BIBLIOGRAPHY ALATAN, JENNIFER B. APRIL 2009. ...
BIBLIOGRAPHY
ALATAN, JENNIFER B. APRIL 2009. Documentation of Drivers Operators
Employees Residents and other Sector Multipurpose Cooperative (DOERS MPC).
Benguet State University, La Trinidad Benguet.
Adviser: Andrew K. Del-ong, BSc.
ABSTRACT
This study was conducted to document the organization and development of
Drivers Operators Employees Residents and other Multipurpose Cooperative (DOERS
MPC) particularly its growth in terms of membership, total paid-up share capital and total
asset; the policies, programs and practices and the problems encountered.
This study was conducted at the Drivers Operators Employees Residents and
other Sector Multipurpose Cooperative office at Km. 11, Tili, Shilan, La Trinidad
Benguet. First hand information was gathered from the manager, bookkeeper, and the
treasurer. Secondary data were taken from the reports compiled and manual of operation
of the cooperative.
The number of regular members, total asset and paid-up share capital had been
increasing annually although in varying rates. The primary reason for the continuous
increase in membership, assets and share capital was due to amendment in the Articles of
Cooperation and By-laws that led to the opening of the cooperative’s membership to
other sectors in the locality.
There was no significant change in their policies except on the qualifications for
membership. On the credit policy, they only made an addition in order to adjust and to
suit in some situations. The problem commonly encountered by the cooperative which
was stated by the manager was the loan payment delinquency of members.
As to the specific policies, practices and programs of the cooperative they are
embedded in their vision, mission and objectives. The basis of their policy is the
principles of proper cooperative management.
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TABLE OF CONTENTS
Page
Bibliography………………………………………………………………...…… i
Abstract…………………………………………………………………………... i
Table of Contents………………………………………………………………... iii
INTRODUCTION
Rationale of the Study…………………………………………………… 1
Statement of the Problem………………………………………………… 2
Objectives of the Study…………………………………………………... 3
Importance of the Study………………………………………………….. 3
Scope and Limitation of the Study……………………………………….. 3
METHODOLOGY
Locale and Time of the Study…………………………………………… 4
Respondents of the Study……………………………………………….... 4
Data Gathered…………………………………………………………… 4
Data Collection…………………………………………………………… 4
Data Analysis……………………………………………………………... 5
REVIEW OF LITERATURE
Cooperative………………………………………………………………. 6
Objectives of the Cooperative…………………………………………… 6
Importance of Cooperative………………………………………………. 7
Cooperative as a Tool of Development………………………………….. 7
Membership……………………………………………………………… 8
Success Factors of Cooperative…………………………………………. 9
Management of the Cooperative………………………………………… 10
Needs of Cooperative…………………………………………………… 10
Problems Encountered…………………………………………………... 11
RESULTS AND DISCUSSION
The Organization of the Cooperative…………………………………….. 12
The First Members of the Cooperative…………………………………… 12
The First Board of Directors……………………………………………… 12
The Composition of the Organizational
Structure of the Cooperative…………………………………………….. 13
The Membership of DOERS MPC……………………………………… 15
Initial Operation…………………………………………………………. 16
Current Operation……………………………………………………….. 16
Credit Operation…………………………………………………………. 18
Growth in Membership………………………………………………….. 19
Growth in Total Assets…………………………………………………... 20
Growth in Paid-up Share Capital………………………………………… 22
Growth in Liabilities…………………………………………………….. 23
Growth in Net Surplus…………………………………………………... 25
Policies, Programs and Practice of the Cooperative……………………… 27
Problems Met by the Cooperative………………………………………… 34
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS……………… 35
Summary………………………………………………………………….. 35
Conclusions……………………………………………………………….. 36
Recommendations………………………………………………………… 37
LITERATURE CITED…………………………………………………………… 38
APPENDICES……………………………………………………………………. 58
A. Letter to the Respondents……………………………………………… 60
B. Survey Questionnaire………………………………………………….. 61
1
INTRODUCTION
Rationale of the Study
The establishment of cooperative begins with people who wish to provide
themselves with goods and services they need. As such, the cooperatives should grow in
size, both in membership and economic resources, so that they will be able to provide the
needs of the members.
The Acop Shilan Operators and Drivers Association Multipurpose Cooperative
(ASJODA MPC) was organized in the last quarter of 2001 with twenty five (25) initial
members. Through the cooperation and the unity of all the officers and members who are
operators of the jeepney units plying the route of Baguio-Acop-Shilan and vice versa, the
cooperative was registered with the Cooperative Development Authority under certificate
of Registration No. CEO 1098 on December 11, 2001.
Initially, the cooperative engaged in credit services and eventually expanded as
time passed. At present, aside from its credit operation, the cooperative is accepting
deposits it is also into the fuel refilling station, and transport services. These show that
the cooperative is growing well.
Sometime in 2005, the cooperative expanded its membership from operators and
drivers to include other individuals from all walks of life who envisions attaining better
living conditions. At present, the cooperative has two hundred (200) members composed
of one hundred sixty (160) regular members and forty (40) associate members.
On March 20, 2007, the name of the cooperative was changed to Drivers
Operators Employees Residents and other Sector Multipurpose Cooperative (DOERS
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
2
MPC) per Certificate of Registration of the amendments to the Article of Cooperative and
By Laws issued by the Cooperative Development Authority.
The cooperative envisions to be a progressive, strong and stable cooperative and
in partnership with the community in providing adequate and quality services within the
province of Benguet. Its continuous development is attributed to its mission to address
the financial needs of the members assisting them in the upliftment of their socio-
economic well-being towards self reliance and to provide essential services and business
enterprise to the general public within its area of operation.
Statement of the Problem
This study was conducted to document the Drivers Operators Employees
Residents and other Sector Multipurpose Cooperative (DEORS MPC); it saught to find
the answers to the following questions:
1. What are the growths in the cooperative in terms of:
a. number of members
b. total assets
c. total paid-up share capital
2. What are the policies, programs and practices of the cooperative?
3. What are the problems commonly encountered by the cooperative?
4. What are the solutions to these problems?
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
3
Objectives of the Study
This study aimed to accomplish the following:
1. To determine the growth in membership, total assets and paid-up share capital of
the cooperative.
2. To find out the policies, programs and practices of the cooperative.
3. To identify the problems commonly encountered by the cooperative.
4. The solutions implemented by the cooperative for their development and
improvement.
Importance of the Study
The solutions implemented by the cooperative for their development and
improvement. Findings of this study would serve as a basis for DOERS MPC to assess
the policies and practices that are favorable to the cooperatives operation and to improve
on its shortcomings. For the members, it would give them a picture of their cooperatives
overall operations as well as its history or evolution. Likewise to prospective members
who may be encouraged to join from the information they would be getting about the
cooperative. Furthermore, this study would serve as a reference for other researchers who
would like to conduct a similar study in the future.
Scope and Limitation of the Study
The study focused on the profile of the Drivers Operators Employees Residents
and other Sector Multipurpose Cooperative, their policies, practices and programs. The
data gathered covered the year it was established up to the current year.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
4
METHODOLOGY
Locale and Time of the Study
This study was conducted at Km.11 Tili, Shilan, La Trinidad, Benguet where the
Drivers Operators Employees Residents and other Sector Multi-purpose Cooperative
(DOERS MPC) is located. This was conducted from December 2008 to February 2009.
Respondents of the Study
The respondents of the study were the officers of the cooperative, particularly the
chairman of the Board of Directors, secretary, and the treasurer, the manager, and the
bookkeeper.
Data Gathered
The data gathered were on the background information about DOERS MPC, their
programs and policies and the problems they commonly encountered and the solutions
they employed. The profiles of members were being included.
Data Collection
To attain the objectives of the study, the primary data were gathered through
personal interview to key informants. Likewise, secondary data pertaining to the profile
of member policies and programs, annual and or financial reports were sourced from the
cooperatives records.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Data Analysis
The data and information gathered were tabulated, analyzed, and interpreted
according to the objectives of the study.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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REVIEW OF LITERATURE
Cooperative
The cooperative is an organization where members help each other become self-
reliant and self-sufficient because the purchasing power of his little and hard earned
money is enhanced. It is the economic alternative and the inculcation of values which are
needed to meet the challenges of rapidly changing society (Binay-an, 2006).
Furthermore, Victor (2008) cited that a cooperative is a dynamic form of business
enterprise that embodies the philosophy of cooperative. It signifies the voluntary assent
of people to form themselves into a group for the promotion of their common needs by
mutual action, democratic control and sharing of economic benefits on the basis of
patronage refund by the members. It is a business enterprise, like any other business
which has primary aim.
Objectives of the Cooperative
The primary objectives of the 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, cots-sharing and risks
sharing without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes ( Victor,2008).
Te main objective of the Drivers Operators Employees Residents and other Sector
Multipurpose Cooperative is stated in the ASJODA profile are;
a) To provide adequate services to the members.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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b) To serve as a partner in the development of community.
c) Improve the quality of life of its members through financial and technical
support.
Importance of Cooperative
Cooperative is seen as a solution to help people from economic difficulties.
Cooperative are usually organized to provide capital to the members for the development
of their production endeavors, increased income and for the promotion of savings
equitable distribution of net surplus through maximum utilization of money borrowed.
The member borrowed must be disciplined enough wisely used the loan for the
production of provident purpose to be able to generate income at the same time dutifully
pay for the maturing obligation (FAJARDO AND ABELLA ,1993).
Cooperative as a Tool of Development
The Cooperative Development Authority stated that the important role of
cooperatives in the development of the country. A cooperative creates employment and
entrepreneurial opportunities for the country unemployed and marginally employed,
affecting broader base ownership of the access to productive resources reducing wide
income gap and guaranteeing equal and even development (Saldo 2005).
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Membership
Members of cooperative may be either natural or juridical persons depending on
the kind of cooperative. In a primary cooperative only a natural person who is a citizen of
the Philippine is eligible for membership, while in secondary or tertiary cooperatives,
members may be either cooperative or non-profit organization with juridical personality.
Members of a cooperative must individually contribute a certain amount known
as the share capital, as requirement for the organization of a cooperative. The law states
that at least (25%) of the authorized share capital should be subscribed at least twenty
five per centum (25%) of the subscription should be paid. The minimum amount of paid-
up share capital shall in no case, be less than 2,000 pesos.
In addition, Anastacio (2004), stated that a cooperative is a dynamic form of
business enterprise that embodies the philosophy of cooperation. It state that through
voluntary asset of people to form themselves into a group for the promotion of their
common needs by mutual action, democratic control and sharing of economic benefits on
the basis of patronage by members.
Everybody is encouraged to participate actively in all affairs of the organization
from planning to Management. It is democratic in its government that the members are
treated respect and dignity. The officers and members are equally exposed to trainings
and education to improve their attitudes, values and skills, indeed, cooperatives provide a
fertile ground for members to pursue their own development and growth with their
capabilities and inclination. In a cooperative, members are treated equally. They are
willing to sacrifice for a common good and even give away part of their resources for a
common good (Anastacio 2004).
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Success Factors of Cooperative
Binay-an (2003) stated that a cooperative utilizes efforts and times in research to
discover the best ways to serve their members by studying new problems and to search
for provide affective solutions. Also managers and executives need to be technically
trained. The people as technicians, managers, and executives need their services. They
would adopt an unselfish attitude against the people.
1. Continuous training and education of the officers, members, and employees.
2. Appropriate and adequate organizational structures to cope with the varying
and increasing needs and problems of the cooperative members and the community.
3. Progressive and people oriented policies on the services offered education,
management, community development.
4. Presence of effective, honest and dedicated cooperative and community
leaders.
5. Active involvement and participation of the officers and members in the affairs
of their cooperatives and their community.
6. Trust and confidence in the cooperative officers.
7. Dependence on self-help process in achieving their programs and projects.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Management of the Cooperative
Walcien (2005) mentioned that the management of cooperative endeavor follows
the same line of service not only to the members but also to the public who become
patrons of their goods and services. The management of the cooperative association is
said to be good when i6t develops confidence among its members. Such confidence is
established because the people who run the affairs of the association and t6hose help
them render the services to the members are expected to receive from them.
Every member is encouraged to participate actively in all affairs of the
organization from planning to management. It is most democratic in its governance and
the members are treated with respect and dignity.
Needs of the Cooperatives
The importance of cooperative as instruments for socio-economic development
cannot be underestimated. In their effective use, they have succeeded in accelerating the
growth of low income and less segments of the society. But as experience shows, most
cooperative failed to achieve this end. One major reason for such failure is the lack of
proper attitude and skills on the part of the members and officers to participate, because a
full pledge cooperative is business enterprise engaged in complicated activities, its
demands are greater. It requires efficient management, able leadership and vigilant
members and others, these are not readily learned (Walcien 2005).
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Problems Encountered
Wacay (2003), stated that the cooperative Managers were responsible in
managing the business of the cooperative but still there were some cooperatives that the
Board of Directors and Chairman of the Board were allowed to manage the cooperative
business. The primary problems in the cooperative are the lack of training and seminars
for the members, officers, and management staff which affect their performance on their
duties and responsibilities.
As cited in the Agrarian Reform Cooperative and Taxation Handbook (1990), as
stated by Wacay (2003), one problem of the cooperative development is the lack of
complement staff at various levels of qualifications. This shortage of adequate trained
staff is acute in the field of management emergency action as required in order for
cooperative to apply their role as efficient instruments. A number of the problems also
pointed to poor attendance in training seminars of failure of some projects to meet the
need of participants.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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RESULTS AND DISCUSSION
The Organization of the Cooperative
The Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) was originally named as Acop Shilan Jeepney Operators and
Drivers Association Multipurpose Cooperative (ASJODA) that was organized on May 7,
2001 through the initiative of Mr. Paterno Anas. The Cooperative was registered with the
Cooperative Development Authority under the Certificate of Registration No. CEO-1098
on December 11, 2001. They amended their Articles of Cooperation and Bylaws last
March 20, 2007. They amended there bylaws to expand their membership and now it’s
not only the drivers and operators of Baguio Acop-Shilan jeepneys who are members but
it also includes all people who are residing in the area of Benguet.
