BIBLIOGRAPHY GUIVES, ARCELI AWAS. ...
BIBLIOGRAPHY
GUIVES, ARCELI AWAS. OCTOBER 2012. Non-compliance on reportorial
requirements of primary cooperative in La Trinidad. Benguet State University, La
Trinidad, Benguet.
Adviser: SAMUEL L. DUYAN, BS
ABSTRACT
There were 77 primary cooperatives in La Trinidad, Benguet, but 30 of these
cooperatives did not comply with the required reports to the Cooperative Development
Authority (CDA). They were involved in this study with the managers and the staff as the
respondents. Survey questionnaire and observation were used to collect the needed
information. Secondary data were also taken from the Cooperative Development
Authority on the non-compliance on reportorial requirements among the different
cooperatives in La Trinidad, Benguet.
The results of the study showed that 43.33% of the cooperatives operating in the
barangay started as a sari-sari store, 33.33% of the cooperatives employed three staff and
majority of the cooperatives were registered in the year 2010. 50% of the cooperatives
members attended the Pre-membership Education Seminar (PMES) provided by them. On
the other hand, 23.33% of the cooperatives sent their members and staff to attend seminars
conducted by other institutions, besides they also conduct training and seminar but majority
of the officers did not attend. 60% of the cooperatives officers and members did not
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participate on the activities undertaken by the cooperative. With regards to the level of
awareness on required reports, 66.67% of the respondents have knowledge on the
preparation of the records. Moreover, the levels of awareness on the different reportorial
requirements of the study were 76.67% of the respondents are aware on the submission of
reports. However the factors affecting the non-compliance on reportorial requirements of
primary cooperatives in La Trinidad, Benguet were lack of records needed in the
preparation in auditing the required reports, lack knowledge in bookkeeping or accounting,
untrained bookkeeper and lack of cooperation.
There were 16.67% of the respondents who suggested that they should submit the
Audited Financial Statement (AFS) form to avoid confusion in the submission of the
different required reports. Likewise the same number of respondents suggested that the
authority should provide a pre-formatted form on the different reports and distribute to all
the active cooperatives. Accordingly, 10% of the respondents proposed that the CDA
should assign personnel responsible for monitoring each cooperatives and for identifying
the needs or problems affecting each of the non-compliance cooperative.
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INTRODUCTION
Rationale
It is a common knowledge that a cooperative is a way of life, for the reason that
government is bending on making cooperative as a strategy to promote national
development. In this connection the government adopted several policies such as the
cooperative law which has adopted to foster the creation and growth of cooperative as a
practical vehicle for the promotion of self-reliance and harnessing people power toward
the attainment of economic development and social justice. The law further provides
important benefits to all cooperatives and their members (Zubiri, 2008).
In fact the cooperative as a way of life must engage in business with service above
profit. In relation, the government has to foster peace and order or has to provide
environment that is conducive to cooperative business.
Besides, the municipality of La Trinidad, Benguet is observing the implementation
of the cooperative objective of improving the quality of life of its members thus, engaging
in several cooperative undertakings. Likewise, the municipality has a total of 77 registered
primary cooperatives of which two are credit cooperatives and 75 are multi-purpose
cooperatives. And out of the total number of registered primary cooperatives, 30 are non-
compliance on the reportorial requirements while 47 are compliance.
As required by the CDA, all registered primary cooperatives must submit the annual
reports every end of calendar year which include the Cooperative Annual Performance
Report (CAPR) and the AFS. The annual reports shall be submitted to the Authority within
120 days from the end of the calendar year. Moreover, failure to comply with the required
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reports may subject the accountable officers and the cooperative to fines and penalties as
may be prescribed by the Authority.
As such, the research aimed to study the level of awareness on the reportorial
requirements and the factors affecting the non-compliance on the reportorial requirements
of the primary cooperatives and to get suggestions from cooperatives in compliance with
the reportorial requirements of the CDA.
Statement of the Problem
This study aimed to answer the following questions:
1. What is the level of awareness on the different reportorial requirements?
2. What are the factors affecting the non-compliance on reportorial requirements of
primary cooperatives to the CDA?
3. What are the suggestions from cooperatives in compliance with the reportorial
requirements of the CDA?
Objectives of the Study
The study aimed to:
1. To determine the level of awareness on the different reportorial requirements;
2. To identify the factors affecting non-compliance of primary cooperative on the
reportorial requirements; and,
3. To get suggestions from cooperatives on how they could comply with the
reportorial requirements.
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Importance of the Study
This study was conducted to provide information to the CDA about the non-
compliance on reportorial requirement of primary cooperative in La Trinidad, Benguet.
This would serve as reference for future researchers and basis for the Authority and other
interested agencies to improve the monitoring programs of the cooperatives.
Scope and Delimitation of the Study
The study focused on the non-compliance on reportorial requirement of primary
cooperatives in La Trinidad, Benguet from year 2007 to year 2010.
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REVIEW OF LITERATURE
Definition of Cooperative
Cooperative is an autonomous and duly registered association of persons, with a
common bond of interest, who have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with universally accepted cooperative
principles (Fred, 2009).
Annual Reports of the Cooperatives
All registered primary cooperatives must submit the different annual reports
required by the CDA every end of calendar year, to show its program of activities,
including those in pursuance of their socio-civic undertakings, showing their progress and
achievements for the assessment of vision, mission, goals and social responsibility of the
cooperatives for monitoring the status not only to its members but also to the community.
These reports are the CAPR and AFS.
The annual report shall be filed to the Authority within 120 days from the end of the
calendar year, and shall be as prescribed by the rules of the Authority. Failure to submit
the required reports shall subject the accountable officers to fines and penalties as may be
prescribed by the Authority, and shall be a ground for the revocation of the Authority of
the cooperative to operate. If a cooperative fails to make, publish and file the reports
required by the Code, the Authority shall, within fifteen (15) days from the expiration of
the prescribed period, send such cooperative a written notice, stating to its non-compliance
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and the commensurate fines and penalties that will be imposed until such time that the
cooperative has complied with the requirement (Agapito, 1991).
Definition of Reportorial Requirements
of the Cooperative
1. Cooperative Annual Performance Reports (CAPR) – is a cooperative reporting
instruments which CDA collects annual financial and operational data for all types of
registered cooperatives, replaces the Annual Report (AR), General Information Sheet
(GIS) and the Inspection Working Paper (IWP) to provide information regarding the status
and performance of specific cooperative, to help CDA gather and consolidate data that will
provide cooperatives information on how their operations fair with other cooperatives in
the same category, provide relevant and useful information for off-site supervision of
cooperatives engaged in savings and credit services, provide useful information for
deputized supervisors in determining the scope of examination and to provide updated
information on the cooperative sector.
2. Audited Financial Statements - is the report attachment of the CAPR on the
different report undertaken by the cooperative. That this reports contains the financial
transactions of the cooperatives for the preparation of AFS of different records to
the Statement of Financial Condition and Statement of Operation by which the
financial information of the cooperative were accumulated and processed, it refers to
the primary purpose of engaging in savings and other financial services of primary
cooperative.
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Considerations on Delayed Reports
All registered cooperatives shall submit the reports on time, the failure to submit
reports on time shall be considered as delay or default. However, if the failure to submit
the reports on time is due to fortuitous events; such as fire and other natural calamities and
public disorders including strike or a national emergency which effects the operation of the
cooperative, the failure shall not be considered a delay. Provided, that the Authority shall
be officially notified of the occurrence of such fortuitous events. Delay or default shall
commence on the day following the last day required for the submission of reports.
However, should the last day of filing falls on a non-working day in the locality where the
reporting cooperative is situated, delay or default shall start to run on the day following the
next working day. For the purpose of establishing delay or default, the date of
acknowledgement by the Authority appearing on the copies of such reports filed or
submitted or mailing postmarked on the enveloped the date of registry or special delivery
receipt, or the date that electronic mail was sent as the case may be shall be considered as
the date of filing (Zubiri, 2008).
Sanction for Delayed Submission of Reports
Failure to file the required reports on time shall subject the Accountable Officer to
pay a fine of 100.00 pesos per day of delay. Within thirty (30) calendar days upon receipt
of Statement of Accounts, the accountable Officer may request for Reconsideration of such
fine of the grounds of fortuitous event and court litigation/order, which the Authority shall
act upon within sixty (60) calendar days otherwise the sanctions, shall be deemed lifted.
The decision of the Authority shall become final and executor. Other than the imposition
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of monetary penalties, the authority may dissolve/revoke, after due process, the authority
of the cooperative to operate (Zubiri, 2008).
