Governance & Management-of-coops Part II

Cooperative Development Authority
GOVERNANCE &
MANAGEMENT OF CO-OPS
OPERATION & MANAGEMENT OF THE
COOPERATIVE
Van Ian F. Enriquez
Chief CRITS
CDA Regional Office I

TOPICS
OPERATION & MANAGEMENT OF THE COOPERATIVE
• Importance of Financial Management, Personnel Management vs. Human
Resource Management, Production & Marketing, Technical Aspects
• Overview of Ethical Standards in Co-ops
• Performance & Measurement
• Relevant Laws Affecting Cooperatives
• Overview of Social Standards for Co-ops
COPERATIVE DEVELOPMENT AUTHORITY
REGIONAL OFFICE 1

OPERATION & MANAGEMENT
OF THE COOPERATIVE
REGIONAL OFFICE 1

Financial Management
• It is the strategic planning of how a business
should earn and spend money.
• It includes decisions about raising capital,
borrowing money and budgeting.
• Involves setting financial goals and analyzing data
to accomplish the objectives of the organization.
REGIONAL OFFICE 1

Importance of Financial Management
TO ENSURE SUFFICIENT AVAILABILITY OF FUNDS
• You must manage your finances so you don’t
overspend and so you remain prepared for all
expenditures, as well as profit distributions.
REGIONAL OFFICE 1

TO ENSURE OPTIMUM FUNDS UTILIZATION
• Once the funds are procured, they should be
utilized in maximum possible way at the very least
cost.
REGIONAL OFFICE 1

TO ENSURE SAFETY ON INVESTMENTS
• Funds should be invested in secured ventures so
that adequate rate of return can be achieved.
REGIONAL OFFICE 1

TO PLAN A SOUND CAPITAL STRUCTURE
• There should be sound and fair composition of
capital so that a balance is maintained between
debt and equity capital.
REGIONAL OFFICE 1

TO REDUCE THE COST OF FINANCE
 Costs may include interest payments, financing
fees charged by intermediary financial institutions,
and the fees or salaries of any personnel required
to complete the financing process.
REGIONAL OFFICE 1

Personnel Management
• Is an administrative function of an organization that
exists to provide the personnel needed for
organizational activities and to manage the general
employee-employer relationship which includes
handling employee grievances .
• It focuses in determining the organization's current
and future labor needs by recruiting people with
knowledge, skills and abilities that the organization
requires.
REGIONAL OFFICE 1

Personnel Management
• It also focuses in ensuring that the organization
complies with all occupational health and safety
regulations as a factor in making a safe and healthy
workplace.
REGIONAL OFFICE 1

Human Resource Management
• On the other hand, HUMAN RESOURCE
MANAGEMENT has a wider scope and considers
employees as the asset to the organization.
• It promotes MUTUALITY in terms of goals setting,
responsibility, reward etc. that will help in
enhancing the economic performance and high
level of human resource development.
REGIONAL OFFICE 1

Personnel Management vs. Human Resource Management
BASIS OF
DIFFERENCE
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
MEANING
It is the traditional approach of
managing people at a workplace
and is the concern of the
personnel department alone.
It is the modern approach of
managing people at a workplace and
is the concern of managers of all
levels (from top to bottom).
NATURE It is a routine function. It is a strategic function.
FOCUS
Efficient management is given
priority.
Human values and individual needs
are given priority.
OBJECTIVE
It manages people in accordance
with organization’s goal.
It determines human resource needs
and formulate policies by matching
individual’s needs with organization’s
needs.
PERSPECTIV
E
It regards people as basic input to
make a desired output.
It regards people as a strategic and
valuable resource to make a desired
output.
JOB DESIGN
Jobs are designed on the basis of
division of labor.
Jobs are designed on the basis of
teamwork.