The First Members of the Cooperative
On May 7, 2001, twenty-five (25) individuals, composed by the officers and
members of cooperative attended the first Pre-membership Education Seminar (PMES)
headed by Mr. Peter Pi-ay and with the presence of one representative from the
cooperative Authority Development. They were presented in Exhibit 3.
The First Board of Directors
The first members of the board of directors of Drivers Operators Employees
Residents and other Sector Multipurpose Cooperative (DOERS MPC) were consisted of
nine (9) members.
The first nine set of Board of Directors were presented in Exhibit 4.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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The Composition of the Organizational Structure of the Cooperative
The organizational structure of the cooperative is composed of the general
assembly, committees, board of directors and the management staff. The organizational
chart of the cooperative is presented in Figure 1.
The general assembly. The general assembly is composed of the regular
cooperative members who are entitled to vote and be voted upon. The associate members
of the cooperative who are not regular members thereof and therefore are not entitled to
vote and be voted upon are not members of the general assembly.
The board of directors. The boards of directors of DOERS MPC consists of nine
individuals and are expected to possess the acronym TAWID (Time, Availability,
Willingness, Interest and Dedication) in providing services to the cooperative.
The schedule of meeting of the board of directors is every second Saturday of the
month, aside from the special meetings, that may be called anytime to take up special
issues or concerns. The term of office depended on the votes garnered during the regular
assembly meeting. One half plus one (1/2+1) of the directors obtaining the highest
number of votes shall serve for two years, and the remaining directors shall serve for one
year. This tenure is effective during the first election. Chairman and Vice chairman shall
be elected on a majority vote of the elected members of the board of directors.
The committee. The cooperative has four (4) standing committees namely: Audit
Committee (AC), Education and Training Committee (ETC), Election Committee (Ele
Com), and Credit Committee (CreCom). These committees have assisted in the
implementation of the cooperatives development program.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Each committee is composed of three members (chairman, secretary and a
member). Term of office shall be one year or until their successors shall have been
elected and qualified.
The management team/staff. The management staff of the cooperative is
composed of five employees headed by the managing director, Mrs. Myrna Batil. The
other employees include the bookkeeper, treasurer, cashier, and attendant (gasoline boy).
They are expected to maintain an efficient service with the cooperative. They are the ones
who utilize and manage the resources efficiently to produce income for the cooperative s
welfare. They play an important role in the organization because without them the
business operation would be hampered.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
15
The Membership of DOERS MPC
There are two types of membership in the cooperative: the regular or full pledged
members and the associate members. The regular members are those who subscribed at
least two thousand pesos corresponding to twenty five shares that shall be paid upon
membership including other fees as stated in the membership and subscription agreement.
These members must have a permanent residency in Baguio City or Benguet Province
and must have finished the Pre-membership Education Seminar.
The associate members are those who have all the rights of a regular member
except the right to vote and be voted upon as officers of the cooperative. The associate
members of the cooperative include the following:
· Members who have paid two (2) preferred shares amounting to two hundred pesos
(P200.00) and membership fee of three hundred pesos (P300.00).
· Members who subscribed at least ten (10) shares or one thousand pesos
(P1000.00).
· Individual or institutional depositors and users of the cooperative services.
· Regular users of the refilling station who have paid the membership fee.
· Members whose share capitals fall below the minimum paid up shares for regular
members.
Membership is open to all persons whose ages ranges from 15-55 years old, with
the capacity to contract and is working within Baguio City and Benguet Province. The
cooperative get membership through recruitment, some are referred by the old members
and some heard about the benefits and business of the cooperative, thus, they apply
personally in the cooperative.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
16
Initial Operation
The cooperative was first named as ASJODA MPC and their first operation was
credit services. Their clients then were limited to the members who were driver and
operators of jeepneys plying the Baguio-Acop-Shilan route. Eventually, the cooperative
expanded its services as time passed.
Current Operation
At present, aside from its credit operation, the cooperative now also accepts
deposits (savings and time); it is also into fuel refilling, transport services and auto supply
business.
These businesses are able to help the people who are in need of financial and
other services. The current business of the cooperative are presented below.
Consumer services. The cooperative started its consumer operation on 2004 with
fuel refilling station service and later added other commodities needed by their members.
This is also identified as the main business operation of the cooperative. Since it is one of
the main businesses, sound policies had been formulated to guide the members on the
different transactions and practices in the consumer operation.
Transportation services. Commercial vehicles owned by the cooperative shall be
legally qualified bonafide members of the DOERS MPC selected by a committee that
may be formed for the purpose. The cooperative provide transportation opens to the
general public. But, the transportation services only operated one year from 2003 to 2004
because it was stolen.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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It plays an important role in community and for the people. Hiring or
renting is also allowed in the trnasportation services offered by the cooperative. Policies
on this service are presented in exhibit 10.
Fuel refilling station. The fuel refilling station is one of the ways of the
cooperative to provide adequate service to the members and non members. They engaged
in the purchase and distribution of fuels to member’s s an alternative to those who offered
by traditional firms in the locality besides, they are the ones regularly needed by their
jeepney operators and drivers.
Auto supply operation. This operation had just started on May 2008. They
engaged in distributing automotive parts and accessories, lubricants and other items
considered under the refilling station and auto supply business. This operation helped the
operators and drivers and other individuals to attain better living condition.
Credit operation. Cooperatives are organizations that provide financial assistance
to its members by giving loans at minimal interest rate. The interest rate of the
cooperative is 3% per annum for savings and 1% monthly for credit. This is great help to
members because the interest loan for cooperative is lower compared to loan sharks and
even the banks and other financial institutions.
The cooperative provides different types of loan to members of their cooperatives.
They also give loans to the cooperatives that have savings deposit with the cooperative.
In addition to that, the cooperative also allowed credit in fuels to members only.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
18
Growth in Membership
The initial number of members of the cooperative in 2001 was only sixty three
(63). This increased by 15.87% in 2002. Since then, the number had been continuously
growing until at present through at differing rates of increase. In table 1 it shows that the
greatest increased in membership was experienced in the year 2007 (30.77%). This was
due to the change in the scope in membership when the cooperative amended its Articles
of Cooperation and By-laws on the said year where membership was opened to other
sectors. The increase in membership could be the attributed also to the continuous
information campaign initiated by the officers on the privileges, benefits and advantages
that could be received by members. However it can be noted that rates of increases are
fluctuating.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Table 1. Growth in membership from 2001 to 2008
YEAR NUMBER OF MEMBERS RATE OF GROWTH (%)
2001
63
2002
73
15.87
2003
83
13.70
2004
95
14.45
2005
102
7.37
2006
130
27.45
2007
170
30.77
2008
200
17.65
250
200
150
100
50
0
2001
2002
2003
2004
2005
2006
2007
2008
Figure 2. Graph of membership from 2001 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
20
Growth in Total Assets
The total assets are directly affected by the number of members. When there are
more members added, they deposit their money in the cooperative as share capital thus
the total assets would increase. The cooperative had a total asset of P1, 055, 875.18 in its
initial year of operation in 2001. On the other hand, the total asset as of the latest period
(2008) was P5, 432, 175.19, indicating an increase of 13.35%. In terms of annual growth
rates, the highest was experienced in 2004 with 59.60% followed by 2002 with 38.04%
increase, 2006 (30.96%), 2003(26.60%), 2007 (20.30%) and (2008) 13.35%. Although
the total assets were growing, rates were fluctuating. It can be noted further that the
smallest increased was in 2005, the year when the member of new members were the
fewest.
The increase in assets was a positive indicator of the ability of the cooperative to
mobilize resources in order to meets its need.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Table 2. Growth in total asset from 2001-2008
YEAR TOTAL ASSET RATE OF GROWTH
(In Pesos) (%)
2001
1, O55, 875.18
2002
1, 457, 610.00
38.04
2003
1, 845, 223.08
26.60
2004
2, 944, 795.25
59.60
2005
3, 041, 783.97
3.30
2006
3, 983, 621.39
30.96
2007
4, 792, 258.07
20.30
2008
5, 432, 175.19
13.35
6,000,000.00
5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
0.00
2001
2002
2003
2004
2005
2006
2007
2008
Figure 3. Graph in total asset from 2001 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
22
Growth in Paid-up Share Capital
Due to delayed payment of members to their subscribed share capital, the initial
paid-up share capital was only P45, 901.24. However, in the succeeding year (2002) there
was a significant increase of about 2,045%. This was the time when most of the member
subscribers were able to pay their subscribed shares. It can be noted also that the smallest
increase in paid-up share capital (2.43%) was in 2005. This was also due to the fact that
this was the year when the increase in membership was the smallest. Even though, there
was a continuous increase in the paid-up share capital over the succeeding years amidst at
varying rates, the period 2005-2008 is marked by an increasing rates of increases with
2008 having a significant 16.96% increase. Said continuous increases were due to the
continuous increases in the number of members and capital share investment.
Table 3. Growth in total paid-up share capital
YEAR TOTAL PAID-UP SHARE CAPITAL RATE OF GROWTH
(In Pesos) (%)
2001
45, 901.24
2002
984, 966.89
2045.00
2003
1, 037, 897.24
5.37
2004
1, 237, 823.59
19.26
2005
1, 267, 856.09
2.43
2006
1, 394, 137.53
9.97
2007
1, 593, 333.86
14.29
2008
1,836, 361.30
16.96
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Figure 4. Graph in total paid-up share capital from 2001 to 2008
Growth in Liabilities
Based on the cooperatives record, that there are only P29, 370.50 total liabilities
in 2001, this was due to the small amount of share capital contributed by the few
members. In the succeeding year of operation (2002), the liabilities increased by
1100.57% with P352, 614.23. Again this could be attributed to the growth in membership
resulting high increase in paid-up share capital. As was pointed out in table 3, from 2003
to 2008 the total paid-up share capital had been increasing, that resulted to the continuous
increases in liabilities.
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Table 4. Growth in total liabilities
YEAR TOTAL LIABILITIES RATE OF GROWTH
(In Pesos) (%)
2001
29, 370.50
2002
352, 614.23
1100.57
2003
641, 112.34
81.81
2004
1, 509, 271.19
135.41
2005
1, 448, 834.80
-4.00
2006
2, 034, 642.23
40.43
2007
2, 302, 595.15
13.16
2008
2, 506, 033.53
8.84
Figure 5. Graph in total liabilities from 2001 to 2008
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Growth in Net Surplus from 2006-2008
For the data on net surplus, the periods considered were from 2006 to 2008 only.
This was due to incomplete records of the cooperative. Data shows that the cooperative
generated a net surplus mounting to P1, 008, 649.21. It increased in 2007 by 17.64% due
to high increased in sales, membership fees and interest income from investment. In
2008, the rate of growth decrease to 5.10% from 17.64% in 2007 due to the decrease on
the rate of growth of gross income of the cooperative.
Table 5. Growth in net surplus from 2006-2008
YEAR TOTAL NET SURPLUS RATE OF GROWTH
(In Pesos) (%)
2006
1, 008, 649.21
2007
1, 186, 576.48
17.64
2008
1, 247, 169.61
5.10
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Figure 5. Graph in net surplus from 2006 to 2008
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Policies, Programs and Practice of the Cooperative
The policies, programs and practices of the cooperative presented were taken
from the manual of operation of the cooperative.
Resources development enhancement program. This would mean organizational
building to include the development of the area leaders, their management capabilities
and capacities, and resource mobilization. Intensive campaign for capital build-up and
savings as initial step towards self-reliance will make the members feel owners of the
cooperative. The management staff, officers, and members will have to undergo series of
cooperative trainings.
Seminars and trainings. The cooperative provide regular seminars like the Pre-
Membership Education Seminar (PMES), and seminars regarding lending and savings, its
policies, rules and regulations.
Savings mobilization. This service is rendered to all members of the cooperative.
They offered interest on savings of 3% per annum. This program is basically to
encourage thrift among the members for capital formation and to promote the cooperative
as a way of life for improving the social and economic well-being of the people.
Loan services. Credit is one of the main services of the cooperative. It aimed to
provide financial needs of the members. This was one of the services of the cooperative
that contributed the highest revenue.
The type of loan granted by the cooperative, purpose of each and the
policies are presented below.
Productive loans. Loans intended for any legitimate income generating projects,
which will give the member or his family, an additional source of income.
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Provident loans. Those that are for purposes of providing expenses in which the
member does not have adequate cash for medical, wedding, baptismal and other activities
which have the nature of social obligation and without expectation of making a profit.
Kinds of Loan
Regular loan
1. Within share capital. Loans within or equal to share capital shall be granted to
all members as initial loan. Co-maker is required in this category and it could be released
upon application subject to availability of cash.
2. Twice or more than share capital. Co-maker is required in this category. The
total share capital of the maker and the co-makers shall be more than or equal to the
amount of loan being applied.
3. With collateral. Collateral could be real or chattel.
Educational Loan. Loans granted to members during the enrollment period of any
one of the members dependents. This could be availed in the same year with the other
loans offered by the cooperative provided that the latter has been granted two months
prior to the application of educational loan. This loan facility shall be exempted from the
deduction of the 5% capital build-up. However, only the members in good standing could
avail of this loan facility.
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Emergency Loan. Loans granted to members who are in dire need of cash. The
term of this loan shall be one month or thirty days only. Being an emergency loan,
this shall be exempted from the deduction of 5% capital build-up. Only members
in good standing could avail of this loan facility. The maximum amount that could
be borrowed is P5,000.
Policies on loans
1. Membership must be at least six months before a member could avail of any of
the loan services of the cooperative.
2. Must be in good standing.
3. All initial loans shall be within share capital only. Share capital excludes the
amount that came from the payments of rights.
4. Duplication of co-makers shall not be allowed. Any member can be a co-maker
once only.
