiguous
definitions for terms and concepts found in the
policy document

Effectivity
For the Board
By:
This policy shall take effect 30 days after the information
dissemination of the Education and Training Committee and
Credit Committee.
Approved pursuant to Board Resolution No. 252, S-2024 dated
April 20, 2024.
Chairperson
Employees of the cooperative
should be thoroughly aware of
the policies in place and a hard
copy of cooperative policy
should be available for use at all
times. However, while the
manager is responsible for
implementing policies it is still
the responsibility of the board to
evaluate the implementation.
April 27, 2024

Background
Policies should deal with recognized needs of the coop and
should be carefully thought out and researched. The basic
guide in the development of the policies should be found in
the objectives set forth by the cooperative and help in the
realization of the mission of the cooperative
First, Policies provide a legal paper trail for the cooperative
and mitigate legal liability on some issues. They help the board
of directors determine how to deal with re-occurring situations
within the cooperative and provide valuable internal controls.
Furthermore, without policies the cooperative cannot achieve
the goals set forth by the board and the members.
A policy that no one knows about is useless and a waste of paper;
therefore, policies that have been adopted by the board should be
written down, bound in a manual, classified by content, and
distributed to persons concerned with administering them. These
people should be knowledgeable as to the contents of the manual
and ensure its proper application.

Borrowers Qualification – refers to a member in good standing
who is: a) A bonafide member of the cooperative) With a Paid-
Up Capital of at least Five Thousand Pesos (Php 1,000.00) c) For
government employee, the monthly Net Take Home Pay
requirement, as government employees, shall be subject to the
rules and regulations as provided for in the General
Appropriations Act (GAA), maximum loanable amount is
equivalent only to its capital share. e) Must comply with all
obligations, duties and undertakings of membership. f) No
adverse credit history.
Loan Security refers to the total amount of loan that exceeds
the capital contribution of the member, a security/ collateral
shall be required which can either be in the form of: a) Co-
Maker/s b) Deed of Assignment of Certificate of Marketable
Stocks. c) Original OR/CR of vehicles (5yrs old and below) and
land titles with REM (Real Estate Mortgage) d) Original Policy of
Memorial Plan Services and/or Memorial lots

A Co-Maker/Co Borrower is one who is jointly and
severally guarantees to pay the cooperative, in case of
default in the payment of amortization plus interest and
penalties / surcharges in accordance with the terms and
conditions of the cooperative. Normally, only one co-
maker is required for loan applications. However, for loan
application of One Hundred Thousand Pesos (Php
100,000.00) and above, three (3) co-makers are required
to sign in the Application Form.
Unsettled accounts wherein co-maker/s is unable to pay
will be subject to the Mediation Committee for due
process. Moreover, membership of borrower will be
terminated after due process.
Retired member or who is soon retiring and applies for
any loan, the cooperative will consider the capacity to pay
as far as the retiring age is concerned and that the loanable
amount must be limited as to the capital share build-up.

Following formal
adoption of the policy
it should be
communicated far and
wide throughout the
cooperative and
stakeholders. Training
sessions may need to
be conducted to ensure
that personnel are fully
informed and able to
implement the policy. If
the policy is not well
communicated it may
fail.
The final policy document needs to be
formally adopted by the member of the
Board of Directors with an appropriate
record entered in to the minutes.

All organizations need to develop and
communicate policies. In fact organizations
are developing policies all the time but they
might not know it. This is because
decisions are being made all the time in
regard to new situations, and often where
there is no previous policy. Such decisions
are made by people who have the
appropriate authority and capacity such as
managers, committee members, board
members, the executive, etc.
Communicating Policy

01-s-01 2023 Membership
Policy
001 Jan 7, 2023 Jan 6, 2024 Dec 22, 2025
02-s-02 2023 Lending
Policies &
Guideline
002 Jan 12. 2023 Dec 10, 2024 June 24, 2024
05 s-05 2023 Policy of
HRMD
010 May 5, 2023 May 5, 2023 May 5, 2023
Policy No. Subject Resolution No Date
Approved
/Adopted
Last Revised Last Reviewed
Documenting/Codifying Policies
Document History

A policy is not formulated unless it is thought to be
necessary or to have a benefit. In other words the
policy exists for a purpose and this may be often
expressed in the form of an "underpinning
principle"
Policy
Goals

On Poverty
World Poverty 2023
According to the 2023 release, 1.1 billion
out of 6.1 billion people (just over 18%) live
in acute multidimensional poverty across
110 countries. Sub-Saharan Africa (534
million) and South Asia (389 million) are
home to approximately five out of every
six poor people
Under the Philippine Development Plan, the government is targeting to reduce
the poverty incidence rate to 16.4% 2023, to 13.2% by 2025, and to 9% by 2028.
It aims to have a “prosperous, predominantly middle-class society where no one is
poor” by 2040.
Relevant Laws
affecting
Cooperatives