PRODUCTION
The process which transforms the inputs/resources of an
organization into final goods (or services) through a set
of defined, controlled and repeatable policies.
Production will certainly depend on the type and nature
of your proposed business.
REGIONAL OFFICE 1

PRODUCTION
Generally, a producer of goods will have a more
sophisticated production process compared to a service
provider.
This is not to say that service-based businesses are
simple, but rather, these type of businesses usually
require fewer "processes".
REGIONAL OFFICE 1

MARKETING
Marketing is a process by which a product or service is
introduced and promoted to potential customers.
The overall marketing umbrella covers advertising, public
relations, promotions and sales.
REGIONAL OFFICE 1

MARKETING
Without marketing, your business may offer the best
products or services in your industry, but none of your
potential customers would know about it.
Without marketing, sales may crash and cooperatives
may have to close.
REGIONAL OFFICE 1

TECHNICAL ASPECTS
What is our objective?
• An objective consists of a goal (what to accomplish)
and a method (how to accomplish it) and a
measurement (determining if the goal is met).
REGIONAL OFFICE 1

TECHNICAL ASPECTS
Can we sell what we produce?
• Determine the needs of your market.
• Are there similar products or services already
available/offered?
• Cash-based business is the best but limited in the long
term – your net cash flow increases if you are able to
postpone payments and use the funds in the
meantime.
REGIONAL OFFICE 1

TECHNICAL ASPECTS
Do we have the “right” people?
• Estimate the cost of finding, training and paying
employees.
• Estimate the costs of operations (fixed) and cost of
materials (variable) and the potential revenue from
forecasted revenues - (Break-even Analysis)
REGIONAL OFFICE 1

TECHNICAL ASPECTS
Do we have options for outsourcing funds?
• Do some research and try to secure additional funding
outlets.
• Depending on the type of business, you may also be
eligible for grants.
• Only consider taking-out a loan that you are able to
pay back over time as you start to grow your business
revenue.
REGIONAL OFFICE 1

TECHNICAL ASPECTS
Engage the services of an independent CPA
• To provide professional advise and opinion in relation
to the financial aspect of the business
• A guide in decision-making and undertaking measures
if needed
• To avoid any problems arising from proper payment of
taxes, regulation fees and other compliances.
REGIONAL OFFICE 1

OVERVIEW
OF
ETHICAL STANDARDS
IN
COOPERATIVES
REGIONAL OFFICE 1

ETHICAL STANDARDS IN CO-OPS
BY-LAWS
of
_______________________ Agriculture Cooperative
Article V
Committees
Section 9. Ethics Committee. An Ethics Committee shall be composed of three (3)
members to be appointed by the Board of Directors. Within ten (10) days after
their appointment, they shall elect from among themselves a Chairperson,
Vice-Chairperson and a Secretary who shall serve for a term of one (1) year
or until their successors shall have been appointed and qualified and without
prejudice to their reappointment. No member of the Committee shall hold any
other position in the Cooperative during his/her term of office.
Section 10. Functions and Responsibilities. The Ethics Committee shall:
a. Formulate, develop, implement and monitor the Code of Governance and
Ethical Standards (CGES) to be observed by the members, officers and
employees of the cooperative subject to the approval of the Board of Directors
and ratification by the General Assembly;

ETHICAL STANDARDS IN CO-OPS
BY-LAWS
of
_______________________ Agriculture Cooperative
Article V
Committees
Section 10. Functions and Responsibilities. The Ethics Committee shall:
b. Conduct initial investigation or inquiry, upon receipt of a complaint involving
violations of the Code of Governance and Ethical Standards;
c. Submit report on its recommendation together with the appropriate sanctions,
to the Board of Directors for its proper action, or to the remaining members
of the Board of Directors, if the violation is committed by any members of
the Board of Directors. Provided, that if the remaining members of the Board
of Directors fail to act on the report within a period of thirty (30) days,
or the violation is committed by the majority of the Board of Directors,
the Audit committee shall act on the same; and
d. Perform such other functions as may be prescribed in the By-laws or authorized
by the Board of Directors.