5. Early payments of loan before maturity shall be entitled to rebate.
6. Service fee is 1% of the principal amount of loan.
7. Additional 2% per month of loan balance shall be the penalty in case of non
payment upon maturity.
8. Interest on loans shall be fixed at 1% per month or 12% per annum, pre-
deducted.
9. The diminishing balance shall be utilized in the computation of interest on all
loans.
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Loanable Amount
For the regular loans, members could avail a maximum amount to their share
capital. However, they could borrow twice their share capital as long as the aggregate
share capitals of the borrowers and of their co-makers are equal or more amounts applied
for. For loans involving collaterals, 70% of appraised value of the real estate mortgage
could be availed of, on the other hand, only 50% of the appraised value of chattel
mortgage is allowed.
The share capital as mentioned refers to the share capital actually contributed out
from the pockets of the cooperative members.
Table 6. The cooperative policy on loan ceiling
LOAN FACILITY
LOANABLE AMOUNT
A. Regular Loan
· Within share capital
Equal or less than the members share
capital
· Twice or more than share capital
Equal or less than the aggregate amount of
share capital of maker and co-maker
· With collateral:
-Real Estate Mortgage
70% of the appraised value
-Chattel Mortgage
50% of the appraised value
B. Educational Loan
Assessment Record of members dependent
C. Emergency Loan
P5000.00
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Acceptable Collaterals
1. Savings Deposits or Time Deposits in the cooperative. Withdrawal will not be
allowed until the loan has been fully paid.
2. Real Properties:
a. Located within the cooperative area of operation.
b. In case of real properties not personally owned by the borrower, a Special
Power of Attorney (SPA) executed by the owner with the consent of all
the parties concerned will suffice provided that the owner must be the Co-
maker.
c. Mortgage must be duly registered with the Registry of Deeds.
d. Evidences of ownership shall be submitted to the cooperative for
safekeeping until the loan has been fully paid.
3. Tax Declarations with improvements maybe accepted as collateral.
4. Personal Properties:
Ø Vehicles, with the following requirements:
a. Official Receipt (OR), Certificate of CR and Certificate of Public
Convenience (CPC) must be surrendered to the cooperative, all
documents must be original.
b. Submit picture of vehicle with plate number.
c. Subject for inspection or stencil at the cooperative.
d. Registered with the Registry of deeds.
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Loan Duration
For regular loans, those involving within share capital could pay their loan six
months while those who involved in twice or more than the share capital and with
collateral could pay their loan in three months, six months, and one year.
For educational loan, members who availed are entitled to pay after six months.
This loan facility shall be exempted from the deduction of the 5% capital build-up. Only
the members in good standing could avail of this loan facility.
For emergency loan, the cooperative offered P5,000 that could be availed by the
members and could pay it in thirty days or one month.
In case the member failed to pay upon maturity of loan, the borrower is entitled to
have an additional two percent of loan balance.
Table 7. Loan duration of the loans offered by the cooperative
LOAN FACILITY
DUARTION OF LOAN PAYMENT
Within Share Capital
Monthly or after six months
Twice or more than Share Capital
3 months, 6 months, one year
· With Collateral
3 months, 6 months, one year
Educational Loan
After six months
Emergency Loan
Thirty days
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Loan Procedures
a. Secure application form from the cooperative office.
b. Accomplish and submit duly accomplished application form with the requirements
to the Manager for review and evaluation, and or approval.
c. Manager endorses all loan applications with collateral attached with the evaluation
report to the Credit Committee for credit investigation.
d. Credit Committee submits their report and recommendations to the Board of
Directors for action every second Friday of the month.
Approval of Loans
1. Loans within or equal to share capital-Managers approval.
2. Loans twice or more than the share capital but not more than P20, 000.00-
Managers Approval.
3. Loans with Collateral (Real or Chattel)-approval of the Board of Directors and
review and evaluation of the Manager and recommendation of the Credit
Committee.
4. Educational Loan- Manager, Credit Committee Chairpersons approval and the
Chairman’s approval.
5. Emergency Loan-Manager’s approval.
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Problems Met by the Cooperative
According to the general manager, there was only one major problem faced by the
cooperative that is the delinquency on loan repayments of members. It was elaborated by
the manager that the member-borrowers were delinquent, especially when those who
were affected by economic and social factors. Members were responsible borrowers but
because of events beyond their control, they could not pay their loans on time. For this
problem, the Board of Directors made a resolution wherein the delinquent members
should report to the office of the cooperative, if not the officers would go to their houses
and remind them of their loan.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was undertaken primarily to document the organization and
development of the Drivers Operators Employees Residents Multi-purpose Cooperative
(DOERS MPC) and to look into its policies and programs.
This study was conducted at the Drivers Operators Employees Residents and
other Sector Multipurpose Cooperative office at Km.11 Tili, Shilan, La Trinidad
Benguet. First hand information was gathered from the manager, bookkeeper and the
treasurer while the secondary data were taken from the reports compiled in the
cooperative office and the manual of operation of the cooperative.
DOERS MPC was originally named as the Acop Shilan Jeepney Operators and
Drivers Association Multipurpose Cooperative (ASJODA MPC). Membership in the
cooperative was then limited to the drivers and operators of jeepneys playing Baguio-
Acop. The cooperative was initially engaged in credit services but eventually ventured
into multipurpose services like the offering of time and savings deposits, fuel refilling
station, and transportation services.
As to the growth of the cooperative, its general membership had been increasing
from 2001-2008. Said growth could be attributed to the amendment initiated in their
Articles of Cooperation and By-laws that eventually led to the opening of the
cooperative’s membership to other sectors in the locality. This could also be attributed to
the continuous information campaign initiated by the officers on the cooperative
privileges, benefits and advantages that could be received by members.
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For the members share capital, it was also increasing due to the continuous
increase in membership. Likewise, total asset and the total liabilities had been increasing.
There was a slight decrease of liabilities for about -4% in 2005. The problem encountered
or met by the cooperative is the delinquency of loan payment of members.
As to the policies, practices and programs of the cooperative they are embedded
in their vision, mission and objectives. The basis of their policy is the principles of proper
cooperative management.
Conclusions
Based on the findings of this study the following conclusions were formulated:
1. The growth of the cooperative of DOERS MPC in terms of share capital and
asset is directly related to the growth in membership.
2. The cooperative membership expanded from operators and drivers to include
other individuals from all walks of life who envision attaining better living conditions.
3. The name of the cooperative from ASJODA MPC was change to DOERS MPC
have attributed much to the growth of the cooperative for it was able to increase
membership thereby resulting to more fund for the cooperative and expansion and
growth.
4. There was no change in their policies.
5. Some member-borrowers were delinquent especially those who are affected by
economic and social factors.
6. The current problem commonly encountered which is on loan delinquency by
the cooperative is manageable and it doesn’t affect much their operation.
7. The cooperative has no loan collector.
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Recommendations
1. Continuous cooperative education and training services should be conducted
regularly to members as well as officers and management staff as guidance and for them
to strengthen their knowledge to be supportive of the cooperative programs and to ensure
its sustainable operations and development.
2. The causes of delinquency must be studied then appropriate strategies could be
devised to address this issue.
3. The cooperative should hire loan collector to avoid loan payment delinquency.
The loan collector will do the “tutok system” or the house to house collection to lessen
loan delinquency.
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LITERATURE CITED
ANASTACIO, L.K. 2004. Profile of Primary Cooperatives’ in Itogon, Benguet. BS
Thesis. Benguet State University. Pp. 6-7
BINAY-AN, S.C. 2006. An assessment of the primary cooperative to the Benguet
Provincial Cooperative Union. BS Thesis.Benguet State University. Pp.6
FAJARDO, F. and ABELLA,F. 1993. Cooperatives. Fourth Edition. Rex Printing
Company, Inc. Quezon City. Pp. 25O
SALDO, C. 2005. Profile of non-operating cooperatives in Bagulin, La Union. BS
Thesis. Benguet State University. Pp.7
VICTOR, A.K. 2008. Members perceived benefits from the services Benguet Rural
People’s Multipurpose Cooperative. BS Thesis. Benguet State University. Pp. 7
WACAY, J.C, 2003. Profile of Cooperative Managers of La Trinidad, Benguet. BS
Thesis. Benguet State University. Pp.6
WALCIEN, S.P. 2005. Profile of the primary cooperatives in Eastern Baguio City. BS
Thesis. Benguet State University. Pp. 6,7-9
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General Assembly
Audit Com.
Board of
ETC
Ele. Com.
Cred. Com
Directors
Secretary
Manager
Cashier
Treasurer
Attendant
Bookkeeper
Figure 1. Organizational structure of the cooperative
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EXHIBIT 1
MISSION, VISION AND VALUES STATEMENT
Vision Statement
The DOERS MPC envisions to be a progressive, strong and stable cooperative
and in partnership with the community in providing adequate and quality services within
the province of Benguet.
Mission Statement
The DOERS MPC is a cooperative committed to address the financial needs of its
members by assisting them in the upliftment of their socio-economic well-being towards
self-reliance.
It also provides essential services and business enterprise to the general public
within its area of operation.
Values Statement
The DOERS MPC adheres to the values of mutual concern, self-reliance,
dedication, loyalty and cooperation as means of promoting its growth and development.
In order to realize its vision, the officers, management staff and the membership
are committed to the ethical values of honesty, humility, dignity of service, industry and
God loving as inherent to the cooperative.
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EXHIBIT 2
THE OBJECTIVES OF THE COOPERATIVE
1. To encouraged thrift and savings mobilization among the members for capital
formation.
2. To create funds and grant loans to members for productive and providential
purposes.
3. To engage in the purchase and the distribution of fuel, automotive parts and
accessories lubricants and other items considered under refilling station and auto
supply business.
4. To engage in the purchase and the distribution of consumer goods, agri-products
and training activities.
5. To engage in marketing activities.
6. To promote the cooperative as a way of life for improving the social and
economic well being of the people.
7. To do any related activity for the members self government, improve social and
economic well being.
8. To work with the cooperative movement, non-government and government
organizations or entities in the promotion and development of cooperatives and in
carrying out government politics.
9. To undertake other activities for the effective and efficient implementation of the
provisions of the cooperative code of the Philippines.
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EXHIBIT 3
FIRST MEMBERS OF THE COOPERATIVE
1. Julio Acop 16. John Kis-ing
2. Paterno Anas 17. Pedro Kis-ing
3. Ernesto Amananse 18.George Montes
4. Cornelio Batil
19. Quintin Murphy
5. Felix Binaldo
20. Johnny Marcos
6. Ernesto Cagay- an 21. Peter Pi-ay
7. Jimmy Castro
22. Bonifacio Pi-ay
8. Jose Ciano
23. Erico Tactac
9. Aniceto Cid Jr. 24. Paul Yatoyat
10. Edna Daguio-a 25. Kent Zarate
11. Willy Diano
12. Allan Domingo
13. Sabino Elias
14. Victor Fabian
15. Charlie Garoy
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EXHIBIT 4
THE FIRST SET BOARD OF DIRECTORS
Chairman: Mr. Paterno Anas
Vice chairman: Mr. Peter Pi-ay
Members of the Board:
1. George Montes
2. Johnny Marcos
3. Ernesto Cagay-an
4. Charlie Garoy
5. Julio Acop
6. Sabino Elias
7. John Kis-ing
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EXHIBIT 5
DUTIES AND RESPONSIBILITIES OF OFFICERS
THE CHAIRMAN
1. Preside over all meetings of the cooperative and the Board.
2. Perform any and all acts and duties usually performed by a presiding officer.
3. Sign all share certificates, revolving fund certificates, contracts and such other
papers of the cooperative which the Board may authorize or direct him to sign.
4. perform such other duties as the Board may prescribe
THE VICE-CAIRMAN
In the absence of disability of the chairman, the vice-chairman shall perform the
duties of the chairman, provided however, that in case of death, resignation or removal of
the chairman, the Board may decide to elect his or her successor.
THE TREASURER
1. Take custody of all monies, securities and papers of the cooperative.
2. Keep complete records of its cash transaction for the establishment of proof of its
cash position at any given time and date.
3. Pay upon the recommendation of the manager or as authorized by the Board, all
money transactions and certify to the correctness of the cash position of the
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cooperative in all financial statements and reports submitted to the Board, the
General Assembly and the Cooperative Development Authority.
4. Turn over all monies, securities, papers, books and other properties belonging to
the cooperative that he may have in his possession upon election of his successor.
5. Post an adequate bond, to assure the faithful performance of his duties.
6. Perform the duties of the secretary in the latter’s absence or inability to perform
his duties.
THE SECRETARY
1. Keep a complete list of all the members and maintain correct record of all the
meetings of the Board and the General Assembly.
2. Give notice of special Board and General Assembly meetings called.
3. Keep and maintain the stock and transfer book and serve as the custodian of the
corporate seal of the cooperative.
4. Turn over to his successor all books and other properties in his possession
belonging to the cooperative.
5. Perform the duties of the treasurer in case of the latter’s absence or inability to
perform his duties.
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EXHIBIT 6
POWERS AND DUTIES OF THE DIFFERENT COMMITTEE
AUDIT AND INVENTORY COMMITTEE
1. Provide internal financial and management audit services.
2. Maintain a complete record of periodic examinations and inventory.
3. Reports audited monthly financial statements to the Board and audited financial
reports to the General Assembly.
ELECTION COMMITTEE
1. Promulgate the rules and regulations in the conduct of election.
2. Pass the qualification of candidates.
3. Supervise the conduct of election.
4. Canvass and certify in writing the election returns.
5. Proclaim the winning candidates and shall decide on election protests.
EDUCATION AND TRAINING COMMITTEE
The vice chairman of the Board shall serve as Ex-officio chairman of the
committee. The committee shall be responsible in planning and implementing
promotional and educational activity like the conduct of pre-membership seminar of
prospective members.
