BIBLIOGRAPHY DIZON, LAUREL REY C. APRIL...
BIBLIOGRAPHY
DIZON, LAUREL REY C. APRIL 2007. Profile of Primary Cooperatives in
Dilasag, Aurora. Benguet State University, La Trinidad, Benguet.
Adviser: Luke E. Cuangey, BSc
ABSTRACT
This study was conducted to describe the profile of primary cooperatives, to
determine the financial status of these primary cooperatives, to determine the policies and
programs of the cooperatives.
The respondents of the study were the manger of different Primary cooperatives,
however, in the absence of the manager, the staff or any officer who know the
information about their cooperative served as the respondents.
There were 8 primary cooperatives in Dilasag, Aurora however during the
conduct of this study, there were only five cooperatives currently operating, the 3 was
bankrupt.
Most of the cooperatives were operating in barangay and municipal level. Most
of them offer credit services. Most of the coop have 3 member in each of their
committees and 5 members of Board of Directors. The main sources of funds of
cooperatives are from share capital of their members.
All the cooperatives studied secured business permit and have a vision statement,
mission statement, goal statement and written development plan. Most cooperative
registered with BIR and applied for tax exemption.
TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract ,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
INTRODUCTION
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
Cooperative Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Management of Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ..
4
Sources of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .
5
Compliance with other Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
METHODOLOGY
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
ii
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
RESULTS AND DISCUSSION
Organizational profile of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . .
9
Profile of Cooperatives Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Profile of Cooperative Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Financial Profile of Cooperatives . . . . .. . . . . . . . . . . . . . . . . . . . . . . . ..
17
Financial Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Policies and Program of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . .
23
Administrative Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Vision. Mission and Goal Statement . . . . . . . . . . . . . . . . . . . . . . .. . . .. .
33
Availability of Written Development Plan . . . . . . . . . . . . . . . . . . . . . . . .
33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Conclusions . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .
36
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .
39
APPENDICES
A. Letter to Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
B. Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
iii
INTRODUCTION
Rationale
A true cooperative by its nature assures the opportunity for its entire member to
achieve economic abundance and human dignity. Cooperative promotes the principle of
equitable distribution of wealth. From an economic viewpoint, human dignity means that
any person, corporation or government shall exploit no one. Instead, there shall be
decent opportunity for every family to gain what it needed by its productive labor.
Experiences in developing and developed nations had proven that on of the
effective strategies to attain economic growth and equitable distribution of income and
wealth is through the cooperatives.
Aurora is one of the youngest provinces in the country. It is experiencing the growing
pains of development but already manifesting its potential as a fast developing province.
For starters, Aurora is a blest with bountiful natural resources, it lies serene with its over
verdant forest, extensive virgin shorelines, fertile agricultural lands and rainfall evenly
distributed the whole year round (NSO, Baguio, 1990).
Aurora is composed of eight (8) municipalities namely: Dingalan, San Luis,
Maria Aurora, Baler which is the provincial capital, Dipaculao, Dinalunagn, Casiguran
and lastly Dilasag my hometown. Dilasag is composed of ten (10) barangays namely:
Manggithahan, Esperansa, Ura, Lawang, Demaseset, Diniog, Diagyan, Dibulo, Maligaya,
and lastly the center of trade and industry my beloved barangay Masagana.
At present there are five (5) existing cooperatives in Dilasag, Aurora namely;
Maligaya Farmers Development Cooperative Inc. (MFDC, Inc.), Diniog Women’s MPC
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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(DWMPC), PANGKASAMA MPC, ESMARBEMCO MPC, Dilasag Senior Citizen
MPC. Knowing all these we now see the profile of these different cooperatives in
Dilasag, Aurora and this is the purpose of my study.
Statement of the Problem
The study was conducted to assess the situation of the cooperatives in Dilasag,
Aurora province. Specifically this study would find answers to the following questions:
1. What are the organizational profiles of primary cooperatives in Dilasag,
Aurora Province?
2. What are the profile of officers and staff?
3. What are the sources and uses of funds of the cooperative??
4. What are the internal control policy implemented by the different
cooperatives?
5. What is the financial status of the cooperatives?
6. What are the program and training conducted by the primary cooperative to
their members, personnel and staff?
7. What are the requirements complied by different cooperative to CDA, DOLE,
BIR and Local government?
Objectives of the Study
The objectives of this study were :
1. Determine the organizational profile of primary cooperatives in Dalisag,
Aurora Province.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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2. Determine the profile of officers and staffs.
3. Identify the sources and uses of funds of the cooperatives.
4. Find out the policies of the primary cooperatives concerning their internal
control.
5. Find out the financial status of the primary cooperatives.
6. Find out the requirements complied by the cooperative to DOLE, BIR and
Local Government.
7. Find out the programs and trainings conducted by the primary cooperatives to
the members, personnel and staff.
Importance of the Study
This study will be conducted to provide necessary data that will lead to the
improvement of cooperatives in the study area based on the findings, recommendations
will be suggested to CDA to implement the suggested findings.
Scope and Limitation of the Study
The study will be covering five cooperatives in the different barangays of Dilasag,
Aurora.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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REVIEW OF LITERATURE
Cooperative Definition
Estes (1998), defined cooperatives as voluntary organizations set up to protect and
generate economic benefits for their members, cooperatives are formed when a task
cannot be due on an individual level, such obtaining credit. Cooperatives distribute profit
to members. They are often run on a one vote per person.
Management of Cooperative
Gragasin (1973), mentioned that the management of a cooperative endeavor
follows the same line of services not only to the members but also to the public who
become patron of their goods and services. The management of a cooperative association
is said to be good when it develops confidence among its member. Such confidence is
established because who run the affairs of the association and those who help them render
the services to the members are expected to receive from them.
Membership
Members of a cooperative may be either natural or judicial persons depending on
the kind of cooperative. In the primary cooperative only a natural person who is a citizen
of the Philippines is eligible to membership while in a tertiary or secondary coops,
members maybe either coop or non-profit organization with judicial personality (Aquino,
1991).
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Furthermore, Onagan (1973), claimed that a coop is a dynamic form of a business
enterprise that embodies the philosophy of cooperation. He site that through voluntary
assets of the people to form themselves into group for the promotion of their common
goods by mutual action, democratic control and sharing of economic benefits on the basis
of patronage members.
Sources of funds of Cooperatives
Cooperatives can be avail of internal sources and external sources of funds.
1. Internal sources – the primary sources of funds for the coop is the general
membership through several programs
A. Capital Build-up (CBU)- members may schedule payments of share
capital of fixed deposits to continuously increase their paid-up share in the
cooperative.
B. Savings Mobilization- Members with idle money can deposit them in the
coop through savings or time deposit so that others who are in need can
borrow them for productive purposes.
C. Revolving Fund-Deferred payments of dividends may be approved by the
General Assembly to allow the coop to use it for a given period.
2. External Sources of Funds
A. Loan – Borrowing may be valid of as a source of funds should be done
only when additional fund is urgently needed that cannot be generated by
internal sources.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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B. Donation – The coop may request solicit assistance from either
government or non-government agency. This is a good source because
towards cooperative, which prevail among some members. Despite this
unhealthy state of things, various groups and cooperative leaders wre
interested and involved in community development.
Compliance with other Laws
The Coop Code of the Philippines Article 119, emphasized that the labor code and
all the labor laws shall apply to all cooperatives and executive orders applicable to
cooperatives duly registered under this code.
Definition of Terms
Profile. Pertains to all information and data that are gathered from the
cooperatives in the place of study and these could be described in their operations.
Articles of Cooperation. The articles of cooperation registered under the
Cooperative Code of the Philippines and includes a registered amendment thereof.
Pre-Membership Education Seminar (PMES) – it is trainings where the members
are undergoing before they become members of the cooperative.
Policy. Refer to the directives issued from higher authority and provide a
continuous framework for the conduct of individuals in a business.
Committee Shall refer to any body entrusted with specific functions and
responsibilities under the by-laws.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Board of Directors. Shall mean that body entrusted with the management of the
affairs of cooperatives under it articles of cooperation and by-laws.
By Laws. Means the by laws registered under R.A. No. 6938 or the cooperative
code of the Philippines.
CDA. Cooperative Development Authority. Means the government agency is in
charge of registration and regulation of cooperatives. It is created under R.A. NO. 6939.
Regular members. Members of the cooperative that have the right to vote and
avail on all credit operation of cooperative.
Associate members. Those members of the cooperative that have no right to vote
and cannot avail of all credit operation of the cooperative.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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METHODOLOGY
Locale and Time of the Study
The research was conducted in the municipality of Dilasag, specifically in the
barangays namely: Diniog, Maligaya, Masagana, and Mangitahan from December to
February 2007. Figure 1 shows the location of study.
Figure 1. Map of Aurora, Province
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Respondents of the Study
The respondents of the study were the five managers of the five cooperatives
namely: Maligaya Farmers Development Cooperative, Diniog Womens MPC, Dilasag
Teachers Credit Cooperative Inc., Dilasag Senior Citizen MPC, and PANGKASAMA
MPC.
Data Collection
A survey questionnaire was used to gather data and information regarding the
study.
Data Gathered
The data gathered in the study were to determine the organizational profile of
primary cooperatives in Dilasag, Aurora Province, profile of officers and primary staffs.
Identify the sources and uses of funds of cooperatives. Find out the policies of the
primary cooperatives concerning their internal control, the financial status, the
requirements complied by the cooperative to DOLE, BIR and Local Government, the
program and trainings conducted by the primary cooperative to the members , personnel
and staff.
Data Analysis
The collected data will be tabulated, analyzed using descriptive analysis such as
frequency counts, mean and percentages.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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RESULTS AND DISCUSSION
Organizational Profile of the Cooperatives
This section presents the profile of the cooperatives in terms of the following:
status: status of operation, date organized, area of operation, services offered,
composition of members, number of members, board of directors, committee members,
employees and financial status.
Table 1 shows that the 5 primary cooperatives studied are still in operation as of
December, 2005. The oldest cooperative based on the date it was organized was the
PANGKASAMA MPC and Maligaya Farmers Development Cooperative. Inc. which
were organized in January 7, 1991 and May 29, 1991 respectively. These two
cooperative have been operating for 15 years. The youngest cooperative was
ISMARBEMCO, MPC, which has been operating for only 2 years.
The table also presents the 5 cooperatives as to their area of operation.
PANGKASAMA MPC is operating on a province with wide membership. Most of the
members of this cooperative came from Casiguran, Aurora and the rest are from
Dinalugan and Dilasag, Aurora. The Dilasag Senior Citizen MPC and ISMARBEMCO,
MPC, are on a municipal level while the Maligaya Farmers Development Coop., Inc. and
DWMPC are on the barangay level.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Table 1. Organizational profile of the cooperatives studied
NAME OF
STATUS
DATE
NO. OF YRS
AREA OF
COOPERATIVE
ORGANIZED
IN
OPERATION
OPERATION
Dilasag Senior Citizen, Operational May 18, 2000
6
Municipal
MPC
Maligaya Farmers Dev’t Operational May 29, 1991
15
Barangay
Coop., Inc.
ISMARBEMCO MPC
Operational Jan. 4, 2004
2
Municipal
PANGKASAMA MPC
Operational Jan. 7, 1991
15
Province
Diniog Women’s MPC Operational Feb. 2, 2003
3
Barangay
(DWMPC)
Services offered by the cooperative. Table 2 presents the services offered by the
5 cooperatives. Dilasag Senior Citizen MPC is the only cooperative offering consumer
services. Based on the finding, credit is the common services in demand because of the
advantage they get from the cooperative compared to the banks that give them high
interest rate. This is shown by the four cooperatives engaged in credit cooperative.
