Cooperative Performance Standard Instrument
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Cooperative Performance Standard Instrument

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Revised copy of Cooperative Performance Standard Instrument

Revised copy of Cooperative Performance Standard Instrument
PISO Indicators, Financial Information and Rating Form

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    Cooperative Performance Standard Instrument Cooperative Performance Standard Instrument Presentation Transcript

    • REVISED COPY OF COOPERATIVE PERFORMANCE STANDARD INSTRUMENT PISO INDICATORSPROFITABILITY PERFORMANCE 24 a. Profitability Ratio 4 Measure the capacity of the cooperative to generate surplus Net Operating Surplus Gross Operating Revenue and/or Gross Margin 30% and above full points 4 25% to below 30% three quarters points 3 10% to below 25% half points 2 5% to below 10% quarter points 1 below 5% zero 0 c. Earnings per share 4 Measure the capacity of cooperative to provide earnings to members capital contribution Net Surplus Members Equity - Treasury Share Php 1.50 and above full points 4 1
    • Php 1 to below 1.50 half points 2 .50 cents to below Php1.00 quarter points 1 below .50 cents zero 0b. Profitability Growth Rate 4 Measure the growth rate of profitability for the period Earnings per share end - Earning per share beginning Earnings per share beginning 100% and above full points 4 75% to below 100% three quarter points 3 50% to below 75% half points 2 30% to below 50% quarter points 1 below 30% zero 0d. Asset Efficiency Rate 4 Measure the efficient use of assets to generate surplus Net surplus Total Assets 20% and above full points 4 10% to below 20% half points 2 5% to below 10% quarter points 1 2
    • below 5% zero 0 e. Rate of Interest on Share Capital (as prescribed in the by-laws; or if not provided, follow Rule 10 of IRR) 4 NOTE : ENCODE THE FORMULA AS PROVIDED IN RULE 10 Measure the return on members share capital Higher than the inflation rate full points 4 within the inflation rate half points 2 2 points below the inflation rate quarter points 1 greater than 2 points below the inflation rate zero f. Rate of Patronage 4 Measure the rate of returns on members patronage above 30% of the net surplus for distribution to members full points 4 20% to below 30 % half points 2 10% to below 20 % quarter points 1 below 10 % zero 0 Note: if the rate of patronage refund is more than twice the rate of interest on capital, the rating is zeroINSTITUTIONAL STRENGTHa. Net Institutional Capital Measure the level of institutional capital after subtracting the allowance for probable losses 3
    • (Reserves + Allowance for probable losses on loans and or accounts receivable) - (Problem receivables assets + past due receivables+ receivables under litigation+restructured receivables) Total Assets 10% and above full points 4 7% to below 10% three quarter points 3 4% to below 7% half points 2 1% to below 4% quarter points 1 below 1% zero 0b. Appropriate Provisioning for Probable Losses b.1 Past due of more than one (1) year measure 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 full points 4 90% to below 100% three quarter points 3 80% to below 90% half points 2 70% to below 80% quarter points 1 below 70% zero 0 b.2 Past due of thirty one (31) days to one (1) year 4
    • Measure the adequacy of provisions for probable losses for past due accounts 31 days to 1 year Allowance for probable losses on receivables - allowance required for past due receivables one year and above Total past due receivables 31 days to 1 year 35% and above full points 4 25% to below 35% three quarter points 3 15% to below 25% half points 2 5% to below 15% quarter points 1 below 5% zero 0STRUCTURE OF ASSETSa. Percentage of non-earning assets to total assets Non-earning assets Total Assets 75% and above zero 4 50% to below 75% quarter points 3 25% to below 50% half points 2 10% to below 25% three quarter points 1 below 10% full points 0c. Members equity to total assets 5
    • Measure the degree of participation of members share to total assets Paid-up share capital + Deposits for capital subscription Total AssetsNOTE: SHARE CAPITAL ONLY 50% and above full points 4 40% to below 50% three quarter points 3 30% to below 40% half points 2 20% to below 30% quarter points 1 below 20% zero 0 d. Deposit liabilities to total assets Measure the percentage participation of deposit liabilities to total assets Total deposit liabilities Total Assets 50% to 65% full points 4 40% to below 50% three quarter points 3 30% to below 40% half points 2 20% to below 30% quarter points 1(definition = it should be withdrawable anytime)deposits that can be pre-terminated anytime 6
    • e. External borrowings to total assets Measure the dependence of cooperative to external borrowings Total external borrowings Total Assets no external borrowings full points 4 1% to 20% three quarter points 3 above 20% to 30% half points 2 above 30% to 40 % quarter points 1 above 40% zero 0OPERATIONAL STRENGTH (STAYING POWER)a. Volume of business to total assets Measure the capacity of assets to generate business Total volume of business Total assets 75% and above full points 4 50% to below 75% three quarter points 3 25% to below 50% half points 2 1% to below 25% quarter points 1 below 1% zero 0 7
    • b. Solvency Measures the degree of protection that the cooperative has for members savings and share capital contribution in the event of liquidation of the cooperatives assets and liabilities (Assets + Allowances for probable losses) - [ (Total liabilities - Deposit liabilities)+ (Past due receivables + restructured receivables + receivables under litigation)] Deposit liabilities + Share capital 110% and above full points 4 100% to below 110% three quarter points 3 85% to below 100% half points 2 75% to below 85% quarter points 1 below 75 zero 0 c. Liquidity Measure the cooperatives ability to service its members deposit on time Liquid assets - Short term payables Total members deposit 15% and above full points 4 10% to below 15% three quarter points 3 5% to below 10% half points 2 1% to below 5% quarter points 1 below 1% zero 0 8