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EXHIBIT 7
DUTIES OF MANAGEMENT STAFF
BOOKKEPER
1. Install an up to date and systematic accounting of records of the cooperative.
2. Render monthly report to the Board of Directors on the financial conditions and
operations of the cooperative including annual reports to the General Assembly or
as maybe required.
3. Coordinate with the manager and the audit and inventory committee in the
preparation of the annual budgets and other reports.
4. Assist the chairman or manager in the preservation of the books of accounts,
vouchers, documents and other records of what ever kind pertaining to the
business of the cooperative.
FUEL FILLING STATION CASHIER
1. Take custody of all money, securities and papers of the fuel filling station and
turn over the same to the treasurer at the end of the day’s transaction.
2. Keep records of all cash transactions.
3. Performs other functions as may be assigned by the manager.
FUEL FILLING STATION ATTENDANT
1. Responsible for refilling motor station vehicles refueling at the station.
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2. Maintains cleanliness and up keeping of the refilling station and its premises.
3. Reads pumped out fuel meter and updates the General Manager for proper
actions.
4. Performs other functions as may be assigned by the General Manager.
GENERAL MANAGER
1. The manager shall implement lawful policies set by the Board of Directors or the
General Assembly. Have charge of all phase of the business operations of the
cooperative upon appointment of his successor, he shall turn over all the money
and properties belonging to the cooperative with are in his possession or over
which he has in control.
2. Maintain records and accounts in such manner that the true and correct condition
of the business of the cooperative may be ascertained at anytime.
3. Shall render annual and periodic statements and reports in the form and in the
manner prescribed by the Board of Directors and shall preserve the books,
documents, correspondence and records of whatever kind of pertaining to the
business which may come into his possession.
4. Subject to the policies that maybe promulgated by the Board of Directors, may
employ supervise and dismiss any employee in the management force, provided
however that approval of the Board on hiring, suspension or dismissal of any
employee whose basic compensation exceeds Seven Thousand Pesos (7000) shall
be secured.
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EXHIBIT 8
MANAGEMENT AND OPERATION POLICIES
1. The Manager shall be accounted for any acts committed by the staff under her
supervision. The Manager is accountable to the Board of Directors is accountable to the
General Assembly.
2. The management shall be responsible for the operations of the cooperative.
They shall implement all policies set by the Board of Directors and or the General
Assembly.
3. Official days and time. Office days shall be from Monday to Sunday, including
holidays. Office hours shall be as follows:
-Fuel Refilling Station- 6:00 AM to 8:00 PM
-Credit-8:00 to 5:00 PM
4. Tardiness. All employees are directed to report on time except when on official
business or on unavoidable circumstances or on a flexible time.
5. Under time. Consecutive under time will not be tolerated otherwise it will be
computed and be deducted from the days pay.
6. The manager should monitor the attendance of the coop employees and must
ensure that all absences of the employees are supported by leave from duly accomplished
and signed by the signatories before going on such leave.
Application for leave shall be filed three days prior to the scheduled leave except
in cases of sick leave where it shall be filled upon return to work provided that it shall not
exceed five days, in which case, the leave must be supported by a medical certificate.
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Employees who absent themselves without application for leave and or valid
reasons in writing shall be considered AWOL thereby, considering their action as
abandonment of work and may be penalized with dismissal or termination.
7. Pay policies. All employees shall receive their salary 15th and 30th day of the
month. The Payroll should be approved by the manager and to be disbursed by the
Treasurer.
8. Daily Time Record of employees shall be submitted and signed by the
employee and the Manager to support the payroll of the employees.
9. Disbursement. All disbursement shall be supported by the Disbursement
Vouchers attached with supporting documents duly signed and approved by the
signatories before any payment is made.
All Disbursement more than P20,000 shall be approved by the Board of Directors.
Any amount lesser could be approved by the manager provided that such disbursement
are for the normal operations of the business of the cooperative.
10. The Treasurer is accountable for all the assets of the cooperative, make
records, update their status, keeps the stock certificates, update passbook of depositors,
and disburse cash authorized by the Manager and update status of cash for the guidance
of the management.
11. The manager should not hold cash except for cash entrusted to her (cash
advances to be used in transactions but such should be liquidated within reasonable time
after the culmination of the activity). Any unused cash should be returned to the
cooperative treasurer.
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12. Before venturing into any project, a simple feasibility study should be made to
avoid losses and shall be continuously monitored and evaluated to ensure positive input
to the cooperative.
13. Personal Data Sheet. All employees shall accomplish Personal Date Sheet to
be filed by the cooperative for records and reference purposes. The employee himself
through the Manager shall update it of any changes.
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EXHIBIT 9
POLICIES ON FUEL REFILLING STATION
Collections:
1. The cashier shall turn all her daily collections to the treasurer.
2. The treasurer shall see to it that the daily sales are equal to the cash remittance
of the cashier.
3. The remitted collections shall be deposited daily at any bank authorized by the
Board of Directors as depository bank.
4. Sales or collections beyond banking hours shall be deposited first hour of the
following banking day.
5. All cash shortages shall be responsibility of the cashier.
Selling Policy:
1. Payments shall always be in cash. Checks payments shall not be accepted.
2. In case of credit, an agreement with the cooperative has to be accomplished. In
the absence hereof, the personnel who granted the credit shall be liable in case of non-
payment.
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EXHIBIT 10
POLICIES ON TRANSPORTATION SERVICES
1. Commercial vehicles owned by the cooperative shall only be operated by
legally qualified bona fide members of the DOERS MPC selected by a committee that
may be formed for the purpose.
2. Only the drivers designated by the coop member (with the approval of BODs)
shall operate the vehicle unless prior to permission has been had the same.
3. The designated drivers shall be responsible for the proper operation and basic
maintenance of the vehicle assigned to him and must report to the coop manager any
need of maintenance repair to be done for the proper action to be undertaken. Regular
maintenance repair shall be done on the vehicle on its designated rest or coding day.
4. Damages that may be incurred on the vehicle due to negligence shall be the
sole responsibility of the designated driver who must cause its immediate restoration and,
shoulder the cost of the same. Loss of projected revenue as a result of the accident shall
also be charged on the erring driver. NOTE that all unsettled accounts due to this may be
charged on the driver’s investment in the cooperative or may be charged on a cash bond
required prior to his appointment.
5. The “Boundary System” shall be adapted in the economic operation of the
vehicle. The manager shall determine the inclusive time of operation and the daily
boundary to be remitted daily shall be P450.00.
6. Use of the coop vehicle outside its area of operation is not allowed unless
authorized by the Manager.
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7. The coop vehicle shall be parked at a pre-designated place determined by the
Manager where it will be until the following day of operation. The driver shall also be
required to surrender the ignition key to the manager as soon as the vehicle is safely
parked.
It shall be the duty of the coop manager to supervise the strict enforcement
of the provisions of this guideline and may promulgate such regulations as may be
necessary for its efficacious implementation. The violation of any of the provision hereof
shall be punished in accordance with the seriousness of the offense, after administrative
proceedings before the chairman of the Board of Directors or committee designated.
DRIVER QUALIFICATIONS
1. Must be a bona fide regular member in good standing of the cooperative.
2. Must be of legal age.
3. Must be holding a valid professional license issued by LTO.
4. Must not have involved in any vehicular accident due to drunkenness or gross
negligence.
5. Must accomplished an agreement between the cooperative embodying the policies
as a forth.
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EXHIBIT 11
CAPITAL STRUCTURE OF THE COOPERAVE
1. Capitalization. That the authorized share capital of the cooperative is
P10,000,000.00 divided into 100,000 shares broken down as 80, 000 common shares with
the par value of P100.00 per share and 20,000 preferred shares with par value of P100.00
per share.
2. The minimum subscription of a regular member is eighty shares at a par value
P100.00 per share equivalent to P8,000.00. The members are encouraged to increase their
Share capital subscription provided that it shall not exceed 20 percent of the authorized
share capital of the cooperative as provided for under Article 74 of the Cooperative Code
of the Philippines.
3. The minimum subscription of an associate member is ten shares at par value of
P100.00 per share equivalent to P1,000.00.
4. The total subscription shall be paid within a period of five years from approval
of membership to the cooperative.
5. Share capital could not be withdrawn during the membership.
6. Five percent shall be deducted from the principal amount of loan approval of
membership to the cooperative.
7. At least one percent of the annual interest on capital and patronage refund of
members shall be withheld as capital build up. In case the share capital of the member
under FFS is FIFTEEN THOUSAND, the capital build up shall be treated as paid up
share capital under the credit service.
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8. Retains. The board as authorized by the General Assembly may raise an
additional capital by deducting a certain amount of percentage on a per unit basis from
the proceeds of the services/goods sold to members
9. The transfer of shares. The cooperative shall have the first option to buy any
share offered for sale. The amount to be paid for such shares shall be the par value or
book value whichever is lower.
The cooperative member shall have the right to sell their shares to any person
eligible for membership, if the cooperative is not in the position or otherwise refuses to
purchase the shares provided that the shares had been held by the member for at least one
year and the board has approved such transfer.
Transfer fee is one hundred pesos ( P100.000)
10. Source of funds. The cooperative shall derive its funds from share capital,
revolving capital, retains, capital reserves, loans, subsidies, grants, donations, and other
sources of funds as may be authorized by the law.
11. The general assembly may authorize the Board to raise a revolving capital by
deferring the payment of patronage refunds and interest on share capital.
12. Share Capital and Stock Certificate. Serially numbered certificates of stock of
the cooperative shall be issued to each member upon full payment of the subscription and
for the subsequent shares they had paid for. The certificates shall contain the holder’s
name, the number of shares owned, the par value and the duly signed by the chairman
and the secretary bearing the official seal of the cooperative. All issues and transfer shall
be registered in the stock transfer book.
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13. In case of loss or destruction of stock certificate, another maybe issued in its
p[lace to the owner after executing an affidavit in triplicate setting forth the
circumstances as how to, when and where said certificates was lost or destroyed; the
number of shares represented by certificate; the serial number of the certificate; that the
lost or destroyed certificates has never been transferred, sold or endorsed to any third
party and should the same be found, the owner shall surrender it to the cooperative. Any
false representation or statement made in the affidavit shall be a ground for expulsion
from the cooperative.
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EXHIBIT 12
BENEFITS OF MEMBERS
1. Interest on Share Capital. Members share capital earns an annual interest or
dividends, which will be distributed during the annual general assembly meeting after
deducting all the members’ dues.
2. Patronage Refund. Entitled to any member who patronized the services of the
cooperative during the fiscal year. This will be distributed during the general assembly
after deducting all the members’ dues.
3. Interest Rebate or reduction of interest due is entitled to a member upon full
payment of loan balance prior to maturity provided that the remaining days of payment
shall not less than one (1) month.
4. Trainings or Seminars. Any member, officer and management staff attending
cooperative related training or seminars are enjoyed to participate. The actual expenses in
attending trainings or seminars shall be provided by the cooperative charge to the CETF,
subject to liquidations and proper accounting (submission of official receipts of
payments, certificate of appearance and other supporting documents.
5. Loans. Any member in good standing maybe granted loans upon compliance
with the existing policies.
6. Minimal interest on loans. Members are granted loans with minimal rates of
interest as compared to other lending institutions.
7. Restructuring of Loan. Loans may be restructured upon fifty percent of the
principal amount aside from the penalties and or surcharges due, if any. This shall
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however be subject to review and recommendations of the credit committee and approval
of the Board of Directors.
8. Mortuary Aid Program. All members and immediate family of deceased
members (spouse and children, including illegitimate children living with the member)
are entitled to death or mortuary aid upon membership after complying the required
documents as set forth under the existing policy.
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APPENDIX A
Letter to the Respondents.
College of Agriculture
DEPARTMENT OF AGRICULTURE ECONOMICS AND
AGRIBUSINESS MANAGEMENT
Benguet State University
La, Trinidad, Benguet
January 2009
Sir/Madam:
I am a fourth year student of Benguet State University taking up Bachelor in Science and
Agribusiness, major in Cooperative Management. As part of the course requirement, I am
presently conducting a research study titled, DOCUMENTATION OF DRIVERS
OPERATORS EMPLOYEES RESIDENTS AND OTHER SECTOR MULTIPURPOSE
COOPERATIVE”.
May I request a portion of your precious time for an interview. Rest assured that all
information and data you provided will be treated with utmost confidentially.
Thank you very much for your support. More power and God Bless!!!!!
Respectfully yours,
Jennifer B. Alatan
Researcher
Noted by:
Andrew K. Del-ong
Adviser
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APPENDIX B
Interview Guide
1. Who were the first leaders of the cooperative?
2. Who were the first members of the Board of Directors and officers of the cooperative?
Incorporators or cooperators?
3. How was the operation started?
4. Did all the members attend the Pre-membership Education seminar?
5. Who conduct the PMES? How regular is the conduct of PMES?
6. Were there cases of withdrawal of members?
7. What were the causes of withdrawal?
8. How many members withdraw every year?
9. What factors affect the increase or decrease in your total asset?
10. Did you amend your By-laws? How many times?
11. Were there changes in your policies and practices?
12. What old policies and practices were changed and what are the new ones?
13. Do you stick to your policies in your operation or were there cases that you disregard
your policies to suit the situation?
14. What are the policies, practices, and programs of your cooperative?
15. What are the problems you encountered in your cooperative?
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
ALATAN, JENNIFER B. APRIL 2009. Documentation of Drivers Operators
Employees Residents and other Sector Multipurpose Cooperative (DOERS MPC).
Benguet State University, La Trinidad Benguet.
Adviser: Andrew K. Del-ong, BSc.
ABSTRACT
This study was conducted to document the organization and development of
Drivers Operators Employees Residents and other Multipurpose Cooperative (DOERS
MPC) particularly its growth in terms of membership, total paid-up share capital and total
asset; the policies, programs and practices and the problems encountered.