Membership composition. Table 3 shows that most of the members of the
cooperatives are farmers and government employees. However, Diniog Women’s MPC
is composed of government employees and housewives.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Table 2. Services offered by the primary cooperatives in Dilasag, Aurora
NAME OF COOPERATIVE
SERVICES OFFERED
Dilasag Senior Citizen, MPC
Consumer
Maligaya Farmers Dev’t Coop., Inc. (MFDC, Inc)
Credit
ISMARBEMCO MPC
Credit
PANGKASAMA MPC
Credit
Diniog Women’s MPC (DWMPC)
Credit
Table 3. Composition of members of the 5 cooperatives studied
NAME OF COOPERATIVE
MEMBERSHIP COMPOSITION
Dilasag Senior Citizen, MPC
Farmers
Maligaya Farmers Dev’t Coop., Inc. Farmers
ISMARBEMCO MPC
Farmers, Government employees
PANGKASAMA MPC
Farmers, government employees and
businessmen
Diniog Women’s MPC (DWMPC)
Government employees and housewives
Number of members. Table 4 presents that most of the cooperative increase their
membership except for ISMARBEMCO MPC . It shows that the PANGKASAMA MPC
had the highest number of members as of December 31, 2005 and the lowest is DWMPC.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Table 4. Number of membership of the 5 cooperatives studied
NAME OF
INITIAL
AS OF DECEMBER 2005
COOPERATIVE
Regular
Associate
Regular
M
F
M
F
M
F
Dilasag Senior Citizen, 9
20
15
30
24
50
MPC
Maligaya Farmers Dev’t 24
6
9
6
23
12
Coop., Inc.
ISMARBEMCO MPC
110
100
-
-
110
100
PANGKASAMA MPC
268
546
459
2,560
727
3,106
Diniog Women’s MPC
-
32
-
-
-
37
(DWMPC)
Number of board of directors. Table 5 shows the number of Board of Directors
(BOD) of different cooperatives. Based on the findings the highest number of BOD is in
the PANGKASAMA MPC which composed of 7 and the lowest is MFDC, Inc which
composes only 3 BOD. This findings also indicates that the number of male and female
BOD’s are almost the same.
Number of committee members. Table 6 presents the number of committee
members in each cooperative. It shows that the MFDC, Inc has no credit committee,
election, education and training. They had only audit committee. Most of the committee
members are female.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
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Table 5. Number of Board of Directors of the 5 cooperatives studied
NAME OF COOPERATIVE
NUMBER OF BOD
MALE
FEMALE
TOTAL
Dilasag Senior Citizen, MPC
5
-
5
Maligaya Farmers Dev’t Coop.,
-
3
3
Inc.
ISMARBEMCO MPC
4
1
5
PANGKASAMA MPC
3
4
7
Diniog Women’s MPC (DWMPC)
-
5
5
Table 6. Number of committee members per cooperative
NAME OF
AUDIT
CRECOM
ELECTION
EDCOM
COOPERATIVE
M
F
T
M
F
T
M
F
T
M
F
T
Dilasag Senior Citizen, 2
1
3
3
-
3
3
-
3
3
-
3
MPC
Maligaya Farmers Dev’t -
3
3
-
-
-
-
-
-
-
-
-
Coop., Inc.
ISMARBEMCO MPC
1
2
3
2
1
3
1
2
3
1
2
3
PANGKASAMA MPC
-
3
3
1
2
3
-
3
3
-
3
3
Diniog Women’s MPC -
3
3
-
3
3
-
3
3
-
3
3
(DWMPC)
TOTAL
3
12
15
6
6
12
4
8
12
7
5
12
Tenure status of employees. Table 7 shows that the DSCMPC and MFDC, Inc.
had a volunteer employee. ISMARBEMCO MPC, PANGKASAMA, AND DWMPC
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
15
had a full time employee. The manager, secretary and treasurer are giving their service
voluntarily.
Table 7. Number and tenure status of employees of the cooperatives studied
NAME OF
TENURE STATUS OF EMPLOYEES
COOPERATIVE
FULL TIME
PART TIME
VOLUNTEER
M
F
M
F
M
F
Dilasag Senior Citizen,
-
-
-
-
1
-
MPC
Maligaya Farmers Dev’t
-
-
-
-
2
-
Coop., Inc.
ISMARBEMCO MPC
-
2
-
-
-
-
PANGKASAMA MPC
4
3
-
-
-
-
Diniog Women’s MPC
-
2
-
-
-
-
(DWMPC)
TOTAL
4
7
-
-
3
-
Profile of Officers
Table 8 presents the profile of officers of different cooperative in Dilasag, Aurora
characterized by age, sex and educational attainment.
Age. Based on the findings the highest age bracket of the officers is 31 to 40
years old (28.57%). The lowest age bracket is 51 – 60 years old with one respondents.
Sex. The table shows that there were more female officers than male. Out of the
70 officers there were 39 female (55.72%) and 31 male (44.28%).
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
16
Educational attainment. It was found that 51.44% of the officers were college
graduate followed by 44.28% high school graduate. There were also 4.28% who have
reached college level. Based on this findings, there were no elementary level, elementary
graduate and high school level among the officers. Results implies that the officers were
educated and have attended formal college education.
Table 8. Profile of the officers of the 5 cooperative studied
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age (years)
20-30
16
22.86
31-40
20
28.57
41-50
18
25.71
51-60
1
1.43
61 and above
15
21.43
TOTAL
70
100
Sex
Male
31
44.28
Female
39
55.72
TOTAL
70
100
Educational Attainment
High school graduate
31
44.28
College level
3
4.28
College graduate
36
51.44
TOTAL
70
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
17
Profile of Cooperative Employees
Table 9 presents the profile of employees of different cooperatives in Dilasag,
Aurora, characterized by age, sex and educational attainment.
Age. The table shows that majority (63.64%) of the employees were at the age
bracket of 20 to 30 years old. The other employees were 31 – 40 years (18.18%) and 41-
50 years (18.18%).
Sex. There were more (63.64%) female employees than male.
Educational attainment. Based o the findings, majority (81.82%) were college
graduate and 18.18% had reached college level.
Table 9. Profile of the employees of the cooperatives studied
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age
20-30
7
63.64
31-40
2
18.18
41-50
2
18.18
TOTAL
11
100
Sex
Male
4
36.36
Female
7
63.64
TOTAL
11
100
Educational Attainment
College level
2
18.18
College graduate
9
81.82
TOTAL
11
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
18
Financial Profile of the Cooperatives
This section presents the total assets, total liabilities, total paid-up share capital,
net surplus, total reserves and total equities of the cooperatives studied.
Table 10 presents the total asserts of the 5 cooperatives. PANGKASAMA MPC
had the highest total asset which reached Php 37,551,272.88 at the end of 2005. It
increased by 9.02% from 2004. MFDC Inc had the lowest total assets which had reached
Php 90,000 at the end of 2005. It decreases by –1.21% from 2004.
Table 10. Total assets of the 5 cooperatives studied ending 2004 –2005 (in pesos)
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
117,861.69
126,315.65
7.17
Maligaya Farmers Dev’t Coop., 91,100.00
90,000.00
-1.21
Inc
ISMARBEMCO MPC
-
448,716.75
-
PANGKASAMA MPC
34,443,806.25 37,551,272.88
9.02
Diniog Women’s MPC
112,000.00
105,700.00
-5.63
(DWMPC)
Table 11 presents the total liabilities of the 5 cooperatives studied. Based on the
findings 2 of the cooperatives had increased their liabilities, these are ; DSCMPC at
9.73% and PANGKASAMA MPC at 9.62%, the increase of liabilities was due to credit
loan from bank which was used for their operation, specifically in lending. There was
also decrease of liabilities of 2 cooperatives namely: DWMPC at -40% and MFDC, Inc.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
19
at -33.33%. The decrease was due to the additional payments of their credit accounts in
the banks.
Table 11. Total liabilities of the 5 cooperatives studied ending 2004-2005 (in pesos)
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
70,420.00
77,416.87
9.93
Maligaya Farmers Dev’t Coop., 20,000
15,000.00
-33.33
Inc
ISMARBEMCO MPC
-
365,461.26
-
PANGKASAMA MPC
27,115,204.32 29,722,736.56 9.62
Diniog Women’s MPC (DWMPC) 35,000.00
25,000.00
-40.00
Total paid-up share capital. Table 12 shows that MFDC, Inc. had the higher
percent change of 34.77% on the end of 2005. PANGKASAMA MPC had the highest
paid-up share capital which is Php 4,983,678.48 at a percent change of 6.36%. DWMPC
had the lowest paid-up share capital with a percent change of 3.22%. DSCMPC had the
lowest paid-up share capital at 22,322.36 at the end of 2004 and 2005. There was no
change in their paid-up share capital due to lack of new members because they were all
senior citizen already.
Total reserve funds. Table 13 shows that all the 5 cooperatives studied allocate
from their net surplus for reserve funds. It shows that most of the cooperative had a
lower increase in their reserve fund. Based on the findings MFDC, Inc. had a decrease in
their reserve fund at -36.00%. DWMPC had the highest increase in their reserve fund at
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
20
11.33%, followed by PANGKASAMA MPC at 7.63%. The lowest percent change is
DSCMPC at 5.80%.
Table 12. Total paid-up share capital of the 5 cooperatives studied
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
22,322.36
22,322.36
0
Maligaya Farmers Dev’t Coop., Inc 37,100.00
50,000.00
34.77
ISMARBEMCO MPC
-
71,816.89
-
PANGKASAMA MPC
4,685,377.14 4,983,678.18 6.36
Diniog Women’s MPC (DWMPC) 62,000.00
64,000.00
3.22
Table 13. Total reserve fund of the 5 cooperatives studied
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
25,119.33
26,576.42
5.80
Maligaya Farmers Dev’t Coop., Inc 34,000.00
25,000.00
-36.00
ISMARBEMCO MPC
-
11,438.60
-
PANGKASAMA MPC
2,643,224.79 2,844,858.14 7.63
Diniog Women’s MPC (DWMPC)
15,000.00
16,700.00
11.33
Net surplus of the cooperatives studied. Net surplus of the 5 cooperatives
ending 2004-2005 is presented in table 14. Based on the findings MFDC had the highest
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
21
percent change at 80.06% followed by DSCMPC at 46.27%. Table shows that
PANGKASAMA MPC had negative percent change at –18.12%. PANGKASAMA
MPC had a negative change because their operational expenses was higher than their net
surplus.
Table 14. Net surplus of the 5 cooperatives ending 2004 – 2005
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
10,995.55
16,082.92
46.27
Maligaya Farmers Dev’t Coop., 5,664.75
10,200.00
80.06
Inc
ISMARBEMCO MPC
-
12,071.16
-
PANGKASAMA MPC
1,569,388.22 1,285,024.41 -18.12
Diniog Women’s MPC
15,000.50
16,500.50
10.00
(DWMPC)
Total equity of the cooperatives studied. Table 15 shows that the total equity of 5
cooperatives for 2004 and 2005. All of the cooperatives had increased their equity.
PANGKASAMA MPC had the highest equity at Php. 7,828,536.32 at 6.82 percent
change. DSCMPC had the lowest equity which reached Php 48,898.75 at 3.07% change.
The increase in equity of the four cooperatives was due to additional income derived
from their operation, additional equipments acquired and business expansion like land
and branches.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
22
Table 15. Total equity of the 5 cooperatives studied ending 2004-2005
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
47,441.69
48,898.78
3.07
Maligaya Farmers Dev’t Coop., Inc 71,100.00
75,000.00
5.48
ISMARBEMCO MPC
-
83,255.49
-
PANGKASAMA MPC
7,328,601.93 7,828,536.32 6.82
Diniog Women’s MPC (DWMPC)
77,000.00
80,700.00
4.81
Financial Analysis
This section presents some of the indicators that would show the performance of
the cooperatives during the year for which the ratios were computed.
The measures included in the analysis were debt to asset ratio, return on equity
and equity to asset ratio.
Table 16 presents the debt to asset ratios of the cooperative. A value of less than
0.50 shows that the cooperative had a lesser percentage of assets financed by the debt and
so the cooperative is financially sound. From the table, it shows that MFDC, Inc has loss
debt at 0.17% followed by DWMPC at 0.24%. Based on the findings, three of the
cooperative s namely DSCMPC , ISMARBEMCO MPC and PANGKASAMA MPC had
financed their operation through debt from other credit cooperative or bank.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
23
Table 16. Debt to asset ratio of the cooperatives studied from 2004 to 2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
0.59
0.61
3.38
Maligaya Farmers Dev’t Coop., 0.22
0.17
-22.73
Inc
ISMARBEMCO MPC
-
0.81
-
PANGKASAMA MPC
0.78
0.79
1.28
Diniog Women’s MPC (DWMPC)
0.31
0.24
-22.58
Return on equity. Table 17 presents the return on equity of different cooperatives.
