BIBLIOGRAPHY LONGAN, RIDEL B. MARCH...
BIBLIOGRAPHY
LONGAN, RIDEL B. MARCH 2006. Profile of Primary Cooperatives in
Bulanao, Tabuk. Benguet State University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
This study was conducted to find out the profile of primary cooperatives in
Bulanao, Tabuk, Kalinga. Specifically, it aimed to determine the following: the financial
status of the cooperatives; their policies and programs; their compliance with the
requirements of CDA, DOLE, BIR, and the Local Government; and their needs and
problems. A survey questionnaire was used to gather the data with the managers of the
different cooperatives as the respondents.
Based on the list of the Cooperative Development Authority as of December
2004, there were eleven cooperatives listed. However, during the survey, only four
cooperatives were operating while the other seven were closed. All four cooperatives
were multipurpose type with credit and consumer services. Three were institutional
cooperatives. The number of members in each cooperative was less than 300 and
majority of the members were employees, majority also were females. The employee of
the cooperatives were generally younger than their officers.
All the cooperatives have reached more than one million pesos total asset. The
major sources of their capital were from fixed deposits of members, reserves and from
liabilities. They also accept savings deposit from the public to have more operating
capital.
The cooperatives conducted various trainings and seminars to educate their
members but due to insufficient funds, very few members were sent to trainings and
seminars.
All the cooperatives had been complying with different requirements imposed by
the different government agencies. They conducted their general assembly regularly
every year and elect their officers during the general assembly. However, they do not
have any written development plan, mission vision and goal statements. These
cooperatives needed to be trained more on the management aspect of cooperative because
all of them have problems on lack of education of members and officers.
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TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Objectives of Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Profile of Primary Cooperatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Membership of Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Research Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Status of Operation of the
Primary Cooperatives
iii
In Bulanao, Tabuk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Services Offered by the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Date Registered and Number of Years
In Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Area of operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Number of Members in Each Cooperative . . . . . . . . . . . . . . . . . . . . . . .
13
Composition of Members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Number of BODs and Committee Members. . . . . . . . . . . . . . . . . . . . .
15
Profile of Officers and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Financial Status of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Sources of Funds of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Capital Build-up Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Seminar Conducted by the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . .
19
Trainings and Seminars Attended . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Compliance to Administrative Requirement . . . . . . . . . . . . . . . . . . . . .
21
Management Practices of the
Different Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Needs of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Problems Encountered by the Cooperatives . . . . . . . . . . . . . . . . . . . . .
25
SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
iv
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
v
INTRODUCTION
Rationale of the Study
A cooperative consist of persons who pool their resources under the principle of
equality and common understanding for their mutual benefit. It exists not to make profit
as an entity but if there should be profits, the same shall be divided equitably among the
members. It is based on the saying well known in the human circle that “in union there is
strength,” (Nolledo, 1996).
A population continually grows; economic problems diversify and become more
complex. Economic resources become more and more scarce and concentrated in the
hands of the few moneyed people, the capitalist while the majority of the population lives
in poverty. Their labor is the only resource they have and more often than not they are
abused by the capitalist. This situation needs a continuous search for solution. A key step
towards solving economic problems is through the cooperation among our fellow men.
This is how the cooperative idea came about. History shows that cooperatives were born
because of economic needs which would be solved only by the process of cooperation.
Cooperative is derived from the word “cooperate” which means to work with. A
cooperative therefore is an organization of persons who have voluntarily join to work
together for the achievement of their common goal, that is to provide services to the
members as for instance to market products of members, to purchase production supplies,
to provide housing especially low cost housing, to purchase family household needs and
it supplies community services like electric power and others.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Tabuk is one of the municipality of Kalinga with 281 registered cooperatives as of
December, 2003 based on the record of the Cooperative Development Development
Authority. These were of various types such as consumer, multipurpose, credit,
marketing and service cooperatives. The number of cooperatives existing in the place is
quiet many and therefore chances are that these cooperatives compete with each other in
terms of getting members and even in the provision of services that maybe detrimental to
their operation.
Statement of the Problem
The study intended to answer the following questions:
1.What is the profile of the primary cooperatives in Bulanao, Tabuk, kalinga in term of:
a. Area of operation
b. Status of operation
c. Services offered
2. What is the financial status of the primary cooperatives in terms of
a. total asset
b. total liabilities
c. total paid-up share capital
d. total reserves
3. What are the policies and programs of the cooperatives?
4. Are all the cooperatives complying with the requirements imposed by CDA, DOLE,
BIR and the local government?
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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5. What are the needs and problems of the primary cooperatives in Bulanao,Tabuk,
Kalinga?
Objectives of the Study
The study aimed to:
1. Determine the profile of the primary cooperatives in Bulanao, Tabuk, Kalinga as to:
a. area of operation
b. status of operation
c. services offered
2. Determine the financial status of the primary cooperatives in terms of
a. total asset
b. total liabilities
c. total paid-up share capital
d. total reserves
3. Find out the policies and programs of the cooperatives
4. Find out if primary cooperatives comply with the requirements imposed by CDA,
DOLE, BIR and the local government.
5. Find out the needs and problems of the primary cooperatives in Bulanao, Tabuk,
Kalinga.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Importance of the Study
This study was conducted to provide necessary data that would lead to the
improvement of the cooperatives in Bulanao, Tabuk. Also, the result of the study would
serve as basis for other students who want to conduct related studies on cooperative.
Scope and Limitation of the Study
The study covered only the barangay of Bulanao in the municipality of Tabuk,
Kalinga. It included all the registered cooperatives that were currently operating in the
study area.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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REVIEW OF LITERATURE
Cooperative Definition
Pimentel (1999) defined cooperatives as a duly registered association of people
with a common bond of interest, who have voluntarily joined together to achieve a lawful
common social or economic end, and who contributed equitably to the capital required
and accepted a fair share of the risks and benefits of the undertaking in accordance with
universally accepted cooperative principles.
Cooperatives are considered, among other things, as “instrument of equity, social
justice and economic development” they are associations organized for the economic and
social betterment of their members, operating business enterprises based on mutual aid \\,
and founded upon internationally accepted cooperative principles and practices.
According to Rimas (1999), a cooperative is an organization where the members
help each other to become economically self-sufficient because the purchasing power of
his little and hard earned money is enhanced. It is the economic alternative and the
vehicle for economic development.
Aquino (1991) defined cooperative as a voluntary organization of people who
have agreed to pool their resources together in order to undertake an economic enterprise
for the purpose of meeting their common needs, and which they themselves
democratically manage and control, and share the economic benefits on the basis of
participation and patronage.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Objectives of Cooperatives
The primary objective of every cooperative is to provide goods and services to its
members and thus, enable them to attain increased income and savings, investments,
productivity and purchasing power and promote among them equitable distribution of net
surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing
without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes. A cooperative shall provide maximum economic benefits to its
members teach them with efficient ways of doing things in a cooperative manner and
propagate cooperative practices and new ideas in business and management and allow the
lower income groups to increase their ownership in the wealth of this nation, Republic
Act 6838, Article 7.
Profile of Primary Cooperatives
Various studies regarding the profile of primary cooperatives in different
municipalities of Benguet and Mountain Province revealed that majority of the
cooperatives were operating in the barangay level. There were also cases where two or
more cooperatives of the same type were organized in the same barangay and that many
of these cooperatives had closed after a few years of operation. Anastacio (2004) found in
her study that out of the thirteen cooperatives organized in Itogon, Benguet, almost half
of the cooperatives had closed after few years of operation due to bankruptcy and
mismanagement of funds. Her study further revealed that there was very slow growth in
the membership in the different cooperatives due to the limited source of membership.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
7
A similar study conducted by Bacakeo (2004) in Tublay, Benguet also showed the
same situation. Most of the cooperatives were also closed due to bankruptcy and growth
in membership was also very slow because of the limited area of operation, the barangay.
Membership of Cooperatives
According to Fajardo (1999), the members of the cooperative may be either
natural or juridical persons depending on the kind of cooperatives. In primary
cooperatives, only a natural person who is a citizen of the Philippines is eligible for the
membership. While in secondary or tertiary cooperative, members may be either
cooperatives or non-profit organization with juridical personality.
There are two (2) kinds of membership classification, the regular members and
the associate members. A regular member is one who is entitled to the right and
privileges of membership. An associate member is one who has no right to vote, be voted
upon, and shall be entitled only to such rights and privileges as the by-laws may provide.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
8
METHODOLOGY
Locale and Time of the Study
The study was conducted in the Bulanao, a barangay of Tabuk, Kalinga. It
covered all the existing primary cooperatives in the area namely; Provincial Engineering
Office Personnel Multipurpose Cooperative (PEOPMPC), Kalinga Department of
Agriculture Employees Multipurpose Cooperative (KDAEMPC), Baguio Ifugao Benguet
Abra Kalinga Multipurpose Cooperative (BMPC), Ambigatton Multipurpose Cooperative
(AMPC), Southern Tabuk District Teachers Credit Cooperative (STDTCC), Saint
William Parish Multipurpose Cooperative (SWPMPC), Taloctoc Multipurpose
Cooperative (TMPC), Tannobong Callagdao Multipurpose Cooperative (TCMPC), Tribu
Multipurpose Cooperative (TrMPC), Tubule Multipurpose Cooperative (TMPC), and
Manganup Banotan Multipurpose Cooperative (Mangba).
