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Performance Standard for Philippine Cooperatives (P.I.S.O)
 

Performance Standard for Philippine Cooperatives (P.I.S.O)

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    Performance Standard for Philippine Cooperatives (P.I.S.O) Performance Standard for Philippine Cooperatives (P.I.S.O) Presentation Transcript

    • Profitability Institutional Strength Structure of Assets Operational Strength
    • a. Profitability Ratio Measure the capacity of the cooperative to generate surplus Net Operating Surplus --------------------------------------------------------------Gross Operating Revenue or Gross Margin 30% and above 5 points 25% to below 30% 10% to below 25% 5% to below 10% below 5% 4 points 3 points 2 points 1 point
    • b. Earning per share Measure the capacity of cooperative to provide earnings to members' capital contribution Net Surplus ----------------------------------------------------Members' Equity - Treasury Share Php 2.50 and above Php 2 to below 2.50 Php 1.50 to below 2.00 Php 1.00 to below 1.50 below Php 1 to Php 0.75 5 points 4 points 3 points 2 points 1 point
    • c. Profitability Growth Rate Measure the growth rate of profitability for the period Earning/share end – Earning/share beginning -----------------------------------------------------Earning per share beginning 100% and above 75% to below 100% 50% to below 75% 30% to below 50% 10% but below 30% 5 points 4 points 3 points 2 point 1 point
    • d. Asset Efficiency Rate Measure the efficient use of assets to generate surplus Net surplus Total Assets 20% and above 15% to below 20% 10% to below 1% 5% to below 10% below 5% 5 points 4 points 3 points 2 points 1 point
    • e. Rate of Interest on Share Capital (as prescribed in the by-laws; or if not provided, follow Rule 10 of IRR) Measure the return on members' share capital Amount of Interest on Share Capital Average Paid up Share Capital Higher than the inflation rate within the inflation rate 2 pts below inflation rate 3 pts or more below inflation rate 5 points 4 points 2 points 1 point
    • f. Rate of Patronage Measure the rate of returns on members' patronage 30% & above of the NS for distribution to members 25% to below 30 % 15% to below 25% 10% to below 15 % 5% to below 10% 5 points 4 points 3 points 2 points 1 point Note: if the rate of patronage refund is more than twice the rate of interest on capital, the rating is zero
    • a. Net Institutional Capital Measure the level of institutional capital after subtracting the allowance for probable losses (Reserves + APLL and/or A/R) – (Problem Assets + Past Due Receivables + Receivables Under Litigations + Restructured Receivables) ----------------------------------------------------------------------------------Total Assets 10% and above 8% to below 10% 6% to below 8% 4% to below 6% 2% to below 4% below 2% 6 points 5 points 4 points 3 points 2 points 1 point
    • b. Appropriate Provisioning for Probable Losses b.1 Past due of more than one (1) year Measures the adequacy of provision for probable losses for past due accounts of more than one (1) year Allowance for probable losses on receivables Past due receivables over one (1) year 100% and above 90% to below 100% 70% to below 90% 50% to below 70% 30% to below 50% 10% to below 30% Below 10% but not zero 7 points 6 points 5 points 4 points 3 points 2 points 1 point
    • b. Appropriate Provisioning for Probable Losses b.2 Past due of thirty one (31) days to one (1) year Measures the adequacy of provisions for probable losses for past due accounts 31 days to 1 year APL on receivables - allowance required for past due receivables one year and above Total past due receivables 31 days to 1 year 35% and above 30% to below 35% 25% to below 30% 20% to below 15% 15% to below 20% 10% to below 15% Below 10% but not zero 7 points 6 points 5 points 4 points 3 points 2 points 1 point
    • a. Percentage of non-earning assets to total assets Measures the percentage of non-earning assets to total assets Non-earning Assets --------------------------------------Total Assets 10% and below Above 10% to 20% Above 20% to 30% Above 30% to 40% Above 40% 5 4 3 2 1 points points points points point
    • b. Members' equity to total assets Measures the degree of participation of members' share to total assets Paid-up Share + Deposit for Capital Subscription ----------------------------------------------------Total Assets 40% to below 50% 50% to below 60% 30% to below 40% 60% to below 70% 20% to below 30% Below 20% or Above 70% 5 points 3 points 3 points 2 points 2 points 1 point
    • c. Deposit liabilities to total assets Measures the percentage participation of deposit liabilities to total assets Total deposit liabilities Total Assets 30% to 40% Above 40% to 50% 20% to below 30% Above 50% to 60% Below 20% to 10% Above 60% to 70% Below 10% to 5% Above 70% or below 5% 5 points 4 points 4 points 3 points 3 points 2 points 2 points 1 point
    • d. External borrowings to total assets Measures the dependence of cooperative to external borrowings Total external borrowings Total Assets No external borrowings 1% to 20% above 20% to 30% above 30% to 40 % above 40% 5 points 4 points 3 points 2 points 1 point
    • e. ACCOUNTS/LOANS RECEIVABLE TO TOTAL ASSETS 5
    • a. Volume of business to total assets Measure the capacity of assets to generate business Total volume of business Total assets 100% and above 75% to below 100% 50% to below 75% 25% to below 50 % 5% to below 25% below 5% 5 points 4 points 3 points 2 points 1 point zero
    • b. Solvency Measures the degree of protection that the cooperative has for members savings and share capital in the event of liquidation of coop's assets and liabilities (Assets + APL) - [ (Total liabilities - Deposit liabilities)+ (Past due receivables + restructured receivables + receivables under litigation)] --------------------------------------------------------------------------------Deposit liabilities + Share capital 10% and above 100% to below 110% 85% to below 100% 75% to below 85% 50% below 75 % 5 points 4 points 3 points 2 points 1 point
    • c. Liquidity Measures the cooperative's ability to service withdrawal of members' deposit on time Liquid assets - Short term payables Total members' deposit 15% to 30% Below 15% to 10% Above 30 to 50% Below 10% to 5% Above 50% to 60% Below 5% to 1% Above 60 to 80% Above 80% or below 1% 5 points 4 points 4 points 3 points 3 points 2 points 2 points 1 point
    • d. Efficiency d.1 Cost per volume of business Measures the efficiency in managing the cooperative's business Operating cost – (Members‘ Benefit Expense + Social Service Expense) ---------------------------------------------------------------------------total volume of business 25 cents and below 26 to 22 cents 33 to 39 cents 40 to 46 cents 47 cents and above 5 points 3 points 2 points 1 point zero
    • d. Efficiency d. 2 Administrative efficiency Administrative cost – (Members Benefit Expense + Social Service Expense) ------------------------------------------------------------Average total assets 10% and above Above 10% to below 15% Above 15% to below 20% Above 20% to below 25% Above 25% 5 points 3 points 2 points 1 point zero
    • d. Efficiency d.5 Turnovers Measures the number of times receivables or inventories are moving within the reporting period Receivables (trade &loans) Average Receivables 4 times and more 3 to below 4 times 2 to below 3 times Below 2 times 5 points 3 points 2 points 1 point