The return on equity shows the amount earned per peso of members equity. The higher
the value of the ratio, the higher is the return to member’s equity. Table 17 shows that
only DSCMPC had the highest return on equity at 32.89%. The four cooperative reflects
a low rate of return on member’s investment in the cooperative. However, this may also
reflect that members are paying less cost of borrowing from the cooperative since the
income of the cooperative comes from the members themselves.
Table 17. Return on equity of the 5 cooperatives studied ending 2004-2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
23.17
32.89
41.95
Maligaya Farmers Dev’t Coop., Inc
7.96
13.6
70.85
ISMARBEMCO MPC
-
14.49
-
PANGKASAMA MPC
21.41
16.41
-23.35
Diniog Women’s MPC (DWMPC)
19.48
20.44
4.93
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
24
Equity ratio. Equity ratio presents the proportion of total assets financed by
members. The higher the value of the ratio, the stronger would be the financial standing
of the cooperatives. Table 18 shows that MFDC, Inc. had the highest equity ratio at
0.83%, followed by Diniog Womens MPC at 0.76%, ISMARBEMCO MPC had the
lowest equity ratio at 0.18%. This shows that the members financed a lower proportion
of the total assets.
Table 18. Equity ratio of the cooperatives from 2004 to 2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
0.40
0.38
-5.00
Maligaya Farmers Dev’t Coop., Inc
0.78
0.83
6.41
ISMARBEMCO MPC
-
0.18
_
PANGKASAMA MPC
0.21
0.20
-4.76
Diniog Women’s MPC (DWMPC)
0.68
0.76
11.76
Policies and Program of the Cooperatives
Table 19 shows that all the cooperatives in Dilasag, Aurora sourced their funds
from the share capital of the members and membership fee. This practice is good in
order to develop the principle of self-help among the members of the cooperative. There
were 2 or 40% that sourced out funds thru deposit of members, loan and revolving fund.
Based on the findings there is 3 or 60% sourced out fund thru subsidies, grants and
donations.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
25
Table 19. Distribution of the 5 cooperatives according to source of fund
SOURCE OF FUND
FREQUENCY
PERCENTAGE
(%)
Share capital
5
100
Deposit of members
2
40
Loan
2
40
Fees
5
100
Subsidies, grants, donations
3
60
Revolving capital
2
40
Uses of fund. Table 20 shows that only 60% used their funds for loans and 40%
used their fund for education and trainings of the members, officers, and staffs , 40% are
allocated in others which are ricemill and warehouse project of MFDC, Inc. and business
expansion of PANGKASAMA MPC. Based on the findings there was only one
cooperative that funded community development which is good because it is the
principles of cooperative, and zero on donations to other organizations.
Table 20. Uses of funds by the 5 cooperatives studied
USES OF FUND
FREQUENCY
PERCENTAGE
(%)
Loanable fund
3
60
Education and trainings
2
40
Community development
1
20
Donations to other organizations
0
-
Others
2
40
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
26
Frequency on the conduct of PMES. All the 5 cooperatives studied conducts Pre-
membership seminar (PMES) to members especially new incoming members. On the
frequency of conduct ISMARBEMCO MPC and PANGKASAMA MPC conduct PMES
every month (Table 21). Based on the findings DSCMPC conduct PMES quarterly and
semi-annually, for DWMPC, MFDC, Inc. conduct PMES occasionally.
This finding indicates that all of the cooperative conduct PMES which is an
important requirement for the prospective members.
Table 21. Frequency on the conduct of PMES by the 5 cooperatives studied
NAME OF COOPERATIVE
FREQUENCY
Dilasag Senior Citizen, MPC
Quarterly
Maligaya Farmers Dev’t Coop., Inc
Occasional
ISMARBEMCO MPC
Monthly
PANGKASAMA MPC
Monthly
Diniog Women’s MPC (DWMPC)
Semi-annual
Officers conducting the PMES. Almost all the cooperative have education and
training committee which is functional. However, one cooperative (MFDC, Inc.) do not
have education committee . It was the manager who had conducted the PMES.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
27
Table 22. Officers conducting the PMES
NAME OF COOPERATIVE
OFFICER
Dilasag Senior Citizen, MPC
Education committee, manager
Maligaya Farmers Dev’t Coop., Inc
Manager
ISMARBEMCO MPC
Education committee member
PANGKASAMA MPC
Education committee member
Diniog Women’s MPC (DWMPC)
Education committee member
Trainings conducted by the cooperative to their personnel and staff. Table 23
shows that 3 of the cooperatives had conducted bookkeeping workshop only; these are
the DSCMPC, ISMARBEMCO MPC and DWMPC. MFDC, Inc. and PANGKASAMA
MPC had conducted bookkeeping workshop, savings deposit operating procedure and
financial management.
Table 23. Trainings conducted by cooperatives to their management staff
TITLE OF TRAINING
COOPERATIVE STUDIED
CONDUCTED
DSCMPC MFDC,
ISMARBEMCO PANGKASAMA DWMPC
Inc.
Bookkeeping workshop
X
X
X
X
Savings deposit
X
X
operating procedure
Financial Management
X
X
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
28
Trainings attended by officers, employees and members of the cooperatives
studied. Result of the study shows that members and officers and staff of
ISMARBEMCO MPC, PANGKASAMA MPC and DWMPC had attended all the
trainings specified in table 24. DSCMPC had attended only vision, mission and goal
formulation. MFDC, Inc. attended two trainings which are credit management for
cooperatives and Strategic planning workshop seminar.
Table 24. Trainings attended by officers, employees and members
TITLE OF TRAININGS
COOPERATIVE STUDIED
CONDUCTED
DSCMPC MFDC, ISMARBEMCO PANGKASAMA DWMPC
Inc.
Vision, mission and X
X
X
X
goals formulation only
Credit management for
X
X
X
X
cooperatives
Strategic Planning
X
X
workshop seminar
Standard auditing for
X
X
X
cooperatives
Audit procedures and
X
X
X
internal control
Adoption and
X
X
X
implementation of the
standard chart of
account
Asset management and
X
X
X
strategic planning
workshop-seminar
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
29
Use of official receipts. Table 25 shows that majority of the cooperatives used
official receipts in receiving cash. Based on the findings MFDC, Inc. did not use official
receipts, the cooperative only used improvised receipts
Table. 25. Cooperative that used official receipts
NAME OF COOPERATIVE
USE OFFICIAL RECEIPTS
Dilasag Senior Citizen, MPC
Yes
Maligaya Farmers Dev’t Coop., Inc
No
ISMARBEMCO MPC
Yes
PANGKASAMA MPC
Yes
Diniog Women’s MPC (DWMPC)
Yes
Books/records used by the cooperative. Table of 26 shows that all the
cooperatives used necessary books in keeping their transactions recorded. These records
are based on their services offered.
Table. 26. Books/records used by the cooperatives studied
TITLE OF TRAININGS
COOPERATIVES
CONDUCTED
DSCMPC MFDC, ISMARBEMCO PANGKASAMA DWMPC
Cash disbursement book
X
X
X
X
Cash receipt book
X
X
X
X
Patronage refund ledger
X
X
X
General journal
X
X
X
Purchase journal
X
X
Individual deposit and
X
X
X
ledger
General ledger
X
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
30
Bookkeeper. All the cooperative studied have a bookkeeper. The cooperative
indicated that they keep their records in order to check and subject to adjustment if
necessary.
Cash collection and cash disbursement. For DSCMPC, the manager of the
cooperative is responsible in disbursing cash and is also the one who collects cash, while
in the other 4 cooperatives studied the treasurer is the cash collectors and disburse cash
except for the ISMARBEMCO where both the manager and the treasurer are responsible
in disbursing cash (Table 27).
Table 27. Responsible in disbursing cash and cash collectors of the 5 cooperatives
NAME OF COOPERATIVE
CASH COLLECTOR CASH DISBURSEMENT
Dilasag Senior Citizen, MPC
Manager
Manager
Maligaya Farmers Dev’t Coop.,
Treasurer
Treasurer
Inc
ISMARBEMCO MPC
Treasurer
Manager, treasurer
PANGKASAMA MPC
Treasurer
Treasurer
Diniog Women’s MPC
Treasurer
Treasurer
(DWMPC)
Cash deposit outlet. Table 28 shows that four of the cooperatives deposit their
cash collection in banks. DSCMPC deposit their cash collection to other credit
cooperative.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
31
Table 28. Cash deposit outlet of the 5 cooperatives studied
NAME OF COOPERATIVE
CASH DEPOSITS
Dilasag Senior Citizen, MPC
Other cooperatives
Maligaya Farmers Dev’t Coop., Inc
Banks
ISMARBEMCO MPC
Banks
PANGKASAMA MPC
Banks
Diniog Women’s MPC (DWMPC)
Banks
Audit and inventory committee. Table 29 shows that 4 of the cooperatives have
audit committees that are functioning. The audit and inventory committee of DSCMPC
does not function due to lack of knowledge in auditing that is why they hired a certified
public accountant (CPA) to audit their records.
Table 29. Audit and inventory committee of different cooperatives.
NAME OF COOPERATIVE
AUDIT COMMITTEE
Dilasag Senior Citizen, MPC
No
Maligaya Farmers Dev’t Coop., Inc
Yes
ISMARBEMCO MPC
Yes
PANGKASAMA MPC
Yes
Diniog Women’s MPC (DWMPC)
Yes
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
32
Methods of auditing books and accounts. Table 30 shows that three (3) of the
cooperative namely: ISMARBEMCO MPC, PANGKASAMA MPC and DWMPC do the
auditing quarterly in order to look into the fairness of transactions better. Based on the
table, DSCMPC AND MFDC, Inc. took their auditing yearly.
Table 30. Method of auditing books and accounts by the 5 cooperatives studied
NAME OF COOPERATIVE
FREQUENCY
Dilasag Senior Citizen, MPC
Annually
Maligaya Farmers Dev’t Coop., Inc
Annually
ISMARBEMCO MPC
Quarterly
PANGKASAMA MPC
Quarterly
Diniog Women’s MPC (DWMPC)
Quarterly
Administrative Compliance
Table 31 shows that all the cooperatives had submitted their annual report,
audited financial statements to the Cooperative Development authority (CDA) and are
holding a general assembly meetings.
The table also shows the compliance of the 5 cooperatives to BIR requirements.
Based on the finding 2 of the cooperatives namely; MFDC, Inc. and ISMARBEMCO
MPC does not register their books of accounts and do not apply for the tax exemption.
Based on the findings DSCMPC, PANGKASAM MPC AND DWMPC are the
cooperatives who comply with the BIR requirements
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
33
Table 31. Compliance of cooperatives to CDA, BIR, and other government requirements
PARTICULAR
COMPLIANCE
YES
NO
A. CDA requirements
Submitting of annual report
5
0
Submitting of audited financial statement
5
0
Holding of General Assembly meetings
5
0
B. BIR requirements
Registration as non- EVAT
5
0
Registration of books of account every year
4
1
Application of tax exemptions
4
1
C. Other government requirements
Securing of business permit from the
5
0
mayor’s office
Deducting and remitting SSS contributions
1
4
to SSS
Deducting and remitting Pag-ibig
1
4
contribution to Pag-ibig
Deducting and remitting Philhealth
1
4
Contributions to PHILHEALTH
Provision of retirement plan
0
5
Remittance of CETF to APEX Org.
0
5
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
34
Vision, Mission and Goal Statement
Table 32 shows the distribution of the 5 cooperatives as to whether the coop.
Have a written vision, mission and goal statement. The findings shows that all of the
cooperatives have written vision, mission and goal statement. This findings implies that
all the cooperatives have formulated their vision, mission and goals so that the coop have
a guide in their operation.