This study was conducted from the months of December, 2004 to January, 2005.
Respondents of the Study
The respondents of the study were the managers of the different cooperatives in
Tabuk, Kalinga. However, if the manager is not present during the survey, any staff or
officer who is familiar with the business operation of the cooperative served as the
respondent.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
9
Research Instrument
A prepared survey questionnaire was used in collecting the data but an interview
was also done to get other information that were not covered by the survey questionnaire.
Annual reports and financial reports of the cooperative were also used as sources
of data regarding the financial status of the cooperatives, the growth in membership as
well as the accomplishments of the cooperatives.
Data Analysis
The data collected was tabulated, analyzed and interpreted based on the objectives
of the study.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
10
RESULTS AND DISCUSSION
Status of Operation of the Primary Cooperatives
In Bulanao, Tabuk
Base on the list of cooperatives registered at the office of the Cooperative
Development Authority as of December 2004 there were 11 primary cooperatives
currently operating in Bulanao, Tabuk. However, during the conduct of this study it was
found that most of these cooperatives were no longer operating. Table 1 presents the
status of operation of the 11 cooperatives in Bulanao, Tabuk. Out of the 11 cooperatives,
only 4 cooperatives are still operating. The complete name and addresses of these
cooperatives are found in Appendix Table 1.
Table 1. Status of operation of the cooperatives in Bulanao, Tabuk
NAME OF COOPERATIVE
STATUS
KDAEMPC
Operational
AMPC
Operational
BMPC
Operational
PEOPMPC
Operational
STDTCC
Non-operational
SWPMPC
Non-operational
TMPC
Non-operational
TCMPC
Non-operational
Tribu MPC
Non-operational
Tubule MPC
Non-operational
Mangba MPC
Non-operational
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Services Offered by the Cooperatives
Table 2 shows that seven cooperatives offered multiple service, both credit and
consumer services, while four of them offered single service, either credit or consumer
service. It was observed also that almost all of the cooperatives that stopped operation
offered both consumer and credit services.
This finding shows that majority of the primary cooperatives in Bulanao, Tabuk, Kalinga
offered credit and consumer services.
Table 2. Services offered by the cooperatives
NAME OF COOPERATIVE
SERVICES OFFERED
KDAEMPC
Credit/Consumer
AMPC
Credit/Consumer
BMPC
Credit and consumer
PEOPMPC
Credit
STDTCC
Credit/Consumer
SWPMPC
Credit and consumer
TMPC
Consumer
TCMPC
Credit and consumer
Tribu MPC
Credit and consumer
Tribute MPC
Credit and consumer
Mangba MPC
Credit and consumer
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
12
Date Registered and Number of Years
in Operation
Table 3 presents the date when the cooperatives were registered and the number
of years they have operated as of December 2005. This included only the four
cooperatives that are still operating since there was no available information on the non-
operating cooperatives. The result shows that on of the cooperatives was registered in
1981, two were registered in 1991 and one just registered in 1999. The oldest cooperative
in the place had been operating for 19 years while the newest cooperative had been
operating for only five years.
Table 3. Date of registration and number of years in operation
NAME OF COOP
YEAR REGISTERED NO. OF YEARS IN OPERATION
1991
14
KDAEMPC
1999
5
AMPC
1981
19
BMPC
1991
14
PEOPMPC
Area of Operation
The area of operation refers to the area where the members of a cooperative come
from. Table 4 shows that 3 of the cooperatives have members coming from all over the
province of Kalinga while one cooperative has members coming from the whole
municipality of Tabuk. It was also found that PEOPMPC had the highest number of
members (288) while KDAEMPC had the lowest number of members (78). The finding
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
13
shows that even the cooperatives that had been operating for more than ten years the
number of members were low. This maybe because all these cooperatives are found in
one barangay and all of them are offering the same type of services.
Table 4. Area of operation of the different cooperatives
NAME OF COOPERATIVE
AREA OF OPERATION
Province wide
KDAEMPC
Province wide
AMPC
Municipal wide
BMPC
Province wide
PEOPMPC
Number of Members in Each Cooperative
Table 5 presents the number of members in each of the cooperative classified into
male and female members. It was observed that there were more female members than
male members in almost all the cooperatives. It was only KDAEMPC that had more male
members the female members. Furthermore, the number of members in all the
cooperatives is less than 300. PEOPMPC had the highest number of members with 288
while KDAEMPC had the least number of members with only 78.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Table 5. Number of members in each cooperative by sex
NAME OF COOP
NUMBER OF MEMBERS BY SEX
Male
Female
Total
KDAEMPC
42
36
78
AMPC
53
165
218
BMPC
120
124
244
PEOPMPC
141
147
288
Composition of Members
Membership in the different cooperatives in Bulanao, Tabuk consisted mostly of
employees. They were either government employees or private employees. It was only
KDAEMPC that had some farmer-members as shown in Table 6.
Table 6. Composition of members in the different cooperatives
NAME OF COOPERATIVE
COMPOSITION OF MEMBERS
KDAEMPC
Employees and farmers
AMPC
Employees
BMPC
Employees
PEOPMPC
Employees
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
15
Number of BODs and Committee Members
Table 7 presents number of members of the board of directors and the number of
members in each of the committee by sex. The least number of BOD is 3 while the
highest number is 7. There were 2 cooperatives that have 5 members of the board while 1
each had 3 and 7 members. It was also observed that the total number of male and female
members of the board were almost the same. Almost all the cooperatives had three
members in each of their committee except for BMPC that had 4 members of the audit
committee and AMPC that had 4 members of the election committee. Generally, it was
also observed that there were more female members of the different committee in each of
the cooperative.
Table 7. Number of BODs and committee members of the different cooperatives
COOP
BOD
AUDIT
CREDIT
ELECTION EDUCATION
M F T M F T M F T M F T M F
T
KDAEMPC 2
3 5 1
2 3 1
2 3 1
2
3
2
1
3
AMPC
1
2 3 -
3 3 -
3 3 1
3
4
1
-
1
BMPC
4
1 5 3
1 4 -
3 3 3
-
3
1
1
2
PEOPMPC 2
2 4 1
2 3 1
1 2 3
-
3
1
2
3
Legend: M = Male F = Female T = Total
Profile of Officers and Employees
Table 8 presents the profile of employees and officers in terms of age and gender.
The finding shows that most of the employees were generally of younger age while
majority of the officers were of older age. Twenty six or about 41% of the officers
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
16
belonged to the 51-60 years old and 18 or 28% were 41 -50 years old. When it comes to
gender, most of the officers and employees were female.
Table 8. Profile of employees and officers
CHARACTERISTIC
OFFICERS
EMPLOYEES
Frequency
Percentage
Frequency
Percentage
a. Age
20 – 30
7
10.9
6
31.6
31 – 40
5
7.8
4
21.1
41 – 50
18
28.1
2
10.5
51 – 60
26
40.6
5
26.3
61 – 70
6
9.4
2
10.5
71 – 80
2
3.1
-
-
Total
64
100
19
100
Mean
49.35 years old
41.65 years old
b. Sex
Male
27
44
4
33
Female
34
56
8
77
Total
61
100
12
100
Financial Status of the Cooperatives
This section presents the total asset, total liabilities, total paid-up share capital,
and the net surplus of the four operating cooperatives as of December 2004.
Total asset. The total assets of the four operating cooperatives are presented in
Table 9. All of the four cooperatives were millionaire cooperatives with PEOPMPC
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
17
having the highest total asset with 9.6 million pesos while KDAEMPCI had the lowest
total asset with 1.6 million pesos. This finding shows that all the four cooperatives were
millionaire cooperatives.
Total liabilities and total share capital. It was observed that KDAEMPCI had a
slightly higher total liability than total share capital. For AMPC and BMPC, it was
observed that the total paid-up share capital in both cooperative is higher than the total
liabilities. The total paid-up share capital for PEOPMPCI was lower than it total
liabilities.
Net surplus. BMPC did not have a statement of operation for 2004. For the three
cooperatives, PEOPMPC had almost P978,000, AMPC had P111,523 while KDAEMPC
had the lowest net surplus in December 2004.
Table 9. Total assets, total liabilities, share capital, and net surplus of the different
cooperatives as of December 2003
COOPERATIVE TOTAL
TOTAL
SHARE
NET
ASSET
LIABILITIES
CAPITAL
SURPLUS
KDAEMPCI
1,624,536
697,858
630,738
33,881
AMPC
1,975,972
710,495
1,233,690
111,522
BMPC
5,536,577
1,963,783
-
PEOPMPC
9,603,693
513,600
978,787
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
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Sources of Funds of the Cooperatives
Table 10 presents the different sources of funds of the primary cooperatives. All
of the cooperatives sourced out their funds mainly from the share capital of members,
deposits of members, loan and fees. Two of these cooperatives availed of subsidies,
grants and donations. This shows that majority of the cooperatives got their funds from
internal sources and very few availed of external sources of fund.
