This document provides guidelines and checklists for cooperative operations and management in various areas. It outlines policies, programs, plans and manuals that Philippine cooperatives should have in place to properly guide their operations. These include development plans, annual plans and budgets, social development plans, education and training plans, board resolutions on human resources, finances and more. The document also provides templates to track performance indicators over multiple years.

1. Jo B. Bitonio
CDA Dagupan
Guidelines and
Checklists for
Cooperative Operation
and Management
June 6, 2016

2. The review of the CDA Memorandum
Circulars, Social Audit Report (SAR) &
Performance Audit Report (PAR), PISO can
result in introducing intervention through a
listing of programs, projects, policies,
GA/Board Resolutions, manuals, information
facilities, Code of Governance and Ethical
Standards and other strategies intended to
guide Philippine cooperatives in their
operation.

3. . Development Plan
. Annual Plan and Budget
. Acceptance of AFS
. Hiring of External Auditor
GA Resolution
MC 2014-02 - states the 5 year limit role in the
engagement of CEA
- gap of 2 years
- prohibition in the engagement and
signing of
audit when the validity of
accreditation is not
valid or in question

4. • Development Plan (DP)
• Annual Plan (Art 33 RA 9520; Rule 7
Sec 4 of the IRR)
• Social Development Plan (SDP)
• Education and Training Plan (ETP)
• Succession Plan (HRD Plan)
• Gender and Development Plan (MC 2013-22)
Plans
Note: - Annual plan is lifted from the
Development Plan
- SDP and ETP can be incorporated
in the DP

5. Art 53 of RA 9520
Every cooperative shall draw up
reports of its programs of
activities including those in
pursuance of their socio-
economic undertaking sharing
their progress and
achievements at the end of
fiscal year

6. • Oversight functions
• Performance evaluation/appraisal
• Election guidelines
• Distribution of net surplus (Rate of Interest
and patronage refund)
• Provisions and funding for statutory reserves
• Utilization of statutory reserves
• Provisions of funding for Retirement Fund
Board Resolutions

7. • Monetary benefits (Performance Bonus, 13th
• Month Pay, SSS, Phil Health, Pag-ibig)
• Non Monetary Benefits (Rice subsidy, uniforms)
• Membership subscription of capital
• Compliance limitation of shares (10%)
• Deposit for share capital subscription
• Issuance of Share Certificate
• Conflict Mgmt/Mediation and conciliation
Program
Policy/Board Resolutions

8. • Conflict management – officers, employees,
members
• Associate members
• Laboratory cooperatives
• Subsidiary coop
• GAD and Gender Equality
Policy/Board Resolutions

9. • Code of Governance and Ethical Standard
• Conflict of Interest (engaged in similar business)
• Code of Ethics provisions for officers /staff
/members
• Policy requiring all officers to comply with the
mandatory trainings requirements (MC 2012-07)
• Election Rules and Guidelines (MC 2013-02)
Policy/Board Resolution

10.  Manual of Operations (membership, business
operation, branch, satellite)
 HR (Organizational and Functional Structure;
compliance with labor standard, adoption of
performance standard)
 Accounting ( maintenance of books of accounts;
updated recording); separate books per line of business;
 Interim financial – monthly, quarterly, annual
 Internal Control System
 Compliance with BIR, DOLE, LGU, Etc.
Manual

11. • Code of Ethical Standard – Officers, staff-members
• Compliance with SCA
• Savings Mobilization program
• Institutionalization of financial and operational
Performance Appraisal System (PISO and PESOS)
Manual

12. • Capital Build Up
• Gender Programs and Projects
• Member Benefit Program ( group insurance,
medical and health assistance, education
assistance, burial assistance)
• Retirement & Funding of Retirement Program
• Human Resource Program
Programs and Projects

13. • Nation Building Programs (SDGs, environment
• Responsiveness to gender, elderly, youth and
person with especial needs
• Collaborative Programs/projects
Programs/Projects

14. • Education and Training Program – officers,
employees, members (Calendar of activities,
compliance with mandatory training for officers)
• Leadership Development Program (retreats,
succession planning, leadership session)
• Employee Support Program (Council, Insurance,
Protection, Grievance mechanism, Awards and
Recognition, Scholarship, Seminar, training,
• Social, cultural, sports
Programs/Projects

15. • Suggestion/Grievance box
• Newsletter
• Freedom board
• Email account
• Website
• FB account
Information Facilities

16. Year
1
Year
2
Year
3
Year
4
Year
5
No. of Regular members
No. of Associate members
No. of members patronizing the services of coops
Service A
Service B
Service C
No. of members with additional share capital
No of members with deposits
No of members participated in the AGA
No of members participated in membership
events (e.g. tree planting, medical mission, etc)
Membership Growth and Expansion Program
Recruitment of members based on the AC/BL.

