This document summarizes new requirements for cooperatives in the Philippines regarding financial reporting and obtaining a Certificate of Compliance from the Cooperative Development Authority. It outlines updates to Memorandum Circulars 2022-25 and 2022-24 which amend the financial reporting framework and chart of accounts for cooperatives. It also describes the process for submitting required annual reports, potential sanctions for noncompliance, and grounds for non-issuance of a Certificate of Compliance.

1. ORIENTATION ON
REPORTORIAL
REQUIREMENTS
2024
FY 2024
PRESENTED BY: SHERWIN M. ARCIPE. CPA, MPA

2. UPDATES ON NEWLY ISSUED
MEMORANDUM CIRCULAR AFFECTING
ISSUANCE OF COC

3. MC 2022-25 | AMENDED PHILIPPINES
FINANCIAL REPORTING FRAMEWORK
FOR COOPERATIVES
MC 2022-24 | REVISED STANDARD
CHART OF ACCOUNTS FOR
COOPERATIVES
■ Administrative Sanctions
Cooperatives which failed to comply with this Circular
shall be subject to the following sanctions after
compliance with due process of law:
First non-compliance – written warning;
Second non-compliance – no Certificate of Compliance
shall be issued;
Third non-compliance – revocation of certificate of

4. MC 2022-25 | AMENDED PHILIPPINES
FINANCIAL REPORTING FRAMEWORK
FOR COOPERATIVES
MC 2022-24 | REVISED STANDARD
CHART OF ACCOUNTS FOR
COOPERATIVES
Failure of the Accredited Cooperative External Auditor
to render a qualified opinion in case the Audited Financial
Statement does conform with this standard shall be a
ground for non-renewal of his/her accreditation.

5. MODE OF SUBMISSION OF THE
REQUIRED REPORTS
■ Cooperative Annual Progress Report (CAPR)
shall be submitted thru Cooperative
Assessment Information System (CAIS).
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6. MODE OF SUBMISSION OF THE
REQUIRED REPORTS
■ MC 2023-07 | GUIDELINES GOVERNING THE
ALTERNATIVE MODE OF SUBMISSION OF
REQUIRED REPORTS
■ Temporary Suspended until further Notice!

7. MC 2022-19 | GUIDELINES PRESCRIBING
THE REQUIREMENTS FOR THE ISSUANCE
OF A CERTIFICATE OF COMPLIANCE
(COC) AND THE GROUNDS FOR THE
NON-ISSUANCE, SUSPENSION AND
REVOCATION
■ Section 7 – Requirements for the Issuance of COC
1. CAPR with complete attachment (AFS audited by
CEA, List of Officers and Mandatory Training
undertaken, PAR, SAR and Semi-Annual Report
MEDCON)
2. Annual Tax Incentive Reports for Cooperatives
with CTE

10. SECTION 10 – SUBMISSION OF DOCUMENTARY
REQUIREMENTS TO THE AUTHORITY.
1. Generated Acknowledgement Receipt
2. Audited Financial Statement Audited by CEA
a. Statement of Financial Condition
b. Statement of Operation
c. Statement of Changes in Equity, Statutory Funds and
Donation & Grants
d. Statement of Cashflows
e. Notes to FS
f. Statement of Management Responsibility signed by the
Chairman and Treasurer
g. Auditors Report
h. Statement of Representation

11. SECTION 11 – REPORTS WITH DEFICIENCY
 Issuance of Notice of deficiency to the cooperative
official email address for correction/Compliance
SECTION 12 – RELEASED OF COC
1. Personally, through the CDA Head
Office/Extension Office;
2. Through Registered Mail or Courier Services
(Prepaid).
The issuance and release of COC shall be made
not later than December 31 of the Current Year.

12. SECTION 14 – TREATMENT ON THE LATE SUBMISSION OF
THE REQUIRED REPORTS
 Cooperatives which did not submit or comply
with the notice of deficiency in the prior years
are still required to submit and pay the
corresponding penalty.
 COC covering those year shall no longer be
issued

13. SECTION 15 – GROUND FOR NON ISSUANCE OF COC
 Any of the following shall be grounds for non-issuance
of COC
1. Non Submission of the required reports
2. Any discrepancies between the documents submitted
online and the submitted original copies of AFS.
3. Non-payment of monetary penalty
4. Non-settlement of monetary and non-monetary
obligations to the authority.
5. Willful failure to comply with the mandatory training
for officer.
6. Two or more sets of officers claiming to be the
legitimate officers of the cooperative and the dispute

14. SECTION 15 – GROUND FOR NON ISSUANCE OF COC
7. The cooperative has been issued SCO
8. The cooperative has been undergoing dissolution
proceedings
9. The cooperative has been issued cease and desist
order to refrain from engaging particular activity.
10.The previous COC has been suspended or revoked
and grounds for that suspension/revocation has not
been complied with.

15. SECTION 22 – REPEALING CLAUSE
This Guideline repeals Memorandum Circular
No. 2016-07 dated October 16, 2018, MC
2019-24 dated January 22, 2019, and other
related issuances which are inconsistent
herewith.

39. SHERYL LOU M. FABIA, MPA
Cooperative Development Specialist II