Table 10. Sources of funds of the cooperatives
SOURCES OF FUND
FREQUENCY
PERCENTAGE
Share Capital
4
100
Revolving Fund
2
50
Deposit of members
4
100
Loan
4
100
Fees
4
100
Grants and donations
2
50
Capital Build-up Program
Table 11 shows the capital build-up programs of the cooperatives in Bulanao,
Tabuk. The table presents that the cooperatives used various ways to build-up their
capital. The entire cooperative had policy on loan retention. When members loan from
the cooperative, a percentage of the loan is deducted and credited to the share capital of
the member-borrower. All the cooperatives also accepted savings and time deposit from
their members and other persons who wanted to deposit their money in the cooperative.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
19
Table 11. Capital build-up program of the cooperatives
CAPITAL BUILD-UP
FREQUENCY
PERCENTAGE
Authorized retention from loan
4
100
Voluntary savings deposit
4
100
Time deposit
4
100
Seminars Conducted by the Cooperatives
Table 12 presents the kinds of seminar conducted by the four cooperatives and the
number of times they conducted for the last five years. The table shows that KDAEMPC
conducted seven types of seminar for the last five years; AMPC conducted six types of
seminar, while BMPC and PEOMPC conducted one type of seminar each. Each of them
conducted only one seminar for the last five years. Strategic planning workshop was
conducted by almost all the cooperative except BMPC. It was also noted that all the four
cooperatives did not conduct any pre-membership education seminar for the last five
years.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
20
Table 12. Kinds of seminar conducted by the cooperatives for the last five years
COOPERATIVE
KIND OF SEMINAR
NO. OF TIMES
CONDUCTED
KDAEMPC
Bookkeeping workshop
1
Savings deposit operating procedure
1
Financial Management
1
Credit management for cooperatives
1
Strategic Planning workshop
1
Budgeting and finance analysis
1
BOD, officers and management relations
1
AMPC
Standard auditing for cooperative
1
Adoption and implementation of the standard
chart of account
1
Asset management
1
Strategic planning workshop
1
Capability on lending and development
control
1
Bookkeeping seminar
1
Appreciation course on entrepreneurship
BMPC
development
1
PEOMPC
Planning and strategic management seminar
1
Trainings and Seminars Attended
The successful operation and progress of the business of the cooperative can be
achieved through training. Officers and employees of the cooperatives had very little
attendance to trainings and seminars. This was due to lack of time and money to be used
by the members. It was mentioned by all the respondents that they sent some of their
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
21
members and staff to attend the seminar on bookkeeping and strategic planning. No other
seminar was mentioned.
Compliance to Administrative Requirements
The cooperatives, like any other organizations, are required to comply with some
requirements imposed by CDA, BIR, the local government, SSS and DOLE. Table 13
presents the number of cooperatives that were regularly complying with the various
administrative requirements.
Compliance with CDA requirements. The CDA requires that cooperatives must
secure bond for their accountable officers, register their amendments of their by-laws,
issue share capital certificate, have their financial statement audited by an external
auditor, submit annual report regularly and hold regular general assembly meeting. The
finding shows that all the cooperatives bonded their accountable officers, register their
amendments to their by-laws had their financial statements audited and hold regular
general assembly meetings but when it comes to regular submission of annual report
only 2 of the cooperatives were complying it.
Compliance with BIR requirements. The various requirements imposed by the
BIR to the cooperatives were the following: registration of the cooperative as non-EVAT,
registration of books of accounts very start of the year, withholding of income taxes of
employees and application for tax exemption. The finding shows that all the cooperatives
were regularly complying with all the requirements. As to the withholding of taxes of
employees two cooperatives were not withholding income taxes of their employees.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
22
Compliance with other government requirements. This includes the following
requirements: must secure business permit from the mayor’s office every year, for
consumers cooperatives; deduct and remit SSS contribution, pag-ibig contribution and
Philhealth contribution of employees. Except for securing of business permit with only
one cooperative complying, all the cooperatives were complying with all the other
requirements.
Table 13. Number of cooperatives complying with administrative requirements
REQUIREMENTS
FREQUENCY PERCENTAGE
a. CDA Requirements
Bonding of accountable officers
4
100
Registration of amendments of by-laws
4
100
Issuance of share capital certificate
3
75
External audit of financial statements
4
100
Regular submission of annual report
2
50
Holding of regular general assembly
4
100
b. BIR Requirements
Registration of the cooperative as non-EVAT
4
100
Registration of books of accounts
4
100
Withholding of income taxes of employees
2
50
Applied for tax exemption
4
100
c. Other Requirements
Secure business permit every year
1
25
Deduct and remit SSS, Pag-ibig and Philhealth
4
200
contributions of employees
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
23
Management Practices of the Different Cooperatives
Management practices includes practices in holding general assembly meeting,
conduct of election, selection of candidates, and practices in accepting new members.
This also includes their affiliation to secondary organizations like the cooperative union
or federation; the availability of written vision, mission and goals; and the availability of
written development plan. Table 14 presents that all the cooperatives hold their general
assembly regularly and they elect their BODs and Committee members during the
general assembly. In the election of officers, all the cooperatives used the secret ballot.
For the selection of candidates the cooperatives require interested members to file their
candidacy instead of nominating them. It was found that all the cooperatives had no
written vision, mission and goal statement and they do not have any written development
plan.
Table 14. Management practices of the cooperatives
PRACTICES
FREQUENCY PERCENTAGE
a. General assembly held once a year
4
100
b. Elect officers during the general assembly meeting
4
100
c. Conduct of election by secret ballot
4
100
d. Selection of candidates
By nomination
2
50
By filing of candidacy
2
50
e. Require new members to undergo PMES
4
100
f. Vision, mission and goal statement is written
0
0
g. development plan is written
0
0
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
24
Needs of the Cooperatives
Table 15 shows that 2 or 50% of the cooperatives needed the following trainings
or seminars: operation and management, credit and collection management, training for
storekeepers, and bookkeeping while 25% of the cooperatives needed the following
trainings; how to handle problems, appreciation course on entrepreneurship, project
proposal preparation, and financial management.
The other needs of some of the cooperatives were capital build-up, credit sources
and building. Some of the cooperatives, as mentioned by the managers had limited
operating capital thus they needed outside sources of capital like donations or grants and
loans form banks or other cooperatives.
Table 15. Needs of the cooperatives
NEEDS
FREQUENCY PERCENTAGE
a. Trainings Needed
Operation and Management
2
50
How to handle problems
1
25
Credit and collection management
2
50
Appreciation course on entrep. development
1
25
Project proposal preparation
1
25
Training for store keepers
2
50
Financial Management
1
25
Bookkeeping
2
50
b. Other needs
Building
2
50
Working capital
1
25
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
25
Problems Encountered by the Cooperatives
Table 16 presents that 50% of the cooperatives each had a problem on the lack of
cooperative education of members and delinquency of members in paying their loans.
One cooperative each had a problem on the lack of skills of officers to evaluate the
financial reports of the cooperative because they were not knowledgeable on financial
analysis.
Table 16. Problems of the different cooperatives
PROBLEMS
FREQUENCY PERCENTAGE
Members lack cooperative education
2
50
Lack of skill to evaluate financial report
2
50
Lack of knowledge on financial analysis
1
25
Members are delinquent in paying their loan
2
50
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine the profile of the cooperatives; their
financial status; their policies and programs; their compliance with the requirements
imposed by CDA, DOLE, BIR and the local government; and find out their needs and
problems. This study was conducted in Bulanao, Tabuk, Kalinga from April to May
2005. A Survey questionnaire was used to gather the needed data. The managers or
officers of the cooperatives served as respondents of the study.
There were eleven primary cooperatives organized within the barangay of
Bulanao. However, during the conduct of the study only four were operating while the
other seven cooperatives were already closed. Almost all of them have credit and
consumers services. Three of the four operating cooperatives operated for more than ten
years. Three of these cooperatives had members coming from the whole province of
Kalinga while one had members coming from the whole municipality of Tabuk. One had
less than one hundred members while three had more than 200 hundred but less than
three hundred members.
The membership composition in all the cooperatives was all employees except for
one that had farmer members. There were more female members than male members.
Majority of the officers of the different cooperatives were 41 to 60 years old while
majority of the employees were 20 to 40 years old. Also, majority of the officers and
employees were female.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
27
All the cooperatives were millionaire cooperatives in terms of their total asset.
There were two cooperatives with more paid-up share capital than liabilities but the other
two cooperatives had higher total liabilities than their paid-up share capital. All of them
source out their funds from their members in the form of share capital, savings deposit
and reserves from net surplus.
To increase their working capital, the cooperatives accepted savings deposit from
the public. They also have policy on loan retention which they deduct a small percentage
from the member’s loan and add it to his/her share capital.
To educate their members, the cooperatives conducted various trainings and seminars.
Two cooperatives conducted seven kinds of seminar for the last five years while the other
two conducted only one seminar each. Due to lack of funds, very few members were sent
to attend training and seminar outside their cooperative.
The finding showed that all the cooperatives had been complying with the
different requirements imposed by CDA, BIR, and the local government unit. The
findings also indicated that that all the cooperatives conducted their general assembly on
an annual basis where they elect their officers during the general assembly. All the
cooperatives do not have any written vision, mission and goals and well as written
development plan. When asked about their development plan, the respondents mentioned
they have but it was not written.
The finding also showed that the cooperatives have various training needs. The
common training needs were operation and management training, credit and collection
management, training for store keeper, and bookkeeping seminar. They also mentioned
that they have problems on lack of education of members, lack of skill on the part of the
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
28
officers to evaluate financial reports, and delinquency of members in meeting the
schedule of their loan repayment.