Table 32. Distribution of the 5 cooperatives as to the availability of written vision,
mission and goal statement
PARTICULARS
FREQUENCY
PERCENTAGE
(%)
Available vision, mission and goal statement
5
100
No written vision, mission and goal statement
0
0
TOTAL
5
100
Availability of Written Development Plan
Table 33 shows that all of the cooperatives have available written development
plan. A written development plan is important in the efficient operation of an
organization because the plan serves as a guide in the accomplishment of the goal and
objectives of the organization. This findings indicates that all of the cooperatives
recognized the importance of having a development plan.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
35
Table 33. Distribution of the 5 cooperatives as to availability of a written development
plan
PARTICULARS
FREQUENCY
PERCENTAGE
Availability of written development plan
5
100
No written development plan
0
0
TOTAL
5
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
36
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine and describe the profile of the primary
cooperatives in Dilasag, Aurora. This includes their organizational profile, profile of
employees and officers, financial status, policies and programs.
Based on the list provided by the CDA, there were 8 primary cooperatives listed
as operating as of December 2005. However, during the conduct of this study, only 5
cooperatives are currently operating and 3 had stopped.
Most of the cooperatives are operating in barangay and municipality level, there
was only one operating in a provincial level. Majority of the cooperatives offered credit
services and only one cooperative offered consumer service. Most of the cooperative
were composed of farmers and government employees.
The study shows that most of the cooperative have 5 members in their Board of
Directors. As to number of committee member, majority of the cooperative have 3
members. It was also found that majority of the officers and employees were female.
As to their financial status, there is one cooperative that had reached millions on
total assets. However, this millionaire cooperative had also large amount of liabilities.
On the total paid-up share capital, most of the cooperative had increased and also on their
reserve fund. Most cooperatives had increased on their net surplus. Majority of the
cooperatives had increased on their total equity. Majority of the cooperative had high
debt equity ratio. Most of the cooperatives have low return or equity.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
37
The cooperative sourced out their funds from the share capital and membership
fee of the members. Most of the cooperative used their funds for loaning since most of
them offer credit services.
As to the compliance to government requirements, it was found out that the 5
cooperatives had comply with the CDA requirement as to submitting of annual report,
submitting of audited financial statement and holding of general assembly meeting. As
compliance to the BIR requirements, majority of the cooperatives comply with the BIR
requirements but there is one cooperative that did not register their book of accounts and
did not apply for tax exemption. As to other government requirements, all of the
cooperatives had secured their business permit from the mayor’s office. Majority of the
cooperatives have not been remitting SSS, PAG-IBIG and PHILHEALTH contributions.
All of the cooperatives did not have a provision of retirement plan and they did not remit
to CETF to APEX organization.
All of the cooperative had been conducting PMES, most of them conducted it
monthly. Most of the cooperatives provide trainings to their personnel/staff such as
bookkeeping workshop, and savings deposit operating procedure. All of the cooperative
studied have a bookkeeper. Majority of the cooperative have a treasurer to disburse and
collect cash. Most of the cooperative have an auditor to audit their financial statements.
All of the cooperative studied have a vision, mission and goal statement and a written
development plan.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
38
Conclusions
Based on the findings, the following conclusion were derived:
1. One of the cooperatives in Dilasag, Aurora that is offering credit services is
millionaire.
2. Most of the cooperatives have a high debt to asset ratio.
3. Most of the cooperatives have problem on the lack of cooperative education of
members, officers and employees.
4. Most of the members of the cooperatives are farmers and government employees.
5. The education committee and the manager conduct PMES.
6. All of the cooperatives’ main source of funds were from the share capital and
membership fee.
7. The cooperatives used trainings and seminar for leaders, members and staff.
Recommendations
1. The Cooperative Development Authority should strictly monitor and supervise
the operation of each cooperative and provide technical assistance to ailing
cooperatives so that they will not go bankrupt.
2. The cooperatives must formulate strategies to attract more people to become
members. If the number of members increases, then the financial assets of the
cooperative will also increase.
3. The CDA, individual cooperatives and their Apex organization have to help each
other to give regular education and training to all members of the cooperatives.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
39
4. The cooperative should send their officers, members and staff to cooperative
trainings and seminars to gain more knowledge.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
LITERATURE CITED
AQUINO, A. 1991. Primer on the Cooperative Code of the Philippines, Quezon City,
Philippines. P. 23.
ESTES, R.J. 1998. Cooperative Life Pennsylvania. Retrieved December 3,
2006. from http://www.ssm.unpenn.eduretes/isw/chapter_34html.
GRAGASIN, J.V. 1973. Philippine Cooperatives, Organization, Management and
Agrarian Reform. Pp. 76,279-28-283.
ONAGAN, L.G. 1973. Cooperative Principles and Practices, Quezon City: Onagan and
Sons Pub. Pp. 75-76.
PIMENTEL, A.Q. and M.R. CUA. 1994. Cooperative Code of Philippines: Theory, Law
and Practices. White Orchids Printing and Publishing Company. Pp. 30-71,
83,66.
SAN GABRIEL, N.C. 1973. Business Finance and Philippine Business Firms. Manila
Goodwill Bookstore. Pp. 58, 69, 70, 71, 112-115.
VILLANUEVA, M.U. 1981. Cooperative Education and Training as a Strategy for
Community Development. A Consolidation of PBSP’s Experiences in Assisting
Cooperative Education and Training Project. Manila: Bookmark. P.3.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
41
Appendix A
Letter to the Respondents
Republic of the Philippines
BENGUET STATE UNIVERSITY
College of Agriculture
Department of Agricultural Economics and Agribusiness Management
December 2006
The Manager
_____________________
_____________________
Aurora, Province
Sir/Madam:
I am a fourth year student taking up Bachelor of Science in Agribusiness,
major in Cooperative Management at Benguet State University. To fulfill my
study, I am required to conduct this research titled “ Profile of Primary
Cooperative in Dilasag, Aurora Province”.
In this connection, may I therefore ask your time, your honesty and
sincerity in giving the needed information about your cooperative.
Thank you very much! God bless us all.
Respectfully yours,
LAUREL REY C. DIZON
Noted:
LUKE E. CUANGEY
Thesis Adviser
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
42
Appendix B
PROFILE OF PRIMARY COOPERATIVES IN DILASAG, AURORA
SURVEY QUESTIONNAIRE
I. General Information
Name of the cooperative _________________________________________________
Address_______________________________________________________________
II. Organizational Profile
a. Date organized _________________________________________________
b. Area of operation
________________a. barangay
________________b. municipality
________________c. provincial
________________d. national
c. Services offered
________________a. credit
________________b. consumer
________________c. producer
________________d. marketing
________________e. services
________________f. multi-purpose
d. Composition of members
1. Occupation of members
No. of farmers _______________________________________
No. of government employees __________________________
No. of private employee _______________________________
No. of businessmen (self- employed) _____________________
Others, please specify _________________________________
___________________________________________________
2. Gender
no. of male ____________________
no. of female ___________________
3. Regular members
no. of male _____________________
no. female ______________________
4. Associate members
no. of male _____________________
no. of female
e. number of members as of 2000 _____________________________
2001 _____________________________
2002 _____________________________
2003 _____________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
43
2004 _____________________________
2005 _____________________________
III. PROFILE OF OFFICERS
Details
Sex
Age
Educational attainment
DIRECTORS
1. Chairman
2. Vice Chairman
3. Members
COMMITTEES
a. Audit
Chairman
Secretary
Members
b. Credit
Chairman
Secretary
Members
c. Election
Chairman
Secretary
Members
d. Education and Training
Chairman
Secretary
Members
e. Others (specify)
IV. FINANCIAL STATUS
a. What are the internal sources of your funds? (2000-2005)
__________Share capital
__________Revolving capital
__________Membership fees
__________member’s deposits
__________Others, (specify)
b. What are your external sources of funds (2000-2005)
__________loans and borrowings
__________subsidies, donators and grants
__________others, specify
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
44
c. where do you use your funds and how many percent do you allocate to each
use?
______________loanable fund
______________education and training of members, officers and staff
______________community development
______________donations to other organizations and members
______________Others (specify)________________________________
d. What is the total assets, liabilities and paid-up capital of the cooperative?
Year
Total assets
Total liabilities
Total paid-up share
2000
2001
2002
2003
2004
2005
*Please attach a copy of your audited financial statement for the year 2000-2005.
V. REQUIREMENTS
a. Are you submitting your annual report to the Cooperative Development Authority
regularly?
_________ Yes
________No
If no, why?________________________________________________________
b. Do you submit audited financial statements using standard cooperative
accounting?
__________Yes
________No
If no, why?________________________________________________________
c. Do you have mission, vision and goals?
___________Yes
________No
If no, why?________________________________________________________
d. Do you have a written development plan?
___________Yes
________No
If no, why? ________________________________________________________
e. Did you register your coop with the Bureau of Internal Revenue as non-evat?
____________Yes
________No
If no, why?_______________________________________________________
f. Do you register your books of accounts every January at the BIR?
____________ Yes
_________No
g. Did you apply for tax exemption from BIR?
____________ Yes
_________No
h. Do you have regular employees?
____________Yes _________No
i. Do you withhold taxes of your employees?
____________Yes
_________No
j. Do you provide funds for the benefits of your employees?
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
45
___________ Yes
_________No
k. Do you get business permit from the mayor’s office every start of the year?
___________ Yes
_________No
If no, why? ______________________________________________________
V. POLICIES
As to internal control measures
1. Do you use official receipts when receiving cash and disbursement
voucher when spending cash?
___________Yes
___________No
2. If no, what do you use then? ____________________________________
3. What books or records are you using?
___________ cash disbursement book
___________ cash receipt book
____________ general journal
____________purchase journal
____________Individual deposit and ledger
____________Patronage refund ledger
____________ Others, specify _________________________________
4. Do you have a bookkeeper?
____________ Yes
___________No
5. If no, who records the transaction? ______________________________
6. Who keep the cash collection?
__________ Manager
__________ Treasurer
__________Chairman
__________Others, specify
7.Who is responsible in disbursing cash?
___________ Manager
___________Treasurer
___________ Chairman
___________Others, specify ____________________________________
8.Where do you deposits your cash collection?
____________Bank
____________Other cooperative
____________ Do not deposit
9.Are your audit and inventory committee functioning?
10. If yes, how often do you they audit?
___________monthly
___________Quarterly
___________ Semi-annually
____________annually
____________Others, specify_________________________________
11. Who do the auditing?
____________ audit committee
____________CPA
____________Others (specify)________________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
46
12.If no, why?
____________No time to serve the cooperative
____________Lack of skill in doing their function
____________The coop cannot give them per diem or allowance
____________ Others (specify) _______________________
V.
PROGRAMS
1, Do you conduct regular PMES to your prospective members?
________________Yes __________________No
2. If yes, how often?
____________ Monthly
____________Quarterly
____________ Semi-annually
____________ annually
____________ others (specify)
3. Who conducts the PMES?
_____________Education Committee
_____________Manager
_____________Officers
4. What are the trainings conducted by the cooperative to the personnel staff?
_____________Bookkeeping workshop
_____________Savings deposits operating procedure
_____________Financial management
5. Trainings attended by the officers, employees and members
_____________ Credit management for cooperatives
_____________Vision, mission and goals formulation
_____________Standard auditing
_____________Adoption and implementation of the standard chart of account
_____________Asset management
_____________Strategic planning-workshop seminar
6. Who conducted these training?
_____________Education Committee
_____________Manager
_____________Officers
_____________Others, specify _____________________________________
_______________________________________________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
DIZON, LAUREL REY C. APRIL 2007. Profile of Primary Cooperatives in
Dilasag, Aurora. Benguet State University, La Trinidad, Benguet.
Adviser: Luke E. Cuangey, BSc
ABSTRACT
This study was conducted to describe the profile of primary cooperatives, to
determine the financial status of these primary cooperatives, to determine the policies and
programs of the cooperatives.
The respondents of the study were the manger of different Primary cooperatives,
however, in the absence of the manager, the staff or any officer who know the
information about their cooperative served as the respondents.
