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Status of Cooperatives in Santa Ignacia, Tarlac FY 2011: Basis for Policy Formulation
 

Status of Cooperatives in Santa Ignacia, Tarlac FY 2011: Basis for Policy Formulation

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    Status of Cooperatives in Santa Ignacia, Tarlac FY 2011: Basis for Policy Formulation Status of Cooperatives in Santa Ignacia, Tarlac FY 2011: Basis for Policy Formulation Document Transcript

    • Lyceum-Northwestern University Graduate Studies THE STATUS OF COOPERATIVES IN SANTA IGNACIA, TARLAC FY 2011 : BASIS FOR POLICY RECOMMENDATION A Star Paper Presented to the Faculty of The Institute of Graduate and Professional Studies Lyceum-Northwestern University Dagupan City In Partial Fulfillment of the Requirements for the Degree MASTER IN PUBLIC ADMINISTRATION By: BUEN MIGUEL DELA CRUZ JR. April 2012 Page i
    • Lyceum-Northwestern University Graduate Studies Page CERTIFICATE OF ADMISSION TO CANDIDACY FOR THE DEGREE MASTER IN PUBLIC ADMINISTRATION This is to certify that BUEN MIGUEL DELA CRUZ JR., was admitted to candidacy for the degree Master in Public Administration as of 2nd Semester 2011-2012 after passing the Comprehensive Examination in his Courses under the Customized Program for Local Executives/Officials, given last March 29, 2012. ROMANA O. FABREGAS, Ph.D. Dean, Institute of Graduate and Professional Studies ___________________________________________________________________________ APPROVAL SHEET This star paper entitled “THE STATUS OF COOPERATIVES IN SANTA IGNACIA TARLAC FY 2011: BASIS FOR POLICY RECOMMENDATION ” submitted by BUEN MIGUEL DELA CRUZ JR. in partial fulfillment of the requirements for the degree “MASTER IN PUBLIC ADMINISTRATION” under the Customized Program for Local Executives/Official has been examined and is hereby recommended for acceptance and approval. JOSEFINA B. BITONIO, DPA Adviser JOSEPHINE T. FLORES, DPA Program Coordinator CYNTHIA P. LOPEZ, Ph.D. Member PERLA E. LEGASPI, DPA PCL Program Director Accepted and approved in partial fulfillment of the requirements for the degree Master in Public Administration, with a grade of 95%.. ROMANA O. FABREGAS, Ph.D. Dean, Institute of Graduate and Professional Studies ii
    • Lyceum-Northwestern University Graduate Studies ACKNOWLEDGEMENT With honor and pride, the researcher wishes to express his heartfelt and profound gratitude to all those unselfishly helped and contributed to the realization of this academic endeavor. Specifically, he invokes the Almighty’s blessings upon the following: Dr. Romana O. Fabregas, Director for Graduate School and Professional Studies for being the panel Chairman whose guidance, suggestion and comments greatly improved the study; Dr. Josefina B. Bitonio, my adviser, for her unwavering support, sacrifice, patience and understanding and for gladly sharing her valuable time and expertise in the conduct of this research; Dr. Perla E. Legazpi, Dr. Josephine T. Flores, Dr. Cynthia P. Lopez and panel members respectively, of LNU Graduate School, for making helpful comments that have greatly improved the study; To all the employees of the LNU- Graduate School, Dagupan City, for being hospitable and courteous to the researcher every time we rubbed elbows in their offices; To the PCL Officers thank you very much for embarking on this program and to all my PCL classmates, I enjoyed the interactions and learning from your experiences as legislators. Page iii
    • Lyceum-Northwestern University Graduate Studies The Cooperative Development Authority officer of Tarlac Province, Mr. Raul Encarnacion and Paterno Dela Cruz for providing the necessary data from the 2011 CDA-CARIS; Attorney Saklulu B. Enrado, our Municipal Mayor in the municipality of Santa. Ignacia, Tarlac, Hon Noel C. Antonio, our Municipal Vice Mayor of the municipality of Santa Ignacia, Tarlac for their approval of financial assistance in taking our masteral degree in Public Administration at Lyceum Northwestern University in Dagupan City. Likewise,to my officemate Mdm.Cecille,Glaiza,Veblen, Cora and Nikki always ngpapabaon ng SMILE, To all the outstanding cooperative officials and members of Santa. Ignacia,Tarlac, for giving their untiring assistance and contributing their thoughts and perspectives which significantly contributed to the achievement and success of this study; My loving parents, Buen Duco Dela Cruz Sr.(Deceased) & Leonarda Miguel Dela Cruz, brothers, Orly, Buly, Willy, Danny, Juvy and sisters, Erling, Mely, Arlene who served as my inspirations in the completion of this Special Paper; my special sweet ladies Jemalyn, Mylene, Hazel and Dianne who really inspired me during my school days of taking my masteral degree; my one lovely dearest kid, Buen Margarette C. dela Cruz, together with Merry gay Jimuela, Tintin her playmate and cousin, and the very special contribution of Eunice Ann and Mary Ann in encoding my paper. Page iv