Conclusion
From the findings of the study, the following conclusions were drawn:
1. The rate of survival of primary cooperatives in Bulanao, Tabuk is very low. Out of the
eleven primary cooperatives organized in different places of Bulanao, only four
cooperatives survived and still operating as of December 2004. Three of these surviving
cooperatives were institutional cooperatives.
2. Almost all the cooperatives organized in the place were multipurpose cooperatives
with the same type of services. They also have the area of operation. Thus, they tend to
compete with one another in terms of getting members. Perhaps, some of the members
have dual membership so their loyalty is divided between the two cooperatives where
they are members.
3. All the cooperatives organized in Bulanao are multipurpose cooperatives and almost
all of them are offering both credit and consumer services.
4. All the currently operating cooperatives are millionaire cooperatives in terms of total
asset. However, they have a very poor financial condition since the portion of the total
asset financed by owners’ equity is very low. There is also a very low return to total asset
as reflected by the low net surplus.
5. All the cooperatives have a policy on loan retention. They also accept savings and time
deposit from the public to augment their operating capital.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
29
6. The cooperatives had been conducting trainings and seminars for the last five years to
educate their members. However, members rarely attended seminars outside their
cooperative.
Recommendations
1. Since the survival rate of cooperatives in Bulanao, Tabuk is very low, added to the
very poor financial standing of the four surviving cooperatives, it is recommended that
the Cooperative Development Authority, who is given to task to help in the development
of cooperatives in the country should closely monitor the performance of these
cooperatives and give the necessary technical advice in order that these cooperatives will
not fail.
2. Since the surviving cooperatives are institutional cooperatives, the different institutions
where these cooperatives operate should assist them, especially in the collection of loans
or receivable by allowing salary deduction.
3. The cooperatives should increase allocation for education and training fund so that
more members would be sent to attend trainings and seminars.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
30
LITERATURE CITED
AQUINO, A. 1999 AND 1994. Republic Act No. 6838 and Republic Act No. 8968. Pp.
94-95
ANASTACIO, L.K. 2004. Profile of Primary Cooperatives in Itogon, Benguet, BS
Thesis. Benguet State University, La Trinidad, Benguet. P 15.
BACAKEO, C.B. 2004. Profile of Primary Cooperatives in Tublay, Benguet, BS Thesis.
Benguet State University, La Trinidad, Benguet. P 15.
COOPERATIVE CODE OF THE PHILIPPINES. 1990. Primer on Republic Act 6938
and 6939. Cooperative Development Authority. Pp.5-7.
FAJARDO, F.R. and A.P. FABIAN. 1999. Cooperative. 4th ed. Manila: Rex Publishing
and Bookstore. Pp. 74-75.
PIMENTEL, A.Q., SR. and N.R. CUA. 1999. Cooperative Code of the Philippines.
Metro Manila: White Orchids Printing and Publishing Co. Pp. 13, 17.
RIMAS, G.S. 1999. Pre-membership Education Seminar lecture notes. Baguio-Benguet
Community Credit Cooperative.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
31
APPENDIX-A
A. Letter to the Respondents
Republic of the Philippines
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
June 2005
The Manager
The Different Cooperatives of Bulanao, Tabuk
Warm greetings!
I am a fourth year student taking up Bachelor of Science in Agribusiness Major in
Cooperative Management in Benguet State University. To fulfill my field of study, I am
requested to conduct a research titled “Profile of Cooperatives in Bulanao, Tabuk”.
In this connection, may I therefore ask for your cooperation in providing the
necessary information about your cooperative.
Thank you very much! May God bless you all.
Respectfully yours,
RIDDLE B. LONGAN
Student researcher
Noted:
EVANGELINE B. CUNGIHAN
Thesis Adviser
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
32
B. Survey Questionnaire
PROFILE OF PRIMARY COOPERATIVES IN HUNGDUAN, IFUGAO
SURVEY QUESTIONAIRE
Direction: Please fill-up the blanks with the needed information and/or check the
parenthesis, which fits your answers.
I.
GENERAL INFORMATION
1. Name of the cooperative: _______________________________
2. Address: ______________________________
3. Date organized/Start of Operation: __________________
4. Date Registered: _________________
5. Number of years in operation: __________
6. Area of operation:
( ) a. Barangay ( ) b. Municipality/city
( ) c. Provincial
( ) d. Regional
( ) e. National
( ) f. Others (pls. Specify)_________________
7. Sources of Funds:
( ) a. Share capital ( ) b. revolving capital
( ) c. Deposits of members ( ) d. Borrowings
( ) e. Fees
( ) f. Interest on loans
( ) g. Others (pls. Specify)_________________
8. Capital Build-up Programs
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
33
( ) a. Popularity contest
( ) b. Raffle draw
( ) c. Christmas caroling
( ) d. Authorized retention from loans
( ) e. Mortuary funds
( ) f. Special time deposits
( ) g. voluntary time deposits
( ) h. Others (pls. Specify)_________________
9. Composition of Membership:
( ) a. Farmers
( ) b. Women
( ) c. Indigenous community ( ) d. Vegetable dealers
( ) e. Business man/woman ( ) f. Disabled
( ) g. Others (pls. Specify) ____________
II. Organization and Management
1. Initial membership:
Regular
Associate
Male
______
______
Female
______
______
2. Number of BOD members: ______
3. Number of committee members:
a. Audit _____
b. Credit _____
c. Election _____
d. Education _____
e. Others ( pls. Specify) _____
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
34
4. Number of employees:
Fulltime
Part time
Volunteer
Male
_______
_______
_______
Female
_______
_______
_______
1. Demographic Profile of Officers/Employees
Name(optional)
Sex Age Educational Civil
Attainment Status
a. BOD
________________ ___ ___ ___________ ____
Chair person: ________________ ___ ___ ___________ ____
Vice chair person: _____________
___ ___ __________ ____
Directors: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
4. _____________
___ ___ __________ ____
5. _____________
___ ___ __________ ____
6. _____________
___ ___ __________ ____
7. _____________
___ ___ __________ ____
8. _____________
___ ___ __________ ____
9. _____________
___ ___ __________ ____
Treasurer: _____________
___ ___ __________ ____
Secretary: _____________
___ ___ __________ ____
b. Committees:
Audit 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
35
3. _____________
___ ___ __________ ____
Credit: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Election: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Education: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Others (pls specify) 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
2. Trainings conducted by the cooperative:
( ) Cooperative pre membership Education Seminar
( ) Bookkeeping Workshop
( ) Savings Deposit Operating Procedure
( ) Others (pls. Specify)________________________
3. Training Attended by the Officers/Employees/Members
( ) Appreciation Course on Entrepreneurship Development
( ) Credit Management for cooperative
( ) Standard Auditing for Cooperatives
( ) Audit Procedures and Internal Control
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
36
( ) Adoption and Implementation of the Standard Chart of Account
( ) Asset Management
( ) Strategic Planning-Workshop Seminar
( ) Budgeting and Finance Analysis
( ) Capability on Lending and Delinquent Control
( ) Board, Officers and Management Relations
( ) Others (pls. Specify) _______________________________________
III. Business Operations
1. Services Offered:
( ) a. Lending
( ) b. Trading
( ) c. Manufacturing
( ) d. Contract
( ) e. Transportation
( ) f. Electric
( ) g. Savings
( ) h. Insurance
( ) i. Others (pls. Specify)
2. Other Benefits:
( ) a. Medical
( ) d. Mortuary
( ) b. Dental
( ) e. Others (pls. Specify)
( ) c. Education
IV. Development Plan Formulated and Implemented
1. development Plan
Formulated
Implemented
a. Annual
( )
( )
b. Long term
( )
( )
V. Financial Status
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
37
Please provide a copy of your financial statements for 2001 and 2002.
VI. Needs and Problems of Cooperative
1. Needs:
a. Education:
( ) Financial Management Training
( ) Bookkeeping/Accounting
( ) Cooperative Operation and Management
( ) Leadership Training Course
( ) Trainers Training
( ) Credit and Collection Management
( ) Entrepreneurial Skills Development
( ) Field Trips
( ) Project Proposal Preparation
( ) Others (pls. Specify)
b. Technical:
( ) Computerization of Operation
( ) Others (pls. Specify)
c. Financial:
( ) Credit Sources
( ) Subsidies, Grants, Loans
( ) Sources of funds for expansions
( ) Others (pls. Specify)
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
38
2. Problems:
( ) a. Lack of cooperative education and training for leaders
( ) b. Lack of cooperative education and training for members
( ) c. Inefficient leaders
( ) d. 50% or more do not patronize the cooperative
( ) e. Delinquency of members in paying loans
( ) f. Records are not updated
( ) g. Lack of capital to sustain the operation
( ) h. Others (pls. Specify)
VII. What solutions do you suggest to meet these needs and solve the problems.
1. Needs:
a. Education: ____________________________________________
b. Technical: ____________________________________________
c. Financial: _____________________________________________
2. Problems:
a. _______________________________________________
b. _______________________________________________
c. _______________________________________________
d. _______________________________________________
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
LONGAN, RIDEL B. MARCH 2006. Profile of Primary Cooperatives in
Bulanao, Tabuk. Benguet State University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
This study was conducted to find out the profile of primary cooperatives in
Bulanao, Tabuk, Kalinga. Specifically, it aimed to determine the following: the financial
status of the cooperatives; their policies and programs; their compliance with the
requirements of CDA, DOLE, BIR, and the Local Government; and their needs and
problems. A survey questionnaire was used to gather the data with the managers of the
different cooperatives as the respondents.