Policy on Issuing the Certificate of
Good Standing to Cooperatives
Cooperative Development Authority is the agency in charge in monitoring the
different annual reports of each registered primary cooperatives every end of fiscal year.
That all cooperatives should submit the required requirements as provided by the Republic
Act 6938 and 9520 of the Philippine code of cooperative, here by promulgates providing
the incentives for the guideline, to govern the issuance of Certificate of Good Standing
(CGS).
Set the requirements as provided for in the Cooperative Code of the Philippines of
2008 (RA 9520) and the charter of CDA (RA 6939), establish the administrative
responsibilities of the concerned office/unit within the Authority to ensure the proper
implementation of this guideline, and establish standards for the availment of incentives
and privileges accorded to cooperatives by other institutions (Santiaguel, 2011).
Purpose of Issuing Certificate of Good Standing
There are two purpose of issuing CGS for cooperatives the regular purpose and the
special purpose. Which the regular purpose CGS is for the purpose of complying with the
mandatory requirements as required by RA 9520 and to avail the incentives and privileges
under the Cooperative Development Authority–Bureau Internal Revenue (CDA-BIR) joint
Rules and Regulations Implementing Articles 60 and 61 of RA 9520 in relation to RA 8424
and the requirements of Local Government Units (LGUs) permits and licenses. The special
purpose for the application is for CGS may only be issued to a cooperative for a special
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operation. In case of importation purpose, application shall be subject to further evaluation
by the authority to determine the capability of the cooperative to avail the privileges
granted to cooperatives (Santiaguel, 2011).
Requirements for granting Certificate of
Good Standing for Regular Purpose
1. Letter request duly signed by the Cooperative Chairman or any authorized
representative of the requesting cooperative stating therein the reasons for such request.
2. Proof of compliance to statutory reports for the preceding fiscal year or complete
copies thereof.
3. Copy of the updated bond of accountable officers or employees of the
Cooperative.
4. Minutes of the General Assembly Meeting for the current or preceding year
including the results of the election of the Board of Directors and the Committee Members,
approval of development plan and/or annual plan and budget, and acceptance of General
Assembly of financial statements, management and committee reports.
5. Certificate fee
Requirements for Granting Certificate of
Good Standing for Special Purpose
1. Letter request duly signed by the Cooperative Chairman or any authorized
representative of the requesting cooperative stating therein the reasons for such request.
2. Copy of latest Certificate of Good Standing issued for regular purpose for the
preceding year or current year, whichever is applicable.
3. Favorable endorsement from the concerned Extension Office.
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4. Certification Fee
Purpose for the Requirements
Upon submission of the different required reports, CDA is in charge in monitoring
the status of cooperatives, to guide the good management and continuous operation of the
cooperative in acquiring the different reports required, to assess each social needs and
economic development of the cooperatives in terms of complying the reportorial
requirements, to assigned personnel for the submission of reports required, and to monitor
the programs of activities undertakings by the cooperatives every end of calendar year for
the issuance of CGS after submitting all the required reports.
Reports as Basis for Monitoring
Manager of the cooperative must need to study cooperative laws and policies
which are workable and at the same time could be attributed to the successful
operation of the cooperative, must have initiative to plan the work of the whole
cooperative to follow up the reports to work as a team that must be able to work
in the submission of reportorial requirements to the CDA, this report are the CAPR
and AFS reports. Based on the results monitored by the Authority in each year they
identified the cooperatives that are non-compliance and compliance of required reports,
from La Trinidad, Benguet and comparing it to the other municipalities of the
Province of Benguet. Table 1 presents the number of non-compliance cooperatives
in La Trinidad Benguet from 2007 to 2010.
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Table 1. Number of non-compliance cooperatives in Benguet
YEAR
TOWN
2007
2008
2009
2010
Atok
1
3
3
2
Bakun
1
0
2
0
Bokod
1
0
2
2
Buguias
3
4
4
3
Itogon
6
1
11
2
Kabayan
1
0
2
0
Kapangan
0
2
1
1
Kibungan
3
3
5
1
La Trinidad
7
9
11
3
Mankayan
1
3
2
2
Sablan
0
1
4
3
Tuba
1
1
5
1
Tublay
0
1
1
0
TOTAL
25
28
53
20
Conceptual Framework of the Study
The frame of the study determines the level of awareness on the reportorial
requirements of the CDA. It also involves identifying the different factors affecting
the non-compliance of the primary cooperatives in La Trinidad, Benguet. Furthermore,
it seeks to identify suggestions from the non-compliance cooperatives.
Input
Thru-put
Output
Operation policies
Data gathering
Level of awareness for
non-compliance
Management
Analysis
responsibility
Factors for non-compliance
Monitoring the
progress of
Suggestions
cooperatives
Figure 1. Paradigm of the study
Non-compliance on reportorial requirements of primary cooperative in La Trinidad |
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Definition of Terms
Accountable officers – shall refer to persons directly responsible for handling funds,
securities and properties of the cooperative such as, but not limited to the Chairman,
manager, treasurer, Cashier, Secretary and such other persons as may be authorized by the
cooperative to act as custodian of funds, merchandise, inventories, securities and other
assets of the cooperative.
Authority – refers to the Cooperative Development Authority (CDA).
Certificate of Good Standing (CGS) – is a certificate issued by the Authority to the
operating cooperatives that have complied with the mandatory requirements as provided in
RA 9520, IRR and other administrative issuances which entitle cooperatives to avail
incentives and privileges accorded to them.
Compliance - the act or process of complying with a desire, demand, proposal, or
the conformity in fulfilling official requirements of the cooperative to CDA.
Cooperative activities – refers to the membership, governance and institutional
undertaking of the cooperatives.
Cooperative Development Authority (CDA) – this is the government agency in
charge of the registration and regulation of the cooperative as such, herein referred to as
the Authority.
Legitimate purposes – refers to the any purpose that is not contrary to law, moral,
public policy.
Non-compliance – failure to submit the reportorial requirement to the authority or
failure to obey.
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Operating cooperative - refers to cooperative that has been performing cooperative
activities with business operations whether realizing gains or losses in the conduct of
business. The business operation requirement can be waived only to the newly registered
cooperatives existing for not more than one (1) year from the date of its registration.
Preceding fiscal year – shall refer to the fiscal year immediately preceding the date
of regular CGS issuance.
Reportorial requirement - a report details of cooperatives activities throughout the
fiscal year or calendar year.
Reports - shall refer to any documents or statements required from cooperatives to
be submitted to the Authority on a regular basis.
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METHODOLOGY
Locale and Time of the Study
The study in non-compliance on reportorial requirements of primary cooperatives
was conducted in La Trinidad, Benguet from April to May 2012.
Respondents of the Study
There were seven non-compliance cooperative in 2007, nine in 2008, eleven in 2009
and three in 2010. Using total enumeration, there were 30 respondents of the study. These
were the managers and staff of the non-compliance primary cooperatives in La Trinidad,
Benguet.
Data Collection Procedure
Data were collected through the use of survey questionnaires, personal interview
and observation. A secondary data were requested from the CDA to suffice the data needed.
Data Gathered
The data gathered were the level of awareness on the different reportorial
requirements, the factors affecting the non-compliance on required reports, and the
suggestions from cooperatives in the compliance on reportorial requirements to the CDA.
Data Analysis
The data collected were tabulated, analyzed and summarized with the use of
frequency count and percentage.
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RESULTS AND DISCUSSION
Information about the Cooperative
This section presents a brief profile or information of the primary cooperative
studied. It includes the registration of the cooperative, how the cooperative was
organized, the profile of the members such as the number of membership and the
status of membership, the attendance of members to the Pre-membership Education
Seminar (PMES), the attendance of officers to seminars or trainings and the profile
of the management staff employed such as the number of staff and their positions
or functions and their attendance to trainings and seminar.
Registration date. Based on the data given by the CDA, majority of the
cooperatives were registered to the CDA in 2010. These cooperatives were registered
under the new Republic Act 9520 or also known as the Philippine Cooperative Code
of 2008. Out of 30 non-compliance cooperatives in La Trinidad, Benguet 21 of them
was registered in 2010, while nine cooperatives were registered in 2009. This results
revealed that most of the primary cooperatives in La Trinidad, Benguet involve in
non-compliance on reportorial requirements were registered in 2010. Table 2 presents
the registration date of the non-compliance primary cooperatives on the reportorial
requirements as of 2007 to 2010.