There were 8 primary cooperatives in Dilasag, Aurora however during the
conduct of this study, there were only five cooperatives currently operating, the 3 was
bankrupt.
Most of the cooperatives were operating in barangay and municipal level. Most
of them offer credit services. Most of the coop have 3 member in each of their
committees and 5 members of Board of Directors. The main sources of funds of
cooperatives are from share capital of their members.
All the cooperatives studied secured business permit and have a vision statement,
mission statement, goal statement and written development plan. Most cooperative
registered with BIR and applied for tax exemption.
TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract ,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
INTRODUCTION
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
Cooperative Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Management of Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . ..
4
Sources of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .
5
Compliance with other Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
METHODOLOGY
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
ii
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
RESULTS AND DISCUSSION
Organizational profile of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . .
9
Profile of Cooperatives Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Profile of Cooperative Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Financial Profile of Cooperatives . . . . .. . . . . . . . . . . . . . . . . . . . . . . . ..
17
Financial Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Policies and Program of the Cooperatives . . . . . . . . . . . . . . . . . . . . . . . .
23
Administrative Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Vision. Mission and Goal Statement . . . . . . . . . . . . . . . . . . . . . . .. . . .. .
33
Availability of Written Development Plan . . . . . . . . . . . . . . . . . . . . . . . .
33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Conclusions . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .
36
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .
39
APPENDICES
A. Letter to Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
B. Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
iii
INTRODUCTION
Rationale
A true cooperative by its nature assures the opportunity for its entire member to
achieve economic abundance and human dignity. Cooperative promotes the principle of
equitable distribution of wealth. From an economic viewpoint, human dignity means that
any person, corporation or government shall exploit no one. Instead, there shall be
decent opportunity for every family to gain what it needed by its productive labor.
Experiences in developing and developed nations had proven that on of the
effective strategies to attain economic growth and equitable distribution of income and
wealth is through the cooperatives.
Aurora is one of the youngest provinces in the country. It is experiencing the growing
pains of development but already manifesting its potential as a fast developing province.
For starters, Aurora is a blest with bountiful natural resources, it lies serene with its over
verdant forest, extensive virgin shorelines, fertile agricultural lands and rainfall evenly
distributed the whole year round (NSO, Baguio, 1990).
Aurora is composed of eight (8) municipalities namely: Dingalan, San Luis,
Maria Aurora, Baler which is the provincial capital, Dipaculao, Dinalunagn, Casiguran
and lastly Dilasag my hometown. Dilasag is composed of ten (10) barangays namely:
Manggithahan, Esperansa, Ura, Lawang, Demaseset, Diniog, Diagyan, Dibulo, Maligaya,
and lastly the center of trade and industry my beloved barangay Masagana.
At present there are five (5) existing cooperatives in Dilasag, Aurora namely;
Maligaya Farmers Development Cooperative Inc. (MFDC, Inc.), Diniog Women’s MPC
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
2
(DWMPC), PANGKASAMA MPC, ESMARBEMCO MPC, Dilasag Senior Citizen
MPC. Knowing all these we now see the profile of these different cooperatives in
Dilasag, Aurora and this is the purpose of my study.
Statement of the Problem
The study was conducted to assess the situation of the cooperatives in Dilasag,
Aurora province. Specifically this study would find answers to the following questions:
1. What are the organizational profiles of primary cooperatives in Dilasag,
Aurora Province?
2. What are the profile of officers and staff?
3. What are the sources and uses of funds of the cooperative??
4. What are the internal control policy implemented by the different
cooperatives?
5. What is the financial status of the cooperatives?
6. What are the program and training conducted by the primary cooperative to
their members, personnel and staff?
7. What are the requirements complied by different cooperative to CDA, DOLE,
BIR and Local government?
Objectives of the Study
The objectives of this study were :
1. Determine the organizational profile of primary cooperatives in Dalisag,
Aurora Province.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
3
2. Determine the profile of officers and staffs.
3. Identify the sources and uses of funds of the cooperatives.
4. Find out the policies of the primary cooperatives concerning their internal
control.
5. Find out the financial status of the primary cooperatives.
6. Find out the requirements complied by the cooperative to DOLE, BIR and
Local Government.
7. Find out the programs and trainings conducted by the primary cooperatives to
the members, personnel and staff.
Importance of the Study
This study will be conducted to provide necessary data that will lead to the
improvement of cooperatives in the study area based on the findings, recommendations
will be suggested to CDA to implement the suggested findings.
Scope and Limitation of the Study
The study will be covering five cooperatives in the different barangays of Dilasag,
Aurora.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
4
REVIEW OF LITERATURE
Cooperative Definition
Estes (1998), defined cooperatives as voluntary organizations set up to protect and
generate economic benefits for their members, cooperatives are formed when a task
cannot be due on an individual level, such obtaining credit. Cooperatives distribute profit
to members. They are often run on a one vote per person.
Management of Cooperative
Gragasin (1973), mentioned that the management of a cooperative endeavor
follows the same line of services not only to the members but also to the public who
become patron of their goods and services. The management of a cooperative association
is said to be good when it develops confidence among its member. Such confidence is
established because who run the affairs of the association and those who help them render
the services to the members are expected to receive from them.
Membership
Members of a cooperative may be either natural or judicial persons depending on
the kind of cooperative. In the primary cooperative only a natural person who is a citizen
of the Philippines is eligible to membership while in a tertiary or secondary coops,
members maybe either coop or non-profit organization with judicial personality (Aquino,
1991).
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
5
Furthermore, Onagan (1973), claimed that a coop is a dynamic form of a business
enterprise that embodies the philosophy of cooperation. He site that through voluntary
assets of the people to form themselves into group for the promotion of their common
goods by mutual action, democratic control and sharing of economic benefits on the basis
of patronage members.
Sources of funds of Cooperatives
Cooperatives can be avail of internal sources and external sources of funds.
1. Internal sources – the primary sources of funds for the coop is the general
membership through several programs
A. Capital Build-up (CBU)- members may schedule payments of share
capital of fixed deposits to continuously increase their paid-up share in the
cooperative.
B. Savings Mobilization- Members with idle money can deposit them in the
coop through savings or time deposit so that others who are in need can
borrow them for productive purposes.
C. Revolving Fund-Deferred payments of dividends may be approved by the
General Assembly to allow the coop to use it for a given period.
2. External Sources of Funds
A. Loan – Borrowing may be valid of as a source of funds should be done
only when additional fund is urgently needed that cannot be generated by
internal sources.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
6
B. Donation – The coop may request solicit assistance from either
government or non-government agency. This is a good source because
towards cooperative, which prevail among some members. Despite this
unhealthy state of things, various groups and cooperative leaders wre
interested and involved in community development.
Compliance with other Laws
The Coop Code of the Philippines Article 119, emphasized that the labor code and
all the labor laws shall apply to all cooperatives and executive orders applicable to
cooperatives duly registered under this code.
Definition of Terms
Profile. Pertains to all information and data that are gathered from the
cooperatives in the place of study and these could be described in their operations.
Articles of Cooperation. The articles of cooperation registered under the
Cooperative Code of the Philippines and includes a registered amendment thereof.
Pre-Membership Education Seminar (PMES) – it is trainings where the members
are undergoing before they become members of the cooperative.
Policy. Refer to the directives issued from higher authority and provide a
continuous framework for the conduct of individuals in a business.
Committee Shall refer to any body entrusted with specific functions and
responsibilities under the by-laws.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
7
Board of Directors. Shall mean that body entrusted with the management of the
affairs of cooperatives under it articles of cooperation and by-laws.
By Laws. Means the by laws registered under R.A. No. 6938 or the cooperative
code of the Philippines.
CDA. Cooperative Development Authority. Means the government agency is in
charge of registration and regulation of cooperatives. It is created under R.A. NO. 6939.
Regular members. Members of the cooperative that have the right to vote and
avail on all credit operation of cooperative.
Associate members. Those members of the cooperative that have no right to vote
and cannot avail of all credit operation of the cooperative.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
8
METHODOLOGY
Locale and Time of the Study
The research was conducted in the municipality of Dilasag, specifically in the
barangays namely: Diniog, Maligaya, Masagana, and Mangitahan from December to
February 2007. Figure 1 shows the location of study.
Figure 1. Map of Aurora, Province
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
9
Respondents of the Study
The respondents of the study were the five managers of the five cooperatives
namely: Maligaya Farmers Development Cooperative, Diniog Womens MPC, Dilasag
Teachers Credit Cooperative Inc., Dilasag Senior Citizen MPC, and PANGKASAMA
MPC.
Data Collection
A survey questionnaire was used to gather data and information regarding the
study.
Data Gathered
The data gathered in the study were to determine the organizational profile of
primary cooperatives in Dilasag, Aurora Province, profile of officers and primary staffs.
Identify the sources and uses of funds of cooperatives. Find out the policies of the
primary cooperatives concerning their internal control, the financial status, the
requirements complied by the cooperative to DOLE, BIR and Local Government, the
program and trainings conducted by the primary cooperative to the members , personnel
and staff.
Data Analysis
The collected data will be tabulated, analyzed using descriptive analysis such as
frequency counts, mean and percentages.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
10
RESULTS AND DISCUSSION
Organizational Profile of the Cooperatives
This section presents the profile of the cooperatives in terms of the following:
status: status of operation, date organized, area of operation, services offered,
composition of members, number of members, board of directors, committee members,
employees and financial status.
Table 1 shows that the 5 primary cooperatives studied are still in operation as of
December, 2005. The oldest cooperative based on the date it was organized was the
PANGKASAMA MPC and Maligaya Farmers Development Cooperative. Inc. which
were organized in January 7, 1991 and May 29, 1991 respectively. These two
cooperative have been operating for 15 years. The youngest cooperative was
ISMARBEMCO, MPC, which has been operating for only 2 years.
The table also presents the 5 cooperatives as to their area of operation.
PANGKASAMA MPC is operating on a province with wide membership. Most of the
members of this cooperative came from Casiguran, Aurora and the rest are from
Dinalugan and Dilasag, Aurora. The Dilasag Senior Citizen MPC and ISMARBEMCO,
MPC, are on a municipal level while the Maligaya Farmers Development Coop., Inc. and
DWMPC are on the barangay level.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
11
Table 1. Organizational profile of the cooperatives studied
NAME OF
STATUS
DATE
NO. OF YRS
AREA OF
COOPERATIVE
ORGANIZED
IN
OPERATION
OPERATION
Dilasag Senior Citizen, Operational May 18, 2000
6
Municipal
MPC
Maligaya Farmers Dev’t Operational May 29, 1991
15
Barangay
Coop., Inc.
ISMARBEMCO MPC
Operational Jan. 4, 2004
2
Municipal
PANGKASAMA MPC
Operational Jan. 7, 1991
15
Province
Diniog Women’s MPC Operational Feb. 2, 2003
3
Barangay
(DWMPC)
Services offered by the cooperative. Table 2 presents the services offered by the
5 cooperatives. Dilasag Senior Citizen MPC is the only cooperative offering consumer
services. Based on the finding, credit is the common services in demand because of the
advantage they get from the cooperative compared to the banks that give them high
interest rate. This is shown by the four cooperatives engaged in credit cooperative.
Membership composition. Table 3 shows that most of the members of the
cooperatives are farmers and government employees. However, Diniog Women’s MPC
is composed of government employees and housewives.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
12
Table 2. Services offered by the primary cooperatives in Dilasag, Aurora
NAME OF COOPERATIVE
SERVICES OFFERED
Dilasag Senior Citizen, MPC
Consumer
Maligaya Farmers Dev’t Coop., Inc. (MFDC, Inc)
Credit
ISMARBEMCO MPC
Credit
PANGKASAMA MPC
Credit
Diniog Women’s MPC (DWMPC)
Credit
Table 3. Composition of members of the 5 cooperatives studied
NAME OF COOPERATIVE
MEMBERSHIP COMPOSITION
Dilasag Senior Citizen, MPC
Farmers
Maligaya Farmers Dev’t Coop., Inc. Farmers
ISMARBEMCO MPC
Farmers, Government employees
PANGKASAMA MPC
Farmers, government employees and
businessmen
Diniog Women’s MPC (DWMPC)
Government employees and housewives
Number of members. Table 4 presents that most of the cooperative increase their
membership except for ISMARBEMCO MPC . It shows that the PANGKASAMA MPC
had the highest number of members as of December 31, 2005 and the lowest is DWMPC.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
13
Table 4. Number of membership of the 5 cooperatives studied
NAME OF
INITIAL
AS OF DECEMBER 2005
COOPERATIVE
Regular
Associate
Regular
M
F
M
F
M
F
Dilasag Senior Citizen, 9
20
15
30
24
50
MPC
Maligaya Farmers Dev’t 24
6
9
6
23
12
Coop., Inc.