VALUES
It is an idea, a concept, or a mental image that is
intrinsically good to an individual and it serves as basis
for a meaningful participation in an organization.
Beliefs that are shared among the stakeholders of an
organization.
Values drive an organization's culture and priorities.
REGIONAL OFFICE 1

COOPERATIVE VALUES
Cooperatives are based on the values of:
Self-help
Self-responsibility
Democracy Equality,
Equity
Solidarity
REGIONAL OFFICE 1

SELF-HELP
This is the idea that a co-op is not a charity; instead
it is a tool used by individuals and groups to
directly improve their lives and communities
through their own work and effort.
REGIONAL OFFICE 1

SELF RESPONSIBILITY
is a major aspect of cooperation. In a co-op, all
members are in charge; so individuals must be
accountable for their actions, responsibilities,
and duties.
REGIONAL OFFICE 1

DEMOCRACY
Co-ops are controlled, managed and operated
by its members. Thus, suggestions are heard
and accepted to make the services or products
more responsive to their needs.
Thus, it empowers members to participate
and vote in meetings.
REGIONAL OFFICE 1

EQUALITY
is about giving everyone access to the same
resources and treating them the same.
Every member is only entitled to one vote
regardless of the amount of his/her
contribution.
REGIONAL OFFICE 1

EQUITY
is the concept of providing disadvantaged
persons and privileged people with fair
accommodation and treatment according to
their needs - in order to put them on equivalent
ground.
REGIONAL OFFICE 1

SOLIDARITY
This is the value of “fellowship” amongst members
of a co-op.
Thus, it is essential for cooperatives and
cooperators to recognize the importance of
working together to support others in their
struggles, goals, and efforts – and for others
to do the same for them.
REGIONAL OFFICE 1

ETHICAL VALUES
In the tradition of their founders, cooperative
members believe in the ethical values of:
Honesty
Openness
Social Responsibility
Caring For Others
REGIONAL OFFICE 1

HONESTY
Truthfulness, fairness and sincerity in all
dealings.
The dealings may be between the members & the
cooperative; among members the themselves;
between & among cooperatives.
REGIONAL OFFICE 1

OPENNESS
One that promotes collaboration where the
members are free to share their views and
suggestions with an emphasis on learning as
opposed to being right.
Characterized by transparency and free
access to knowledge and information.
REGIONAL OFFICE 1

SOCIAL RESPONSIBILITY
The economic activities undertaken and decisions
made in the co-ops as a business enterprise are
balanced by the needs and interests of their
members and thecommunity.
REGIONAL OFFICE 1

CARING FOR OTHERS
Co-ops bring people together to meet a shared
need through operation of a democratically-
controlled business.
Co-ops are open to all who can take advantage of
theirbenefits.
REGIONAL OFFICE 1

SELF-HELP
SELF-
RESPONSIBILITY
EQUALITY
HONESTY OPENNESS
SOCIAL
RESPONSIBILITY
DEMOCRACY
CARING FOR
OTHERS
SOLIDARITY
COOPERATIVE & ETHICAL VALUES
EQUITY
REGIONAL OFFICE 1

AUTONOMY AND
INDEPENDENCE
EDUCATION,
TRAINING &
INFORMATION
COOPERATION
AMONG
COOPERATIVES
CONCERN FOR
COMMUNITY
DEMOCRATIC MEMBER
CONTROL
MEMBER ECONOMIC
PARTICIPATION
VOLUNTARY AND OPEN
MEMBERSHIP
SELF-HELP
SELF-
RESPONSIBILITY
EQUALITY
HONESTY OPENNESS
SOCIAL
RESPONSIBILITY
DEMOCRACY
CARING FOR
OTHERS
SOLIDARITY
CO-OP PRINCIPLES ARE PRACTICAL APPLICATIONS OF CO-OP VALUES
CO-OP /ETHICAL VALUES ARE THE FOUNDATION OF THE CO-OP PRINCIPLES
EQUITY

ETHICAL STANDARDS
A set of values or moral principles defining the
accepted conduct of behavior through the
general consent of the members.
REGIONAL OFFICE 1

CODE OF CONDUCT
A set of rules of behavior for the officers,
employees and members of the cooperative in
accordance with their agreed ethical standards.
REGIONAL OFFICE 1