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Table 2. Registration date of the non-compliance cooperatives
DATE OF
NAME OF THE COOPERATIVES
REGISTRATION
1. Alno Rural Community Development Cooperative
10/22/2009
2. Ambiong la Trinidad MPC
03/22/2010
3. Balangbang MPC
03/17/2010
4. Bantay Consumers Cooperative
03/02/2010
5. Benguet Agricultural & Fishery Cooperative (BAFCO)
03/05/2010
6. Benguet Farmers Development MPC
02/22/2010
7. Cordillera College Employees MPC
03/22/2010
8. Cordillera Development MPC
11/03/2009
9. Cordillera Regional Science High School Cooperative
10/14/2009
10. Craftman International Training Center Service Cooperative
08/18/2009
11. DEP-ED CAR Regional Office Employees Cooperative
03/22/2010
12. Guitley MPC
01/22/2010
13.Highland Emergency Action & Response Team (HEART)
Cooperative
03/21/2009
14. Highland Vegetables Suppliers MPC
03/22/2010
15. La Trinidad MP Housing Cooperative
03/09/2010
16. La Trinidad Municipal Employees MPC
03/18/2010
17. La Trinidad Police Credit Cooperative
03/22/2010
18. La Trinidad Strawberry MPC
02/16/2010
19. La Trinidad Vegetables trading Post
10/30/2009
20 La Trinidad Vendors Cooperative
03/22/2010
21. Lamtang MPC
03/22/2010
22. Landbank Employees & Associates MPC
03/22/2010
23. Land Reform Cooperative
04/12/2009
24. Linosod Farmers MPC
03/21/2010
25. Longlong Puguis La Trinidad MPC
02/22/2010
26. Lubas MPC
02/17/2010
27. Mega Realm Cooperative
03/22/2010
28. Safid Credit Cooperative (SACREDO)
11/24/2009
29. Seeds and Fruits MPC
01/20/2010
30. Winterland Marketing Cooperative
09/09/2009
Organization of the cooperative. Each of the cooperative was organized through
the efforts and unity of people in the community. Some of the cooperatives were
organized for the farmers. These cooperatives were established through the availability
of the people who have knowledge to organize such cooperative and the ability of
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these people to lead. Some of the cooperative started as a sari-sari store until they
registered to the CDA.
The registration of cooperative to the Authority is to meet the needs of the
members, to participate in the socio-economic and political development of the
cooperatives and to help the farmers become active producers of any crops providing
them additional income and improving their standard way of living. Furthermore
some of the cooperatives were organize through the consumers or users of domestic
water system founded by the Non-government Organization (NGO). These NGO’s
assisted the water organization in its essential registration to the CDA, the farmers,
the community and the association of employees in putting up cooperatives.
Table 3 presents the organization of the cooperatives according to each type
of cooperative. Table show that 16 (53.33%) of the respondents are engage on
Multi-purpose Cooperative, three (10%) engage on Consumers Cooperative and two
(6.67%) engages on Credit Cooperative. However, some of the respondents are
engage on the different types of cooperatives such as Marketing, Service, Agrarian
reform, Education, Fishermen, Health service, Housing, Water service and Workers
Cooperatives. This implies that majority of the respondents are engage on Multi-
Purpose Cooperative types of cooperatives.
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Table 3. Organization of the cooperatives according to the type of cooperative
FREQUENCY PERCENTAGE
TYPES OF COOPERATIVES
F
%
1. Credit cooperative
2
26.67
2. Consumers cooperative
3
10.00
3. Marketing cooperative
1
03.33
4. Service cooperative
1
03.33
5. Multi-purpose cooperative
16
53.33
6. Agrarian reform cooperative
1
03.33
7. Education cooperative
1
03.33
8. Fishermen cooperative
1
03.33
9. Health service cooperative
1
03.33
10. Housing cooperative
1
03.33
11. Water service cooperative
1
03.33
12. Workers cooperative
1
03.33
Profile of the Members
This section presents the number of members and status of membership of the
cooperatives involve in non-compliance on reportorial requirement.
Number of members. Table 4 shows that 50% of the cooperative has a number of
members ranging from 51 to 100, this followed by 36.67% of the cooperative with 1 to 50
members. This indicates that most of the non-compliance cooperative has a less number of
members.
Status of membership. Table 4 also presents the status of membership of the
cooperative. All of the non-compliance cooperatives are active regardless as to these
cooperatives fail to comply on some of the reportorial requirements.
Attendance of Members to the PMES
Table 4 shows that majority of the respondents monitored the attendance of their
members to the PMES. This implies that majority of the primary cooperatives complied
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with the cooperative principle of education and information. However, 46.67% of these
non-compliance cooperatives did not implement this principle.
Attendance of Officers to Training or Seminars
Table 4 presents that 16 (53.33%) of the respondents did not attend training or
seminars. However, 14 (46.67%) of the respondents attended this activity. As explained by
the respondents, although there is training or seminars they were not informed about it.
They also claimed that the distance of the venue of training or seminars and their being
busy at work reasons them not to attend. Lastly, the absence of training or seminars
undertaken by the cooperative is another reason for not attending.
Table 4. Profile of the members, attendance of members to PMES and attendance of
officers to training and seminars
FREQUENCY PERCENTAGE
PARTICULARS
F
%
Profile of the Members
a. Number of the Members
1 – 50
11
36.67
51 – 100
15
50.00
101 – 150
2
06.67
151 – 200
0
00.00
201 – 250
1
03.33
251 – 300
1
03.33
b. Status of Membership
Active
30
10.00
Attendance of Members to the PMES
Yes
16
53.33
No
14
46.67
Attendance of Officers to trainings/Seminars
Yes
14
46.67
No
16
53.33
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Management Staff Employed
This section presents the number of staff, their positions or functions and
their attendance to training or seminars. There were 77 cooperatives in La Trinidad,
Benguet but 30 of these cooperatives failed to comply the reportorial requirements
with the CDA
Number of staff. Table 5 presents a great number 13 (43.33%) of the
respondents who employ three staff in the cooperative. There are 23.33% (7) who
employ two staff and there are 20% or six who employ only one. The other
cooperatives employ four, five, six and seven which is 3.33% or one.
Positions or functions. Table 5 also shows the profile of management staff
employed according to the positions or functions. There are 36.67% (11) of the
respondents who employ a secretary, 30% (9) who employ treasurer, six (20%) who
employ sales clerk, five (16.67%) who employ storekeeper, four (13.33%) who
employ cashier and lastly is one (3.33%) who employ accountant.
Attendance to training or seminars. Table 5 further shows the attendance of the
staff to training or seminars. It can be seen from the table that majority of the
respondent’s staff are not attending trainings or seminars. These were the cooperatives
that do not require attendance of their staff to training or seminar. However the
cooperatives required their staff to attend training or seminars has yielded 14
(46.67%).
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Table 5. Management staff employed
FREQUENCY PERCENTAGE
MANAGEMENT STAFF EMPLOYED
F
%
a. Number of Staff
1
6
20.00
2
7
23.33
3
13
43.33
4
1
03.33
5
1
03.33
6
1
03.33
7
1
03.30
b. Positions/Functions
Secretary
11
36.67
Treasurer
9
30.00
Bookkeeper
7
23.33
Storekeeper
5
16.67
Sales clerk
6
20.00
Cashier
4
13.33
Accountant
1
03.33
c. Attendance to training/seminars
Attended training or seminars
14
46.67
Have not attended any training or seminars
16
53.33
Assessment on the Level of Awareness
to the Reportorial Requirements
This presents the awareness of the cooperatives on the reportorial requirements
such as the CAPR and the AFS.
Cooperative Annual Performance Report
Table 6 shows the level of awareness of the cooperatives on the reportorial
requirements of the CDA with regards to the CAPR. The CAPR deals with the
requirements and information on the operation of the cooperatives.
Requirements. Table 6 presents the level of awareness about the CDA
prescribed reportorial requirements by the cooperative. Table 5 shows the respondents
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are almost fully aware on the requirements which involves the rules and regulation
of CDA governing/mandating each cooperative on the submission of CAPR, the time
and schedule of preparation of the required report, the mode of submission such as
through registered mail, electronic mail or hand carried to concerned CDA extension
office, the preparation of supporting documents of the required report, preferably
assigned personnel accountant to fill up the CAPR form and CDA assigned personnel
in monitoring the required report of each cooperative.
Table 6. Level of awareness about the CDA prescribed reportorial requirements by the
cooperative.
WEIGTHED
REQIUREMENTS
MEAN
DESCRIPTION
1. Rules and regulation of CDA governing or
mandating each cooperative on the submission of
CAPR.