17. No. of members benefitting from the members’
social benefit program/s
Year
1
Year 2 Year
3
Year
4
Year
5
Group insurance benefit
Medical & health assistance
Educational Assistance
Burial assistance/aid
Implementation of education program
No of members attended continuing education
and training program
Values Education
Cooperative Principles & Practices
Ethics
Entrepreneurial skills
Leadership Training
Financial Literary
Livelihood
Membership Growth and Expansion Program

18. Training
Trainings Conducted/ facilitated by
cooperatives
Year
1
Year
2
Year
3
Year
4
Year
5
PMES (Art 10 BL)
Competency Course (Fed
Affiliates)
oBoard of Directors
oManager
oMandatory Committees
(Audit, Election, Ethics,
MedCon)
oTreasurer & Secretary
MC 2015-09

19. Training
Trainings Conducted/ facilitated by cooperatives Year
1
Year
2
Year
3
Year
4
Year
5
Mandatory Training (MC 2015-09)
MICRO-COOPERATIVES [cooperatives
with total assets f P3 Million and
below]
Fundamentals of Cooperatives (8)
Governance and Management of
Cooperatives (8)
All other cooperatives with total assets
of more that P 3M
Fundamentals of Cooperatives (16)
Governance and Management of
Cooperatives (16)

20. Training
Optional Training Year
1
Year 2 Year
3
Year
4
Year
5
Additional trainings for officers of
COOPERATIVES ENGAGED IN SAVINGS
AND CREDIT with at least Five Million
Pesos (Php5,000,000.00) worth of
deposit liabilities based on their latest
AFS
Financial Management (8)
Risk Management (4)
Credit Management (4)
Period of Compliance
Cooperative officers shall complete the
required trainings within the first half of
their term

21. Training
Additional Training Year
1
Year
2
Year
3
Year
4
Year
5
Financial Management
Policy Development
Leadership and Values Re-Orientation
Conflict Management
Strategic Planning and Management
Orientation on Labor & Other Related
Laws
Records Management
(Financial/Non-Financial Transaction)
Cooperative Standards

22. Training
Additional Training Year
1
Year
2
Year
3
Year
4
Year
5
Investment and Banking Procedures
Basic Accounting for Non-Accountants
Internal Control including Inventory
System
Audit Management
Rules Formulation
Human Resource Management
Effective Communication Skills
Entrepreneurship & Business
Management Skills
Basic Computer Literacy

23. A policy requiring all elective
officers to comply with the
mandatory training requirement
wherein the election committee
shall be responsible to ensure
compliance thereon and in case of
appointed officers, it shall be the
Board of Directors.

24. Performance Audit Report
MC 2013-0165
Std Accom Intervention
Non Financial (100 x 35%) 35
Financial (100 x 65) 65
Profitability Perf (25)
Institutional Strength (20)
Structure of Assets (25)
Operational Strength (30)
Total Points 100

25. Social Audit Report
SAR Components Std Accom Intervention
Organization 15
Membership 35
Staff/Employees 10
Cooperation Among
Cooperatives
10
Community and Nations 25
Network, Alliances & Linkages 5
Total Points 100
MC 2013-016

26. Social Relevance
1. GAD (MC 2014-04) Year
1
Year
2
Year
3
Year
4
Year
5
• GAD Focal Person
• GAD Committee
• GAD Budget;
• GAD Program;
• GAD Implementation
2. Environmental Protection and
Conservation Program
3. Community Involvement and
Development Program
4. Cooperative Solidarity and Partnership
Program

27. Others
Signage MC 2012-15
BY are amended to conform
with RA 9520
Art 14-15 Amended
AC/BL
Actual business in accordance
with AC/BL
Compliance to SSS,
PhilHealth, Pagibig, BIR, etc.
Labor Code (min wage and
13th Mo. Pay)
Art 135, RA 9520
Compliant with SCA

28. Books of Accounts registered
with BIR
Separate books of Accounts
per business
MC 2013-15
Location of cooperatives based
on AC
Branches/Satellite within the
bounds of regulations
MC 2014-04 ; MC
2015-09
Term of existence shall be
made 5 yrs prior to the expiry
date
Art 13 RA 9520

29. Registry of members MC 2012-16
Membership subscribed and paid up
are covered by subscription
agreement
Subscription
Agreement
10% Limitation on Subscription Art 73 Rule 10
IRR/ BL
Issuance of Preferred shares AC/BL; Rule 10
Same value for common shares
Issues Share Capital to members MC-2013-04
The Net Surplus is distributed BL
Allocation of Statutory Reserves Art n86 RA
9520

30. Statutory funds are funded Art 85 Ra 9520
Organizational Structure MC-2011-7
The accountable officers are
covered by Surety Fund
MC 2011-15
Compensation of the BOD MC 2013-17
AC contains Arbitral Clause Art 137; Rule 13
RA 9520
Affiliation Art 25; BL; MC
2011-16
Remits CETF Art 86, RA 9520

32. All depends
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