ISMARBEMCO MPC
110
100
-
-
110
100
PANGKASAMA MPC
268
546
459
2,560
727
3,106
Diniog Women’s MPC
-
32
-
-
-
37
(DWMPC)
Number of board of directors. Table 5 shows the number of Board of Directors
(BOD) of different cooperatives. Based on the findings the highest number of BOD is in
the PANGKASAMA MPC which composed of 7 and the lowest is MFDC, Inc which
composes only 3 BOD. This findings also indicates that the number of male and female
BOD’s are almost the same.
Number of committee members. Table 6 presents the number of committee
members in each cooperative. It shows that the MFDC, Inc has no credit committee,
election, education and training. They had only audit committee. Most of the committee
members are female.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
14
Table 5. Number of Board of Directors of the 5 cooperatives studied
NAME OF COOPERATIVE
NUMBER OF BOD
MALE
FEMALE
TOTAL
Dilasag Senior Citizen, MPC
5
-
5
Maligaya Farmers Dev’t Coop.,
-
3
3
Inc.
ISMARBEMCO MPC
4
1
5
PANGKASAMA MPC
3
4
7
Diniog Women’s MPC (DWMPC)
-
5
5
Table 6. Number of committee members per cooperative
NAME OF
AUDIT
CRECOM
ELECTION
EDCOM
COOPERATIVE
M
F
T
M
F
T
M
F
T
M
F
T
Dilasag Senior Citizen, 2
1
3
3
-
3
3
-
3
3
-
3
MPC
Maligaya Farmers Dev’t -
3
3
-
-
-
-
-
-
-
-
-
Coop., Inc.
ISMARBEMCO MPC
1
2
3
2
1
3
1
2
3
1
2
3
PANGKASAMA MPC
-
3
3
1
2
3
-
3
3
-
3
3
Diniog Women’s MPC -
3
3
-
3
3
-
3
3
-
3
3
(DWMPC)
TOTAL
3
12
15
6
6
12
4
8
12
7
5
12
Tenure status of employees. Table 7 shows that the DSCMPC and MFDC, Inc.
had a volunteer employee. ISMARBEMCO MPC, PANGKASAMA, AND DWMPC
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
15
had a full time employee. The manager, secretary and treasurer are giving their service
voluntarily.
Table 7. Number and tenure status of employees of the cooperatives studied
NAME OF
TENURE STATUS OF EMPLOYEES
COOPERATIVE
FULL TIME
PART TIME
VOLUNTEER
M
F
M
F
M
F
Dilasag Senior Citizen,
-
-
-
-
1
-
MPC
Maligaya Farmers Dev’t
-
-
-
-
2
-
Coop., Inc.
ISMARBEMCO MPC
-
2
-
-
-
-
PANGKASAMA MPC
4
3
-
-
-
-
Diniog Women’s MPC
-
2
-
-
-
-
(DWMPC)
TOTAL
4
7
-
-
3
-
Profile of Officers
Table 8 presents the profile of officers of different cooperative in Dilasag, Aurora
characterized by age, sex and educational attainment.
Age. Based on the findings the highest age bracket of the officers is 31 to 40
years old (28.57%). The lowest age bracket is 51 – 60 years old with one respondents.
Sex. The table shows that there were more female officers than male. Out of the
70 officers there were 39 female (55.72%) and 31 male (44.28%).
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
16
Educational attainment. It was found that 51.44% of the officers were college
graduate followed by 44.28% high school graduate. There were also 4.28% who have
reached college level. Based on this findings, there were no elementary level, elementary
graduate and high school level among the officers. Results implies that the officers were
educated and have attended formal college education.
Table 8. Profile of the officers of the 5 cooperative studied
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age (years)
20-30
16
22.86
31-40
20
28.57
41-50
18
25.71
51-60
1
1.43
61 and above
15
21.43
TOTAL
70
100
Sex
Male
31
44.28
Female
39
55.72
TOTAL
70
100
Educational Attainment
High school graduate
31
44.28
College level
3
4.28
College graduate
36
51.44
TOTAL
70
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
17
Profile of Cooperative Employees
Table 9 presents the profile of employees of different cooperatives in Dilasag,
Aurora, characterized by age, sex and educational attainment.
Age. The table shows that majority (63.64%) of the employees were at the age
bracket of 20 to 30 years old. The other employees were 31 – 40 years (18.18%) and 41-
50 years (18.18%).
Sex. There were more (63.64%) female employees than male.
Educational attainment. Based o the findings, majority (81.82%) were college
graduate and 18.18% had reached college level.
Table 9. Profile of the employees of the cooperatives studied
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age
20-30
7
63.64
31-40
2
18.18
41-50
2
18.18
TOTAL
11
100
Sex
Male
4
36.36
Female
7
63.64
TOTAL
11
100
Educational Attainment
College level
2
18.18
College graduate
9
81.82
TOTAL
11
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
18
Financial Profile of the Cooperatives
This section presents the total assets, total liabilities, total paid-up share capital,
net surplus, total reserves and total equities of the cooperatives studied.
Table 10 presents the total asserts of the 5 cooperatives. PANGKASAMA MPC
had the highest total asset which reached Php 37,551,272.88 at the end of 2005. It
increased by 9.02% from 2004. MFDC Inc had the lowest total assets which had reached
Php 90,000 at the end of 2005. It decreases by –1.21% from 2004.
Table 10. Total assets of the 5 cooperatives studied ending 2004 –2005 (in pesos)
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
117,861.69
126,315.65
7.17
Maligaya Farmers Dev’t Coop., 91,100.00
90,000.00
-1.21
Inc
ISMARBEMCO MPC
-
448,716.75
-
PANGKASAMA MPC
34,443,806.25 37,551,272.88
9.02
Diniog Women’s MPC
112,000.00
105,700.00
-5.63
(DWMPC)
Table 11 presents the total liabilities of the 5 cooperatives studied. Based on the
findings 2 of the cooperatives had increased their liabilities, these are ; DSCMPC at
9.73% and PANGKASAMA MPC at 9.62%, the increase of liabilities was due to credit
loan from bank which was used for their operation, specifically in lending. There was
also decrease of liabilities of 2 cooperatives namely: DWMPC at -40% and MFDC, Inc.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
19
at -33.33%. The decrease was due to the additional payments of their credit accounts in
the banks.
Table 11. Total liabilities of the 5 cooperatives studied ending 2004-2005 (in pesos)
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
70,420.00
77,416.87
9.93
Maligaya Farmers Dev’t Coop., 20,000
15,000.00
-33.33
Inc
ISMARBEMCO MPC
-
365,461.26
-
PANGKASAMA MPC
27,115,204.32 29,722,736.56 9.62
Diniog Women’s MPC (DWMPC) 35,000.00
25,000.00
-40.00
Total paid-up share capital. Table 12 shows that MFDC, Inc. had the higher
percent change of 34.77% on the end of 2005. PANGKASAMA MPC had the highest
paid-up share capital which is Php 4,983,678.48 at a percent change of 6.36%. DWMPC
had the lowest paid-up share capital with a percent change of 3.22%. DSCMPC had the
lowest paid-up share capital at 22,322.36 at the end of 2004 and 2005. There was no
change in their paid-up share capital due to lack of new members because they were all
senior citizen already.
Total reserve funds. Table 13 shows that all the 5 cooperatives studied allocate
from their net surplus for reserve funds. It shows that most of the cooperative had a
lower increase in their reserve fund. Based on the findings MFDC, Inc. had a decrease in
their reserve fund at -36.00%. DWMPC had the highest increase in their reserve fund at
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
20
11.33%, followed by PANGKASAMA MPC at 7.63%. The lowest percent change is
DSCMPC at 5.80%.
Table 12. Total paid-up share capital of the 5 cooperatives studied
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
22,322.36
22,322.36
0
Maligaya Farmers Dev’t Coop., Inc 37,100.00
50,000.00
34.77
ISMARBEMCO MPC
-
71,816.89
-
PANGKASAMA MPC
4,685,377.14 4,983,678.18 6.36
Diniog Women’s MPC (DWMPC) 62,000.00
64,000.00
3.22
Table 13. Total reserve fund of the 5 cooperatives studied
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
25,119.33
26,576.42
5.80
Maligaya Farmers Dev’t Coop., Inc 34,000.00
25,000.00
-36.00
ISMARBEMCO MPC
-
11,438.60
-
PANGKASAMA MPC
2,643,224.79 2,844,858.14 7.63
Diniog Women’s MPC (DWMPC)
15,000.00
16,700.00
11.33
Net surplus of the cooperatives studied. Net surplus of the 5 cooperatives
ending 2004-2005 is presented in table 14. Based on the findings MFDC had the highest
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
21
percent change at 80.06% followed by DSCMPC at 46.27%. Table shows that
PANGKASAMA MPC had negative percent change at –18.12%. PANGKASAMA
MPC had a negative change because their operational expenses was higher than their net
surplus.
Table 14. Net surplus of the 5 cooperatives ending 2004 – 2005
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
10,995.55
16,082.92
46.27
Maligaya Farmers Dev’t Coop., 5,664.75
10,200.00
80.06
Inc
ISMARBEMCO MPC
-
12,071.16
-
PANGKASAMA MPC
1,569,388.22 1,285,024.41 -18.12
Diniog Women’s MPC
15,000.50
16,500.50
10.00
(DWMPC)
Total equity of the cooperatives studied. Table 15 shows that the total equity of 5
cooperatives for 2004 and 2005. All of the cooperatives had increased their equity.
PANGKASAMA MPC had the highest equity at Php. 7,828,536.32 at 6.82 percent
change. DSCMPC had the lowest equity which reached Php 48,898.75 at 3.07% change.
The increase in equity of the four cooperatives was due to additional income derived
from their operation, additional equipments acquired and business expansion like land
and branches.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
22
Table 15. Total equity of the 5 cooperatives studied ending 2004-2005
NAME OF COOPERATIVE
2004
2005
PERCENT
CHANGE
Dilasag Senior Citizen, MPC
47,441.69
48,898.78
3.07
Maligaya Farmers Dev’t Coop., Inc 71,100.00
75,000.00
5.48
ISMARBEMCO MPC
-
83,255.49
-
PANGKASAMA MPC
7,328,601.93 7,828,536.32 6.82
Diniog Women’s MPC (DWMPC)
77,000.00
80,700.00
4.81
Financial Analysis
This section presents some of the indicators that would show the performance of
the cooperatives during the year for which the ratios were computed.
The measures included in the analysis were debt to asset ratio, return on equity
and equity to asset ratio.
Table 16 presents the debt to asset ratios of the cooperative. A value of less than
0.50 shows that the cooperative had a lesser percentage of assets financed by the debt and
so the cooperative is financially sound. From the table, it shows that MFDC, Inc has loss
debt at 0.17% followed by DWMPC at 0.24%. Based on the findings, three of the
cooperative s namely DSCMPC , ISMARBEMCO MPC and PANGKASAMA MPC had
financed their operation through debt from other credit cooperative or bank.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
23
Table 16. Debt to asset ratio of the cooperatives studied from 2004 to 2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
0.59
0.61
3.38
Maligaya Farmers Dev’t Coop., 0.22
0.17
-22.73
Inc
ISMARBEMCO MPC
-
0.81
-
PANGKASAMA MPC
0.78
0.79
1.28
Diniog Women’s MPC (DWMPC)
0.31
0.24
-22.58
Return on equity. Table 17 presents the return on equity of different cooperatives.