4.23
Almost fully aware
2. Time and schedule for the submission of CAPR
to CDA.
2.33
Slightly aware
3. Time and schedule of preparation of the required
report.
3.53
Almost fully aware
4. Mode of submission such as through registered
mail, electronic mail or hand carried to concerned
CDA extension office.
3.87
Almost fully aware
5. Preferably assigned personnel (within the
cooperative) to fill up the CAPR form.
3.90
Almost fully aware
6. Preferably assigned personnel accountant to fill
up the CAPR form.
3.90
Almost fully aware
7. Preparation of supporting documents of the
required report.
3.93
Almost fully aware
8. CDA assigned personnel in monitoring the
required report of each cooperative.
3.93
Almost fully aware
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However the respondents are slightly aware on the other requirements involve
such as the time and schedule for the submission of CAPR to CDA. This implies
that majority of the respondents complied on the required reports and have knowledge
on the preparation of CAPR.
Cooperative operational information. Table 7 presents the level of awareness
to cooperative operational information. Table 7 show that the respondents are almost
fully aware with regards to the qualification of management staff in accomplishing
the form and the availability of personnel with knowledge in the preparation of
CAPR. On the other hand, the respondents are moderately aware on the functions
of their staff which differ from their actual job. This indicated that besides the
awareness of the respondents on the qualification and the availability of personnel
there are times that what is being practiced is in contrary with the identified function
of the management staff in accomplishing the form to be submitted to the CDA.
Table 7. Level of awareness to cooperative operational information
COOPERATIVE OPERATIONAL
WEIGTHED
INFORMATION
MEAN
DESCRIPTION
1. Qualification of management staff to
accomplish the form.
3.67
Almost fully aware
2. Availability of personnel with knowledge in the
preparation of CAPR.
3.70
Almost fully aware
3. Functions of staff differ from actual job.
3.33
Moderately aware
Legend:
5 – Fully aware
3 – Moderately aware
1 - Unaware
4 – Almost fully aware
2 – Slightly aware
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Audited Financial Statements
This section shows the level of awareness of the respondents on the reportorial
requirements of the CDA with regards to the AFS. These AFS shows the financial
information and financial records for the preparation of different report of the cooperative.
Financial information. Table 8 revealed that the respondents are almost fully
aware on the financial information such as the time and schedule of CDA on the
submission of AFS, the preparation and updating of the AFS and the assigned
personnel who is tasked to prepare the AFS. On the other hand, the respondents
are moderately aware on adopting the Standard Chart of Accounts prescribed by the
CDA and the accuracy and adequacy of information needed to prepare financial
statements for auditing. The result revealed that the respondents are almost fully aware on
the financial information and have knowledge to prepare the required reports.
Financial records. Table 9 revealed the level of awareness as to financial
information required by CDA report. The respondents are almost fully aware on the
recording of financial transactions of the detailed information on financial condition such
as the assets. Moreover, the respondents are moderately aware on the liabilities and paid-
up share capital, on the detailed information on operations such as the revenues and
expenses, however the respondents are slightly aware on the undivided net surplus. With
regards to the information on loans receivable, the respondents are slightly aware on type
of loan and the maturity of these loans.
Table 9 Further presents the level of awareness as to financial information required
for CDA report. The respondents are slightly aware on the aging of accounts
Table 8. Level of awareness as to the preparation of financial statements
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WEIGTHED
FINANCIAL INFORMATION
MEAN
DESCRIPTION
1. Time and schedule of CDA on the submission
3.77
Almost fully aware
of audited financial statements.
2. Preparation of Audited Financial Statements.
3.80
Almost fully aware
3. Updating the Audited Financial Statements.
3.73
Almost fully aware
4. Preferably assigned personnel (auditor) to
prepare the Audited Financial Statements.
3.57
Almost fully aware
5. Adopting the Standard Chart of Accounts
prescribed by the CDA.
3.47
Moderately aware
6. Accuracy and adequacy of information needed
to prepare financial statements for auditing.
3.36
Moderately aware
receivables on delinquent loans, on the loan loss/ recovery information, the loans to
directors, officers and staff, the allocated net surplus and to the information on investments.
This implies that the respondents lack knowledge on the aging of the account
receivable and loans to directors, officers and staff especially the current loans, loan loss
information and investments in cooperative federation as they are unaware.
This could due to the lack of knowledge of assigned personnel in keeping of records of the
cooperatives. Moreover, the result explained that the keeping of financial transaction on
the different loans including the net surplus is not well recorded and not fully documented.
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Table 9. Level of awareness as to financial information required for CDA reports
WEEIGHTED
FINANCIAL RECORDS
MEAN
DESCRIPTION
Information on Financial Condition
Assets
3.53
Almost fully aware
Liabilities
3.03
Moderately aware
Paid-up share capital
3.13
Moderately aware
Information on Operations
Revenues
2.83
Moderately aware
Expenses
2.90
Moderately aware
Undivided net surplus
2.53
Slightly aware
Information on Loans Receivable
By type of loan
2.00
Slightly aware
By maturity
2.07
Slightly aware
Aging of Account Receivables
Current loans
1.43
Unaware
Delinquent loans
2.00
Slightly aware
Loans outstanding with one-day missed
payments up to 30 days.
2.07
Slightly aware
Loans outstanding with missed payments of
31 days up to 12 months.
2.03
Slightly aware
Loans outstanding with over twelve months
missed payments.
2.03
Slightly aware
Loan loss/ recovery Information
Loans written off during the year.
1.93
Slightly aware
Loans recovered within the year.
1.93
Slightly aware
Loans to Directors, Officers and Staff
Loan information
2.23
Slightly aware
Loan loss information
1.27
Unaware
Allocated Net Surplus
Mandatory reserves allocation
2.07
Slightly aware
Amount available for members
2.30
Slightly aware
Information on Investments
Long-term deposits in banks
1.90
Slightly aware
Investments in cooperative federation
1.47
Unaware
Government securities
2.13
Slightly aware
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Table 9. Continued…..
WEIGTHED
PARTICULARS
MEAN
DESCRIPTION
Information on External Borrowings
Foreign loans
1.33
Unaware
Currents loans
1.37
Unaware
Information on Savings Deposits
Withdrawable savings deposits
1.80
Unaware
Time deposits
1.77
Unaware
30 days
1.53
Unaware
More than 30 days to 90 days
1.43
Unaware
More than 90 days to 1 year
1.43
Unaware
More than 1 year to 5 years
1.40
Unaware
More than 5 years
1.53
Unaware
Non-withdrawable savings
2.03
Slightly aware
Operational Information. Table 10 presents the level of awareness of personnel to
prepare financial reports. The respondents are moderately aware on the operational
information such as the inadequacy of training of staff, availability of budget or
financial transactions to audit and the availability of personnel in the preparation of AFS.
This implies that the inadequacy of operational information of the AFS is due to lack of
Table 10. Level of awareness of personnel to prepare financial reports
WEIGTED
OPERATIONAL INFORMATION
MEAN
DESCRIPTION
1. Inadequacy of training of staff
2.67
Moderately aware
2. Availability of budget/financial transactions to audit
2.90
Moderately aware
3. Availability of personnel in the preparation of
audited financial statements.
2.73
Moderately aware
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training of the staff and the unavailability of budget and personnel at some point.
Factors Affecting Non-compliance of Primary
Cooperative on Reportorial Requirements
This section presents the personnel and financial and operational information on
factors affecting the non-compliance of primary cooperatives on reportorial requirements.
Personnel information. Table 11 presents the level of awareness about the
problems affecting the personnel or staff to prepare the report. The respondents are
neutral on the personnel information such as the cooperative management lack
bookkeeper. In addition the respondents disagreed on the personnel information especially
whether the personnel in charge in preparing reports lack knowledge in bookkeeping or
accounting and the bookkeeper being untrained. This further implies that the respondents
have bookkeeper who have knowledge on the preparation of different records to be audited.
Table 11. Level of awareness about the problems affecting the personnel or staff to prepare
the reports
WEIGTHED
PERSONNEL INFORMATION
MEAN
DESCRIPTION
1. Cooperative management lack bookkeeper
2.76
Neutral
2. Personnel in charge in preparing reports are
lack of knowledge in bookkeeping/accounting
2.03
Disagree
3. Untrained bookkeeper.
2.43
Disagree
Legend:
5 – Strongly agree
3 – Neutral
1 – Strongly disagree
4 – Agree
2 – Disagree
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Financial and operational information. Table 12 shows the level of awareness
about the factors affecting the preparation of financial statement. The respondents
are neutral on complete and accurate detailed information on financial condition and
operation on paid-up share capital and expenses. On the other hand, the respondents
disagreed on the financial and operational information on the completeness and
accurateness of the detailed information on financial condition on the assets,
liabilities, completeness and accurateness detailed information on operations on the
revenues and undivided net surplus, completeness and accurateness of the loans
receivable on the type of loan and maturity of loan, inadequacy and inaccuracy of
records on aging of accounts receivable, loan loss or recovery information on loans
recovered within the year and inaccuracy and inadequacy of records on loans to
directors, officers and staff.
