This document provides guidelines and checklists for cooperative operations and management in the Philippines. It summarizes programs, projects, policies, board resolutions, manuals, and a code of governance from CDA circulars and audit reports. The guidelines cover areas like development planning, annual planning and budgeting, financial reporting, hiring of auditors, benefits for employees, membership policies, manuals for operations and accounting, training programs, and sanctions for noncompliance. The supplemental rules specify training requirements for cooperative directors and officers.

1. Jo B. Bitonio
Guidelines and Checklists for
Cooperative Operation and
Management

2. The review of the CDA Memorandum Circulars,
Social Audit Report (SAR) & Performance Audit Report
(PAR) resulted in a listing of programs, projects,
policies, GA/Board Resolutions, manuals, information
facilities and Code of Governance and Ethical
Standards intended to guide Philippine cooperatives.

3. . Development Plan
. Annual Plan and Budget
. Acceptance of AFS
. Hiring of External Auditor
GA Resolution
MC 2014-02 - state 5 year limit role in the engagement of CEA
- gap 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
• Social Development Plan (SDP)
• Education and Training Plan (ETP)
• Succession Plan (HRD Plan)
• Gender and Development Plan (GAD)
(MC 2013-22)
Plans
Note: - Annual plan is lifted from the
Development Plan
- GAD, 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
• Deposit for share capital subscription
• Issuance of Share Certificate
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
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
Programs and Projects

13. • Nation building programs (MDGs, 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
Information Facilities

16. MC 2013-02 Supplemental Rules on the Training Requirements of
Cooperative Directors, Officers and Committee members
• Training is required for all officers
• Incumbent officers who has not undergone the required trainings
shall UNDERGO such trainings within 12 months
• Non compliance shall be a ground for disqualification
Supplemental Rules
• Inclusion in the cooperative election guidelines a policy requiring to
comply with the mandatory trainings the ELECOM shall be responsible to
ensure compliance while the BOARD will be responsible for appointive
officers

17. Supplemental Rules
• CDA will notify in writing and direct the cooperatives to
ensure the officers compliance of the training
requirements during his/her remaining terms
Sanctions
• Failure to comply during his/her term shall be a ground for
disqualifications as future officers in any position until the
officer comply with the training requirement for that position
• Willful failure of the concerned cooperative to comply for its
officers despite notice shall be a ground for non issuance of
the CGS for the next immediate year.

18. Image used from
National Geographic