This study was conducted at the Drivers Operators Employees Residents and
other Sector Multipurpose Cooperative office at Km. 11, Tili, Shilan, La Trinidad
Benguet. First hand information was gathered from the manager, bookkeeper, and the
treasurer. Secondary data were taken from the reports compiled and manual of operation
of the cooperative.
The number of regular members, total asset and paid-up share capital had been
increasing annually although in varying rates. The primary reason for the continuous
increase in membership, assets and share capital was due to amendment in the Articles of
Cooperation and By-laws that led to the opening of the cooperative’s membership to
other sectors in the locality.
There was no significant change in their policies except on the qualifications for
membership. On the credit policy, they only made an addition in order to adjust and to
suit in some situations. The problem commonly encountered by the cooperative which
was stated by the manager was the loan payment delinquency of members.
As to the specific policies, practices and programs of the cooperative they are
embedded in their vision, mission and objectives. The basis of their policy is the
principles of proper cooperative management.
ii
TABLE OF CONTENTS
Page
Bibliography………………………………………………………………...…… i
Abstract…………………………………………………………………………... i
Table of Contents………………………………………………………………... iii
INTRODUCTION
Rationale of the Study…………………………………………………… 1
Statement of the Problem………………………………………………… 2
Objectives of the Study…………………………………………………... 3
Importance of the Study………………………………………………….. 3
Scope and Limitation of the Study……………………………………….. 3
METHODOLOGY
Locale and Time of the Study…………………………………………… 4
Respondents of the Study……………………………………………….... 4
Data Gathered…………………………………………………………… 4
Data Collection…………………………………………………………… 4
Data Analysis……………………………………………………………... 5
REVIEW OF LITERATURE
Cooperative………………………………………………………………. 6
Objectives of the Cooperative…………………………………………… 6
Importance of Cooperative………………………………………………. 7
Cooperative as a Tool of Development………………………………….. 7
Membership……………………………………………………………… 8
Success Factors of Cooperative…………………………………………. 9
Management of the Cooperative………………………………………… 10
Needs of Cooperative…………………………………………………… 10
Problems Encountered…………………………………………………... 11
RESULTS AND DISCUSSION
The Organization of the Cooperative…………………………………….. 12
The First Members of the Cooperative…………………………………… 12
The First Board of Directors……………………………………………… 12
The Composition of the Organizational
Structure of the Cooperative…………………………………………….. 13
The Membership of DOERS MPC……………………………………… 15
Initial Operation…………………………………………………………. 16
Current Operation……………………………………………………….. 16
Credit Operation…………………………………………………………. 18
Growth in Membership………………………………………………….. 19
Growth in Total Assets…………………………………………………... 20
Growth in Paid-up Share Capital………………………………………… 22
Growth in Liabilities…………………………………………………….. 23
Growth in Net Surplus…………………………………………………... 25
Policies, Programs and Practice of the Cooperative……………………… 27
Problems Met by the Cooperative………………………………………… 34
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS……………… 35
Summary………………………………………………………………….. 35
Conclusions……………………………………………………………….. 36
Recommendations………………………………………………………… 37
LITERATURE CITED…………………………………………………………… 38
APPENDICES……………………………………………………………………. 58
A. Letter to the Respondents……………………………………………… 60
B. Survey Questionnaire………………………………………………….. 61
1
INTRODUCTION
Rationale of the Study
The establishment of cooperative begins with people who wish to provide
themselves with goods and services they need. As such, the cooperatives should grow in
size, both in membership and economic resources, so that they will be able to provide the
needs of the members.
The Acop Shilan Operators and Drivers Association Multipurpose Cooperative
(ASJODA MPC) was organized in the last quarter of 2001 with twenty five (25) initial
members. Through the cooperation and the unity of all the officers and members who are
operators of the jeepney units plying the route of Baguio-Acop-Shilan and vice versa, the
cooperative was registered with the Cooperative Development Authority under certificate
of Registration No. CEO 1098 on December 11, 2001.
Initially, the cooperative engaged in credit services and eventually expanded as
time passed. At present, aside from its credit operation, the cooperative is accepting
deposits it is also into the fuel refilling station, and transport services. These show that
the cooperative is growing well.
Sometime in 2005, the cooperative expanded its membership from operators and
drivers to include other individuals from all walks of life who envisions attaining better
living conditions. At present, the cooperative has two hundred (200) members composed
of one hundred sixty (160) regular members and forty (40) associate members.
On March 20, 2007, the name of the cooperative was changed to Drivers
Operators Employees Residents and other Sector Multipurpose Cooperative (DOERS
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MPC) per Certificate of Registration of the amendments to the Article of Cooperative and
By Laws issued by the Cooperative Development Authority.
The cooperative envisions to be a progressive, strong and stable cooperative and
in partnership with the community in providing adequate and quality services within the
province of Benguet. Its continuous development is attributed to its mission to address
the financial needs of the members assisting them in the upliftment of their socio-
economic well-being towards self reliance and to provide essential services and business
enterprise to the general public within its area of operation.
Statement of the Problem
This study was conducted to document the Drivers Operators Employees
Residents and other Sector Multipurpose Cooperative (DEORS MPC); it saught to find
the answers to the following questions:
1. What are the growths in the cooperative in terms of:
a. number of members
b. total assets
c. total paid-up share capital
2. What are the policies, programs and practices of the cooperative?
3. What are the problems commonly encountered by the cooperative?
4. What are the solutions to these problems?
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Objectives of the Study
This study aimed to accomplish the following:
1. To determine the growth in membership, total assets and paid-up share capital of
the cooperative.
2. To find out the policies, programs and practices of the cooperative.
3. To identify the problems commonly encountered by the cooperative.
4. The solutions implemented by the cooperative for their development and
improvement.
Importance of the Study
The solutions implemented by the cooperative for their development and
improvement. Findings of this study would serve as a basis for DOERS MPC to assess
the policies and practices that are favorable to the cooperatives operation and to improve
on its shortcomings. For the members, it would give them a picture of their cooperatives
overall operations as well as its history or evolution. Likewise to prospective members
who may be encouraged to join from the information they would be getting about the
cooperative. Furthermore, this study would serve as a reference for other researchers who
would like to conduct a similar study in the future.
Scope and Limitation of the Study
The study focused on the profile of the Drivers Operators Employees Residents
and other Sector Multipurpose Cooperative, their policies, practices and programs. The
data gathered covered the year it was established up to the current year.
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METHODOLOGY
Locale and Time of the Study
This study was conducted at Km.11 Tili, Shilan, La Trinidad, Benguet where the
Drivers Operators Employees Residents and other Sector Multi-purpose Cooperative
(DOERS MPC) is located. This was conducted from December 2008 to February 2009.
Respondents of the Study
The respondents of the study were the officers of the cooperative, particularly the
chairman of the Board of Directors, secretary, and the treasurer, the manager, and the
bookkeeper.
Data Gathered
The data gathered were on the background information about DOERS MPC, their
programs and policies and the problems they commonly encountered and the solutions
they employed. The profiles of members were being included.
Data Collection
To attain the objectives of the study, the primary data were gathered through
personal interview to key informants. Likewise, secondary data pertaining to the profile
of member policies and programs, annual and or financial reports were sourced from the
cooperatives records.
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Data Analysis
The data and information gathered were tabulated, analyzed, and interpreted
according to the objectives of the study.
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REVIEW OF LITERATURE
Cooperative
The cooperative is an organization where members help each other become self-
reliant and self-sufficient because the purchasing power of his little and hard earned
money is enhanced. It is the economic alternative and the inculcation of values which are
needed to meet the challenges of rapidly changing society (Binay-an, 2006).
Furthermore, Victor (2008) cited that a cooperative is a dynamic form of business
enterprise that embodies the philosophy of cooperative. It signifies the voluntary assent
of people to form themselves into a group for the promotion of their common needs by
mutual action, democratic control and sharing of economic benefits on the basis of
patronage refund by the members. It is a business enterprise, like any other business
which has primary aim.
Objectives of the Cooperative
The primary objectives of the 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, cots-sharing and risks
sharing without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes ( Victor,2008).
Te main objective of the Drivers Operators Employees Residents and other Sector
Multipurpose Cooperative is stated in the ASJODA profile are;
a) To provide adequate services to the members.
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b) To serve as a partner in the development of community.
c) Improve the quality of life of its members through financial and technical
support.
Importance of Cooperative
Cooperative is seen as a solution to help people from economic difficulties.
Cooperative are usually organized to provide capital to the members for the development
of their production endeavors, increased income and for the promotion of savings
equitable distribution of net surplus through maximum utilization of money borrowed.
The member borrowed must be disciplined enough wisely used the loan for the
production of provident purpose to be able to generate income at the same time dutifully
pay for the maturing obligation (FAJARDO AND ABELLA ,1993).
Cooperative as a Tool of Development
The Cooperative Development Authority stated that the important role of
cooperatives in the development of the country. A cooperative creates employment and
entrepreneurial opportunities for the country unemployed and marginally employed,
affecting broader base ownership of the access to productive resources reducing wide
income gap and guaranteeing equal and even development (Saldo 2005).
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Membership
Members of cooperative may be either natural or juridical persons depending on
the kind of cooperative. In a primary cooperative only a natural person who is a citizen of
the Philippine is eligible for membership, while in secondary or tertiary cooperatives,
members may be either cooperative or non-profit organization with juridical personality.
Members of a cooperative must individually contribute a certain amount known
as the share capital, as requirement for the organization of a cooperative. The law states
that at least (25%) of the authorized share capital should be subscribed at least twenty
five per centum (25%) of the subscription should be paid. The minimum amount of paid-
up share capital shall in no case, be less than 2,000 pesos.
In addition, Anastacio (2004), stated that a cooperative is a dynamic form of
business enterprise that embodies the philosophy of cooperation. It state that through
voluntary asset of people to form themselves into a group for the promotion of their
common needs by mutual action, democratic control and sharing of economic benefits on
the basis of patronage by members.
Everybody is encouraged to participate actively in all affairs of the organization
from planning to Management. It is democratic in its government that the members are
treated respect and dignity. The officers and members are equally exposed to trainings
and education to improve their attitudes, values and skills, indeed, cooperatives provide a
fertile ground for members to pursue their own development and growth with their
capabilities and inclination. In a cooperative, members are treated equally. They are
willing to sacrifice for a common good and even give away part of their resources for a
common good (Anastacio 2004).
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Success Factors of Cooperative
Binay-an (2003) stated that a cooperative utilizes efforts and times in research to
discover the best ways to serve their members by studying new problems and to search
for provide affective solutions. Also managers and executives need to be technically
trained. The people as technicians, managers, and executives need their services. They
would adopt an unselfish attitude against the people.
1. Continuous training and education of the officers, members, and employees.
2. Appropriate and adequate organizational structures to cope with the varying
and increasing needs and problems of the cooperative members and the community.
3. Progressive and people oriented policies on the services offered education,
management, community development.
4. Presence of effective, honest and dedicated cooperative and community
leaders.
5. Active involvement and participation of the officers and members in the affairs
of their cooperatives and their community.
6. Trust and confidence in the cooperative officers.
7. Dependence on self-help process in achieving their programs and projects.
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Management of the Cooperative
Walcien (2005) mentioned that the management of cooperative endeavor follows
the same line of service not only to the members but also to the public who become
patrons of their goods and services. The management of the cooperative association is
said to be good when i6t develops confidence among its members. Such confidence is
established because the people who run the affairs of the association and t6hose help
them render the services to the members are expected to receive from them.
Every member is encouraged to participate actively in all affairs of the
organization from planning to management. It is most democratic in its governance and
the members are treated with respect and dignity.
Needs of the Cooperatives
The importance of cooperative as instruments for socio-economic development
cannot be underestimated. In their effective use, they have succeeded in accelerating the
growth of low income and less segments of the society. But as experience shows, most
cooperative failed to achieve this end. One major reason for such failure is the lack of
proper attitude and skills on the part of the members and officers to participate, because a
full pledge cooperative is business enterprise engaged in complicated activities, its
demands are greater. It requires efficient management, able leadership and vigilant
members and others, these are not readily learned (Walcien 2005).
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Problems Encountered
Wacay (2003), stated that the cooperative Managers were responsible in
managing the business of the cooperative but still there were some cooperatives that the
Board of Directors and Chairman of the Board were allowed to manage the cooperative
business. The primary problems in the cooperative are the lack of training and seminars
for the members, officers, and management staff which affect their performance on their
duties and responsibilities.
As cited in the Agrarian Reform Cooperative and Taxation Handbook (1990), as
stated by Wacay (2003), one problem of the cooperative development is the lack of
complement staff at various levels of qualifications. This shortage of adequate trained
staff is acute in the field of management emergency action as required in order for
cooperative to apply their role as efficient instruments. A number of the problems also
pointed to poor attendance in training seminars of failure of some projects to meet the
need of participants.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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RESULTS AND DISCUSSION
The Organization of the Cooperative
The Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) was originally named as Acop Shilan Jeepney Operators and
Drivers Association Multipurpose Cooperative (ASJODA) that was organized on May 7,
2001 through the initiative of Mr. Paterno Anas. The Cooperative was registered with the
Cooperative Development Authority under the Certificate of Registration No. CEO-1098
on December 11, 2001. They amended their Articles of Cooperation and Bylaws last
March 20, 2007. They amended there bylaws to expand their membership and now it’s
not only the drivers and operators of Baguio Acop-Shilan jeepneys who are members but
it also includes all people who are residing in the area of Benguet.
The First Members of the Cooperative
On May 7, 2001, twenty-five (25) individuals, composed by the officers and
members of cooperative attended the first Pre-membership Education Seminar (PMES)
headed by Mr. Peter Pi-ay and with the presence of one representative from the
cooperative Authority Development. They were presented in Exhibit 3.
The First Board of Directors
The first members of the board of directors of Drivers Operators Employees
Residents and other Sector Multipurpose Cooperative (DOERS MPC) were consisted of
nine (9) members.
The first nine set of Board of Directors were presented in Exhibit 4.