This implies that the respondents lack knowledge and records in preparing
the reports to be submitted especially the inadequacy and inaccuracy of records on
the loan loss or recovery information on loans written off during the year as they
strongly disagreed.
Table 12 presents the factors affecting the non-compliance on reportorial
requirements of primary cooperatives in La Trinidad. The table shows that the
respondents disagreed on the inadequacy and inaccuracy of records on loan to
directors, officers, and staff on loan and loan loss information, the inadequacy and
inaccuracy of records on allocated net surplus on the amount available for members
and the completeness and accurateness of information on investment in cooperative
federation.
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Thus, it implies that these factors affecting the non-compliance of primary
cooperatives on the reportorial requirements of financial and operational information
are not complete and accurate especially the mandatory reserves allocation, long
term deposits in banks, government securities, foreign and current loans, and the
completeness and accurateness of information on savings deposits as they are strongly
disagree.
Furthermore it could be by the function of management and the cooperation
of the respondents to prepare the records undertaken to be submitted to the CDA
to avoid fines or penalties of being delayed in the submission of the different reports
as stated by Zubiri (2008) and for the issuance of CGS as stated by Santiaguel
(2011).
As explained by the respondents they just have their financial and operational
information on the detailed information on financial condition and operation because
they just engage on small cooperatives. Furthermore the other financial and
operational information are not available to them because they are just engage in
sari-sari store and they are just newly registered cooperative.
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Table 12. Level of awareness about the factors affecting the preparation of AFS
FINANCIAL AND OPERATIONAL
WEIGHTED
INFORMATION
MEAN
DESCRIPTION
Complete and accurate detailed information on
financial condition.
2.26
Disagree
Assets
Liabilities
2.63
Disagree
Paid-up share capital
2.83
Neutral
Complete and accurate detailed information on
operations.
Revenues
2.33
Disagree
Expenses
3.30
Neutral
Undivided net surplus
2.36
Disagree
Complete and accurate information on loans
receivable.
By type of loan
2.13
Disagree
By maturity
2.06
Disagree
Inadequate and inaccurate records on aging of
accounts receivable.
Current loans
1.90
Disagree
Delinquent loans
1.90
Disagree
Loans outstanding with one-day missed
payments up to 30 days.
1.90
Disagree
Loans outstanding with missed payments of
31 days up to 12 months.
2.00
Disagree
Loans outstanding with over 12 months
missed payments.
1.93
Disagree
Inadequate and inaccurate records on loan
loss/recovery information.
Loans written off during the year.
1.83
Strongly disagree
Loans recovered within the year.
2.00
Disagree
Inadequate and inaccurate records on loans to
directors, officers and staff.
Loan information
1.90
Disagree
Loan loss information
1.93
Disagree
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Table 12. Continued…..
WEIGTHED
PARTICULARS
MEAN
DESCRIPTION
Inadequate and inaccurate records on allocated net
surplus
Mandatory reserves allocation
1.83
Strong disagree
Amount available for members
1.96
Disagree
Complete
and
accurate
information
on
investments.
1.80
Strongly disagree
Long-term deposits in banks
Investments in cooperative federation
1.97
Disagree
Government securities
1.77
Strongly disagree
Complete and accurate information on external
borrowings.
Foreign loans
1.43
Strongly disagree
Currents loans
1.40
Strongly disagree
Complete and accurate information on savings
deposits.
Withdrawable savings deposits
1.53
Strongly disagree
Time deposits
1.50
Strongly disagree
30 days
1.60
Strongly disagree
More than 30 days to 90 days
1.33
Strongly disagree
More than 90 days to 1 year
1.30
Strongly disagree
More than 1 year to 5 years
1.40
Strongly disagree
More than 5 years
1.30
Strongly disagree
Non-withdrawable savings
1.80
Strongly disagree
Suggestions of the Cooperatives Regarding
the Submission of Reportorial
Requirement to the CDA
Some of the cooperatives suggested the submission of AFS only to avoid
confusion in the preparation of the CAPR. Moreover, some of the respondents
suggested that the CDA should provide a pre-formatted form on the different reports
and distribute to each of the active cooperatives. Lastly, they also proposed that the
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CDA should assigned personnel to monitor each cooperative to know the problems
or needs of the respondents for non-compliance on the required reports.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine the level of awareness on the different
reportorial requirements to the CDA particularly in La Trinidad, Benguet. It also
aimed to identify the factors affecting non-compliance of primary cooperative on the
reportorial requirements. It further aimed to identify the suggestions from cooperatives
in compliance with the reportorial requirements.
Level of awareness on the non-compliance of reportorial requirements was
measured into five: (5) fully aware, (4) almost fully aware, (3) moderately aware,
(2) slightly aware, (1) unaware and (1) strongly disagree, (2) disagree, (3) neutral
(4) agree, strongly agree.
There are 226 cooperatives operating in La Trinidad, Benguet. Thirty (30)
primary cooperatives were selected as respondents for the non-compliance on
reportorial requirements.
A survey questionnaire was used to gather necessary data from the managers
and staff of the cooperatives as the respondents. Personnel interview was also done
to supplement the data gathered. Secondary data were also taken from the CDA
specially the data on the different cooperatives involve in non-compliance of reports
from 2007 to 2010.
The study on the information about the cooperative presents the brief profile
of the cooperative, the registration and organization, the profile of the members
such as the number of membership and the status of membership, the attendance of
members to the PMES, the attendance of officers to seminars or trainings and the
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profile of the management staff employed such as the number of staff and their
positions or functions and their attendance to trainings and seminar. The result
revealed that some of the respondents attended the seminars or training while some
are not attending. And about half of the cooperatives employ three staff. The results
further revealed that majority of the respondents are slightly aware on the level of
awareness on reportorial requirement of cooperatives such as the CAPR and AFS.
On the other hand, majority of the respondents disagreed on the factors affecting
the preparation of reportorial requirements involving the financial records and
operational information of the cooperative. Furthermore on the suggestions most of
the respondents proposed that they just only submit the AFS so as not to confuse the
preparation and submission of other reports to the authority.
Conclusions
Based on the findings the following conclusions were drawn:
1. Some of the cooperatives are not updated on the activities undertaken;
2. Some of the cooperatives are not complying because they lack staff to prepare
the different report to be submitted to the CDA as requirements;
3. Some of the cooperatives are not complying because they lack time in the
preparation of reports required;
4. Some of the cooperatives do not maintain the preparation of AFS even if it is
required due to lack of cooperation;
5. Some of the cooperatives are not complying because of insufficient budget for
the preparation of AFS of records;
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6. Some of the cooperatives are not complying because of lack knowledge of
bookkeeper on the preparation of required reports;
7. Some of the cooperatives are not complying because they fail to follow the
prescribed rules and regulations of the Authority regarding the submission of the required
reports;
8. Not all the cooperatives have a manager and a bookkeeper;
9. Some of the cooperatives have only one staff which is below the minimum
required number of staff; and,
10. Some of the registered primary cooperatives in La Trinidad, Benguet are
currently operating. However, some of the listed cooperatives are not located at their
registered address.
Recommendations:
Based on the findings and conclusions the following recommendations were
introduced:
1. The CDA should come up with a systematized way of monitoring and evaluating
the cooperatives to determine whether the cooperative is operating in accordance with the
rule and regulations of the CDA;
2. The Authority should continuously inform the cooperative in case there are
changes with the policies set by them;
3. The CDA should provide seminars on bookkeeping and accounting for small
cooperatives that cannot sponsor training or cannot afford to send their staff to training and
seminars. These concerned cooperatives could also seek help from the big cooperatives to
provide them tutorial on bookkeeping and accounting;
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4. The CDA should monitor the availability of staff, manager, officers of the
cooperative to do the preparation of required reports to be submitted specially the small
cooperatives;
5. The CDA should check the timing and schedule of submission of the required
reports;
6. The respondents should follow the rules and regulations of the CDA to avoid
delay on the submission of reports and to avoid penalties; and,
7. Each of the cooperative must have a manager as prescribed by the rules and
regulations of the Philippine Cooperative Code.