The return on equity shows the amount earned per peso of members equity. The higher
the value of the ratio, the higher is the return to member’s equity. Table 17 shows that
only DSCMPC had the highest return on equity at 32.89%. The four cooperative reflects
a low rate of return on member’s investment in the cooperative. However, this may also
reflect that members are paying less cost of borrowing from the cooperative since the
income of the cooperative comes from the members themselves.
Table 17. Return on equity of the 5 cooperatives studied ending 2004-2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
23.17
32.89
41.95
Maligaya Farmers Dev’t Coop., Inc
7.96
13.6
70.85
ISMARBEMCO MPC
-
14.49
-
PANGKASAMA MPC
21.41
16.41
-23.35
Diniog Women’s MPC (DWMPC)
19.48
20.44
4.93
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
24
Equity ratio. Equity ratio presents the proportion of total assets financed by
members. The higher the value of the ratio, the stronger would be the financial standing
of the cooperatives. Table 18 shows that MFDC, Inc. had the highest equity ratio at
0.83%, followed by Diniog Womens MPC at 0.76%, ISMARBEMCO MPC had the
lowest equity ratio at 0.18%. This shows that the members financed a lower proportion
of the total assets.
Table 18. Equity ratio of the cooperatives from 2004 to 2005
NAME OF COOPERATIVE
2004
2005
PERCENT CHANGE
Dilasag Senior Citizen, MPC
0.40
0.38
-5.00
Maligaya Farmers Dev’t Coop., Inc
0.78
0.83
6.41
ISMARBEMCO MPC
-
0.18
_
PANGKASAMA MPC
0.21
0.20
-4.76
Diniog Women’s MPC (DWMPC)
0.68
0.76
11.76
Policies and Program of the Cooperatives
Table 19 shows that all the cooperatives in Dilasag, Aurora sourced their funds
from the share capital of the members and membership fee. This practice is good in
order to develop the principle of self-help among the members of the cooperative. There
were 2 or 40% that sourced out funds thru deposit of members, loan and revolving fund.
Based on the findings there is 3 or 60% sourced out fund thru subsidies, grants and
donations.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
25
Table 19. Distribution of the 5 cooperatives according to source of fund
SOURCE OF FUND
FREQUENCY
PERCENTAGE
(%)
Share capital
5
100
Deposit of members
2
40
Loan
2
40
Fees
5
100
Subsidies, grants, donations
3
60
Revolving capital
2
40
Uses of fund. Table 20 shows that only 60% used their funds for loans and 40%
used their fund for education and trainings of the members, officers, and staffs , 40% are
allocated in others which are ricemill and warehouse project of MFDC, Inc. and business
expansion of PANGKASAMA MPC. Based on the findings there was only one
cooperative that funded community development which is good because it is the
principles of cooperative, and zero on donations to other organizations.
Table 20. Uses of funds by the 5 cooperatives studied
USES OF FUND
FREQUENCY
PERCENTAGE
(%)
Loanable fund
3
60
Education and trainings
2
40
Community development
1
20
Donations to other organizations
0
-
Others
2
40
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
26
Frequency on the conduct of PMES. All the 5 cooperatives studied conducts Pre-
membership seminar (PMES) to members especially new incoming members. On the
frequency of conduct ISMARBEMCO MPC and PANGKASAMA MPC conduct PMES
every month (Table 21). Based on the findings DSCMPC conduct PMES quarterly and
semi-annually, for DWMPC, MFDC, Inc. conduct PMES occasionally.
This finding indicates that all of the cooperative conduct PMES which is an
important requirement for the prospective members.
Table 21. Frequency on the conduct of PMES by the 5 cooperatives studied
NAME OF COOPERATIVE
FREQUENCY
Dilasag Senior Citizen, MPC
Quarterly
Maligaya Farmers Dev’t Coop., Inc
Occasional
ISMARBEMCO MPC
Monthly
PANGKASAMA MPC
Monthly
Diniog Women’s MPC (DWMPC)
Semi-annual
Officers conducting the PMES. Almost all the cooperative have education and
training committee which is functional. However, one cooperative (MFDC, Inc.) do not
have education committee . It was the manager who had conducted the PMES.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
27
Table 22. Officers conducting the PMES
NAME OF COOPERATIVE
OFFICER
Dilasag Senior Citizen, MPC
Education committee, manager
Maligaya Farmers Dev’t Coop., Inc
Manager
ISMARBEMCO MPC
Education committee member
PANGKASAMA MPC
Education committee member
Diniog Women’s MPC (DWMPC)
Education committee member
Trainings conducted by the cooperative to their personnel and staff. Table 23
shows that 3 of the cooperatives had conducted bookkeeping workshop only; these are
the DSCMPC, ISMARBEMCO MPC and DWMPC. MFDC, Inc. and PANGKASAMA
MPC had conducted bookkeeping workshop, savings deposit operating procedure and
financial management.
Table 23. Trainings conducted by cooperatives to their management staff
TITLE OF TRAINING
COOPERATIVE STUDIED
CONDUCTED
DSCMPC MFDC,
ISMARBEMCO PANGKASAMA DWMPC
Inc.
Bookkeeping workshop
X
X
X
X
Savings deposit
X
X
operating procedure
Financial Management
X
X
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
28
Trainings attended by officers, employees and members of the cooperatives
studied. Result of the study shows that members and officers and staff of
ISMARBEMCO MPC, PANGKASAMA MPC and DWMPC had attended all the
trainings specified in table 24. DSCMPC had attended only vision, mission and goal
formulation. MFDC, Inc. attended two trainings which are credit management for
cooperatives and Strategic planning workshop seminar.
Table 24. Trainings attended by officers, employees and members
TITLE OF TRAININGS
COOPERATIVE STUDIED
CONDUCTED
DSCMPC MFDC, ISMARBEMCO PANGKASAMA DWMPC
Inc.
Vision, mission and X
X
X
X
goals formulation only
Credit management for
X
X
X
X
cooperatives
Strategic Planning
X
X
workshop seminar
Standard auditing for
X
X
X
cooperatives
Audit procedures and
X
X
X
internal control
Adoption and
X
X
X
implementation of the
standard chart of
account
Asset management and
X
X
X
strategic planning
workshop-seminar
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
29
Use of official receipts. Table 25 shows that majority of the cooperatives used
official receipts in receiving cash. Based on the findings MFDC, Inc. did not use official
receipts, the cooperative only used improvised receipts
Table. 25. Cooperative that used official receipts
NAME OF COOPERATIVE
USE OFFICIAL RECEIPTS
Dilasag Senior Citizen, MPC
Yes
Maligaya Farmers Dev’t Coop., Inc
No
ISMARBEMCO MPC
Yes
PANGKASAMA MPC
Yes
Diniog Women’s MPC (DWMPC)
Yes
Books/records used by the cooperative. Table of 26 shows that all the
cooperatives used necessary books in keeping their transactions recorded. These records
are based on their services offered.
Table. 26. Books/records used by the cooperatives studied
TITLE OF TRAININGS
COOPERATIVES
CONDUCTED
DSCMPC MFDC, ISMARBEMCO PANGKASAMA DWMPC
Cash disbursement book
X
X
X
X
Cash receipt book
X
X
X
X
Patronage refund ledger
X
X
X
General journal
X
X
X
Purchase journal
X
X
Individual deposit and
X
X
X
ledger
General ledger
X
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
30
Bookkeeper. All the cooperative studied have a bookkeeper. The cooperative
indicated that they keep their records in order to check and subject to adjustment if
necessary.
Cash collection and cash disbursement. For DSCMPC, the manager of the
cooperative is responsible in disbursing cash and is also the one who collects cash, while
in the other 4 cooperatives studied the treasurer is the cash collectors and disburse cash
except for the ISMARBEMCO where both the manager and the treasurer are responsible
in disbursing cash (Table 27).
Table 27. Responsible in disbursing cash and cash collectors of the 5 cooperatives
NAME OF COOPERATIVE
CASH COLLECTOR CASH DISBURSEMENT
Dilasag Senior Citizen, MPC
Manager
Manager
Maligaya Farmers Dev’t Coop.,
Treasurer
Treasurer
Inc
ISMARBEMCO MPC
Treasurer
Manager, treasurer
PANGKASAMA MPC
Treasurer
Treasurer
Diniog Women’s MPC
Treasurer
Treasurer
(DWMPC)
Cash deposit outlet. Table 28 shows that four of the cooperatives deposit their
cash collection in banks. DSCMPC deposit their cash collection to other credit
cooperative.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
31
Table 28. Cash deposit outlet of the 5 cooperatives studied
NAME OF COOPERATIVE
CASH DEPOSITS
Dilasag Senior Citizen, MPC
Other cooperatives
Maligaya Farmers Dev’t Coop., Inc
Banks
ISMARBEMCO MPC
Banks
PANGKASAMA MPC
Banks
Diniog Women’s MPC (DWMPC)
Banks
Audit and inventory committee. Table 29 shows that 4 of the cooperatives have
audit committees that are functioning. The audit and inventory committee of DSCMPC
does not function due to lack of knowledge in auditing that is why they hired a certified
public accountant (CPA) to audit their records.
Table 29. Audit and inventory committee of different cooperatives.
NAME OF COOPERATIVE
AUDIT COMMITTEE
Dilasag Senior Citizen, MPC
No
Maligaya Farmers Dev’t Coop., Inc
Yes
ISMARBEMCO MPC
Yes
PANGKASAMA MPC
Yes
Diniog Women’s MPC (DWMPC)
Yes
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
32
Methods of auditing books and accounts. Table 30 shows that three (3) of the
cooperative namely: ISMARBEMCO MPC, PANGKASAMA MPC and DWMPC do the
auditing quarterly in order to look into the fairness of transactions better. Based on the
table, DSCMPC AND MFDC, Inc. took their auditing yearly.
Table 30. Method of auditing books and accounts by the 5 cooperatives studied
NAME OF COOPERATIVE
FREQUENCY
Dilasag Senior Citizen, MPC
Annually
Maligaya Farmers Dev’t Coop., Inc
Annually
ISMARBEMCO MPC
Quarterly
PANGKASAMA MPC
Quarterly
Diniog Women’s MPC (DWMPC)
Quarterly
Administrative Compliance
Table 31 shows that all the cooperatives had submitted their annual report,
audited financial statements to the Cooperative Development authority (CDA) and are
holding a general assembly meetings.
The table also shows the compliance of the 5 cooperatives to BIR requirements.
Based on the finding 2 of the cooperatives namely; MFDC, Inc. and ISMARBEMCO
MPC does not register their books of accounts and do not apply for the tax exemption.
Based on the findings DSCMPC, PANGKASAM MPC AND DWMPC are the
cooperatives who comply with the BIR requirements
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
33
Table 31. Compliance of cooperatives to CDA, BIR, and other government requirements
PARTICULAR
COMPLIANCE
YES
NO
A. CDA requirements
Submitting of annual report
5
0
Submitting of audited financial statement
5
0
Holding of General Assembly meetings
5
0
B. BIR requirements
Registration as non- EVAT
5
0
Registration of books of account every year
4
1
Application of tax exemptions
4
1
C. Other government requirements
Securing of business permit from the
5
0
mayor’s office
Deducting and remitting SSS contributions
1
4
to SSS
Deducting and remitting Pag-ibig
1
4
contribution to Pag-ibig
Deducting and remitting Philhealth
1
4
Contributions to PHILHEALTH
Provision of retirement plan
0
5
Remittance of CETF to APEX Org.
0
5
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
34
Vision, Mission and Goal Statement
Table 32 shows the distribution of the 5 cooperatives as to whether the coop.
Have a written vision, mission and goal statement. The findings shows that all of the
cooperatives have written vision, mission and goal statement. This findings implies that
all the cooperatives have formulated their vision, mission and goals so that the coop have
a guide in their operation.