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The Composition of the Organizational Structure of the Cooperative
The organizational structure of the cooperative is composed of the general
assembly, committees, board of directors and the management staff. The organizational
chart of the cooperative is presented in Figure 1.
The general assembly. The general assembly is composed of the regular
cooperative members who are entitled to vote and be voted upon. The associate members
of the cooperative who are not regular members thereof and therefore are not entitled to
vote and be voted upon are not members of the general assembly.
The board of directors. The boards of directors of DOERS MPC consists of nine
individuals and are expected to possess the acronym TAWID (Time, Availability,
Willingness, Interest and Dedication) in providing services to the cooperative.
The schedule of meeting of the board of directors is every second Saturday of the
month, aside from the special meetings, that may be called anytime to take up special
issues or concerns. The term of office depended on the votes garnered during the regular
assembly meeting. One half plus one (1/2+1) of the directors obtaining the highest
number of votes shall serve for two years, and the remaining directors shall serve for one
year. This tenure is effective during the first election. Chairman and Vice chairman shall
be elected on a majority vote of the elected members of the board of directors.
The committee. The cooperative has four (4) standing committees namely: Audit
Committee (AC), Education and Training Committee (ETC), Election Committee (Ele
Com), and Credit Committee (CreCom). These committees have assisted in the
implementation of the cooperatives development program.
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Each committee is composed of three members (chairman, secretary and a
member). Term of office shall be one year or until their successors shall have been
elected and qualified.
The management team/staff. The management staff of the cooperative is
composed of five employees headed by the managing director, Mrs. Myrna Batil. The
other employees include the bookkeeper, treasurer, cashier, and attendant (gasoline boy).
They are expected to maintain an efficient service with the cooperative. They are the ones
who utilize and manage the resources efficiently to produce income for the cooperative s
welfare. They play an important role in the organization because without them the
business operation would be hampered.
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The Membership of DOERS MPC
There are two types of membership in the cooperative: the regular or full pledged
members and the associate members. The regular members are those who subscribed at
least two thousand pesos corresponding to twenty five shares that shall be paid upon
membership including other fees as stated in the membership and subscription agreement.
These members must have a permanent residency in Baguio City or Benguet Province
and must have finished the Pre-membership Education Seminar.
The associate members are those who have all the rights of a regular member
except the right to vote and be voted upon as officers of the cooperative. The associate
members of the cooperative include the following:
· Members who have paid two (2) preferred shares amounting to two hundred pesos
(P200.00) and membership fee of three hundred pesos (P300.00).
· Members who subscribed at least ten (10) shares or one thousand pesos
(P1000.00).
· Individual or institutional depositors and users of the cooperative services.
· Regular users of the refilling station who have paid the membership fee.
· Members whose share capitals fall below the minimum paid up shares for regular
members.
Membership is open to all persons whose ages ranges from 15-55 years old, with
the capacity to contract and is working within Baguio City and Benguet Province. The
cooperative get membership through recruitment, some are referred by the old members
and some heard about the benefits and business of the cooperative, thus, they apply
personally in the cooperative.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Initial Operation
The cooperative was first named as ASJODA MPC and their first operation was
credit services. Their clients then were limited to the members who were driver and
operators of jeepneys plying the Baguio-Acop-Shilan route. Eventually, the cooperative
expanded its services as time passed.
Current Operation
At present, aside from its credit operation, the cooperative now also accepts
deposits (savings and time); it is also into fuel refilling, transport services and auto supply
business.
These businesses are able to help the people who are in need of financial and
other services. The current business of the cooperative are presented below.
Consumer services. The cooperative started its consumer operation on 2004 with
fuel refilling station service and later added other commodities needed by their members.
This is also identified as the main business operation of the cooperative. Since it is one of
the main businesses, sound policies had been formulated to guide the members on the
different transactions and practices in the consumer operation.
Transportation services. Commercial vehicles owned by the cooperative shall be
legally qualified bonafide members of the DOERS MPC selected by a committee that
may be formed for the purpose. The cooperative provide transportation opens to the
general public. But, the transportation services only operated one year from 2003 to 2004
because it was stolen.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
17
It plays an important role in community and for the people. Hiring or
renting is also allowed in the trnasportation services offered by the cooperative. Policies
on this service are presented in exhibit 10.
Fuel refilling station. The fuel refilling station is one of the ways of the
cooperative to provide adequate service to the members and non members. They engaged
in the purchase and distribution of fuels to member’s s an alternative to those who offered
by traditional firms in the locality besides, they are the ones regularly needed by their
jeepney operators and drivers.
Auto supply operation. This operation had just started on May 2008. They
engaged in distributing automotive parts and accessories, lubricants and other items
considered under the refilling station and auto supply business. This operation helped the
operators and drivers and other individuals to attain better living condition.
Credit operation. Cooperatives are organizations that provide financial assistance
to its members by giving loans at minimal interest rate. The interest rate of the
cooperative is 3% per annum for savings and 1% monthly for credit. This is great help to
members because the interest loan for cooperative is lower compared to loan sharks and
even the banks and other financial institutions.
The cooperative provides different types of loan to members of their cooperatives.
They also give loans to the cooperatives that have savings deposit with the cooperative.
In addition to that, the cooperative also allowed credit in fuels to members only.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
18
Growth in Membership
The initial number of members of the cooperative in 2001 was only sixty three
(63). This increased by 15.87% in 2002. Since then, the number had been continuously
growing until at present through at differing rates of increase. In table 1 it shows that the
greatest increased in membership was experienced in the year 2007 (30.77%). This was
due to the change in the scope in membership when the cooperative amended its Articles
of Cooperation and By-laws on the said year where membership was opened to other
sectors. The increase in membership could be the attributed also to the continuous
information campaign initiated by the officers on the privileges, benefits and advantages
that could be received by members. However it can be noted that rates of increases are
fluctuating.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
19
Table 1. Growth in membership from 2001 to 2008
YEAR NUMBER OF MEMBERS RATE OF GROWTH (%)
2001
63
2002
73
15.87
2003
83
13.70
2004
95
14.45
2005
102
7.37
2006
130
27.45
2007
170
30.77
2008
200
17.65
250
200
150
100
50
0
2001
2002
2003
2004
2005
2006
2007
2008
Figure 2. Graph of membership from 2001 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
20
Growth in Total Assets
The total assets are directly affected by the number of members. When there are
more members added, they deposit their money in the cooperative as share capital thus
the total assets would increase. The cooperative had a total asset of P1, 055, 875.18 in its
initial year of operation in 2001. On the other hand, the total asset as of the latest period
(2008) was P5, 432, 175.19, indicating an increase of 13.35%. In terms of annual growth
rates, the highest was experienced in 2004 with 59.60% followed by 2002 with 38.04%
increase, 2006 (30.96%), 2003(26.60%), 2007 (20.30%) and (2008) 13.35%. Although
the total assets were growing, rates were fluctuating. It can be noted further that the
smallest increased was in 2005, the year when the member of new members were the
fewest.
The increase in assets was a positive indicator of the ability of the cooperative to
mobilize resources in order to meets its need.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Table 2. Growth in total asset from 2001-2008
YEAR TOTAL ASSET RATE OF GROWTH
(In Pesos) (%)
2001
1, O55, 875.18
2002
1, 457, 610.00
38.04
2003
1, 845, 223.08
26.60
2004
2, 944, 795.25
59.60
2005
3, 041, 783.97
3.30
2006
3, 983, 621.39
30.96
2007
4, 792, 258.07
20.30
2008
5, 432, 175.19
13.35
6,000,000.00
5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
0.00
2001
2002
2003
2004
2005
2006
2007
2008
Figure 3. Graph in total asset from 2001 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
22
Growth in Paid-up Share Capital
Due to delayed payment of members to their subscribed share capital, the initial
paid-up share capital was only P45, 901.24. However, in the succeeding year (2002) there
was a significant increase of about 2,045%. This was the time when most of the member
subscribers were able to pay their subscribed shares. It can be noted also that the smallest
increase in paid-up share capital (2.43%) was in 2005. This was also due to the fact that
this was the year when the increase in membership was the smallest. Even though, there
was a continuous increase in the paid-up share capital over the succeeding years amidst at
varying rates, the period 2005-2008 is marked by an increasing rates of increases with
2008 having a significant 16.96% increase. Said continuous increases were due to the
continuous increases in the number of members and capital share investment.
Table 3. Growth in total paid-up share capital
YEAR TOTAL PAID-UP SHARE CAPITAL RATE OF GROWTH
(In Pesos) (%)
2001
45, 901.24
2002
984, 966.89
2045.00
2003
1, 037, 897.24
5.37
2004
1, 237, 823.59
19.26
2005
1, 267, 856.09
2.43
2006
1, 394, 137.53
9.97
2007
1, 593, 333.86
14.29
2008
1,836, 361.30
16.96
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Figure 4. Graph in total paid-up share capital from 2001 to 2008
Growth in Liabilities
Based on the cooperatives record, that there are only P29, 370.50 total liabilities
in 2001, this was due to the small amount of share capital contributed by the few
members. In the succeeding year of operation (2002), the liabilities increased by
1100.57% with P352, 614.23. Again this could be attributed to the growth in membership
resulting high increase in paid-up share capital. As was pointed out in table 3, from 2003
to 2008 the total paid-up share capital had been increasing, that resulted to the continuous
increases in liabilities.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Table 4. Growth in total liabilities
YEAR TOTAL LIABILITIES RATE OF GROWTH
(In Pesos) (%)
2001
29, 370.50
2002
352, 614.23
1100.57
2003
641, 112.34
81.81
2004
1, 509, 271.19
135.41
2005
1, 448, 834.80
-4.00
2006
2, 034, 642.23
40.43
2007
2, 302, 595.15
13.16
2008
2, 506, 033.53
8.84
Figure 5. Graph in total liabilities from 2001 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Growth in Net Surplus from 2006-2008
For the data on net surplus, the periods considered were from 2006 to 2008 only.
This was due to incomplete records of the cooperative. Data shows that the cooperative
generated a net surplus mounting to P1, 008, 649.21. It increased in 2007 by 17.64% due
to high increased in sales, membership fees and interest income from investment. In
2008, the rate of growth decrease to 5.10% from 17.64% in 2007 due to the decrease on
the rate of growth of gross income of the cooperative.
Table 5. Growth in net surplus from 2006-2008
YEAR TOTAL NET SURPLUS RATE OF GROWTH
(In Pesos) (%)
2006
1, 008, 649.21
2007
1, 186, 576.48
17.64
2008
1, 247, 169.61
5.10
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Figure 5. Graph in net surplus from 2006 to 2008
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Policies, Programs and Practice of the Cooperative
The policies, programs and practices of the cooperative presented were taken
from the manual of operation of the cooperative.
Resources development enhancement program. This would mean organizational
building to include the development of the area leaders, their management capabilities
and capacities, and resource mobilization. Intensive campaign for capital build-up and
savings as initial step towards self-reliance will make the members feel owners of the
cooperative. The management staff, officers, and members will have to undergo series of
cooperative trainings.
Seminars and trainings. The cooperative provide regular seminars like the Pre-
Membership Education Seminar (PMES), and seminars regarding lending and savings, its
policies, rules and regulations.
Savings mobilization. This service is rendered to all members of the cooperative.
They offered interest on savings of 3% per annum. This program is basically to
encourage thrift among the members for capital formation and to promote the cooperative
as a way of life for improving the social and economic well-being of the people.
Loan services. Credit is one of the main services of the cooperative. It aimed to
provide financial needs of the members. This was one of the services of the cooperative
that contributed the highest revenue.
The type of loan granted by the cooperative, purpose of each and the
policies are presented below.
Productive loans. Loans intended for any legitimate income generating projects,
which will give the member or his family, an additional source of income.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Provident loans. Those that are for purposes of providing expenses in which the
member does not have adequate cash for medical, wedding, baptismal and other activities
which have the nature of social obligation and without expectation of making a profit.
Kinds of Loan
Regular loan
1. Within share capital. Loans within or equal to share capital shall be granted to
all members as initial loan. Co-maker is required in this category and it could be released
upon application subject to availability of cash.
2. Twice or more than share capital. Co-maker is required in this category. The
total share capital of the maker and the co-makers shall be more than or equal to the
amount of loan being applied.
3. With collateral. Collateral could be real or chattel.
Educational Loan. Loans granted to members during the enrollment period of any
one of the members dependents. This could be availed in the same year with the other
loans offered by the cooperative provided that the latter has been granted two months
prior to the application of educational loan. This loan facility shall be exempted from the
deduction of the 5% capital build-up. However, only the members in good standing could
avail of this loan facility.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Emergency Loan. Loans granted to members who are in dire need of cash. The
term of this loan shall be one month or thirty days only. Being an emergency loan,
this shall be exempted from the deduction of 5% capital build-up. Only members
in good standing could avail of this loan facility. The maximum amount that could
be borrowed is P5,000.
Policies on loans
1. Membership must be at least six months before a member could avail of any of
the loan services of the cooperative.
2. Must be in good standing.
3. All initial loans shall be within share capital only. Share capital excludes the
amount that came from the payments of rights.
4. Duplication of co-makers shall not be allowed. Any member can be a co-maker
once only.
5. Early payments of loan before maturity shall be entitled to rebate.
6. Service fee is 1% of the principal amount of loan.
7. Additional 2% per month of loan balance shall be the penalty in case of non
payment upon maturity.
8. Interest on loans shall be fixed at 1% per month or 12% per annum, pre-
deducted.
9. The diminishing balance shall be utilized in the computation of interest on all
loans.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Loanable Amount
For the regular loans, members could avail a maximum amount to their share
capital. However, they could borrow twice their share capital as long as the aggregate
share capitals of the borrowers and of their co-makers are equal or more amounts applied
for. For loans involving collaterals, 70% of appraised value of the real estate mortgage
could be availed of, on the other hand, only 50% of the appraised value of chattel
mortgage is allowed.