CODE OF CONDUCT
It is a list of “DO’s” and “DON’Ts” needed to put
discipline in the co-op with the main purpose of
preserving and sustaining TRUST.
REGIONAL OFFICE 1

Common Areas of Ethical Concern
• Leadership qualities/traits
• Workplace Culture
• Rights and privileges (abuses)
• Business transactions (conflict of interest)
• Conduct of meetings (decorum)
• Compliance with existing laws/policies
REGIONAL OFFICE 1

• LEADERSHIP QUALITIES/TRAITS
Directors, officers and employees, in the
performance of their duties and responsibilities, shall
be guided by the principles of honesty, dedication
and sincerity.
They must be updated in paying their accounts with
the cooperative.
REGIONAL OFFICE 1

• WORKPLACE CULTURE
Directors, officers and employees should act with
integrity, maintain a professional work environment
and comply with policies.
They should treat customers, colleagues, and
partners ethically at all times.
REGIONAL OFFICE 1

• RIGHTS AND PRIVILEGES (ABUSES)
Directors, officers and employees, shall promote
and advance the interest and welfare of the
cooperative to sustain the growth and well-being of
its members and the community in general.
They should always act to protect co-op’s assets,
including physical, intellectual, and electronic or
digital properties.
REGIONAL OFFICE 1

• BUSINESS TRANSACTIONS
Directors, officers and employees shall not enrich
themselves nor engage in any activity that is adverse or
in conflict with the objectives of the cooperative and the
interest of its members.
It is essential that they avoid relationships and activities
that hurt, or appears to hurt, their ability to make
objective and fair decisions.
REGIONAL OFFICE 1

• CONDUCT OF MEETINGS (DECORUM)
Attendance and punctuality
Absence without notice
Use of Cellular Phones/Internet
Dress Code
Substance abuse
Use of profane or derogatory remarks
Observance of confidentiality
REGIONAL OFFICE 1

• COMPLIANCE WITH EXISTING LAWS/POLICIES
As trustees of the cooperative, they shall protect the
funds of its members in accordance with prudent
business practices.
They shall provide members timely and accurate
information regarding the financial condition,
operations, and services of the cooperative.
REGIONAL OFFICE 1

Simple Code of Ethics
 For members
1. Pay your loans on time.
2. Save and be the model in the CBU program
of your co-op.
3. Never discuss in public cooperative matters
that should be kept private.
REGIONAL OFFICE 1

PERFORMANCE
&
MEASUREMENT
REGIONAL OFFICE 1

PERFORMANCE INDICATORS
Is a measurement by which the
performance, efficiency and achievement of an
organization can be assessed often
by comparison with an agreed standard or target.
Can be expressed either QUANTITATIVELY or
QUALITATIVELY.
REGIONAL OFFICE 1

Selecting the right performance indicator (PI) will
depend on your industry and which part of the
business you want to keep track of, such as:
• Sales/service income
• Finances
• Members’ satisfaction/benefits
• Project Management /implementation
• Production/Marketing
REGIONAL OFFICE 1

A good PI should act as a compass, helping
the board and management understand
whether they are taking the right path
toward the co-op’s strategic goals.
REGIONAL OFFICE 1

To be effective, a PI must be:
• Well-defined and quantifiable;
• Communicated throughout the organization and units;
• Crucial to achieving a goal;
• Applicable to the Line of Business (LOB) or unit.
REGIONAL OFFICE 1

STRATEGIC GOALS PERFORMANCE INDICATOR
Increase Members’ Economic
Participation
No. of members availing co-op’s
products/services vs. total membership
Increase in Membership
% increase in recruited members annually as
targeted in the ADP
Full Utilization of CDF
No. of community activities conducted/initiated
as targeted in the ADP
Improve the quality of life in
the community
No. of jobs created

BALANCED SCORECARD CONCEPT (BSC)
The BSC involves creating a set of measurements
for four (4) strategic perspectives. These
perspectives include:
1. Financial
2. Customer
3. Internal Business Process
4. Learning And Growth
REGIONAL OFFICE 1