Table 32. Distribution of the 5 cooperatives as to the availability of written vision,
mission and goal statement
PARTICULARS
FREQUENCY
PERCENTAGE
(%)
Available vision, mission and goal statement
5
100
No written vision, mission and goal statement
0
0
TOTAL
5
100
Availability of Written Development Plan
Table 33 shows that all of the cooperatives have available written development
plan. A written development plan is important in the efficient operation of an
organization because the plan serves as a guide in the accomplishment of the goal and
objectives of the organization. This findings indicates that all of the cooperatives
recognized the importance of having a development plan.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
35
Table 33. Distribution of the 5 cooperatives as to availability of a written development
plan
PARTICULARS
FREQUENCY
PERCENTAGE
Availability of written development plan
5
100
No written development plan
0
0
TOTAL
5
100
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
36
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine and describe the profile of the primary
cooperatives in Dilasag, Aurora. This includes their organizational profile, profile of
employees and officers, financial status, policies and programs.
Based on the list provided by the CDA, there were 8 primary cooperatives listed
as operating as of December 2005. However, during the conduct of this study, only 5
cooperatives are currently operating and 3 had stopped.
Most of the cooperatives are operating in barangay and municipality level, there
was only one operating in a provincial level. Majority of the cooperatives offered credit
services and only one cooperative offered consumer service. Most of the cooperative
were composed of farmers and government employees.
The study shows that most of the cooperative have 5 members in their Board of
Directors. As to number of committee member, majority of the cooperative have 3
members. It was also found that majority of the officers and employees were female.
As to their financial status, there is one cooperative that had reached millions on
total assets. However, this millionaire cooperative had also large amount of liabilities.
On the total paid-up share capital, most of the cooperative had increased and also on their
reserve fund. Most cooperatives had increased on their net surplus. Majority of the
cooperatives had increased on their total equity. Majority of the cooperative had high
debt equity ratio. Most of the cooperatives have low return or equity.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
37
The cooperative sourced out their funds from the share capital and membership
fee of the members. Most of the cooperative used their funds for loaning since most of
them offer credit services.
As to the compliance to government requirements, it was found out that the 5
cooperatives had comply with the CDA requirement as to submitting of annual report,
submitting of audited financial statement and holding of general assembly meeting. As
compliance to the BIR requirements, majority of the cooperatives comply with the BIR
requirements but there is one cooperative that did not register their book of accounts and
did not apply for tax exemption. As to other government requirements, all of the
cooperatives had secured their business permit from the mayor’s office. Majority of the
cooperatives have not been remitting SSS, PAG-IBIG and PHILHEALTH contributions.
All of the cooperatives did not have a provision of retirement plan and they did not remit
to CETF to APEX organization.
All of the cooperative had been conducting PMES, most of them conducted it
monthly. Most of the cooperatives provide trainings to their personnel/staff such as
bookkeeping workshop, and savings deposit operating procedure. All of the cooperative
studied have a bookkeeper. Majority of the cooperative have a treasurer to disburse and
collect cash. Most of the cooperative have an auditor to audit their financial statements.
All of the cooperative studied have a vision, mission and goal statement and a written
development plan.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
38
Conclusions
Based on the findings, the following conclusion were derived:
1. One of the cooperatives in Dilasag, Aurora that is offering credit services is
millionaire.
2. Most of the cooperatives have a high debt to asset ratio.
3. Most of the cooperatives have problem on the lack of cooperative education of
members, officers and employees.
4. Most of the members of the cooperatives are farmers and government employees.
5. The education committee and the manager conduct PMES.
6. All of the cooperatives’ main source of funds were from the share capital and
membership fee.
7. The cooperatives used trainings and seminar for leaders, members and staff.
Recommendations
1. The Cooperative Development Authority should strictly monitor and supervise
the operation of each cooperative and provide technical assistance to ailing
cooperatives so that they will not go bankrupt.
2. The cooperatives must formulate strategies to attract more people to become
members. If the number of members increases, then the financial assets of the
cooperative will also increase.
3. The CDA, individual cooperatives and their Apex organization have to help each
other to give regular education and training to all members of the cooperatives.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
39
4. The cooperative should send their officers, members and staff to cooperative
trainings and seminars to gain more knowledge.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
LITERATURE CITED
AQUINO, A. 1991. Primer on the Cooperative Code of the Philippines, Quezon City,
Philippines. P. 23.
ESTES, R.J. 1998. Cooperative Life Pennsylvania. Retrieved December 3,
2006. from http://www.ssm.unpenn.eduretes/isw/chapter_34html.
GRAGASIN, J.V. 1973. Philippine Cooperatives, Organization, Management and
Agrarian Reform. Pp. 76,279-28-283.
ONAGAN, L.G. 1973. Cooperative Principles and Practices, Quezon City: Onagan and
Sons Pub. Pp. 75-76.
PIMENTEL, A.Q. and M.R. CUA. 1994. Cooperative Code of Philippines: Theory, Law
and Practices. White Orchids Printing and Publishing Company. Pp. 30-71,
83,66.
SAN GABRIEL, N.C. 1973. Business Finance and Philippine Business Firms. Manila
Goodwill Bookstore. Pp. 58, 69, 70, 71, 112-115.
VILLANUEVA, M.U. 1981. Cooperative Education and Training as a Strategy for
Community Development. A Consolidation of PBSP’s Experiences in Assisting
Cooperative Education and Training Project. Manila: Bookmark. P.3.
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
41
Appendix A
Letter to the Respondents
Republic of the Philippines
BENGUET STATE UNIVERSITY
College of Agriculture
Department of Agricultural Economics and Agribusiness Management
December 2006
The Manager
_____________________
_____________________
Aurora, Province
Sir/Madam:
I am a fourth year student taking up Bachelor of Science in Agribusiness,
major in Cooperative Management at Benguet State University. To fulfill my
study, I am required to conduct this research titled “ Profile of Primary
Cooperative in Dilasag, Aurora Province”.
In this connection, may I therefore ask your time, your honesty and
sincerity in giving the needed information about your cooperative.
Thank you very much! God bless us all.
Respectfully yours,
LAUREL REY C. DIZON
Noted:
LUKE E. CUANGEY
Thesis Adviser
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
42
Appendix B
PROFILE OF PRIMARY COOPERATIVES IN DILASAG, AURORA
SURVEY QUESTIONNAIRE
I. General Information
Name of the cooperative _________________________________________________
Address_______________________________________________________________
II. Organizational Profile
a. Date organized _________________________________________________
b. Area of operation
________________a. barangay
________________b. municipality
________________c. provincial
________________d. national
c. Services offered
________________a. credit
________________b. consumer
________________c. producer
________________d. marketing
________________e. services
________________f. multi-purpose
d. Composition of members
1. Occupation of members
No. of farmers _______________________________________
No. of government employees __________________________
No. of private employee _______________________________
No. of businessmen (self- employed) _____________________
Others, please specify _________________________________
___________________________________________________
2. Gender
no. of male ____________________
no. of female ___________________
3. Regular members
no. of male _____________________
no. female ______________________
4. Associate members
no. of male _____________________
no. of female
e. number of members as of 2000 _____________________________
2001 _____________________________
2002 _____________________________
2003 _____________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
43
2004 _____________________________
2005 _____________________________
III. PROFILE OF OFFICERS
Details
Sex
Age
Educational attainment
DIRECTORS
1. Chairman
2. Vice Chairman
3. Members
COMMITTEES
a. Audit
Chairman
Secretary
Members
b. Credit
Chairman
Secretary
Members
c. Election
Chairman
Secretary
Members
d. Education and Training
Chairman
Secretary
Members
e. Others (specify)
IV. FINANCIAL STATUS
a. What are the internal sources of your funds? (2000-2005)
__________Share capital
__________Revolving capital
__________Membership fees
__________member’s deposits
__________Others, (specify)
b. What are your external sources of funds (2000-2005)
__________loans and borrowings
__________subsidies, donators and grants
__________others, specify
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
44
c. where do you use your funds and how many percent do you allocate to each
use?
______________loanable fund
______________education and training of members, officers and staff
______________community development
______________donations to other organizations and members
______________Others (specify)________________________________
d. What is the total assets, liabilities and paid-up capital of the cooperative?
Year
Total assets
Total liabilities
Total paid-up share
2000
2001
2002
2003
2004
2005
*Please attach a copy of your audited financial statement for the year 2000-2005.
V. REQUIREMENTS
a. Are you submitting your annual report to the Cooperative Development Authority
regularly?
_________ Yes
________No
If no, why?________________________________________________________
b. Do you submit audited financial statements using standard cooperative
accounting?
__________Yes
________No
If no, why?________________________________________________________
c. Do you have mission, vision and goals?
___________Yes
________No
If no, why?________________________________________________________
d. Do you have a written development plan?
___________Yes
________No
If no, why? ________________________________________________________
e. Did you register your coop with the Bureau of Internal Revenue as non-evat?
____________Yes
________No
If no, why?_______________________________________________________
f. Do you register your books of accounts every January at the BIR?
____________ Yes
_________No
g. Did you apply for tax exemption from BIR?
____________ Yes
_________No
h. Do you have regular employees?
____________Yes _________No
i. Do you withhold taxes of your employees?
____________Yes
_________No
j. Do you provide funds for the benefits of your employees?
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
45
___________ Yes
_________No
k. Do you get business permit from the mayor’s office every start of the year?
___________ Yes
_________No
If no, why? ______________________________________________________
V. POLICIES
As to internal control measures
1. Do you use official receipts when receiving cash and disbursement
voucher when spending cash?
___________Yes
___________No
2. If no, what do you use then? ____________________________________
3. What books or records are you using?
___________ cash disbursement book
___________ cash receipt book
____________ general journal
____________purchase journal
____________Individual deposit and ledger
____________Patronage refund ledger
____________ Others, specify _________________________________
4. Do you have a bookkeeper?
____________ Yes
___________No
5. If no, who records the transaction? ______________________________
6. Who keep the cash collection?
__________ Manager
__________ Treasurer
__________Chairman
__________Others, specify
7.Who is responsible in disbursing cash?
___________ Manager
___________Treasurer
___________ Chairman
___________Others, specify ____________________________________
8.Where do you deposits your cash collection?
____________Bank
____________Other cooperative
____________ Do not deposit
9.Are your audit and inventory committee functioning?
10. If yes, how often do you they audit?
___________monthly
___________Quarterly
___________ Semi-annually
____________annually
____________Others, specify_________________________________
11. Who do the auditing?
____________ audit committee
____________CPA
____________Others (specify)________________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
46
12.If no, why?
____________No time to serve the cooperative
____________Lack of skill in doing their function
____________The coop cannot give them per diem or allowance
____________ Others (specify) _______________________
V.
PROGRAMS
1, Do you conduct regular PMES to your prospective members?
________________Yes __________________No
2. If yes, how often?
____________ Monthly
____________Quarterly
____________ Semi-annually
____________ annually
____________ others (specify)
3. Who conducts the PMES?
_____________Education Committee
_____________Manager
_____________Officers
4. What are the trainings conducted by the cooperative to the personnel staff?
_____________Bookkeeping workshop
_____________Savings deposits operating procedure
_____________Financial management
5. Trainings attended by the officers, employees and members
_____________ Credit management for cooperatives
_____________Vision, mission and goals formulation
_____________Standard auditing
_____________Adoption and implementation of the standard chart of account
_____________Asset management
_____________Strategic planning-workshop seminar
6. Who conducted these training?
_____________Education Committee
_____________Manager
_____________Officers
_____________Others, specify _____________________________________
_______________________________________________________________
Profile of Primary Cooperatives in Dilasag, Aurora / Laurel Ray C. Dizon. 2007
Document Outline
- Profile of Primary Cooperatives inDilasag, Aurora
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale
- Statement of the Problem
- Objectives of the Study
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- Cooperative Definition
- Management of Cooperative
- Membership
- Sources of funds of Cooperatives
- Compliance with other Laws
- Definition of Terms
- METHODOLOGY
- Locale and Time of the Study
- Respondents of the Study
- Data Collection
- Data Gathered
- Data Analysis
- RESULTS AND DISCUSSION
- Organizational Profile of the Cooperatives
- Profile of Officers
- Profile of Cooperative Employees
- Financial Profile of the Cooperatives
- Policies and Program of the Cooperatives
- Administrative Compliance
- Vision, Mission and Goal Statement
- Availability of Written Development Plan
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- LITERATURE CITED
- Appendix