The share capital as mentioned refers to the share capital actually contributed out
from the pockets of the cooperative members.
Table 6. The cooperative policy on loan ceiling
LOAN FACILITY
LOANABLE AMOUNT
A. Regular Loan
· Within share capital
Equal or less than the members share
capital
· Twice or more than share capital
Equal or less than the aggregate amount of
share capital of maker and co-maker
· With collateral:
-Real Estate Mortgage
70% of the appraised value
-Chattel Mortgage
50% of the appraised value
B. Educational Loan
Assessment Record of members dependent
C. Emergency Loan
P5000.00
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Acceptable Collaterals
1. Savings Deposits or Time Deposits in the cooperative. Withdrawal will not be
allowed until the loan has been fully paid.
2. Real Properties:
a. Located within the cooperative area of operation.
b. In case of real properties not personally owned by the borrower, a Special
Power of Attorney (SPA) executed by the owner with the consent of all
the parties concerned will suffice provided that the owner must be the Co-
maker.
c. Mortgage must be duly registered with the Registry of Deeds.
d. Evidences of ownership shall be submitted to the cooperative for
safekeeping until the loan has been fully paid.
3. Tax Declarations with improvements maybe accepted as collateral.
4. Personal Properties:
Ø Vehicles, with the following requirements:
a. Official Receipt (OR), Certificate of CR and Certificate of Public
Convenience (CPC) must be surrendered to the cooperative, all
documents must be original.
b. Submit picture of vehicle with plate number.
c. Subject for inspection or stencil at the cooperative.
d. Registered with the Registry of deeds.
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Loan Duration
For regular loans, those involving within share capital could pay their loan six
months while those who involved in twice or more than the share capital and with
collateral could pay their loan in three months, six months, and one year.
For educational loan, members who availed are entitled to pay after six months.
This loan facility shall be exempted from the deduction of the 5% capital build-up. Only
the members in good standing could avail of this loan facility.
For emergency loan, the cooperative offered P5,000 that could be availed by the
members and could pay it in thirty days or one month.
In case the member failed to pay upon maturity of loan, the borrower is entitled to
have an additional two percent of loan balance.
Table 7. Loan duration of the loans offered by the cooperative
LOAN FACILITY
DUARTION OF LOAN PAYMENT
Within Share Capital
Monthly or after six months
Twice or more than Share Capital
3 months, 6 months, one year
· With Collateral
3 months, 6 months, one year
Educational Loan
After six months
Emergency Loan
Thirty days
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Loan Procedures
a. Secure application form from the cooperative office.
b. Accomplish and submit duly accomplished application form with the requirements
to the Manager for review and evaluation, and or approval.
c. Manager endorses all loan applications with collateral attached with the evaluation
report to the Credit Committee for credit investigation.
d. Credit Committee submits their report and recommendations to the Board of
Directors for action every second Friday of the month.
Approval of Loans
1. Loans within or equal to share capital-Managers approval.
2. Loans twice or more than the share capital but not more than P20, 000.00-
Managers Approval.
3. Loans with Collateral (Real or Chattel)-approval of the Board of Directors and
review and evaluation of the Manager and recommendation of the Credit
Committee.
4. Educational Loan- Manager, Credit Committee Chairpersons approval and the
Chairman’s approval.
5. Emergency Loan-Manager’s approval.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Problems Met by the Cooperative
According to the general manager, there was only one major problem faced by the
cooperative that is the delinquency on loan repayments of members. It was elaborated by
the manager that the member-borrowers were delinquent, especially when those who
were affected by economic and social factors. Members were responsible borrowers but
because of events beyond their control, they could not pay their loans on time. For this
problem, the Board of Directors made a resolution wherein the delinquent members
should report to the office of the cooperative, if not the officers would go to their houses
and remind them of their loan.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was undertaken primarily to document the organization and
development of the Drivers Operators Employees Residents Multi-purpose Cooperative
(DOERS MPC) and to look into its policies and programs.
This study was conducted at the Drivers Operators Employees Residents and
other Sector Multipurpose Cooperative office at Km.11 Tili, Shilan, La Trinidad
Benguet. First hand information was gathered from the manager, bookkeeper and the
treasurer while the secondary data were taken from the reports compiled in the
cooperative office and the manual of operation of the cooperative.
DOERS MPC was originally named as the Acop Shilan Jeepney Operators and
Drivers Association Multipurpose Cooperative (ASJODA MPC). Membership in the
cooperative was then limited to the drivers and operators of jeepneys playing Baguio-
Acop. The cooperative was initially engaged in credit services but eventually ventured
into multipurpose services like the offering of time and savings deposits, fuel refilling
station, and transportation services.
As to the growth of the cooperative, its general membership had been increasing
from 2001-2008. Said growth could be attributed to the amendment initiated in their
Articles of Cooperation and By-laws that eventually led to the opening of the
cooperative’s membership to other sectors in the locality. This could also be attributed to
the continuous information campaign initiated by the officers on the cooperative
privileges, benefits and advantages that could be received by members.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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For the members share capital, it was also increasing due to the continuous
increase in membership. Likewise, total asset and the total liabilities had been increasing.
There was a slight decrease of liabilities for about -4% in 2005. The problem encountered
or met by the cooperative is the delinquency of loan payment of members.
As to the policies, practices and programs of the cooperative they are embedded
in their vision, mission and objectives. The basis of their policy is the principles of proper
cooperative management.
Conclusions
Based on the findings of this study the following conclusions were formulated:
1. The growth of the cooperative of DOERS MPC in terms of share capital and
asset is directly related to the growth in membership.
2. The cooperative membership expanded from operators and drivers to include
other individuals from all walks of life who envision attaining better living conditions.
3. The name of the cooperative from ASJODA MPC was change to DOERS MPC
have attributed much to the growth of the cooperative for it was able to increase
membership thereby resulting to more fund for the cooperative and expansion and
growth.
4. There was no change in their policies.
5. Some member-borrowers were delinquent especially those who are affected by
economic and social factors.
6. The current problem commonly encountered which is on loan delinquency by
the cooperative is manageable and it doesn’t affect much their operation.
7. The cooperative has no loan collector.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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Recommendations
1. Continuous cooperative education and training services should be conducted
regularly to members as well as officers and management staff as guidance and for them
to strengthen their knowledge to be supportive of the cooperative programs and to ensure
its sustainable operations and development.
2. The causes of delinquency must be studied then appropriate strategies could be
devised to address this issue.
3. The cooperative should hire loan collector to avoid loan payment delinquency.
The loan collector will do the “tutok system” or the house to house collection to lessen
loan delinquency.
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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LITERATURE CITED
ANASTACIO, L.K. 2004. Profile of Primary Cooperatives’ in Itogon, Benguet. BS
Thesis. Benguet State University. Pp. 6-7
BINAY-AN, S.C. 2006. An assessment of the primary cooperative to the Benguet
Provincial Cooperative Union. BS Thesis.Benguet State University. Pp.6
FAJARDO, F. and ABELLA,F. 1993. Cooperatives. Fourth Edition. Rex Printing
Company, Inc. Quezon City. Pp. 25O
SALDO, C. 2005. Profile of non-operating cooperatives in Bagulin, La Union. BS
Thesis. Benguet State University. Pp.7
VICTOR, A.K. 2008. Members perceived benefits from the services Benguet Rural
People’s Multipurpose Cooperative. BS Thesis. Benguet State University. Pp. 7
WACAY, J.C, 2003. Profile of Cooperative Managers of La Trinidad, Benguet. BS
Thesis. Benguet State University. Pp.6
WALCIEN, S.P. 2005. Profile of the primary cooperatives in Eastern Baguio City. BS
Thesis. Benguet State University. Pp. 6,7-9
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
39
General Assembly
Audit Com.
Board of
ETC
Ele. Com.
Cred. Com
Directors
Secretary
Manager
Cashier
Treasurer
Attendant
Bookkeeper
Figure 1. Organizational structure of the cooperative
Documentation of Drivers Operators Employees Residents and other Sector Multipurpose
Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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EXHIBIT 1
MISSION, VISION AND VALUES STATEMENT
Vision Statement
The DOERS MPC envisions to be a progressive, strong and stable cooperative
and in partnership with the community in providing adequate and quality services within
the province of Benguet.
Mission Statement
The DOERS MPC is a cooperative committed to address the financial needs of its
members by assisting them in the upliftment of their socio-economic well-being towards
self-reliance.
It also provides essential services and business enterprise to the general public
within its area of operation.
Values Statement
The DOERS MPC adheres to the values of mutual concern, self-reliance,
dedication, loyalty and cooperation as means of promoting its growth and development.
In order to realize its vision, the officers, management staff and the membership
are committed to the ethical values of honesty, humility, dignity of service, industry and
God loving as inherent to the cooperative.
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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EXHIBIT 2
THE OBJECTIVES OF THE COOPERATIVE
1. To encouraged thrift and savings mobilization among the members for capital
formation.
2. To create funds and grant loans to members for productive and providential
purposes.
3. To engage in the purchase and the distribution of fuel, automotive parts and
accessories lubricants and other items considered under refilling station and auto
supply business.
4. To engage in the purchase and the distribution of consumer goods, agri-products
and training activities.
5. To engage in marketing activities.
6. To promote the cooperative as a way of life for improving the social and
economic well being of the people.
7. To do any related activity for the members self government, improve social and
economic well being.
8. To work with the cooperative movement, non-government and government
organizations or entities in the promotion and development of cooperatives and in
carrying out government politics.
9. To undertake other activities for the effective and efficient implementation of the
provisions of the cooperative code of the Philippines.
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EXHIBIT 3
FIRST MEMBERS OF THE COOPERATIVE
1. Julio Acop 16. John Kis-ing
2. Paterno Anas 17. Pedro Kis-ing
3. Ernesto Amananse 18.George Montes
4. Cornelio Batil
19. Quintin Murphy
5. Felix Binaldo
20. Johnny Marcos
6. Ernesto Cagay- an 21. Peter Pi-ay
7. Jimmy Castro
22. Bonifacio Pi-ay
8. Jose Ciano
23. Erico Tactac
9. Aniceto Cid Jr. 24. Paul Yatoyat
10. Edna Daguio-a 25. Kent Zarate
11. Willy Diano
12. Allan Domingo
13. Sabino Elias
14. Victor Fabian
15. Charlie Garoy
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Cooperative (DOERS MPC) / Jennifer B. Alatan. 2009
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EXHIBIT 4
THE FIRST SET BOARD OF DIRECTORS
Chairman: Mr. Paterno Anas
Vice chairman: Mr. Peter Pi-ay
Members of the Board:
1. George Montes
2. Johnny Marcos
3. Ernesto Cagay-an
4. Charlie Garoy
5. Julio Acop
6. Sabino Elias
7. John Kis-ing
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EXHIBIT 5
DUTIES AND RESPONSIBILITIES OF OFFICERS
THE CHAIRMAN
1. Preside over all meetings of the cooperative and the Board.
2. Perform any and all acts and duties usually performed by a presiding officer.
3. Sign all share certificates, revolving fund certificates, contracts and such other
papers of the cooperative which the Board may authorize or direct him to sign.
4. perform such other duties as the Board may prescribe
THE VICE-CAIRMAN
In the absence of disability of the chairman, the vice-chairman shall perform the
duties of the chairman, provided however, that in case of death, resignation or removal of
the chairman, the Board may decide to elect his or her successor.
THE TREASURER
1. Take custody of all monies, securities and papers of the cooperative.
2. Keep complete records of its cash transaction for the establishment of proof of its
cash position at any given time and date.
3. Pay upon the recommendation of the manager or as authorized by the Board, all
money transactions and certify to the correctness of the cash position of the
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cooperative in all financial statements and reports submitted to the Board, the
General Assembly and the Cooperative Development Authority.
4. Turn over all monies, securities, papers, books and other properties belonging to
the cooperative that he may have in his possession upon election of his successor.
5. Post an adequate bond, to assure the faithful performance of his duties.
6. Perform the duties of the secretary in the latter’s absence or inability to perform
his duties.
THE SECRETARY
1. Keep a complete list of all the members and maintain correct record of all the
meetings of the Board and the General Assembly.
2. Give notice of special Board and General Assembly meetings called.
3. Keep and maintain the stock and transfer book and serve as the custodian of the
corporate seal of the cooperative.
4. Turn over to his successor all books and other properties in his possession
belonging to the cooperative.
5. Perform the duties of the treasurer in case of the latter’s absence or inability to
perform his duties.
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EXHIBIT 6
POWERS AND DUTIES OF THE DIFFERENT COMMITTEE
AUDIT AND INVENTORY COMMITTEE
1. Provide internal financial and management audit services.
2. Maintain a complete record of periodic examinations and inventory.
3. Reports audited monthly financial statements to the Board and audited financial
reports to the General Assembly.
ELECTION COMMITTEE
1. Promulgate the rules and regulations in the conduct of election.
2. Pass the qualification of candidates.
3. Supervise the conduct of election.
4. Canvass and certify in writing the election returns.
5. Proclaim the winning candidates and shall decide on election protests.
EDUCATION AND TRAINING COMMITTEE
The vice chairman of the Board shall serve as Ex-officio chairman of the
committee. The committee shall be responsible in planning and implementing
promotional and educational activity like the conduct of pre-membership seminar of
prospective members.
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EXHIBIT 7
DUTIES OF MANAGEMENT STAFF
BOOKKEPER
1. Install an up to date and systematic accounting of records of the cooperative.
2. Render monthly report to the Board of Directors on the financial conditions and
operations of the cooperative including annual reports to the General Assembly or
as maybe required.
3. Coordinate with the manager and the audit and inventory committee in the
preparation of the annual budgets and other reports.
4. Assist the chairman or manager in the preservation of the books of accounts,
vouchers, documents and other records of what ever kind pertaining to the
business of the cooperative.
FUEL FILLING STATION CASHIER
1. Take custody of all money, securities and papers of the fuel filling station and
turn over the same to the treasurer at the end of the day’s transaction.