    • Lyceum-Northwestern University Graduate Studies Above all, to the Lord Almighty, for providing him the needed strength, courage, wisdom, determination in pursuing this study. BUEN MIGUEL DELA CRUZ JR. Page v
    • Lyceum-Northwestern University Graduate Studies DEDICATION This paper is lovingly dedicated to all the cooperatives in Santa Ignacia, Tarlac for promoting local pride and social integration in the locality. It is an honor for me to work with them in their integral role in the community’s social innovation and economic development strategies. Buen Page vi
    • Lyceum-Northwestern University Graduate Studies ABSTRACT Title : THE STATUS OF COOPERATIVES IN SANTA IGNACIA, TARLAC FY 2011 : BASIS FOR POLICY RECOMMENDATION Researcher : BUEN MIGUEL DELA CRUZ JR. Institution : Lyceum NorthWestern University Institute of graduate and Professional Studies Dagupan City Degree : Master in Public Administration Date : April, 2012 Adviser : JOSEFINA B. BITONIO, DPA Objectives : The study assessed the status of cooperatives in Santa Ignacia from the period FY 2011 and also determined the constraints affecting the growth and development of cooperatives in the municipality. Specifically, the study sought to answer the following objectives: 1. To know the status of the registered cooperatives in the municipality of Santa Ignacia, Tarlac along: 1.1 General information on the year registered, type, nature of business, sector and operational status; 1.2 Membership by Gender; and 1.3 Employees by Gender. 2. To know the extent of the capital structure of the cooperative in terms of authorized capital, subscribed capital and paid up capital. 3. To examine the financial structure of cooperative relative to assets, liabilities and net worth. 4. To find out how the cooperatives are financially performing based on their volume of business, gross income, administrative expense and net surplus. 5. To study how cooperatives are complying with their statutory reserves such as: General Reserve Fund (GRF), Cooperative Education and Training Fund (CETF) and Optional Fund (OF). 6. Based from the findings, determine the constraints that affects the growth and development of cooperatives and to come up with the proposed policy recommendations to strengthen the operation of cooperatives in Sta. Ignacia, Tarlac. Page vii
    • Lyceum-Northwestern University Graduate Studies Methodology The descriptive research design was used to come up with valid and reliable findings on the general profile of cooperatives; capital structure of the cooperative in terms of authorized capital, subscribed capital and paid up capital; financial structure of cooperative relative to assets, liabilities and net worth; financial performance based on their volume of business, gross income, administrative expense and net surplus; and compliance to statutory reserves such as: General Reserve Fund (GRF), Cooperative Education and Training Fund (CETF) and Optional Fund (OF). The sources of data came from the 2011 CDACARIS, and secondary data, such as, articles of cooperation and by-laws, cooperative annual performance reports (CAPR) and available and audited financial statements from the.14 cooperatives with operating and non operating status in Santa. Ignacia, Tarlac Findings: Based on the specific objectives in Chapter 1, the following are the salient findings of the study: 1. There were 14 cooperatives registered from 1991 -2011; mostly (57.14%) were registered between 2000 - 2011 are Multi Purpose Cooperatives (92.87%) these cooperatives are engaged in two services namely credit and trading (50%); with agriculture as the predominant sector (78.57%) and with 13 cooperatives operating (92.87%). 2. The male members (54.03) are slightly higher in numbers than the female members. The boards of directors were also dominated by male officers (73.97%). The Bond of membership is residential (85.72%). 3. There were four full time employees and 43 part time employees, mostly female employees (68.08%). 4. The cooperatives in Santa Ignacia, Tarlac have an Authorized Capital (AC) of P 3,222,100, Subscribed Capital of P 1,822,940.00 (SC) and Paid Up Capital (PC) of P380,338.49. 5. The cooperatives generated an asset of P 6,938,014.31, Total liabilities of P 4,080,908.07 and Total Net worth of P 2,857,106.24 6. The business performance revealed a total volume of business derived from credit and trading amounted to P6,394,321.87 with a Gross Income (GI) of P1,265,759.85, Administrative Expenses (AExp) of P 970,092.22 and a Net Surplus (NS) of P 333,412.47. 7. There were three statutory reserves funded by the cooperaties. The General Reserve Fund (GRF) amounted to P 379,343.08, Cooperative Education and Training Fund (CETF) P 180,432.34 and Optional Fund (OF) of P 380,338.49 with a total reserves amounting to P 940,113.91. Conclusions: Page viii