Based on the list of the Cooperative Development Authority as of December
2004, there were eleven cooperatives listed. However, during the survey, only four
cooperatives were operating while the other seven were closed. All four cooperatives
were multipurpose type with credit and consumer services. Three were institutional
cooperatives. The number of members in each cooperative was less than 300 and
majority of the members were employees, majority also were females. The employee of
the cooperatives were generally younger than their officers.
All the cooperatives have reached more than one million pesos total asset. The
major sources of their capital were from fixed deposits of members, reserves and from
liabilities. They also accept savings deposit from the public to have more operating
capital.
The cooperatives conducted various trainings and seminars to educate their
members but due to insufficient funds, very few members were sent to trainings and
seminars.
All the cooperatives had been complying with different requirements imposed by
the different government agencies. They conducted their general assembly regularly
every year and elect their officers during the general assembly. However, they do not
have any written development plan, mission vision and goal statements. These
cooperatives needed to be trained more on the management aspect of cooperative because
all of them have problems on lack of education of members and officers.
ii
TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Objectives of Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Profile of Primary Cooperatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Membership of Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Research Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Status of Operation of the
Primary Cooperatives
iii
In Bulanao, Tabuk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Services Offered by the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Date Registered and Number of Years
In Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Area of operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Number of Members in Each Cooperative . . . . . . . . . . . . . . . . . . . . . . .
13
Composition of Members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Number of BODs and Committee Members. . . . . . . . . . . . . . . . . . . . .
15
Profile of Officers and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Financial Status of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Sources of Funds of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Capital Build-up Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Seminar Conducted by the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . .
19
Trainings and Seminars Attended . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Compliance to Administrative Requirement . . . . . . . . . . . . . . . . . . . . .
21
Management Practices of the
Different Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Needs of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Problems Encountered by the Cooperatives . . . . . . . . . . . . . . . . . . . . .
25
SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
iv
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
v
INTRODUCTION
Rationale of the Study
A cooperative consist of persons who pool their resources under the principle of
equality and common understanding for their mutual benefit. It exists not to make profit
as an entity but if there should be profits, the same shall be divided equitably among the
members. It is based on the saying well known in the human circle that “in union there is
strength,” (Nolledo, 1996).
A population continually grows; economic problems diversify and become more
complex. Economic resources become more and more scarce and concentrated in the
hands of the few moneyed people, the capitalist while the majority of the population lives
in poverty. Their labor is the only resource they have and more often than not they are
abused by the capitalist. This situation needs a continuous search for solution. A key step
towards solving economic problems is through the cooperation among our fellow men.
This is how the cooperative idea came about. History shows that cooperatives were born
because of economic needs which would be solved only by the process of cooperation.
Cooperative is derived from the word “cooperate” which means to work with. A
cooperative therefore is an organization of persons who have voluntarily join to work
together for the achievement of their common goal, that is to provide services to the
members as for instance to market products of members, to purchase production supplies,
to provide housing especially low cost housing, to purchase family household needs and
it supplies community services like electric power and others.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
2
Tabuk is one of the municipality of Kalinga with 281 registered cooperatives as of
December, 2003 based on the record of the Cooperative Development Development
Authority. These were of various types such as consumer, multipurpose, credit,
marketing and service cooperatives. The number of cooperatives existing in the place is
quiet many and therefore chances are that these cooperatives compete with each other in
terms of getting members and even in the provision of services that maybe detrimental to
their operation.
Statement of the Problem
The study intended to answer the following questions:
1.What is the profile of the primary cooperatives in Bulanao, Tabuk, kalinga in term of:
a. Area of operation
b. Status of operation
c. Services offered
2. What is the financial status of the primary cooperatives in terms of
a. total asset
b. total liabilities
c. total paid-up share capital
d. total reserves
3. What are the policies and programs of the cooperatives?
4. Are all the cooperatives complying with the requirements imposed by CDA, DOLE,
BIR and the local government?
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
3
5. What are the needs and problems of the primary cooperatives in Bulanao,Tabuk,
Kalinga?
Objectives of the Study
The study aimed to:
1. Determine the profile of the primary cooperatives in Bulanao, Tabuk, Kalinga as to:
a. area of operation
b. status of operation
c. services offered
2. Determine the financial status of the primary cooperatives in terms of
a. total asset
b. total liabilities
c. total paid-up share capital
d. total reserves
3. Find out the policies and programs of the cooperatives
4. Find out if primary cooperatives comply with the requirements imposed by CDA,
DOLE, BIR and the local government.
5. Find out the needs and problems of the primary cooperatives in Bulanao, Tabuk,
Kalinga.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
4
Importance of the Study
This study was conducted to provide necessary data that would lead to the
improvement of the cooperatives in Bulanao, Tabuk. Also, the result of the study would
serve as basis for other students who want to conduct related studies on cooperative.
Scope and Limitation of the Study
The study covered only the barangay of Bulanao in the municipality of Tabuk,
Kalinga. It included all the registered cooperatives that were currently operating in the
study area.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
5
REVIEW OF LITERATURE
Cooperative Definition
Pimentel (1999) defined cooperatives as a duly registered association of people
with a common bond of interest, who have voluntarily joined together to achieve a lawful
common social or economic end, and who contributed equitably to the capital required
and accepted a fair share of the risks and benefits of the undertaking in accordance with
universally accepted cooperative principles.
Cooperatives are considered, among other things, as “instrument of equity, social
justice and economic development” they are associations organized for the economic and
social betterment of their members, operating business enterprises based on mutual aid \\,
and founded upon internationally accepted cooperative principles and practices.
According to Rimas (1999), a cooperative is an organization where the members
help each other to become economically self-sufficient because the purchasing power of
his little and hard earned money is enhanced. It is the economic alternative and the
vehicle for economic development.
Aquino (1991) defined cooperative as a voluntary organization of people who
have agreed to pool their resources together in order to undertake an economic enterprise
for the purpose of meeting their common needs, and which they themselves
democratically manage and control, and share the economic benefits on the basis of
participation and patronage.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
6
Objectives of Cooperatives
The primary objective of every cooperative is to provide goods and services to its
members and thus, enable them to attain increased income and savings, investments,
productivity and purchasing power and promote among them equitable distribution of net
surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing
without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes. A cooperative shall provide maximum economic benefits to its
members teach them with efficient ways of doing things in a cooperative manner and
propagate cooperative practices and new ideas in business and management and allow the
lower income groups to increase their ownership in the wealth of this nation, Republic
Act 6838, Article 7.
Profile of Primary Cooperatives
Various studies regarding the profile of primary cooperatives in different
municipalities of Benguet and Mountain Province revealed that majority of the
cooperatives were operating in the barangay level. There were also cases where two or
more cooperatives of the same type were organized in the same barangay and that many
of these cooperatives had closed after a few years of operation. Anastacio (2004) found in
her study that out of the thirteen cooperatives organized in Itogon, Benguet, almost half
of the cooperatives had closed after few years of operation due to bankruptcy and
mismanagement of funds. Her study further revealed that there was very slow growth in
the membership in the different cooperatives due to the limited source of membership.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
7
A similar study conducted by Bacakeo (2004) in Tublay, Benguet also showed the
same situation. Most of the cooperatives were also closed due to bankruptcy and growth
in membership was also very slow because of the limited area of operation, the barangay.
Membership of Cooperatives
According to Fajardo (1999), the members of the cooperative may be either
natural or juridical persons depending on the kind of cooperatives. In primary
cooperatives, only a natural person who is a citizen of the Philippines is eligible for the
membership. While in secondary or tertiary cooperative, members may be either
cooperatives or non-profit organization with juridical personality.
There are two (2) kinds of membership classification, the regular members and
the associate members. A regular member is one who is entitled to the right and
privileges of membership. An associate member is one who has no right to vote, be voted
upon, and shall be entitled only to such rights and privileges as the by-laws may provide.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
8
METHODOLOGY
Locale and Time of the Study
The study was conducted in the Bulanao, a barangay of Tabuk, Kalinga. It
covered all the existing primary cooperatives in the area namely; Provincial Engineering
Office Personnel Multipurpose Cooperative (PEOPMPC), Kalinga Department of
Agriculture Employees Multipurpose Cooperative (KDAEMPC), Baguio Ifugao Benguet
Abra Kalinga Multipurpose Cooperative (BMPC), Ambigatton Multipurpose Cooperative
(AMPC), Southern Tabuk District Teachers Credit Cooperative (STDTCC), Saint
William Parish Multipurpose Cooperative (SWPMPC), Taloctoc Multipurpose
Cooperative (TMPC), Tannobong Callagdao Multipurpose Cooperative (TCMPC), Tribu
Multipurpose Cooperative (TrMPC), Tubule Multipurpose Cooperative (TMPC), and
Manganup Banotan Multipurpose Cooperative (Mangba).
This study was conducted from the months of December, 2004 to January, 2005.