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LITERATURE CITED
AGAPITO, B. A. 1991. Primer on the cooperative code of the Philippines (RA No. 6938)
P. 21.
AQUINO, A. B. 2008. Philippine Cooperative Code, (RA No. 9520), and Implementing
Rules & Regulations P. 29 & Pp. 121-123.
BENGAWEN, M. P. 2002. Evaluation of cooperative policies managed and practiced.
MS thesis. Benguet State University La Trinidad, Benguet. P. 12.
PHILIPPINE COOPERATIVE CODE of 2008. Published by Atty. Fred March 9th, 2009
in Cooperatives and Corporate and Investments.
PIMENTEL, Q. A. & R. M. CUA, 1999. Cooperative Code of the Philippines;
Theory, Law and Practice. Pp. 91-95.
SANTIAGUEL, S. M. 2011. Cooperative Development Authority, Memorandum Circular
No. 2011-2016 Revised Guidelines Governing the Issuance of Certificate of Good
Standing (CGS).
ZUBIRI, JM. F. 2008. Philippine Cooperative Code, (RA No. 9520) Pp. 51-52 & Pp. 143-
145.
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GUIVES, ARCELI AWAS. OCTOBER 2012. Non-compliance on reportorial
requirements of primary cooperative in La Trinidad. Benguet State University, La
Trinidad, Benguet.
Adviser: SAMUEL L. DUYAN, BS
ABSTRACT
There were 77 primary cooperatives in La Trinidad, Benguet, but 30 of these
cooperatives did not comply with the required reports to the Cooperative Development
Authority (CDA). They were involved in this study with the managers and the staff as the
respondents. Survey questionnaire and observation were used to collect the needed
information. Secondary data were also taken from the Cooperative Development
Authority on the non-compliance on reportorial requirements among the different
cooperatives in La Trinidad, Benguet.
The results of the study showed that 43.33% of the cooperatives operating in the
barangay started as a sari-sari store, 33.33% of the cooperatives employed three staff and
majority of the cooperatives were registered in the year 2010. 50% of the cooperatives
members attended the Pre-membership Education Seminar (PMES) provided by them. On
the other hand, 23.33% of the cooperatives sent their members and staff to attend seminars
conducted by other institutions, besides they also conduct training and seminar but majority
of the officers did not attend. 60% of the cooperatives officers and members did not
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participate on the activities undertaken by the cooperative. With regards to the level of
awareness on required reports, 66.67% of the respondents have knowledge on the
preparation of the records. Moreover, the levels of awareness on the different reportorial
requirements of the study were 76.67% of the respondents are aware on the submission of
reports. However the factors affecting the non-compliance on reportorial requirements of
primary cooperatives in La Trinidad, Benguet were lack of records needed in the
preparation in auditing the required reports, lack knowledge in bookkeeping or accounting,
untrained bookkeeper and lack of cooperation.
There were 16.67% of the respondents who suggested that they should submit the
Audited Financial Statement (AFS) form to avoid confusion in the submission of the
different required reports. Likewise the same number of respondents suggested that the
authority should provide a pre-formatted form on the different reports and distribute to all
the active cooperatives. Accordingly, 10% of the respondents proposed that the CDA
should assign personnel responsible for monitoring each cooperatives and for identifying
the needs or problems affecting each of the non-compliance cooperative.
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INTRODUCTION
Rationale
It is a common knowledge that a cooperative is a way of life, for the reason that
government is bending on making cooperative as a strategy to promote national
development. In this connection the government adopted several policies such as the
cooperative law which has adopted to foster the creation and growth of cooperative as a
practical vehicle for the promotion of self-reliance and harnessing people power toward
the attainment of economic development and social justice. The law further provides
important benefits to all cooperatives and their members (Zubiri, 2008).
In fact the cooperative as a way of life must engage in business with service above
profit. In relation, the government has to foster peace and order or has to provide
environment that is conducive to cooperative business.
Besides, the municipality of La Trinidad, Benguet is observing the implementation
of the cooperative objective of improving the quality of life of its members thus, engaging
in several cooperative undertakings. Likewise, the municipality has a total of 77 registered
primary cooperatives of which two are credit cooperatives and 75 are multi-purpose
cooperatives. And out of the total number of registered primary cooperatives, 30 are non-
compliance on the reportorial requirements while 47 are compliance.
As required by the CDA, all registered primary cooperatives must submit the annual
reports every end of calendar year which include the Cooperative Annual Performance
Report (CAPR) and the AFS. The annual reports shall be submitted to the Authority within
120 days from the end of the calendar year. Moreover, failure to comply with the required
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reports may subject the accountable officers and the cooperative to fines and penalties as
may be prescribed by the Authority.
As such, the research aimed to study the level of awareness on the reportorial
requirements and the factors affecting the non-compliance on the reportorial requirements
of the primary cooperatives and to get suggestions from cooperatives in compliance with
the reportorial requirements of the CDA.
Statement of the Problem
This study aimed to answer the following questions:
1. What is the level of awareness on the different reportorial requirements?
2. What are the factors affecting the non-compliance on reportorial requirements of
primary cooperatives to the CDA?
3. What are the suggestions from cooperatives in compliance with the reportorial
requirements of the CDA?
Objectives of the Study
The study aimed to:
1. To determine the level of awareness on the different reportorial requirements;
2. To identify the factors affecting non-compliance of primary cooperative on the
reportorial requirements; and,
3. To get suggestions from cooperatives on how they could comply with the
reportorial requirements.
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Importance of the Study
This study was conducted to provide information to the CDA about the non-
compliance on reportorial requirement of primary cooperative in La Trinidad, Benguet.
This would serve as reference for future researchers and basis for the Authority and other
interested agencies to improve the monitoring programs of the cooperatives.
Scope and Delimitation of the Study
The study focused on the non-compliance on reportorial requirement of primary
cooperatives in La Trinidad, Benguet from year 2007 to year 2010.
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REVIEW OF LITERATURE
Definition of Cooperative
Cooperative is an autonomous and duly registered association of persons, with a
common bond of interest, who have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with universally accepted cooperative
principles (Fred, 2009).
Annual Reports of the Cooperatives
All registered primary cooperatives must submit the different annual reports
required by the CDA every end of calendar year, to show its program of activities,
including those in pursuance of their socio-civic undertakings, showing their progress and
achievements for the assessment of vision, mission, goals and social responsibility of the
cooperatives for monitoring the status not only to its members but also to the community.
These reports are the CAPR and AFS.
The annual report shall be filed to the Authority within 120 days from the end of the
calendar year, and shall be as prescribed by the rules of the Authority. Failure to submit
the required reports shall subject the accountable officers to fines and penalties as may be
prescribed by the Authority, and shall be a ground for the revocation of the Authority of
the cooperative to operate. If a cooperative fails to make, publish and file the reports
required by the Code, the Authority shall, within fifteen (15) days from the expiration of
the prescribed period, send such cooperative a written notice, stating to its non-compliance
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and the commensurate fines and penalties that will be imposed until such time that the
cooperative has complied with the requirement (Agapito, 1991).
Definition of Reportorial Requirements
of the Cooperative
1. Cooperative Annual Performance Reports (CAPR) – is a cooperative reporting
instruments which CDA collects annual financial and operational data for all types of
registered cooperatives, replaces the Annual Report (AR), General Information Sheet
(GIS) and the Inspection Working Paper (IWP) to provide information regarding the status
and performance of specific cooperative, to help CDA gather and consolidate data that will
provide cooperatives information on how their operations fair with other cooperatives in
the same category, provide relevant and useful information for off-site supervision of
cooperatives engaged in savings and credit services, provide useful information for
deputized supervisors in determining the scope of examination and to provide updated
information on the cooperative sector.
2. Audited Financial Statements - is the report attachment of the CAPR on the
different report undertaken by the cooperative. That this reports contains the financial
transactions of the cooperatives for the preparation of AFS of different records to
the Statement of Financial Condition and Statement of Operation by which the
financial information of the cooperative were accumulated and processed, it refers to
the primary purpose of engaging in savings and other financial services of primary
cooperative.
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Considerations on Delayed Reports
All registered cooperatives shall submit the reports on time, the failure to submit
reports on time shall be considered as delay or default. However, if the failure to submit
the reports on time is due to fortuitous events; such as fire and other natural calamities and
public disorders including strike or a national emergency which effects the operation of the
cooperative, the failure shall not be considered a delay. Provided, that the Authority shall
be officially notified of the occurrence of such fortuitous events. Delay or default shall
commence on the day following the last day required for the submission of reports.