R.A. 9520 - Philippine Cooperative Code of 2008
An act amending the Cooperative Code of the Philippines
to be known as the Philippine Cooperative Code of 2008
R.A. 3765- Truth in Lending Act (for coops with credit operations only)
An act to require the disclosure of finance charges in
connection with extensions of credit
R.A. 9510-Credit Information System Act (for coops with credit
operations only)
R.A. 8424 –NIRC OF 1997 as amended by R.A. 10963- TRAIN LAW
R.A. 8791-General Banking Law of 2000 (for cooperative banks only)

Laws on MSME Development
Three laws, namely, the Go Negosyo Act, Barangay Micro Business Enterprise Act (BMBE Act) and
Magna Carta for MSMEs, are already in place for that purpose.
• The Go Negosyo Act ( RA106411 J) provides for the establishment of a “Negosyo Center” in all
provinces, cities and municipalities to, among others, promote ease of doing business and access
to services for MSMEs within their respective jurisdictions, and build local support networks and
establish market linkages for them.
• The BMBE Act (R.A. 9178- ) exempts micro enterprises registered with the Department of Trade and
Industry from income tax and from the coverage of the minimum wage law, but their employees
shall receive the social security and health-care benefits that employees of other industries are
entitled to.
• The Magna Carta for MSMEs (RA 9501) calls for the strengthening of the Micro, Small and Medium
Enterprises Development Council in order to, among others, help establish the needed environment
and opportunities conducive to the growth and development of MSMEs, and streamline the
registration of business enterprises.
• In addition, it created the Small Business Guarantee and Finance Corporation (SB Corp.) for the
purpose of extending all forms of financial assistance to eligible MSMEs and to guarantee their
loans. The SB Corp. is, in effect, supposed to act as “interim” financier and credit guarantor to
MSMEs, which is often a critical factor in any starting business.
https://business.inquirer.net/351550/laws-on-msme-development#ixzz7tMp0vZ1j

R.A. 7934 –Consumer Act of the Philippines (unfair trade practices)
Defines, prohibits and penalizes three types of anti-competitive conduct:
anti-competitive agreements, abuse of dominant position, and anti-
competitive mergers and acquisitions
RA 10667 The Philippine Competition Act
A Decree Instituting a Labor Code, Thereby Revising and Consolidating Labor
and Social Laws to Afford Protection to Labor, Promote Employment and Human
Resources Development and Ensure Industrial Peace Based on Social Justice
P.D. 442-Labor Code of the Philippines as amended & renumbered
R.A. 11058-Compliance with Occupational Safety and Health Standards
This law outlines the duties of employers, workers, and other persons in ensuring that
occupational safety and health (OSH) standards are met. It applies to all
establishments, projects, sites, and all other places where work is being undertaken in
all branches of economic activity (including those regulated by the Philippine Economic
Zone Authority) except in the public sector.

R.A. 10173 –Data Privacy Act of 2012
Data Privacy Act 2012 or Republic Act No.
10173 is a law that the Philippine
Congress has enacted to protect the
individual’s personal data, whether
sensitive or otherwise, in the information and
communications systems of the government
and of the private sector. The statute creates
for this purpose a National Privacy
Commission.
Introduces amendments to RA 9160 or the
Anti-Money Laundering Act of 2001 in a bid
to prevent the country from being included
on the “gray list” or countries with weak
policies against dirty money.
RA. 9160 - Anti-Money Laundering Act of 2001 as
amended by R.A. 11521

RA 9003 Ecological Solid Waste Management Act of 2000
RA 9275 Philippine Clean Water Act of 2004
RA 8749 Philippine Clean Air Act of 1999
RA 9442Magna Carta for PWDs
RA 9994 Expanded Senior Citizens Act of 2010
RA 8972 Solo Parents Welfare Act of 2000
RA 9710 Magna Carta for Women
Environment
Women, Senior Citizens, PWDs

Performance Management
Performance Management Resolution Policy
1. Duties and responsibilities of the
Board are well defined, segregated
and duly approved
- Special Order
- Appointment paper
2. Performance evaluation of all officers
(Evaluation Form formulated and
implemented)
3.Oversight functions of the Board

Policy Review Resolution Policy
4. Duties and responsibilities of the
Personnel are well defined, segregated
and duly approved
- Special Order
- Appointment paper
5. Performance evaluation of all Personnel
(Evaluation Form formulated and
implemented)
6. Human Resource Policy ( Recruitment,
selection, hiring, induction, promotion, staff
development, recognition, benefits,
Disciplinary action, separation, termination
and retirement, Succession Planning)
Adherence to laws, regulations

Policies on Social Development Resolution Policy
1. Education; scholarship Program
2. Health Program
3. Social events/Gathering
4. Social Protection (Insurance & Mutual
Benefits)
5. Disaster Risk Reduction & Management
6. Gender Equality & women
Empowerment
7. Others
Adherence to laws, regulations
Cooperative

Policies on Social Development Resolution Policy
1. PMES for non members
2. Environment Conservation & Protection
3. Health & Sanitation
4. Partnership & Community Groups
5. Sports, Cultural & Religious Activities
6. Disaster Risk Reduction Management
7. Gender Equality & Women
Empowerment
8. Membership Expansion
9. Support to the vulnerable sector of the
society (children, youth, PWD, Elderly,
IPs)
10. Others
Community