    • Lyceum-Northwestern University Graduate Studies Based on the findings, the following conclusions were drawn: 1. The cooperatives in Santa Ignacia, Tarlac are mostly operating with small 2. 3. 4. 5. 6. 7. membership based and engaged in limited services makes it difficult for the cooperatives to compete with other businesses in the locality. By gender, the male members are more than the female as well as more male Board of Directors. Majority of the cooperatives employed female part time employees manifesting that volume of business not enough to fund salaries and benefits of full time employees. The cooperatives have exceeded their capital structure making them stagnant without new subscription from members. On the financial structure, all the cooperatives are categorized as micro category having small assets and perceived as not stable in running their business. The cooperatives managed to earn positive net surplus for their statutory reserves and retuned back to members in the form of interest on share capital and patronage refund. Almost all cooperatives complied in putting up their statutory reserves namely: General Reserve Fund, Cooperative Education and Training Fund and Optional Fund. The constraints affecting the cooperatives were found to be coming from internal and external environment. 8. Micro cooperatives do not have policy guidelines in running its day-to-day activities and operation. Recommendations In the light of the findings and conclusions drawn from the study, the researcher sets forth the following recommendations 1. The proposed policy recommendations in Chapter III are highly recommended for the safe and sound operation of the cooperatives in Sta. Ignacia, Tarlac. 2. The Sanggunian Bayan Oversight Chairman on Cooperatives can pass an ordinance on the strengthening of cooperatives with corresponding funding to assure the implementation of plans and programs for cooperatives. 3. The LGU in cooperation with CDA should provide a feedback to the 14 cooperatives and offer mentoring or technical assistance in the preparation of programs and projects supplemented by policy guidelines formulation activities to firm up the implementation of identified plans and programs by both the cooperatives and partner agencies. 4. The cooperatives need to have a strong internal control mechanism as guide in governing the operation of the cooperative. Page ix
    • Lyceum-Northwestern University Graduate Studies Page TABLE OF CONTENT Page Title Page i Certification and Approval Sheet ii Acknowledgement iii Dedication vi Abstract vii Table of Contents x List of Tables xiii List of Figure xiv CHAPTER I THE PROBLEM Rationale 1 Framework of the Study 4 General Objective 7 Specific Objectives 7 Scope and Delimitation 8 Significance of the Study 8 Definition of Terms 10 II. Methodology 13 x
    • Lyceum-Northwestern University Graduate Studies Page Page Research Design Source of Data 13 Instrumentation and Data Collection 15 Tools for Data Analysis III 13 15 RESULTS AND DISCUSSION General Information on the Registered Cooperatives Membership by Gender Status on Employees by Gender Capital Structure Financial Structure Business Performance Statutory Reserves Constraints that Affects the Growth and Development of Cooperatives Proposed Policy Recommendations 17 19 20 21 23 25 26 28 30 III CONCLUSIONS AND POLICY RECOMMENDATIONS Conclusion Recommendations 35 36 xi
    • Lyceum-Northwestern University Graduate Studies Page Page BIBLIOGRAPHY 37 APPENDICES A. General Information on Cooperatives B. Status on Membership by Gender C. Employment Status by Gender D. Capital Structure E. Financial Structure F. Business Performance G. Statutory Reserves CURRICULUM VITAE 39 41 42 43 44 45 46 47 xii
    • Lyceum-Northwestern University Graduate Studies Page LIST OF TABLES TABLE 1 Page List of Registered Cooperative and Confirmation Date 2 Research Questions, Data Sources and Tools for Analysis 3 General Information on the Registered Cooperatives 4 Membership by Gender 5 Status on Employees by Gender 6 Capital Structure 7 Financial Structure 8 Business Performance 9 Statutory Reserves 10 Constraints that Affects the Growth and Development of Cooperatives 11 Proposed Policy Recommendations 14 16 18 19 20 22 24 26 27 29 31 xiii
    • Lyceum-Northwestern University Graduate Studies Page LIST OF FIGURES FIGURE 1 Map of Santa Ignacia, Tarlac 2 Capital Structure 3 Financial Structure 4 Business Performance 5 Statutory Reserves Page 15 22 24 26 27 xiv