Respondents of the Study
The respondents of the study were the managers of the different cooperatives in
Tabuk, Kalinga. However, if the manager is not present during the survey, any staff or
officer who is familiar with the business operation of the cooperative served as the
respondent.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
9
Research Instrument
A prepared survey questionnaire was used in collecting the data but an interview
was also done to get other information that were not covered by the survey questionnaire.
Annual reports and financial reports of the cooperative were also used as sources
of data regarding the financial status of the cooperatives, the growth in membership as
well as the accomplishments of the cooperatives.
Data Analysis
The data collected was tabulated, analyzed and interpreted based on the objectives
of the study.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
10
RESULTS AND DISCUSSION
Status of Operation of the Primary Cooperatives
In Bulanao, Tabuk
Base on the list of cooperatives registered at the office of the Cooperative
Development Authority as of December 2004 there were 11 primary cooperatives
currently operating in Bulanao, Tabuk. However, during the conduct of this study it was
found that most of these cooperatives were no longer operating. Table 1 presents the
status of operation of the 11 cooperatives in Bulanao, Tabuk. Out of the 11 cooperatives,
only 4 cooperatives are still operating. The complete name and addresses of these
cooperatives are found in Appendix Table 1.
Table 1. Status of operation of the cooperatives in Bulanao, Tabuk
NAME OF COOPERATIVE
STATUS
KDAEMPC
Operational
AMPC
Operational
BMPC
Operational
PEOPMPC
Operational
STDTCC
Non-operational
SWPMPC
Non-operational
TMPC
Non-operational
TCMPC
Non-operational
Tribu MPC
Non-operational
Tubule MPC
Non-operational
Mangba MPC
Non-operational
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
11
Services Offered by the Cooperatives
Table 2 shows that seven cooperatives offered multiple service, both credit and
consumer services, while four of them offered single service, either credit or consumer
service. It was observed also that almost all of the cooperatives that stopped operation
offered both consumer and credit services.
This finding shows that majority of the primary cooperatives in Bulanao, Tabuk, Kalinga
offered credit and consumer services.
Table 2. Services offered by the cooperatives
NAME OF COOPERATIVE
SERVICES OFFERED
KDAEMPC
Credit/Consumer
AMPC
Credit/Consumer
BMPC
Credit and consumer
PEOPMPC
Credit
STDTCC
Credit/Consumer
SWPMPC
Credit and consumer
TMPC
Consumer
TCMPC
Credit and consumer
Tribu MPC
Credit and consumer
Tribute MPC
Credit and consumer
Mangba MPC
Credit and consumer
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
12
Date Registered and Number of Years
in Operation
Table 3 presents the date when the cooperatives were registered and the number
of years they have operated as of December 2005. This included only the four
cooperatives that are still operating since there was no available information on the non-
operating cooperatives. The result shows that on of the cooperatives was registered in
1981, two were registered in 1991 and one just registered in 1999. The oldest cooperative
in the place had been operating for 19 years while the newest cooperative had been
operating for only five years.
Table 3. Date of registration and number of years in operation
NAME OF COOP
YEAR REGISTERED NO. OF YEARS IN OPERATION
1991
14
KDAEMPC
1999
5
AMPC
1981
19
BMPC
1991
14
PEOPMPC
Area of Operation
The area of operation refers to the area where the members of a cooperative come
from. Table 4 shows that 3 of the cooperatives have members coming from all over the
province of Kalinga while one cooperative has members coming from the whole
municipality of Tabuk. It was also found that PEOPMPC had the highest number of
members (288) while KDAEMPC had the lowest number of members (78). The finding
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
13
shows that even the cooperatives that had been operating for more than ten years the
number of members were low. This maybe because all these cooperatives are found in
one barangay and all of them are offering the same type of services.
Table 4. Area of operation of the different cooperatives
NAME OF COOPERATIVE
AREA OF OPERATION
Province wide
KDAEMPC
Province wide
AMPC
Municipal wide
BMPC
Province wide
PEOPMPC
Number of Members in Each Cooperative
Table 5 presents the number of members in each of the cooperative classified into
male and female members. It was observed that there were more female members than
male members in almost all the cooperatives. It was only KDAEMPC that had more male
members the female members. Furthermore, the number of members in all the
cooperatives is less than 300. PEOPMPC had the highest number of members with 288
while KDAEMPC had the least number of members with only 78.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
14
Table 5. Number of members in each cooperative by sex
NAME OF COOP
NUMBER OF MEMBERS BY SEX
Male
Female
Total
KDAEMPC
42
36
78
AMPC
53
165
218
BMPC
120
124
244
PEOPMPC
141
147
288
Composition of Members
Membership in the different cooperatives in Bulanao, Tabuk consisted mostly of
employees. They were either government employees or private employees. It was only
KDAEMPC that had some farmer-members as shown in Table 6.
Table 6. Composition of members in the different cooperatives
NAME OF COOPERATIVE
COMPOSITION OF MEMBERS
KDAEMPC
Employees and farmers
AMPC
Employees
BMPC
Employees
PEOPMPC
Employees
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
15
Number of BODs and Committee Members
Table 7 presents number of members of the board of directors and the number of
members in each of the committee by sex. The least number of BOD is 3 while the
highest number is 7. There were 2 cooperatives that have 5 members of the board while 1
each had 3 and 7 members. It was also observed that the total number of male and female
members of the board were almost the same. Almost all the cooperatives had three
members in each of their committee except for BMPC that had 4 members of the audit
committee and AMPC that had 4 members of the election committee. Generally, it was
also observed that there were more female members of the different committee in each of
the cooperative.
Table 7. Number of BODs and committee members of the different cooperatives
COOP
BOD
AUDIT
CREDIT
ELECTION EDUCATION
M F T M F T M F T M F T M F
T
KDAEMPC 2
3 5 1
2 3 1
2 3 1
2
3
2
1
3
AMPC
1
2 3 -
3 3 -
3 3 1
3
4
1
-
1
BMPC
4
1 5 3
1 4 -
3 3 3
-
3
1
1
2
PEOPMPC 2
2 4 1
2 3 1
1 2 3
-
3
1
2
3
Legend: M = Male F = Female T = Total
Profile of Officers and Employees
Table 8 presents the profile of employees and officers in terms of age and gender.
The finding shows that most of the employees were generally of younger age while
majority of the officers were of older age. Twenty six or about 41% of the officers
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
16
belonged to the 51-60 years old and 18 or 28% were 41 -50 years old. When it comes to
gender, most of the officers and employees were female.
Table 8. Profile of employees and officers
CHARACTERISTIC
OFFICERS
EMPLOYEES
Frequency
Percentage
Frequency
Percentage
a. Age
20 – 30
7
10.9
6
31.6
31 – 40
5
7.8
4
21.1
41 – 50
18
28.1
2
10.5
51 – 60
26
40.6
5
26.3
61 – 70
6
9.4
2
10.5
71 – 80
2
3.1
-
-
Total
64
100
19
100
Mean
49.35 years old
41.65 years old
b. Sex
Male
27
44
4
33
Female
34
56
8
77
Total
61
100
12
100
Financial Status of the Cooperatives
This section presents the total asset, total liabilities, total paid-up share capital,
and the net surplus of the four operating cooperatives as of December 2004.
Total asset. The total assets of the four operating cooperatives are presented in
Table 9. All of the four cooperatives were millionaire cooperatives with PEOPMPC
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
17
having the highest total asset with 9.6 million pesos while KDAEMPCI had the lowest
total asset with 1.6 million pesos. This finding shows that all the four cooperatives were
millionaire cooperatives.
Total liabilities and total share capital. It was observed that KDAEMPCI had a
slightly higher total liability than total share capital. For AMPC and BMPC, it was
observed that the total paid-up share capital in both cooperative is higher than the total
liabilities. The total paid-up share capital for PEOPMPCI was lower than it total
liabilities.
Net surplus. BMPC did not have a statement of operation for 2004. For the three
cooperatives, PEOPMPC had almost P978,000, AMPC had P111,523 while KDAEMPC
had the lowest net surplus in December 2004.
Table 9. Total assets, total liabilities, share capital, and net surplus of the different
cooperatives as of December 2003
COOPERATIVE TOTAL
TOTAL
SHARE
NET
ASSET
LIABILITIES
CAPITAL
SURPLUS
KDAEMPCI
1,624,536
697,858
630,738
33,881
AMPC
1,975,972
710,495
1,233,690
111,522
BMPC
5,536,577
1,963,783
-
PEOPMPC
9,603,693
513,600
978,787
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
18
Sources of Funds of the Cooperatives
Table 10 presents the different sources of funds of the primary cooperatives. All
of the cooperatives sourced out their funds mainly from the share capital of members,
deposits of members, loan and fees. Two of these cooperatives availed of subsidies,
grants and donations. This shows that majority of the cooperatives got their funds from
internal sources and very few availed of external sources of fund.