    • d. Efficiency d.1 Cost per volume of business Measure the efficiency in managing the cooperatives business Operating cost - (members benefit expense+ social service expense) total volume of business 25 centavos and below full points 4 26 to 32 centavos three quarter points 3 33 to 39 centavos half points 2 40 to 46 centavos quarter points 1 47 centavos and above zero 0 0.15 d. 2 Administrative efficiency Administrative cost - (members benefit expense+ social service expense) Average total assets 10% and below full points 4 above 10% to below 15% three quarter points 3 above 15% to below 20% half points 2 above 20% to below 25% quarter points 1 above 25% zero 0 d.3 Turnovers 9
    • Measure the number of times receivables are moving within the reporting periodand/or the number of times inventories are moving within a reporting period Receivables (trade &loans) Average Receivables 4 times and more full points 4 3 to below 4 half points 2 2 to below 3 quarter points 1 below 2 zero 0 Cost of Sales Average Inventory 12 and above full points 9 to below 12 three quarter points 6 to below 9 half points 3 to below 6 quarter points below 3 zero 10
    • PERFORMANCE RATING FORM PARAMETERS STANDARD POINTS MEDIUM AND LARGEI. ORGANIZATIONAL ASPECT 76 a. Leadership 25 a.1 Functions, Duties and Responsibilities 10 a.2 Qualifications and Disqualifications 2 a.3 Composition 1 a.4 Continuing Education and Training 4 a.5 Financial Literacy 3 a.6 Succession Planning 3 a.7 Ethics 2 b. Human Resource and Management 14 a.1 Functions, Duties and Responsibilities 3 a.2 Personnel Policy 2 a.3 Staff Development and Career Pathing 3 a.4 Compensation and Benefits 4 a.5 Ethics 2 c. Members 12 c.1 Capitalization 5 c.2 Governance 5 c.3 Ethics 2 11
    • d.Structure 4 c.1 Organizational Structure 2 c.2 Operational Structure 2 d. System and Mechanism 21 d.1 Maintenance of Books Codification of Documents 2 d.2 Manuals 6 d.2 Business Operation vis-à-vis Articles of Cooperation 2 d.3 Compliance to Rules and Regulations 7 d.4 Statutory Fund 4 d.5 Retirement FundII. ECONOMIC ASPECT 104 55.46% a. Adequacy of Internal Control 28 b. Financial Performance 76 b.1 Profitability Performance 24 b.1.1 Profitability Ratio 4 b.1.2 Earning per Share Ratio 4 b.1.3 Profitability Growth Rate 4 b.1.4 Asset Efficiency Rate 4 b.1.5 Rate of Interest on Share Capital 4 b.1.6 Rate of Patronage Refund 4 b.2 Institutional Strength 12 12
    • b.2.1 Net Institutional Capital 4 b.2.2 Adequacy of Provisioning (more than 1 year) 4 b.2.3 Adequacy of Provisioning 31 days to 1 year) 4 b.3 Structure of Assets 16 b.3.1 Non-Earning Assets to Total Assets 4 b.3.2 Members Equity to Total Asset 4 b.3.3 Deposit Liabilities to Total Assets 4 b.3.4 Borrowings to Total Assets 4 b.4 Operational Stamina 24 b.4.1 Volume of Business to Total Assets 4 b.4.2 Solvency 4 b.4.3 Liquidity 4 b.4.4 Cost per Volume of Business 4 b.4.5 Administrative Efficiency 4 b.4.6 Turn-over Ratio 4III. SOCIAL ASPECT 4 TOTAL RAW SCORE 184Note : with asterisk are bonus points 13
    • Financial InformationAdministrative Cost: _______________________________________________________________Allowance for Probable Losses on Account Receivables: ____________________________________Allowance for Probable Losses on Investments: ___________________________________________Allowance for Probable Losses on Loans: _______________________________________________Allowance Required for 1 year and above: _______________________________________________Average Total Assets: ______________________________________________________________Deposit Liabilities: ________________________________________________________________Earning Assets: ___________________________________________________________________Earnings per Share Beginning: _________________________________________________________Earnings per Share End: _____________________________________________________________External Borrowings: _______________________________________________________________Financing Cost: ___________________________________________________________________General Reserve Fund: ______________________________________________________________Gross Operating Revenue: ___________________________________________________________Inventory: ________________________________________________________________________ 14
    • Liquid Assets: ____________________________________________________________________Members Benefit Expense: __________________________________________________________Members Equity: ___________________________________________________________________Net Operating Surplus: ______________________________________________________________Net Surplus: ______________________________________________________________________Non-performing Assets: _____________________________________________________________Paid-up Share Capital: _____________________________________________________________Past Due Receivables for 31 days to 1 year: _____________________________________________Past Due Receivables for more than 1 year: ______________________________________________Problem Receivables: ______________________________________________________________Rate of Interest on Share Capital: ______________________________________________________Rate of Patronage Refund: ___________________________________________________________Receivables Under Litigation: ________________________________________________________Receivables: _____________________________________________________________________Restructured Receivables: ___________________________________________________________Risk Assets: _____________________________________________________________________Short Term Payables: ______________________________________________________________ 15
    • Total Assets (current): _______________________________________________________________Total Assets (previous): ______________________________________________________________Total Liabilities: ___________________________________________________________________Total Volume of Business: ___________________________________________________________Treasury Share: ____________________________________________________________________ 16