What do you try to Balance?
An important part of the BSC is the emphasis on establishing a
balance between four types of measurements. These types of
measurements include:
1. SHORT TERM and LONG TERM ;
2. EXTERNAL (for stakeholders and customers)
and INTERNAL (for critical business processes, innovation,
and learning and growth);
3. LEADING INDICATORS (desired outcomes)
and LAGGING INDICATORS (outputs);
4. OBJECTIVE MEASURES (e.g. financial)
and SUBJECTIVE MEASURES
(e.g. non-financial).
REGIONAL OFFICE 1

BALANCED SCORECARD CONCEPT (BSC)
PERSPECTIVES QUESTION GOALS MEASUREMENTS
FINANCIAL
To succeed financially,
How should we appear
to the stakeholders?
Produce profits
sufficient to cover
expenses and provide
reserves for the future
STEPS; Sales/Service
income growth; Cash
flow
CUSTOMER
To achieve our Vision,
How should we appear
to our customers?
Provide
products/services on
time and responsive
to their needs
Customer satisfaction
Index ; % of Customer
complaints; retention
ratio
INTERNAL
BUSINESS
To satisfy our members,
What business process
must we excel at?
Continual Improvement
of services/products
No. of members
availing co-op’s
products/services vs.
total membership
LEARNING &
GROWTH
To achieve our Vision,
How will we sustain our
ability to change &
improve?
Improved Systems and
People (training, skills,
morale)
No. of reviewed &
approved policies; % of
employee turnover

RELEVANT LAWS
AFFECTING
COOPERATIVES
REGIONAL OFFICE 1

REGIONAL OFFICE 1
R.A. 9520-PHILIPPINE COOPERATIVE CODE OF 2008
R.A. 9178- ESTABLISHMENT OF BARANGAY MICRO BUSINESS ENTERPRISES (BMBEs)
R.A. 3765-TRUTH IN LENDING ACT (for coops with credit operations only)
R.A. 10667-PHILIPPINE COMPETITION LAW (anti-competitive agreements)
R.A. 8424 –NIRC OF 1997 as amended by R.A. 10963- TRAIN LAW
R.A. 7934 –CONSUMER ACT OF THE PHILIPPINES (unfair trade practices)
R.A. 9003-ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000; R.A. 9275- PHILIPPINE CLEAN
WATER ACT OF 2004; R.A. 8749- PHILIPPINE CLEAN AIR ACT OF 1999
P.D. 442-LABOR CODE OF THE PHILIPPINES as amended & renumbered
R.A. 11058-COMPLIANCE WITH OCCUPATIONAL SAFETY AND HEALTH STANDARDS (workers)
R.A. 8791-GENERAL BANKING LAW OF 2000 (for cooperative banks only)
R.A. 9160 -ANTI-MONEY LAUNDERING ACT OF 2001 as amended by R.A. 11521
R.A. 9510-CREDIT INFORMATION SYSTEM ACT (for coops with credit operations only)
R.A. 10173 -DATA PRIVACY ACT OF 2012
R.A. 9710 -MAGNA CARTA FOR WOMEN, R.A. 8972-SOLO PARENTS’ WELFARE ACT OF 2000, R.A.
9994 EXPANDED SENIOR CITIZENS ACT OF 2010, R.A. 9442-MAGNA CARTA FOR PWD

BASIC OPERATIONAL REQUIREMENTS IN A CO-OP
1. Mayor’s Permit
2. BIR Requirements:
• TIN
• Official Receipt
• Certificate of Tax Exemption
• Books of Accounts (Stamped by BIR)
3. Office with Signage
4. Core Management Team: Manager, Treasurer and Bookkeeper
6. Functioning Officers
7. Policies and Procedures
8. Adequate Capitalization
REGIONAL OFFICE 1

REGULAR REPORTS
All registered co-ops shall submit an electronically encoded
Cooperative Annual Progress Report (CAPR) with the
following attachments:
* Social Audit Report (SAR);
* Governance and Management Audit Report (GMAR),
including copies of the semi-annual report on mediation
and conciliation;
* Audited Financial Statement (online submission);
* List of Officers and Trainings undertaken/Completed.
REGIONAL OFFICE 1