Table 10. Sources of funds of the cooperatives
SOURCES OF FUND
FREQUENCY
PERCENTAGE
Share Capital
4
100
Revolving Fund
2
50
Deposit of members
4
100
Loan
4
100
Fees
4
100
Grants and donations
2
50
Capital Build-up Program
Table 11 shows the capital build-up programs of the cooperatives in Bulanao,
Tabuk. The table presents that the cooperatives used various ways to build-up their
capital. The entire cooperative had policy on loan retention. When members loan from
the cooperative, a percentage of the loan is deducted and credited to the share capital of
the member-borrower. All the cooperatives also accepted savings and time deposit from
their members and other persons who wanted to deposit their money in the cooperative.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
19
Table 11. Capital build-up program of the cooperatives
CAPITAL BUILD-UP
FREQUENCY
PERCENTAGE
Authorized retention from loan
4
100
Voluntary savings deposit
4
100
Time deposit
4
100
Seminars Conducted by the Cooperatives
Table 12 presents the kinds of seminar conducted by the four cooperatives and the
number of times they conducted for the last five years. The table shows that KDAEMPC
conducted seven types of seminar for the last five years; AMPC conducted six types of
seminar, while BMPC and PEOMPC conducted one type of seminar each. Each of them
conducted only one seminar for the last five years. Strategic planning workshop was
conducted by almost all the cooperative except BMPC. It was also noted that all the four
cooperatives did not conduct any pre-membership education seminar for the last five
years.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
20
Table 12. Kinds of seminar conducted by the cooperatives for the last five years
COOPERATIVE
KIND OF SEMINAR
NO. OF TIMES
CONDUCTED
KDAEMPC
Bookkeeping workshop
1
Savings deposit operating procedure
1
Financial Management
1
Credit management for cooperatives
1
Strategic Planning workshop
1
Budgeting and finance analysis
1
BOD, officers and management relations
1
AMPC
Standard auditing for cooperative
1
Adoption and implementation of the standard
chart of account
1
Asset management
1
Strategic planning workshop
1
Capability on lending and development
control
1
Bookkeeping seminar
1
Appreciation course on entrepreneurship
BMPC
development
1
PEOMPC
Planning and strategic management seminar
1
Trainings and Seminars Attended
The successful operation and progress of the business of the cooperative can be
achieved through training. Officers and employees of the cooperatives had very little
attendance to trainings and seminars. This was due to lack of time and money to be used
by the members. It was mentioned by all the respondents that they sent some of their
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
21
members and staff to attend the seminar on bookkeeping and strategic planning. No other
seminar was mentioned.
Compliance to Administrative Requirements
The cooperatives, like any other organizations, are required to comply with some
requirements imposed by CDA, BIR, the local government, SSS and DOLE. Table 13
presents the number of cooperatives that were regularly complying with the various
administrative requirements.
Compliance with CDA requirements. The CDA requires that cooperatives must
secure bond for their accountable officers, register their amendments of their by-laws,
issue share capital certificate, have their financial statement audited by an external
auditor, submit annual report regularly and hold regular general assembly meeting. The
finding shows that all the cooperatives bonded their accountable officers, register their
amendments to their by-laws had their financial statements audited and hold regular
general assembly meetings but when it comes to regular submission of annual report
only 2 of the cooperatives were complying it.
Compliance with BIR requirements. The various requirements imposed by the
BIR to the cooperatives were the following: registration of the cooperative as non-EVAT,
registration of books of accounts very start of the year, withholding of income taxes of
employees and application for tax exemption. The finding shows that all the cooperatives
were regularly complying with all the requirements. As to the withholding of taxes of
employees two cooperatives were not withholding income taxes of their employees.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
22
Compliance with other government requirements. This includes the following
requirements: must secure business permit from the mayor’s office every year, for
consumers cooperatives; deduct and remit SSS contribution, pag-ibig contribution and
Philhealth contribution of employees. Except for securing of business permit with only
one cooperative complying, all the cooperatives were complying with all the other
requirements.
Table 13. Number of cooperatives complying with administrative requirements
REQUIREMENTS
FREQUENCY PERCENTAGE
a. CDA Requirements
Bonding of accountable officers
4
100
Registration of amendments of by-laws
4
100
Issuance of share capital certificate
3
75
External audit of financial statements
4
100
Regular submission of annual report
2
50
Holding of regular general assembly
4
100
b. BIR Requirements
Registration of the cooperative as non-EVAT
4
100
Registration of books of accounts
4
100
Withholding of income taxes of employees
2
50
Applied for tax exemption
4
100
c. Other Requirements
Secure business permit every year
1
25
Deduct and remit SSS, Pag-ibig and Philhealth
4
200
contributions of employees
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
23
Management Practices of the Different Cooperatives
Management practices includes practices in holding general assembly meeting,
conduct of election, selection of candidates, and practices in accepting new members.
This also includes their affiliation to secondary organizations like the cooperative union
or federation; the availability of written vision, mission and goals; and the availability of
written development plan. Table 14 presents that all the cooperatives hold their general
assembly regularly and they elect their BODs and Committee members during the
general assembly. In the election of officers, all the cooperatives used the secret ballot.
For the selection of candidates the cooperatives require interested members to file their
candidacy instead of nominating them. It was found that all the cooperatives had no
written vision, mission and goal statement and they do not have any written development
plan.
Table 14. Management practices of the cooperatives
PRACTICES
FREQUENCY PERCENTAGE
a. General assembly held once a year
4
100
b. Elect officers during the general assembly meeting
4
100
c. Conduct of election by secret ballot
4
100
d. Selection of candidates
By nomination
2
50
By filing of candidacy
2
50
e. Require new members to undergo PMES
4
100
f. Vision, mission and goal statement is written
0
0
g. development plan is written
0
0
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
24
Needs of the Cooperatives
Table 15 shows that 2 or 50% of the cooperatives needed the following trainings
or seminars: operation and management, credit and collection management, training for
storekeepers, and bookkeeping while 25% of the cooperatives needed the following
trainings; how to handle problems, appreciation course on entrepreneurship, project
proposal preparation, and financial management.
The other needs of some of the cooperatives were capital build-up, credit sources
and building. Some of the cooperatives, as mentioned by the managers had limited
operating capital thus they needed outside sources of capital like donations or grants and
loans form banks or other cooperatives.
Table 15. Needs of the cooperatives
NEEDS
FREQUENCY PERCENTAGE
a. Trainings Needed
Operation and Management
2
50
How to handle problems
1
25
Credit and collection management
2
50
Appreciation course on entrep. development
1
25
Project proposal preparation
1
25
Training for store keepers
2
50
Financial Management
1
25
Bookkeeping
2
50
b. Other needs
Building
2
50
Working capital
1
25
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
25
Problems Encountered by the Cooperatives
Table 16 presents that 50% of the cooperatives each had a problem on the lack of
cooperative education of members and delinquency of members in paying their loans.
One cooperative each had a problem on the lack of skills of officers to evaluate the
financial reports of the cooperative because they were not knowledgeable on financial
analysis.
Table 16. Problems of the different cooperatives
PROBLEMS
FREQUENCY PERCENTAGE
Members lack cooperative education
2
50
Lack of skill to evaluate financial report
2
50
Lack of knowledge on financial analysis
1
25
Members are delinquent in paying their loan
2
50
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine the profile of the cooperatives; their
financial status; their policies and programs; their compliance with the requirements
imposed by CDA, DOLE, BIR and the local government; and find out their needs and
problems. This study was conducted in Bulanao, Tabuk, Kalinga from April to May
2005. A Survey questionnaire was used to gather the needed data. The managers or
officers of the cooperatives served as respondents of the study.
There were eleven primary cooperatives organized within the barangay of
Bulanao. However, during the conduct of the study only four were operating while the
other seven cooperatives were already closed. Almost all of them have credit and
consumers services. Three of the four operating cooperatives operated for more than ten
years. Three of these cooperatives had members coming from the whole province of
Kalinga while one had members coming from the whole municipality of Tabuk. One had
less than one hundred members while three had more than 200 hundred but less than
three hundred members.
The membership composition in all the cooperatives was all employees except for
one that had farmer members. There were more female members than male members.
Majority of the officers of the different cooperatives were 41 to 60 years old while
majority of the employees were 20 to 40 years old. Also, majority of the officers and
employees were female.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
27
All the cooperatives were millionaire cooperatives in terms of their total asset.
There were two cooperatives with more paid-up share capital than liabilities but the other
two cooperatives had higher total liabilities than their paid-up share capital. All of them
source out their funds from their members in the form of share capital, savings deposit
and reserves from net surplus.
To increase their working capital, the cooperatives accepted savings deposit from
the public. They also have policy on loan retention which they deduct a small percentage
from the member’s loan and add it to his/her share capital.
To educate their members, the cooperatives conducted various trainings and seminars.
Two cooperatives conducted seven kinds of seminar for the last five years while the other
two conducted only one seminar each. Due to lack of funds, very few members were sent
to attend training and seminar outside their cooperative.
The finding showed that all the cooperatives had been complying with the
different requirements imposed by CDA, BIR, and the local government unit. The
findings also indicated that that all the cooperatives conducted their general assembly on
an annual basis where they elect their officers during the general assembly. All the
cooperatives do not have any written vision, mission and goals and well as written
development plan. When asked about their development plan, the respondents mentioned
they have but it was not written.
The finding also showed that the cooperatives have various training needs. The
common training needs were operation and management training, credit and collection
management, training for store keeper, and bookkeeping seminar. They also mentioned
that they have problems on lack of education of members, lack of skill on the part of the
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
28
officers to evaluate financial reports, and delinquency of members in meeting the
schedule of their loan repayment.