However, should the last day of filing falls on a non-working day in the locality where the
reporting cooperative is situated, delay or default shall start to run on the day following the
next working day. For the purpose of establishing delay or default, the date of
acknowledgement by the Authority appearing on the copies of such reports filed or
submitted or mailing postmarked on the enveloped the date of registry or special delivery
receipt, or the date that electronic mail was sent as the case may be shall be considered as
the date of filing (Zubiri, 2008).
Sanction for Delayed Submission of Reports
Failure to file the required reports on time shall subject the Accountable Officer to
pay a fine of 100.00 pesos per day of delay. Within thirty (30) calendar days upon receipt
of Statement of Accounts, the accountable Officer may request for Reconsideration of such
fine of the grounds of fortuitous event and court litigation/order, which the Authority shall
act upon within sixty (60) calendar days otherwise the sanctions, shall be deemed lifted.
The decision of the Authority shall become final and executor. Other than the imposition
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of monetary penalties, the authority may dissolve/revoke, after due process, the authority
of the cooperative to operate (Zubiri, 2008).
Policy on Issuing the Certificate of
Good Standing to Cooperatives
Cooperative Development Authority is the agency in charge in monitoring the
different annual reports of each registered primary cooperatives every end of fiscal year.
That all cooperatives should submit the required requirements as provided by the Republic
Act 6938 and 9520 of the Philippine code of cooperative, here by promulgates providing
the incentives for the guideline, to govern the issuance of Certificate of Good Standing
(CGS).
Set the requirements as provided for in the Cooperative Code of the Philippines of
2008 (RA 9520) and the charter of CDA (RA 6939), establish the administrative
responsibilities of the concerned office/unit within the Authority to ensure the proper
implementation of this guideline, and establish standards for the availment of incentives
and privileges accorded to cooperatives by other institutions (Santiaguel, 2011).
Purpose of Issuing Certificate of Good Standing
There are two purpose of issuing CGS for cooperatives the regular purpose and the
special purpose. Which the regular purpose CGS is for the purpose of complying with the
mandatory requirements as required by RA 9520 and to avail the incentives and privileges
under the Cooperative Development Authority–Bureau Internal Revenue (CDA-BIR) joint
Rules and Regulations Implementing Articles 60 and 61 of RA 9520 in relation to RA 8424
and the requirements of Local Government Units (LGUs) permits and licenses. The special
purpose for the application is for CGS may only be issued to a cooperative for a special
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operation. In case of importation purpose, application shall be subject to further evaluation
by the authority to determine the capability of the cooperative to avail the privileges
granted to cooperatives (Santiaguel, 2011).
Requirements for granting Certificate of
Good Standing for Regular Purpose
1. Letter request duly signed by the Cooperative Chairman or any authorized
representative of the requesting cooperative stating therein the reasons for such request.
2. Proof of compliance to statutory reports for the preceding fiscal year or complete
copies thereof.
3. Copy of the updated bond of accountable officers or employees of the
Cooperative.
4. Minutes of the General Assembly Meeting for the current or preceding year
including the results of the election of the Board of Directors and the Committee Members,
approval of development plan and/or annual plan and budget, and acceptance of General
Assembly of financial statements, management and committee reports.
5. Certificate fee
Requirements for Granting Certificate of
Good Standing for Special Purpose
1. Letter request duly signed by the Cooperative Chairman or any authorized
representative of the requesting cooperative stating therein the reasons for such request.
2. Copy of latest Certificate of Good Standing issued for regular purpose for the
preceding year or current year, whichever is applicable.
3. Favorable endorsement from the concerned Extension Office.
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4. Certification Fee
Purpose for the Requirements
Upon submission of the different required reports, CDA is in charge in monitoring
the status of cooperatives, to guide the good management and continuous operation of the
cooperative in acquiring the different reports required, to assess each social needs and
economic development of the cooperatives in terms of complying the reportorial
requirements, to assigned personnel for the submission of reports required, and to monitor
the programs of activities undertakings by the cooperatives every end of calendar year for
the issuance of CGS after submitting all the required reports.
Reports as Basis for Monitoring
Manager of the cooperative must need to study cooperative laws and policies
which are workable and at the same time could be attributed to the successful
operation of the cooperative, must have initiative to plan the work of the whole
cooperative to follow up the reports to work as a team that must be able to work
in the submission of reportorial requirements to the CDA, this report are the CAPR
and AFS reports. Based on the results monitored by the Authority in each year they
identified the cooperatives that are non-compliance and compliance of required reports,
from La Trinidad, Benguet and comparing it to the other municipalities of the
Province of Benguet. Table 1 presents the number of non-compliance cooperatives
in La Trinidad Benguet from 2007 to 2010.
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Table 1. Number of non-compliance cooperatives in Benguet
YEAR
TOWN
2007
2008
2009
2010
Atok
1
3
3
2
Bakun
1
0
2
0
Bokod
1
0
2
2
Buguias
3
4
4
3
Itogon
6
1
11
2
Kabayan
1
0
2
0
Kapangan
0
2
1
1
Kibungan
3
3
5
1
La Trinidad
7
9
11
3
Mankayan
1
3
2
2
Sablan
0
1
4
3
Tuba
1
1
5
1
Tublay
0
1
1
0
TOTAL
25
28
53
20
Conceptual Framework of the Study
The frame of the study determines the level of awareness on the reportorial
requirements of the CDA. It also involves identifying the different factors affecting
the non-compliance of the primary cooperatives in La Trinidad, Benguet. Furthermore,
it seeks to identify suggestions from the non-compliance cooperatives.
Input
Thru-put
Output
Operation policies
Data gathering
Level of awareness for
non-compliance
Management
Analysis
responsibility
Factors for non-compliance
Monitoring the
progress of
Suggestions
cooperatives
Figure 1. Paradigm of the study
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Definition of Terms
Accountable officers – shall refer to persons directly responsible for handling funds,
securities and properties of the cooperative such as, but not limited to the Chairman,
manager, treasurer, Cashier, Secretary and such other persons as may be authorized by the
cooperative to act as custodian of funds, merchandise, inventories, securities and other
assets of the cooperative.
Authority – refers to the Cooperative Development Authority (CDA).
Certificate of Good Standing (CGS) – is a certificate issued by the Authority to the
operating cooperatives that have complied with the mandatory requirements as provided in
RA 9520, IRR and other administrative issuances which entitle cooperatives to avail
incentives and privileges accorded to them.
Compliance - the act or process of complying with a desire, demand, proposal, or
the conformity in fulfilling official requirements of the cooperative to CDA.
Cooperative activities – refers to the membership, governance and institutional
undertaking of the cooperatives.
Cooperative Development Authority (CDA) – this is the government agency in
charge of the registration and regulation of the cooperative as such, herein referred to as
the Authority.
Legitimate purposes – refers to the any purpose that is not contrary to law, moral,
public policy.
Non-compliance – failure to submit the reportorial requirement to the authority or
failure to obey.
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Operating cooperative - refers to cooperative that has been performing cooperative
activities with business operations whether realizing gains or losses in the conduct of
business. The business operation requirement can be waived only to the newly registered
cooperatives existing for not more than one (1) year from the date of its registration.
Preceding fiscal year – shall refer to the fiscal year immediately preceding the date
of regular CGS issuance.
Reportorial requirement - a report details of cooperatives activities throughout the
fiscal year or calendar year.
Reports - shall refer to any documents or statements required from cooperatives to
be submitted to the Authority on a regular basis.
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METHODOLOGY
Locale and Time of the Study
The study in non-compliance on reportorial requirements of primary cooperatives
was conducted in La Trinidad, Benguet from April to May 2012.
Respondents of the Study
There were seven non-compliance cooperative in 2007, nine in 2008, eleven in 2009
and three in 2010. Using total enumeration, there were 30 respondents of the study. These
were the managers and staff of the non-compliance primary cooperatives in La Trinidad,
Benguet.
Data Collection Procedure
Data were collected through the use of survey questionnaires, personal interview
and observation. A secondary data were requested from the CDA to suffice the data needed.
Data Gathered
The data gathered were the level of awareness on the different reportorial
requirements, the factors affecting the non-compliance on required reports, and the
suggestions from cooperatives in the compliance on reportorial requirements to the CDA.
Data Analysis
The data collected were tabulated, analyzed and summarized with the use of
frequency count and percentage.