REGULAR REPORTS
All registered cooperatives shall file with the CDA
a copy of the required reports either through
personal, registered mail, courier or electronic means,
within 120 days from the end of every calendar
year.
The CAPR including all of the reports shall be
reported to its members during the annual general
assembly meeting.
REGIONAL OFFICE 1

CHECKLIST OF GOVERNMENT REQUIREMENTS
REGIONAL OFFICE 1
NWPC GUIDELINES
NO. _02 Series of
2007 Exemption from
wage increase/COLA

OVERVIEW OF SOCIAL
STANDARDS FOR
COOPERATIVES
REGIONAL OFFICE 1

Social Audit Report
For Co-ops (SAR)
REGIONAL OFFICE 1

• Guide the co-op in the assessment of its social
performance (tool to measure effectiveness of the
co-op’s social development services);
• Require the co-op to use the prescribed tools and
format in the preparation and submission of social
audit report (SAR); and
• Provide the manner and period of submitting SAR
to the CDA.
PURPOSES
REGIONAL OFFICE 1

This document shall determine the co-op’s social
performance and shall serve as basis for writing the
SOCIAL AUDIT REPORT.
SOCIAL AUDIT WORKING DOCUMENT
REGIONAL OFFICE 1

REGIONAL OFFICE 1

FOR THE YEAR __________
A. BASIC INFORMATION OF THE COOPERATIVE
NAME:
_____________________________________________________________________
ADDRESS:
____________________________________________________________
REGISTRATION NO.: ______________ DATE REGISTERED:
______________
B. STATEMENT OF
VISION:
________________________________________________________________________
MISSION:
______________________________________________________________________
CORE VALUES:

NAME:
_____________________________________________________________________
ADDRESS:
____________________________________________________________
REGISTRATION NO.: ______________ DATE REGISTERED:
______________
B. STATEMENT OF
VISION: Our vision is to be the preferred choice among our members for
their financial needs and services to be delivered in line with our values.
MISSION: Our mission is to provide a range of quality services to our
members and to contribute and add value to the community within
which we operate

NAME: _____________________________________________________________________
ADDRESS: ____________________________________________________________
REGISTRATION NO.: ______________ DATE REGISTERED: ______________
B. STATEMENT OF
CORE VALUES: INTEGRITY AND RESPECT: we act in an ethical and honest manner treating
all our members with courtesy and respect. - TRUSTWORTHINESS: we operate to the highest
standards of discretion and confidentiality in a professional way. – CARING FOR OTHERS: we
bring people together to meet a shared need through the operation of a democratically-
controlled business and consider ourselves a part of the community. - OPENNESS: we promote
collaboration where the members are free to share their views and suggestions
SOCIAL GOALS:
To promote financial education and the wise use of credit by officers & members.
To provide livelihood trainings for member-entrepreneurs.
To provide support to local associations and organizations within our community.

C. POLICIES AND GUIDELINES ON SOCIAL
DEVELOPMENT
TITLE/DESCRIPTIION
OF POLICY
GUIDELINES
SOURCE OF
DOCUMENT
BOD/GA
RESOLUTION
NO.
DATE
APPROVED

C. POLICIES AND GUIDELINES ON SOCIAL
DEVELOPMENT
TITLE/DESCRIPTIION OF
POLICY GUIDELINES
SOURCE OF
DOCUMENT
BOD/GA
RESOLUTION NO.
DATE
APPROVED
Training on Financial
Education: Financial Literacy;
Wise use of credit by
members
G.A. Resolution G.A. Resolution
No.04 Series of 2020
April 23, 2020
Livelihood Training on Mango
Processing/Candle-
making/Meat
Processing/Basket Weaving,
etc.
G.A. Resolution G.A. Resolution
April 23, 2020
Support to Barangay
Activities re: Anti COVID19
Campaign
BOD Resolution BOD Resolution
April 5, 2020

D. SOCIAL DEVELOPMENT PROGRAM
The social development program of the cooperative
focuses on two (2) areas: a. for the COOPERATIVE
itself; and b. for the COMMUNITY.
The source of fund for the first area may vary from
Cooperative Education and Training Fund (CETF),
Optional Fund or outright expense; while the
second area is exclusive from the Community
Development Fund (CDF).
REGIONAL OFFICE 1

D.1. Cooperative
D.1.a. Members
KEY AREAS SPECIFIC
ACTIVITIES
NO. OF
ACTIVITIES
NO. OF BENEFICIARIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Education;
Scholarship;
Training
Livelihood
Trainings
2 3 12 15 15,000.00 CETF
Health Program
Dental
Health
Program
1 50 50 100 5,000.00
Member
Benefit
Expense
Social
Events/Gatherings
Christmas
Gifts
2 50 50 100 20,000.00
Member
Benefit
Expense
Social Protection
(insurance and
mutual benefits)
MBAI
(NATCCO),
CISP,
CLIMBS,
etc.
1 20 40 60 99,000.00
Pre
payments
by
members

D.1. Cooperative
D.1.a. Members
KEY AREAS
SPECIFIC
ACTIVITIES
NO. OF
ACTIVITIE
S
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Disaster Risk
Reduction &
Management
Fire &
Earthquake Drill
1 70 80 150 5,000.00 CETF
Gender Equality
and Women
Empowerment
GAD
Orientation/
GST/Maternal
Health Program
5 0 15 15 10,000.00 CETF
Others, specify
(ANTI COVID19
Activities)
Provision of
face mask etc.
& consumer
goods during
ECQ period
2 25 35 60 98,000.00
Member
Benefit
Expense
SUB TOTAL

D.1. Cooperative
D.1.b. Officers
KEY AREAS SPECIFIC
ACTIVITIES
NO.
OF
ACTIVITIES
NO.
OF
BENEFICIARIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Seminars;
Scholarship;
Training
Seminar on
Financial
Literacy for
BODs
1 3 2 6 10,000.00 CETF
Health Care
Medical
Check-ups
1 11 14 25 20,000.00
Member
Benefit
Expense
Social Events/
Gatherings
CHRISTMA
S Party/Gifts
etc.
1 11 14 25 25,000.00
Member
Benefit
Expense
Social Protection
(insurance and
mutual benefits)
MBAI
(NATCCO),
CISP,
CLIMBS,
etc.
1 15 30 45 90,000.00
Member
Benefit
Expense

D.1. Cooperative
D.1.b. Officers
KEY AREAS
SPECIFIC
ACTIVITIES
NO.
OF
ACTIVITIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Disaster Risk
Reduction &
Management
Fire &
Earthquake
Drill
1 2 10 12 2,000.00 CETF
Gender
Equality &
Women
Empowerment
GAD
Orientation/
GST/Maternal
Health
Program
5 3 12 12 5,000.00 CETF
Others, specify
(ANTI COVID19
Activities)
Provision of
face masks
etc. &
consumer
goods during
ECQ period
2 25 35 60 98,000.00
Member
Benefit
Expense
SUB TOTAL

D.2. Community
KEY AREAS
SPECIFIC
ACTIVITIES
NO.
OF
ACTIVITIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Seminars;
Trainings
for non-
members
Livelihood
Training for
Women
in the
Community
1 0 15 15 10,000.00 CDF
Environment
Conservation
Protection
Tree-
Planting
Activity
1 20 20 40 3,000.00 CDF
Health and
Sanitation
Clean up
Drive;
Brigada
Eskwela,
etc.
1 20 20 40 3,000.00 CDF
Partnerships
and
Community
Groups
Catholic
Women’s
League
1 15 15 30 5,000.00 CDF

D.2. Community
KEY AREAS
SPECIFIC
ACTIVITIES
NO.
OF
ACTIVITIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Sports, Cultural
and Religious
Activities
Liga ng mga
Barangay
Sportsfest
1 15 5 20 3,000.00 CDF
Disaster Risk
Reduction and
Management
Evacuation
Plan/Fire
and
Earthquake
Drill
1 20 20 40 5,000.00 CDF
Gender Equality
and Women
Empowerment
GAD
Orientation/
GST
1 55 55 6,000.00 CDF
Inclusivity
(Membership
Expansion)
Coop
Advertising/
Promotion
1 35 55 90 3,000.00 CDF

D.2. Community
KEY AREAS
SPECIFIC
ACTIVITIES
NO.
OF
ACTIVITIES
AMOUNT
UTILIZED
SOURCE
OF
FUND
MALE FEMALE TOTAL
Children & Youth
Brgy.
Feeding
Program
1 26 24 50 8,000.00 CDF
Persons with
Disability
Donation
of
Crutches
1 5 7 12 20,000.00 CDF
Elderly
Senior
Citizens’
Night
1 25 35 60 10,000.00 CDF
Indigenous
People
Others, specify
(ANTI COVID19
Activities)
Provision
of face
masks etc.
during
ECQ
period
2 20 30 50 5,000.00 CDF
SUBTOTAL

E. COMMUNITY DEVELOPMENT FUND (CDF)
Accumulated
Amount
of CDF
Amount Utilized
for Cooperative
Social Activities
Percentage
Utilization
Accomplished by:
SOCIAL AUDIT/AUDIT COMMITTEE/INTERNAL AUDITOR

SOCIAL AUDIT REPORT
XYZ Multi-Purpose Cooperative is a duly registered cooperative with
the Cooperative Development Authority (CDA) under Registration
No.__________ on ____________. Its registered office address is
__________________________.
We have audited the social performance of the XYZ MPC on
____________ (date) covering the CY 20____ to validate the
adherence of the cooperative to the seventh cooperative principle,
the "Concern for Community" and determines whether the co-op
works for the community's sustainable development through policies
and programs approved by their members.
This Social Audit is in compliance with Rule 11 of the Revised
Implementing Rules and Regulations of R.A. 9520 and Memorandum
Circular No. 2018 – 01 issued by the CDA.

Hereunder are the Auditor’s Report on the comments/recommendations in Major
Key Areas of Social Performance:
KEY AREAS
COMMENTS AND RECOMMENDATIONS
(SOCIAL DEVELOPMENT
PERSPECTIVE)
A. STATEMENT OF VISION, MISSION,
CORE VALUES & SOCIAL GOALS
B. POLICIES AND GUIDELINES ON
SOCIAL DEVELOPMENT
C. SOCIAL DEVELOPMENT
PROGRAMS FOR:
COOPERATIVE
COMMUNITY
D. ALLOTMENT AND UTILIZATION OF
COMMUNITY DEVELOPMENT FUND
E. OTHERS, SPECIFY

Based on the above information, the following are the recommended
action/s to enhance the social performance of the cooperative
to achieve its social goals:
AREAS
FOR
IMPROVEMENT
RECOMMENDATIONS
MANAGEMENT
COMMITMENT
Prepared by:
____________________________________
SOCIAL AUDIT/AUDIT COMMITTEE/
INTERNAL AUDITOR
Conforme:
_____________________
__
GENERAL MANAGER
__________________
CHAIRPERSON

Management Social Performance Report
 At the end of year, the management shall prepare a
MANAGEMENT SOCIAL PERFORMANCE REPORT
which presents the accomplishments of the
cooperative’s social development plan.
 This could be used as reference by the auditor in the
conduct of audit but shall only be kept or retained at
the level of the cooperative.
REGIONAL OFFICE 1

SOCIAL
DEVELOPMENT PLAN
ACTUAL
ACCOMPLISHMENT
VARIANCE
REPORT
REMARKS
Prepared by: Reviewed by:
_____________________ _____________________
MANAGEMENT STAFF GENERAL MANAGER
Approved by:
________________
CHAIRMAN

Governance & Management-of-coops Part II

Governance & Management-of-coops Part II

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Governance & Management-of-coops Part II