2. Keep records of all cash transactions.
3. Performs other functions as may be assigned by the manager.
FUEL FILLING STATION ATTENDANT
1. Responsible for refilling motor station vehicles refueling at the station.
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2. Maintains cleanliness and up keeping of the refilling station and its premises.
3. Reads pumped out fuel meter and updates the General Manager for proper
actions.
4. Performs other functions as may be assigned by the General Manager.
GENERAL MANAGER
1. The manager shall implement lawful policies set by the Board of Directors or the
General Assembly. Have charge of all phase of the business operations of the
cooperative upon appointment of his successor, he shall turn over all the money
and properties belonging to the cooperative with are in his possession or over
which he has in control.
2. Maintain records and accounts in such manner that the true and correct condition
of the business of the cooperative may be ascertained at anytime.
3. Shall render annual and periodic statements and reports in the form and in the
manner prescribed by the Board of Directors and shall preserve the books,
documents, correspondence and records of whatever kind of pertaining to the
business which may come into his possession.
4. Subject to the policies that maybe promulgated by the Board of Directors, may
employ supervise and dismiss any employee in the management force, provided
however that approval of the Board on hiring, suspension or dismissal of any
employee whose basic compensation exceeds Seven Thousand Pesos (7000) shall
be secured.
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EXHIBIT 8
MANAGEMENT AND OPERATION POLICIES
1. The Manager shall be accounted for any acts committed by the staff under her
supervision. The Manager is accountable to the Board of Directors is accountable to the
General Assembly.
2. The management shall be responsible for the operations of the cooperative.
They shall implement all policies set by the Board of Directors and or the General
Assembly.
3. Official days and time. Office days shall be from Monday to Sunday, including
holidays. Office hours shall be as follows:
-Fuel Refilling Station- 6:00 AM to 8:00 PM
-Credit-8:00 to 5:00 PM
4. Tardiness. All employees are directed to report on time except when on official
business or on unavoidable circumstances or on a flexible time.
5. Under time. Consecutive under time will not be tolerated otherwise it will be
computed and be deducted from the days pay.
6. The manager should monitor the attendance of the coop employees and must
ensure that all absences of the employees are supported by leave from duly accomplished
and signed by the signatories before going on such leave.
Application for leave shall be filed three days prior to the scheduled leave except
in cases of sick leave where it shall be filled upon return to work provided that it shall not
exceed five days, in which case, the leave must be supported by a medical certificate.
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Employees who absent themselves without application for leave and or valid
reasons in writing shall be considered AWOL thereby, considering their action as
abandonment of work and may be penalized with dismissal or termination.
7. Pay policies. All employees shall receive their salary 15th and 30th day of the
month. The Payroll should be approved by the manager and to be disbursed by the
Treasurer.
8. Daily Time Record of employees shall be submitted and signed by the
employee and the Manager to support the payroll of the employees.
9. Disbursement. All disbursement shall be supported by the Disbursement
Vouchers attached with supporting documents duly signed and approved by the
signatories before any payment is made.
All Disbursement more than P20,000 shall be approved by the Board of Directors.
Any amount lesser could be approved by the manager provided that such disbursement
are for the normal operations of the business of the cooperative.
10. The Treasurer is accountable for all the assets of the cooperative, make
records, update their status, keeps the stock certificates, update passbook of depositors,
and disburse cash authorized by the Manager and update status of cash for the guidance
of the management.
11. The manager should not hold cash except for cash entrusted to her (cash
advances to be used in transactions but such should be liquidated within reasonable time
after the culmination of the activity). Any unused cash should be returned to the
cooperative treasurer.
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12. Before venturing into any project, a simple feasibility study should be made to
avoid losses and shall be continuously monitored and evaluated to ensure positive input
to the cooperative.
13. Personal Data Sheet. All employees shall accomplish Personal Date Sheet to
be filed by the cooperative for records and reference purposes. The employee himself
through the Manager shall update it of any changes.
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EXHIBIT 9
POLICIES ON FUEL REFILLING STATION
Collections:
1. The cashier shall turn all her daily collections to the treasurer.
2. The treasurer shall see to it that the daily sales are equal to the cash remittance
of the cashier.
3. The remitted collections shall be deposited daily at any bank authorized by the
Board of Directors as depository bank.
4. Sales or collections beyond banking hours shall be deposited first hour of the
following banking day.
5. All cash shortages shall be responsibility of the cashier.
Selling Policy:
1. Payments shall always be in cash. Checks payments shall not be accepted.
2. In case of credit, an agreement with the cooperative has to be accomplished. In
the absence hereof, the personnel who granted the credit shall be liable in case of non-
payment.
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EXHIBIT 10
POLICIES ON TRANSPORTATION SERVICES
1. Commercial vehicles owned by the cooperative shall only be operated by
legally qualified bona fide members of the DOERS MPC selected by a committee that
may be formed for the purpose.
2. Only the drivers designated by the coop member (with the approval of BODs)
shall operate the vehicle unless prior to permission has been had the same.
3. The designated drivers shall be responsible for the proper operation and basic
maintenance of the vehicle assigned to him and must report to the coop manager any
need of maintenance repair to be done for the proper action to be undertaken. Regular
maintenance repair shall be done on the vehicle on its designated rest or coding day.
4. Damages that may be incurred on the vehicle due to negligence shall be the
sole responsibility of the designated driver who must cause its immediate restoration and,
shoulder the cost of the same. Loss of projected revenue as a result of the accident shall
also be charged on the erring driver. NOTE that all unsettled accounts due to this may be
charged on the driver’s investment in the cooperative or may be charged on a cash bond
required prior to his appointment.
5. The “Boundary System” shall be adapted in the economic operation of the
vehicle. The manager shall determine the inclusive time of operation and the daily
boundary to be remitted daily shall be P450.00.
6. Use of the coop vehicle outside its area of operation is not allowed unless
authorized by the Manager.
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7. The coop vehicle shall be parked at a pre-designated place determined by the
Manager where it will be until the following day of operation. The driver shall also be
required to surrender the ignition key to the manager as soon as the vehicle is safely
parked.
It shall be the duty of the coop manager to supervise the strict enforcement
of the provisions of this guideline and may promulgate such regulations as may be
necessary for its efficacious implementation. The violation of any of the provision hereof
shall be punished in accordance with the seriousness of the offense, after administrative
proceedings before the chairman of the Board of Directors or committee designated.
DRIVER QUALIFICATIONS
1. Must be a bona fide regular member in good standing of the cooperative.
2. Must be of legal age.
3. Must be holding a valid professional license issued by LTO.
4. Must not have involved in any vehicular accident due to drunkenness or gross
negligence.
5. Must accomplished an agreement between the cooperative embodying the policies
as a forth.
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EXHIBIT 11
CAPITAL STRUCTURE OF THE COOPERAVE
1. Capitalization. That the authorized share capital of the cooperative is
P10,000,000.00 divided into 100,000 shares broken down as 80, 000 common shares with
the par value of P100.00 per share and 20,000 preferred shares with par value of P100.00
per share.
2. The minimum subscription of a regular member is eighty shares at a par value
P100.00 per share equivalent to P8,000.00. The members are encouraged to increase their
Share capital subscription provided that it shall not exceed 20 percent of the authorized
share capital of the cooperative as provided for under Article 74 of the Cooperative Code
of the Philippines.
3. The minimum subscription of an associate member is ten shares at par value of
P100.00 per share equivalent to P1,000.00.
4. The total subscription shall be paid within a period of five years from approval
of membership to the cooperative.
5. Share capital could not be withdrawn during the membership.
6. Five percent shall be deducted from the principal amount of loan approval of
membership to the cooperative.
7. At least one percent of the annual interest on capital and patronage refund of
members shall be withheld as capital build up. In case the share capital of the member
under FFS is FIFTEEN THOUSAND, the capital build up shall be treated as paid up
share capital under the credit service.
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8. Retains. The board as authorized by the General Assembly may raise an
additional capital by deducting a certain amount of percentage on a per unit basis from
the proceeds of the services/goods sold to members
9. The transfer of shares. The cooperative shall have the first option to buy any
share offered for sale. The amount to be paid for such shares shall be the par value or
book value whichever is lower.
The cooperative member shall have the right to sell their shares to any person
eligible for membership, if the cooperative is not in the position or otherwise refuses to
purchase the shares provided that the shares had been held by the member for at least one
year and the board has approved such transfer.
Transfer fee is one hundred pesos ( P100.000)
10. Source of funds. The cooperative shall derive its funds from share capital,
revolving capital, retains, capital reserves, loans, subsidies, grants, donations, and other
sources of funds as may be authorized by the law.
11. The general assembly may authorize the Board to raise a revolving capital by
deferring the payment of patronage refunds and interest on share capital.
12. Share Capital and Stock Certificate. Serially numbered certificates of stock of
the cooperative shall be issued to each member upon full payment of the subscription and
for the subsequent shares they had paid for. The certificates shall contain the holder’s
name, the number of shares owned, the par value and the duly signed by the chairman
and the secretary bearing the official seal of the cooperative. All issues and transfer shall
be registered in the stock transfer book.
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13. In case of loss or destruction of stock certificate, another maybe issued in its
p[lace to the owner after executing an affidavit in triplicate setting forth the
circumstances as how to, when and where said certificates was lost or destroyed; the
number of shares represented by certificate; the serial number of the certificate; that the
lost or destroyed certificates has never been transferred, sold or endorsed to any third
party and should the same be found, the owner shall surrender it to the cooperative. Any
false representation or statement made in the affidavit shall be a ground for expulsion
from the cooperative.
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EXHIBIT 12
BENEFITS OF MEMBERS
1. Interest on Share Capital. Members share capital earns an annual interest or
dividends, which will be distributed during the annual general assembly meeting after
deducting all the members’ dues.
2. Patronage Refund. Entitled to any member who patronized the services of the
cooperative during the fiscal year. This will be distributed during the general assembly
after deducting all the members’ dues.
3. Interest Rebate or reduction of interest due is entitled to a member upon full
payment of loan balance prior to maturity provided that the remaining days of payment
shall not less than one (1) month.
4. Trainings or Seminars. Any member, officer and management staff attending
cooperative related training or seminars are enjoyed to participate. The actual expenses in
attending trainings or seminars shall be provided by the cooperative charge to the CETF,
subject to liquidations and proper accounting (submission of official receipts of
payments, certificate of appearance and other supporting documents.
5. Loans. Any member in good standing maybe granted loans upon compliance
with the existing policies.
6. Minimal interest on loans. Members are granted loans with minimal rates of
interest as compared to other lending institutions.
7. Restructuring of Loan. Loans may be restructured upon fifty percent of the
principal amount aside from the penalties and or surcharges due, if any. This shall
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however be subject to review and recommendations of the credit committee and approval
of the Board of Directors.
8. Mortuary Aid Program. All members and immediate family of deceased
members (spouse and children, including illegitimate children living with the member)
are entitled to death or mortuary aid upon membership after complying the required
documents as set forth under the existing policy.
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APPENDIX A
Letter to the Respondents.
College of Agriculture
DEPARTMENT OF AGRICULTURE ECONOMICS AND
AGRIBUSINESS MANAGEMENT
Benguet State University
La, Trinidad, Benguet
January 2009
Sir/Madam:
I am a fourth year student of Benguet State University taking up Bachelor in Science and
Agribusiness, major in Cooperative Management. As part of the course requirement, I am
presently conducting a research study titled, DOCUMENTATION OF DRIVERS
OPERATORS EMPLOYEES RESIDENTS AND OTHER SECTOR MULTIPURPOSE
COOPERATIVE”.
May I request a portion of your precious time for an interview. Rest assured that all
information and data you provided will be treated with utmost confidentially.
Thank you very much for your support. More power and God Bless!!!!!
Respectfully yours,
Jennifer B. Alatan
Researcher
Noted by:
Andrew K. Del-ong
Adviser
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APPENDIX B
Interview Guide
1. Who were the first leaders of the cooperative?
2. Who were the first members of the Board of Directors and officers of the cooperative?
Incorporators or cooperators?
3. How was the operation started?
4. Did all the members attend the Pre-membership Education seminar?
5. Who conduct the PMES? How regular is the conduct of PMES?
6. Were there cases of withdrawal of members?
7. What were the causes of withdrawal?
8. How many members withdraw every year?
9. What factors affect the increase or decrease in your total asset?
10. Did you amend your By-laws? How many times?
11. Were there changes in your policies and practices?
12. What old policies and practices were changed and what are the new ones?
13. Do you stick to your policies in your operation or were there cases that you disregard
your policies to suit the situation?
14. What are the policies, practices, and programs of your cooperative?
15. What are the problems you encountered in your cooperative?
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Document Outline
- Documentation of Drivers OperatorsEmployees Residents and other Sector Multipurpose Cooperative (DOERS MPC).
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale of the Study
- Statement of the Problem
- Objectives of the Study
- Importance of the Study
- Scope and Limitation of the Study
- METHODOLOGY
- REVIEW OF LITERATURE
- Cooperative
- Objectives of the Cooperative
- Importance of Cooperative
- Cooperative as a Tool of Development
- Membership
- Success Factors of Cooperative
- Management of the Cooperative
- Needs of the Cooperatives
- Problems Encountered
- RESULTS AND DISCUSSION
- The Organization of the Cooperative
- The First Members of the Cooperative
- The First Board of Directors
- The Composition of the Organizational Structure of the Cooperative
- The Membership of DOERS MPC
- Initial Operation
- Current Operation
- Growth in Membership
- Growth in Total Assets
- Growth in Paid-up Share Capital
- Growth in Liabilities
- Growth in Net Surplus from 2006-2008
- Policies, Programs and Practice of the Cooperative
- Kinds of Loan
- Policies on loans
- Loanable Amount
- Acceptable Collaterals
- Loan Duration
- Loan Procedures
- Approval of Loans
- Problems Met by the Cooperative
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED