This document summarizes a study on the allocation, utilization and remittance of cooperatives' Education and Training Fund (CETF) to federations in the Philippines from 2015-2019. Key findings include that most cooperatives comply with allocating at least 10% of net surplus to CETF, around half of which is remitted to federations while half remains local. Federations utilize CETF for member training, financial services, consultancy and other assistance. Best practices identified are flexibility, use of technology, and partnerships to better serve members. The study aims to provide recommendations to improve CETF practices and strengthen relationships between federations and affiliates.

2. Introduction of the Study
More than 12 % of humanity is part
of any of the three million cooperatives
in the world. Cooperatives contribute to
the sustainable economic growth with 1
billion members across nearly 100
countries They have a global turnover of
2.2 trillion USD and providing jobs and
work opportunities to 280 million people
across the globe. (ICA,2020).
A growing co-operative
presence?
Additionally, the International
Labour Organization recognizes
the relevance of CEs “as
important in improving the living
and working conditions of
women and men globally as well
as making essential
infrastructure and services
available even in areas
neglected by the state and
investor-driven enterprises”
(ILO,2017).

3. • Around 99.58 % of the business establishments are MSMEs providing
opportunities for 4.8 million people and accounts for 61.6% of the
country’s total employment (DTI, 2022).
• Cooperatives make a significant economic difference in the lives of its
members while contributing to their overall well-being and their
communities. They have been our ally in empowering our MSMEs (DTI,
2019
• Furthermore, cooperatives are bringing inclusive growth at the grassroots
level and their crucial part in helping the government deal with economic
challenges brought on by the pandemic (DTI, 2021)

4. This research explored and examined the
allocation, utilization, and remittance of the
cooperatives' Education and Training Fund to
the federation. This research hopes to
contribute in practice the lessons learned, and
impacts on cooperative management,
sustaining development, and transforming
more cooperatives to contribute to their
communities’ social and economic
development.
Problem of
the Study

5. Importance
of the
Problem
/Research
It is a universally accepted fact that
cooperative movement in its facets is
depending on the education and training of its
members. Cooperative education and training
are correlated and interdependent, without
one the other cannot be possible. While
education develops mental facilities and
increases knowledge, training develops the
skill, chisels, and levels it. Education
sharpens the intellect, broadens the vision,
and builds up the character of an individual.
Training gives a practical shape to all these
matters (CUCBCSS, 2014).

6. Objectives
To determine the allocation,
utilization, and CETF remittances thru
the Federations’ programs and services;
to learn their best practices and the
impact of their products/services.
Time Frame FY 2015-2019
Objectives and
Time Frame

7. The theory of the cooperative
originated with Emelianoff (1948, p 269). Its
main characteristic is its portrayal of the
cooperative as a group activity, carrying out
coordinated economic functions in the
absence of any central authority to
coordinate or direct the common activity.
Decision-making emanates solely from the
individual group members
Theoretical
Framework

8. Conceptual Framework
Cooperative Education
and Training Fund
Its Allocation,
Remittance, and
Utilization
Best Practices
Impacts
Policy
Recommendations to
improve CETF
Allocation,
Remittance, and
Utilization and
strengthen
relationship between
federation and their
affiliates

9. The study's respondents were the 16 managers/focal
persons of the Federations covering Luzon, Visayas, and
Mindanao islands with internet connectivity. A focus group
discussion was conducted to validate the respondents'
answers to questions drawn in a non-standardized form. Due
to the COVID-19 pandemic, focus group discussions were
conducted thru a virtual platform using zoom.
The conduct of the primary research employed ethical
considerations. The researcher gave the participants proper
orientation on the purpose of the study. The benefits that they
get from the research were explained to them. Their
willingness to participate by answering the questions during
the interview is tantamount to implied consent. Moreover, the
privacy and confidentiality of the participants were maintained
by assigning codes to the respondents
Methods &
Ethical
Consideration

10. TWG Creation
CDA Board Resolution to Conduct a Study

11. Luzon: NATCCO, PFCC-NLCCL, NSCC,
CNFC, CLRL-PFCCO, TCDC, MIFEDCO,
SLRL – PFCCO =8
Visayas LWVAC, ACA, PFCCO-Vizayas,
AFFCUI=4
Mindanao: PACIFEMCO, MCN,
WMFC, GDCCF= 4
Federation of Cooperatives
refers to three or more
primary cooperatives, doing
the same line of business,
organized at the municipal,
provincial, city, special
metropolitan political
subdivision, or economic
zones created by law,
registered with the Authority
to undertake business
activities in support of its
member-cooperatives (Art 5
RA 9520 (17)

12. Results and
Discussion Mostly cooperative complied with
the CETF allocation of not than ten per
centum (10%) of the net surplus.
Other cooperatives opted for 2-5%
Allocation of their CETF
%
%
1. CETF Allocation

13. 2. CETF Remittance
FY 2019 = P 21.9 Bn Net Surplus
P 2.19 Bn CETF
50% = 1.095 Bn to be
remitted to
Federation/Union
50% = 1.095 Local ETF
Not all cooperatives are remitting to federation due to multi-
affiliations, liquidity issues, and hesitant to share their CETF

14. • The remittance is voluntary and service-
based.
• The cost of our supervision and examination
service varies based on the coop size.
• CETF collection has an automatic return
quality service.
• No penalty for non-remittance
• Considered Member of good standing
(MIGS), and only MIGS can run as an officer.
• Majority are remitting religiously
2.1 CETF Remittance Practices
%

15. 3. CETF Utilization
42.91%
57.08%
Utilized
Unused
How CETF was used by
Federation?
• Conducted TNA, TOT (12.50%)
• Developing modules for certified managers, certified for finance, and certified HR
(12.50%)
• Conducted mandatory training to affiliates and non affiliates (100%)
• Conducted optional and specialized trainings (100%)
%
3.1 Professionalization of officers
and staff

16. 3.2 Credit Management & Financial Services
• Financial Assistance thru loans
• Implanted financial discipline to decrease loan delinquency
and increase institutional capital
• Established Protection System where Risk-Based Evaluated,
FS monitoring - providing them Financial analysis;
institutional diagnostic and introduce appropriate interventions
%
• As a financial intermediary for coops, federations help affiliates to diversify and park their
excess fund for better use by taking in saving deposits from members with the excess fund
and giving out loans to cooperative members that need additional funds for liquidity for their
operation. Moreover, a revolving fund facility have been established where cooperatives with
the excess fund can assist another cooperative with challenges with their liquidity position

17. 3.3 Consultancy
%
• Providing coaching to the members in the four areas of
management (marketing, finance, HR, and credit) with
a pool of advisors handling /16 members.
• Assist in crafting of internal rules, auditing, regulations
of cooperatives, the institutionalization of the lending
program, restructuring of accounts, and appraisal of the
property.
• Free consultancy and trainings to micro and small
coops on policy development and basic bookkeeping
• Provide mentoring and consultancy services to help
affiliates achieve and maintain their prudential
standard. We discussed their problems and helped
them find ways to address their concerns.

18. • Promotion of Youth, women, GAD, BBSB, Research, and
development, and networking and linkaging
• Assisted primaries in the marketing tie-up with DTI, DA,
and LGUs and the transportation of their palay products
• Established a Bagsakan area/facility in which the farmers
nearby deliver their agricultural produce. Even agri-fishing
put their products to our business center
• Mutual aid and funeral products
• Assist in the preparation of mandatory reports
%
3.4 Other Assistance

19. Best Practices
in the
Utilization of
CETF
4.1. Flexibility and Adaptability
• Mandatory training is given to the public to get a lot of insights,
experiences, and sharing from different coops
• A good relationship exists with our members, especially those
remitting religiously. Federations return their CETF thru trainings
and consultancy. The Federations provided trainings to
members with remittances and no remittances.
• Conducted Farmer Field School on Organic Rice Farming,
Livelihood Training, Competency-Based Economies Through
the Formation of entrepreneurs, and Leadership Trajectory
Training.
• Provided Transformative leadership training which is more
focused on the officers. It covers transformation, change
management, and leadership as officers in the cooperatives.
Leadership training covers the values of officers.
%

20. • Conducted non-mandatory/professional
trainings related to analytical, data analysis,
and transformative leadership.
• Pursued the strengthening of cooperatives. Not
confining support service to members alone.
The Federation extends its support service to
even non-member cooperatives.
• Provided supervision and examination for
members regarding adherence to international
prudential standards.
%
Cont.

21. 4.2. Technological Infrastructure
%
• Given the current situation, Some federations capitalized
and maximized their efforts to use technology in rendering
service, and with the support of the BOD, they were able to
propose the creation and institutionalization of a business
development service program for the federation.
• The used of technology for the business development, like
the kaya payment platform
• Develop a e-koop banker plus transactional software for co-
ops.
• Helped member-affiliates in the installation of accounting
software in tune/harmonize with the CDA standard chart of
accounts, CISA.
• Big cooperatives have their own ATM machines.

22. 4.3. Partnership
• Linked primary coops to other coops thru the network of
the Federation get funding support for the primary coop.
This program created a business development center.
Coaching and mentoring the youth for entrepreneurship
and life learning modules
• Endorse the coops to the LGU for their loan privilege
program under the Business Enterprise Support Trust
Fund (BEST) program with P2 million pesos capital
assistance
%

23. 4.4 Relationship with Members
• A program called Member Relations Officer (MRO)
connects to the coops. They visit the coops to know and
identify the problems encountered, collect data (FS) and
follow up on CETF remittance. They also give
feedbacks/reports to the management of the problems so
they can be addressed.
• Maintained a good and complimentary relationships with
affiliates thru mutual support in the conduct to various
capacity buildings to MSML coops, and extended various
support services.
%

24. 4.Cont. • Introduced ethics policy in the Federation, to address
the relationship and competition of primary members
among each other. This is to minimize conflict among
the savings and credit cooperative members.
• All activities are well attended by members. But not all
members can participate due to the proximity. That is
why Federations conducted regional activities to reach
out to members.
%

25. Impacts
1. The professionalization of trainings
among the officers and staff contributed to
the strength of the cooperatives. For the
officers, the federations conducted the
following financial literacy, ownership
seminar, values education seminar,
strategic planning, business continuity plan,
succession planning, transformative
leaders, Leadership Trajectory Training,
Training for Trainers, values education
seminar

26. • Some specialized trainings for staff were conducted along with customer
care, personality development, stress management training, personality
development, human resource management,, financial literacy,
management competency-based economies through the formation of
entrepreneurs and business development services conducting business
solution like business continuity plan (BCP), business development
service.
• Assisted coops in credit management , financial management, and
livelihood training, enhancing coop resiliency amidst the pandemic and
trying to lessen their delinquency and in transforming their affiliates into a
billionaire cooperative.

27. Cont.
• Introduced a business model for retailing and product identity of coops
and launched a cooperative brand (lubricant) named after the
Federation for the use of primary coops in their rice mill.
• Cooperative staff who are doing their best to help the cooperative grow
were sent to other countries/international trainings for them to
experience and widened their perspective on how cooperative works
were sent to ACCU training in Thailand

28. Conclusions
1. The success of the cooperative movement is
essential depending on cooperative education
and training of members on the one hand and in
the application of the principles, practices and
methods of cooperation as a way of doing
business, on the other hand. Both education and
training are therefore essential for the proper
development of any cooperative (CUCBCSS,
2014).

29. Conclusions
2. There are best practices that can be
replicated by other Federations such as
capacity building, policy formulations,
provision of technical assistance like
accounting software installation, manual
operation formulation, delinquency rate
monitoring, access to information, and
building solid linkages and advocacy.

30. Recommendations
In view of the foregoing findings and
conclusions, the following recommendations are
drawn.
1. For Legislators:
1.1 Policy support from the Senate and Congress to
amend R.A. 9520, specifically Article 86,
paragraph (2), letter (a) to change the words may
be remitted to shall be remitted to a federation
chosen by the cooperative or of which it is a
member and Policy direction to require
the maximum utilization of C.E.T.F to be used for
the members and the training requirements as
provided under Section 17 of R.A. 11364 and R.A.
9520

31. 2. For the Federation
The federation must give entrepreneurial capabilities a top
priority in their service to complement, augment the
member affiliates' business, and gain a competitive
advantage in the local, national, and global markets;
Upscale the expertise of the pool of trainers and
facilitators to proactively respond to the demands of the
member affiliates; Provide a portfolio to cater to the
financial needs of the member-affiliates and help
facilitate the documentary requirements for financial
assistance offered by partners and financial institutions.