CDA MCs
1. Training Requirements of Officers MC 2015-09
2. Accountable Officers MC 2012-09
3. Signage MC 2017 -03
4. Membership Registry MC 2012 -16
5. Establishment of Satellite Offices MC 2016 -05
6. Prohibition of Elective Officials MC 2012 - 19
7. Organization of Subsidiary Cooperatives MC 2020 -30
8. Compensation MC 2013-22
9. Mainstreaming Gender and Development (GAD) in cooperatives MC 2013-22
10. Conduct of Conciliation – Mediation Proceedings Before CDA MC 2023-08
11. Clarificatory Issuance on the five consecutive year rule on the
engagement of external auditor
MC 2014-02
Adherence to Laws, and Regulations

CDA MCs
12. Establishment of a Coop Branch MC 2015-11
13. Creation, Organization, Supervision, and Monitoring of Laboratory Coops MC 2021 -11
15. Capability building for Micro Coops MC 2017 -01
16. Social Audit on Coops MC 2018 - 01
17. Allocation and utilization of Community Development Fund (CDF) of the
Cooperatives
MC 2019 -11
18. Allocation and Distribution of Patronage Refund MC 2019-09
19. Allocation, Utilization and Remittance of CETF MC 2019-08
20. Prohibitions/Disqualifications under Art 39 (3) and (4) and Article 42
of RA 9520
MC 2020-31
21. Goodwill Program for Cooperative Officers MC 2020-30
Cont.

CDA MCs
22. Standard Chart of Accounts for Cooperatives MC 2022-24
23. Philippines Financial Reporting Framework for Coops MC 2023 -13
24. Guidelines in the implementation of the CDA Certification Program for
Cooperative Development Officers (CDO) and Monitoring of the Compliance of
Certified Cooperative Development Officers
MC 2023 -12
Cont.

If you are charged with the
responsibility to develop a policy,
it will be important to consider that
the policy you write will be
constrained by policies, laws and
regulations of federation, union,
regulatory bodies, community
expectations, government policy
and legislation. That is why wide
consultation is a key to successful
policy formulation.
Policy Constraints

Lorem Ipsum Lorem Ipsum
Government Community
Federation Union
We should not operate in a vacuum but instead on a policy state. Our
space overlaps the space of many other organizations with whom we must
co-exist peacefully. (Rowland and Fasano, 1991)
Cooperative

Savings
Time Deposits
Build Savings
Pension Savings
Emergency Savings
Teen ATM Savings
Medicaide Health Savings
Youth Savers Club
Retirement Savings
Savings Deposits
Wallet Savings Purposive Savings

PRODUCT
Savings. Lending,
gcash
Policies on Products and Services
Yellow
MPC
Tri
Transport
Coop
Babasit
Agriculture
Coop
Happy
ARB Coop
PRODUCT
Transport services.
marketing of petroleum
products
PRODUCT
Procurement of inputs,
Savings,
marketing
PRODUCT
Savings. Lending,
Processing and
marketing farm products

Aflatoun Capability
Building
HUB Sagep
Youth
Business/Operational Policies
Lending Trading Marketing Other
Services

Salary Loan
Bonus Loan
Emergency Loan
Travel Loan
Special Loan
Pangkabuhayan Loan
Consolidated Loan
Educational Loan
Appliance Loan
Motorcycle Loan
Promo Loans
Commercial Loan
Financing Loan
Show Money Loan
Pension Loan
Loan against time deposits
Car Loan
Allotment Loan
(OCW,Seamen
Micro & Small Entrepreneur
Rice Loan
House & Lot / House repair
Agri Loan
Express Loan
Regular Loan
Special Loan
Privilege Loan
Komtech Loan

30%
30.6%
18.7%
26.04%
18.4% 16.60%
Fisher folks Farmers
AGRI PRODUCTS
Self Employed
Visit
HELP ME
SMILE RELAX
BUSINESS FINANCE MICRO
FINANCE

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HOME (sacdeco.com.ph)
Visit
2,508,200,856.00
SACDECO Dec. 18,
1984
61,318 274 24Br/3Sat Reg. 1, 2, 3,
and CAR
2,756,233,479.53 Women group-
members of the
Federated Rural
Improvement Club
Year
Registered
No. of
members
No. of
staff
No. of
Branches
/Satellites
Coverage Assets Initiated by
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Coop Fund Literacy Program
Youth Fun Run
Global Money Program
Youth Summit

Youth Forum
Youth Unity Walk
Conduct Strategic Planning
Conduct Video Presentation

Workshop 2
Policy Content
1. Subject of Title
2. Policy Statement
3. Purpose
4. Scope
5. Responsibility
6. Effectivity
Optional:
1. Background
30 minutes writing
30 minutes reporting

Part - II Policy Formulation for CDA R11

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Part - II Policy Formulation for CDA R11