Conclusion
From the findings of the study, the following conclusions were drawn:
1. The rate of survival of primary cooperatives in Bulanao, Tabuk is very low. Out of the
eleven primary cooperatives organized in different places of Bulanao, only four
cooperatives survived and still operating as of December 2004. Three of these surviving
cooperatives were institutional cooperatives.
2. Almost all the cooperatives organized in the place were multipurpose cooperatives
with the same type of services. They also have the area of operation. Thus, they tend to
compete with one another in terms of getting members. Perhaps, some of the members
have dual membership so their loyalty is divided between the two cooperatives where
they are members.
3. All the cooperatives organized in Bulanao are multipurpose cooperatives and almost
all of them are offering both credit and consumer services.
4. All the currently operating cooperatives are millionaire cooperatives in terms of total
asset. However, they have a very poor financial condition since the portion of the total
asset financed by owners’ equity is very low. There is also a very low return to total asset
as reflected by the low net surplus.
5. All the cooperatives have a policy on loan retention. They also accept savings and time
deposit from the public to augment their operating capital.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
29
6. The cooperatives had been conducting trainings and seminars for the last five years to
educate their members. However, members rarely attended seminars outside their
cooperative.
Recommendations
1. Since the survival rate of cooperatives in Bulanao, Tabuk is very low, added to the
very poor financial standing of the four surviving cooperatives, it is recommended that
the Cooperative Development Authority, who is given to task to help in the development
of cooperatives in the country should closely monitor the performance of these
cooperatives and give the necessary technical advice in order that these cooperatives will
not fail.
2. Since the surviving cooperatives are institutional cooperatives, the different institutions
where these cooperatives operate should assist them, especially in the collection of loans
or receivable by allowing salary deduction.
3. The cooperatives should increase allocation for education and training fund so that
more members would be sent to attend trainings and seminars.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
30
LITERATURE CITED
AQUINO, A. 1999 AND 1994. Republic Act No. 6838 and Republic Act No. 8968. Pp.
94-95
ANASTACIO, L.K. 2004. Profile of Primary Cooperatives in Itogon, Benguet, BS
Thesis. Benguet State University, La Trinidad, Benguet. P 15.
BACAKEO, C.B. 2004. Profile of Primary Cooperatives in Tublay, Benguet, BS Thesis.
Benguet State University, La Trinidad, Benguet. P 15.
COOPERATIVE CODE OF THE PHILIPPINES. 1990. Primer on Republic Act 6938
and 6939. Cooperative Development Authority. Pp.5-7.
FAJARDO, F.R. and A.P. FABIAN. 1999. Cooperative. 4th ed. Manila: Rex Publishing
and Bookstore. Pp. 74-75.
PIMENTEL, A.Q., SR. and N.R. CUA. 1999. Cooperative Code of the Philippines.
Metro Manila: White Orchids Printing and Publishing Co. Pp. 13, 17.
RIMAS, G.S. 1999. Pre-membership Education Seminar lecture notes. Baguio-Benguet
Community Credit Cooperative.
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
31
APPENDIX-A
A. Letter to the Respondents
Republic of the Philippines
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
June 2005
The Manager
The Different Cooperatives of Bulanao, Tabuk
Warm greetings!
I am a fourth year student taking up Bachelor of Science in Agribusiness Major in
Cooperative Management in Benguet State University. To fulfill my field of study, I am
requested to conduct a research titled “Profile of Cooperatives in Bulanao, Tabuk”.
In this connection, may I therefore ask for your cooperation in providing the
necessary information about your cooperative.
Thank you very much! May God bless you all.
Respectfully yours,
RIDDLE B. LONGAN
Student researcher
Noted:
EVANGELINE B. CUNGIHAN
Thesis Adviser
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
32
B. Survey Questionnaire
PROFILE OF PRIMARY COOPERATIVES IN HUNGDUAN, IFUGAO
SURVEY QUESTIONAIRE
Direction: Please fill-up the blanks with the needed information and/or check the
parenthesis, which fits your answers.
I.
GENERAL INFORMATION
1. Name of the cooperative: _______________________________
2. Address: ______________________________
3. Date organized/Start of Operation: __________________
4. Date Registered: _________________
5. Number of years in operation: __________
6. Area of operation:
( ) a. Barangay ( ) b. Municipality/city
( ) c. Provincial
( ) d. Regional
( ) e. National
( ) f. Others (pls. Specify)_________________
7. Sources of Funds:
( ) a. Share capital ( ) b. revolving capital
( ) c. Deposits of members ( ) d. Borrowings
( ) e. Fees
( ) f. Interest on loans
( ) g. Others (pls. Specify)_________________
8. Capital Build-up Programs
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
33
( ) a. Popularity contest
( ) b. Raffle draw
( ) c. Christmas caroling
( ) d. Authorized retention from loans
( ) e. Mortuary funds
( ) f. Special time deposits
( ) g. voluntary time deposits
( ) h. Others (pls. Specify)_________________
9. Composition of Membership:
( ) a. Farmers
( ) b. Women
( ) c. Indigenous community ( ) d. Vegetable dealers
( ) e. Business man/woman ( ) f. Disabled
( ) g. Others (pls. Specify) ____________
II. Organization and Management
1. Initial membership:
Regular
Associate
Male
______
______
Female
______
______
2. Number of BOD members: ______
3. Number of committee members:
a. Audit _____
b. Credit _____
c. Election _____
d. Education _____
e. Others ( pls. Specify) _____
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
34
4. Number of employees:
Fulltime
Part time
Volunteer
Male
_______
_______
_______
Female
_______
_______
_______
1. Demographic Profile of Officers/Employees
Name(optional)
Sex Age Educational Civil
Attainment Status
a. BOD
________________ ___ ___ ___________ ____
Chair person: ________________ ___ ___ ___________ ____
Vice chair person: _____________
___ ___ __________ ____
Directors: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
4. _____________
___ ___ __________ ____
5. _____________
___ ___ __________ ____
6. _____________
___ ___ __________ ____
7. _____________
___ ___ __________ ____
8. _____________
___ ___ __________ ____
9. _____________
___ ___ __________ ____
Treasurer: _____________
___ ___ __________ ____
Secretary: _____________
___ ___ __________ ____
b. Committees:
Audit 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
35
3. _____________
___ ___ __________ ____
Credit: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Election: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Education: 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
Others (pls specify) 1. _____________
___ ___ __________ ____
2. _____________
___ ___ __________ ____
3. _____________
___ ___ __________ ____
2. Trainings conducted by the cooperative:
( ) Cooperative pre membership Education Seminar
( ) Bookkeeping Workshop
( ) Savings Deposit Operating Procedure
( ) Others (pls. Specify)________________________
3. Training Attended by the Officers/Employees/Members
( ) Appreciation Course on Entrepreneurship Development
( ) Credit Management for cooperative
( ) Standard Auditing for Cooperatives
( ) Audit Procedures and Internal Control
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
36
( ) Adoption and Implementation of the Standard Chart of Account
( ) Asset Management
( ) Strategic Planning-Workshop Seminar
( ) Budgeting and Finance Analysis
( ) Capability on Lending and Delinquent Control
( ) Board, Officers and Management Relations
( ) Others (pls. Specify) _______________________________________
III. Business Operations
1. Services Offered:
( ) a. Lending
( ) b. Trading
( ) c. Manufacturing
( ) d. Contract
( ) e. Transportation
( ) f. Electric
( ) g. Savings
( ) h. Insurance
( ) i. Others (pls. Specify)
2. Other Benefits:
( ) a. Medical
( ) d. Mortuary
( ) b. Dental
( ) e. Others (pls. Specify)
( ) c. Education
IV. Development Plan Formulated and Implemented
1. development Plan
Formulated
Implemented
a. Annual
( )
( )
b. Long term
( )
( )
V. Financial Status
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
37
Please provide a copy of your financial statements for 2001 and 2002.
VI. Needs and Problems of Cooperative
1. Needs:
a. Education:
( ) Financial Management Training
( ) Bookkeeping/Accounting
( ) Cooperative Operation and Management
( ) Leadership Training Course
( ) Trainers Training
( ) Credit and Collection Management
( ) Entrepreneurial Skills Development
( ) Field Trips
( ) Project Proposal Preparation
( ) Others (pls. Specify)
b. Technical:
( ) Computerization of Operation
( ) Others (pls. Specify)
c. Financial:
( ) Credit Sources
( ) Subsidies, Grants, Loans
( ) Sources of funds for expansions
( ) Others (pls. Specify)
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
38
2. Problems:
( ) a. Lack of cooperative education and training for leaders
( ) b. Lack of cooperative education and training for members
( ) c. Inefficient leaders
( ) d. 50% or more do not patronize the cooperative
( ) e. Delinquency of members in paying loans
( ) f. Records are not updated
( ) g. Lack of capital to sustain the operation
( ) h. Others (pls. Specify)
VII. What solutions do you suggest to meet these needs and solve the problems.
1. Needs:
a. Education: ____________________________________________
b. Technical: ____________________________________________
c. Financial: _____________________________________________
2. Problems:
a. _______________________________________________
b. _______________________________________________
c. _______________________________________________
d. _______________________________________________
Profile of Primary Cooperativ es in Bulanao, Tabuk / Ridel B. Longan. 2006
Document Outline
- Profile of Primary Cooperatives inBulanao, Tabuk
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX