Your SlideShare is downloading. ×
Some Important Cooperative  Practices
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Some Important Cooperative Practices

1,849
views

Published on

Published in: Business, Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,849
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
118
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1.  Alexander B. Raquepo Cooperative Governance Practitioner and Advocate
  • 2. 1. Coops must allocate an allowance for probable losses (bad debts). The standard allocation is 35% for past due loans below 1 year and 100% for loans above 1 year.
  • 3.  2. According to Philippine Coop Laws, Cooperatives are tax exempted. However, to enjoy this privileged the cooperative must apply for tax exemption at BIR.
  • 4.  3. Cooperatives are required to submit yearly reports to the Cooperative Development Authority (CDA), a requirement in getting a Certificate of Operation (CO). A Certificate of Good Standing (CGS) is also issued by CDA for coops who have sound financial conditions.
  • 5.  4. Regular monitoring of DOSRI (Directors, Officers, Staff and Related Interests) must be undertaken. A separate report must be prepared.
  • 6.  5. Cooperatives are required to use the approved Standard Chart of Accounts (SCA) and must compute its COOP-PESOS Rating every month. COOP-PESOS is a rating system developed by CDA to evaluate the soundness and stability of cooperatives.
  • 7.  C – Compliance with Administrative and Legal Requirements;  O – Organizational Structure and Linkages;  O – Operational Management; and  P – Plans and Programs.
  • 8.  P – Portfolio Quality (Portfolio at Risk and Allowance for Probable Losses); E – Efficiency (Asset Yield, Cost per Peso Loan, Administrative Efficiency, Loan Portfolio Profitability, Operational Self- Sufficiency); S – Stability (Liquidity, Solvency); O – Operations (Membership Growth, External Borrowings); and S – Structure of Assets (Non- Earning Assets, Total Deposits, Share Capital, Loans Receivables)
  • 9.  6. The basic qualification of Board of Directors will be at least College graduate or 3 years experience in business. Once elected, they are required to undergo a coop governance course.
  • 10.  7. Loan delinquency is now computed based on Portfolio At Risk (PAR) and not based on loan maturity.
  • 11.  8. Cooperatives are required to fund its Reserve Funds. This fund must be deposited separately.
  • 12.  9. Coops are encouraged to network or link with other coops or become active members of apex organizations.
  • 13.  10. Cooperatives must be externally audited yearly by an independent CPA accredited by CDA or PICPA.
  • 14.  11. Coop records must be updated and regularly audited by the Audit and Inventory Committee.
  • 15.  12. Loans must be properly documented with all the necessary attachments complete and duly signed.
  • 16.  13. The cooperative must have a continuous capital build up (both share and savings) to minimize outside loans.
  • 17.  14. Remember this- “Your cooperative is in the business of business and is not a social welfare organization.” All transactions therefore must be treated in a business manner.
  • 18.  15. Monthly meeting of the BODs is a must and also the Committees (Credit, Audit, Education, etc.). During this BOD monthly meeting, the GM must report the operations of the cooperative.
  • 19.  16. Cooperatives must have a regular Annual Plan and Budget and a 5-Year Strategic Plan.