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Internal Control Checklist for Multi Purpose Cooperative


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Internal Control Checklist for Multi Purpose Cooperative

  1. 1. Organization and Human Resources 5 4 3 2 1 Educational qualifications and industry experience are rigidly examined in hiring personnel Officers, management staff, and members are given regular trainings on cooperative operations and on trends and innovations of the cooperative organization. Orientation program is given to new employees and members on their responsibilities Personnel handbook/manual are given to all personnel upon entry to the coop organization Reward and recognition is given to the officers, management staff, and members for their exemplary actions. Disciplinary actions are given to erring officers, management staff, and members There is enough manpower to attend to the needs of the members. A committee is set to screen and to select applicants to fill up vacant positions Employees are well compensated The vision and mission statement of the cooperative is properly posted and disseminated. Organization and Human Resources
  2. 2. Production & Operations Production & Operations 5 4 3 2 1 Services and products offered by the cooperative satisfy the needs of the members Services offered by the cooperative are handled by competent manpower/personnel. Policies on granting of loans and credits are strictly followed and implemented. Amnesty program is given to delinquent members Reports are regularly prepared and submitted Financial statements are presented during meetings or assembly. Maintenance program on physical facilities and tools and equipment is in place and implemented Appropriate tools, equipment, and facility and the desired specifications are purchased. Appropriation for capital expenditures are prepared and made available when needed. Canvass and requisition slips are prepared prior to acquisition/purchase. Policies on credit and loan collection are strictly followed. Furniture, fixtures, and equipments issued to employees are covered by a memorandum receipt. Accountable officer or employee is assigned for the receipt and maintenance of acquired property and equipment. Accountable personnel is assigned to check incoming and outgoing inventories
  3. 3. Marketing Marketing Designated personnel or officer is in charge of the marketing program of the cooperative. Incentives are given to members and employees in relation to the marketing efforts of the cooperative. Budget for sales promotion and marketing strategies are approved and appropriated. Marketing programs are regularly evaluated and properly implemented by designated officer. Feedback mechanisms are designed to determine the level of satisfaction of clients/members. Prices of goods and services (interest) are comparable and can compete with the industry. Quality control measures are designed to monitor and to check any deficiencies of services and products offered to members. All inventories are checked against delivery receipts and invoices. Obsolete, damaged, and slow moving items are reported to responsible personnel All shipments and deliveries are accompanied by invoices and delivery receipts Inventory count is done by a separate personnel other than the one in charge of recording Only the designated accountable personnel have access to the store room The store room is adequately secured
  4. 4. Pricing policy on services and products offered are regularly evaluated and properly adjusted. Products and services are undergoing innovations and improvement. Evaluation is made on the implementation and result of the marketing activities of the cooperative. Finance Cash Receipts 5 4 3 2 1 The treasurer/cashier & other employees authorized to handle cash are bonded. The treasurer/cashier & other employees authorized to handle cash do not handle the books of account. All cash receipts are acknowledge with pre-numbered official receipts. Collections during the day are deposited not later than the next banking day. Employees other than the treasurer/cashier authorized to receive cash turnover daily to the latter all collections together with copies of the issued official receipts and the unused ones. The treasurer/cashier prepares a collection report covering all collections during the day. Post dated checks are accepted as payment but official receipt is issued only at the date of check.
  5. 5. A petty cash /revolving fund is set up for minor disbursements consisting of day to day expenses limited to a certain amount in accordance with board policies. All disbursements except those that are paid from the petty cash fund are paid by checks. Each check prepared is covered by a pre- numbered cash voucher & supported by documents. All checks are issued in numerical sequence. All checks are made payable to specific person or identity. Unused check booklet are under the custody of the accountant/accounting head. Signing of blank checks is strictly prohibited. Bank reconciliation is done monthly. The audit committee audits all disbursement transactions. Disbursement from the petty cash are covered by a pre-numbered petty cash voucher and supported by documents. A surprise audit by the audit committee of the petty cash is done from time to time. All loan transactions are made in accordance with the duly approved loan policy. All loan applications are approved by the credit committee except those of the BOD members, senior officers which are approved by the BOD en banc. All loan disbursements are covered by a promissory note signed by the borrower and a co-maker. Appropriate charge slips signed by the member-purchaser cover credit purchases from the cooperative store.
  6. 6. Aging of accounts receivable is periodically done. Invoices are checked for accuracy before payment. The bookkeeper is the only person doing posting in the subsidiary ledger. Schedules of payables are periodically prepared. Accrued expenses are settled immediately. Grand Mean