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RESULTS AND DISCUSSION
Information about the Cooperative
This section presents a brief profile or information of the primary cooperative
studied. It includes the registration of the cooperative, how the cooperative was
organized, the profile of the members such as the number of membership and the
status of membership, the attendance of members to the Pre-membership Education
Seminar (PMES), the attendance of officers to seminars or trainings and the profile
of the management staff employed such as the number of staff and their positions
or functions and their attendance to trainings and seminar.
Registration date. Based on the data given by the CDA, majority of the
cooperatives were registered to the CDA in 2010. These cooperatives were registered
under the new Republic Act 9520 or also known as the Philippine Cooperative Code
of 2008. Out of 30 non-compliance cooperatives in La Trinidad, Benguet 21 of them
was registered in 2010, while nine cooperatives were registered in 2009. This results
revealed that most of the primary cooperatives in La Trinidad, Benguet involve in
non-compliance on reportorial requirements were registered in 2010. Table 2 presents
the registration date of the non-compliance primary cooperatives on the reportorial
requirements as of 2007 to 2010.
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Table 2. Registration date of the non-compliance cooperatives
DATE OF
NAME OF THE COOPERATIVES
REGISTRATION
1. Alno Rural Community Development Cooperative
10/22/2009
2. Ambiong la Trinidad MPC
03/22/2010
3. Balangbang MPC
03/17/2010
4. Bantay Consumers Cooperative
03/02/2010
5. Benguet Agricultural & Fishery Cooperative (BAFCO)
03/05/2010
6. Benguet Farmers Development MPC
02/22/2010
7. Cordillera College Employees MPC
03/22/2010
8. Cordillera Development MPC
11/03/2009
9. Cordillera Regional Science High School Cooperative
10/14/2009
10. Craftman International Training Center Service Cooperative
08/18/2009
11. DEP-ED CAR Regional Office Employees Cooperative
03/22/2010
12. Guitley MPC
01/22/2010
13.Highland Emergency Action & Response Team (HEART)
Cooperative
03/21/2009
14. Highland Vegetables Suppliers MPC
03/22/2010
15. La Trinidad MP Housing Cooperative
03/09/2010
16. La Trinidad Municipal Employees MPC
03/18/2010
17. La Trinidad Police Credit Cooperative
03/22/2010
18. La Trinidad Strawberry MPC
02/16/2010
19. La Trinidad Vegetables trading Post
10/30/2009
20 La Trinidad Vendors Cooperative
03/22/2010
21. Lamtang MPC
03/22/2010
22. Landbank Employees & Associates MPC
03/22/2010
23. Land Reform Cooperative
04/12/2009
24. Linosod Farmers MPC
03/21/2010
25. Longlong Puguis La Trinidad MPC
02/22/2010
26. Lubas MPC
02/17/2010
27. Mega Realm Cooperative
03/22/2010
28. Safid Credit Cooperative (SACREDO)
11/24/2009
29. Seeds and Fruits MPC
01/20/2010
30. Winterland Marketing Cooperative
09/09/2009
Organization of the cooperative. Each of the cooperative was organized through
the efforts and unity of people in the community. Some of the cooperatives were
organized for the farmers. These cooperatives were established through the availability
of the people who have knowledge to organize such cooperative and the ability of
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these people to lead. Some of the cooperative started as a sari-sari store until they
registered to the CDA.
The registration of cooperative to the Authority is to meet the needs of the
members, to participate in the socio-economic and political development of the
cooperatives and to help the farmers become active producers of any crops providing
them additional income and improving their standard way of living. Furthermore
some of the cooperatives were organize through the consumers or users of domestic
water system founded by the Non-government Organization (NGO). These NGO’s
assisted the water organization in its essential registration to the CDA, the farmers,
the community and the association of employees in putting up cooperatives.
Table 3 presents the organization of the cooperatives according to each type
of cooperative. Table show that 16 (53.33%) of the respondents are engage on
Multi-purpose Cooperative, three (10%) engage on Consumers Cooperative and two
(6.67%) engages on Credit Cooperative. However, some of the respondents are
engage on the different types of cooperatives such as Marketing, Service, Agrarian
reform, Education, Fishermen, Health service, Housing, Water service and Workers
Cooperatives. This implies that majority of the respondents are engage on Multi-
Purpose Cooperative types of cooperatives.
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Table 3. Organization of the cooperatives according to the type of cooperative
FREQUENCY PERCENTAGE
TYPES OF COOPERATIVES
F
%
1. Credit cooperative
2
26.67
2. Consumers cooperative
3
10.00
3. Marketing cooperative
1
03.33
4. Service cooperative
1
03.33
5. Multi-purpose cooperative
16
53.33
6. Agrarian reform cooperative
1
03.33
7. Education cooperative
1
03.33
8. Fishermen cooperative
1
03.33
9. Health service cooperative
1
03.33
10. Housing cooperative
1
03.33
11. Water service cooperative
1
03.33
12. Workers cooperative
1
03.33
Profile of the Members
This section presents the number of members and status of membership of the
cooperatives involve in non-compliance on reportorial requirement.
Number of members. Table 4 shows that 50% of the cooperative has a number of
members ranging from 51 to 100, this followed by 36.67% of the cooperative with 1 to 50
members. This indicates that most of the non-compliance cooperative has a less number of
members.
Status of membership. Table 4 also presents the status of membership of the
cooperative. All of the non-compliance cooperatives are active regardless as to these
cooperatives fail to comply on some of the reportorial requirements.
Attendance of Members to the PMES
Table 4 shows that majority of the respondents monitored the attendance of their
members to the PMES. This implies that majority of the primary cooperatives complied
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with the cooperative principle of education and information. However, 46.67% of these
non-compliance cooperatives did not implement this principle.
Attendance of Officers to Training or Seminars
Table 4 presents that 16 (53.33%) of the respondents did not attend training or
seminars. However, 14 (46.67%) of the respondents attended this activity. As explained by
the respondents, although there is training or seminars they were not informed about it.
They also claimed that the distance of the venue of training or seminars and their being
busy at work reasons them not to attend. Lastly, the absence of training or seminars
undertaken by the cooperative is another reason for not attending.
Table 4. Profile of the members, attendance of members to PMES and attendance of
officers to training and seminars
FREQUENCY PERCENTAGE
PARTICULARS
F
%
Profile of the Members
a. Number of the Members
1 – 50
11
36.67
51 – 100
15
50.00
101 – 150
2
06.67
151 – 200
0
00.00
201 – 250
1
03.33
251 – 300
1
03.33
b. Status of Membership
Active
30
10.00
Attendance of Members to the PMES
Yes
16
53.33
No
14
46.67
Attendance of Officers to trainings/Seminars
Yes
14
46.67
No
16
53.33
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Management Staff Employed
This section presents the number of staff, their positions or functions and
their attendance to training or seminars. There were 77 cooperatives in La Trinidad,
Benguet but 30 of these cooperatives failed to comply the reportorial requirements
with the CDA
Number of staff. Table 5 presents a great number 13 (43.33%) of the
respondents who employ three staff in the cooperative. There are 23.33% (7) who
employ two staff and there are 20% or six who employ only one. The other
cooperatives employ four, five, six and seven which is 3.33% or one.
Positions or functions. Table 5 also shows the profile of management staff
employed according to the positions or functions. There are 36.67% (11) of the
respondents who employ a secretary, 30% (9) who employ treasurer, six (20%) who
employ sales clerk, five (16.67%) who employ storekeeper, four (13.33%) who
employ cashier and lastly is one (3.33%) who employ accountant.
Attendance to training or seminars. Table 5 further shows the attendance of the
staff to training or seminars. It can be seen from the table that majority of the
respondent’s staff are not attending trainings or seminars. These were the cooperatives
that do not require attendance of their staff to training or seminar. However the
cooperatives required their staff to attend training or seminars has yielded 14
(46.67%).
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Table 5. Management staff employed
FREQUENCY PERCENTAGE
MANAGEMENT STAFF EMPLOYED
F
%
a. Number of Staff
1
6
20.00
2
7
23.33
3
13
43.33
4
1
03.33
5
1
03.33
6
1
03.33
7
1
03.30
b. Positions/Functions
Secretary
11
36.67
Treasurer
9
30.00
Bookkeeper
7
23.33
Storekeeper
5
16.67
Sales clerk
6
20.00
Cashier
4
13.33
Accountant
1
03.33
c. Attendance to training/seminars
Attended training or seminars
14
46.67
Have not attended any training or seminars
16
53.33
Assessment on the Level of Awareness
to the Reportorial Requirements
This presents the awareness of the cooperatives on the reportorial requirements
such as the CAPR and the AFS.
Cooperative Annual Performance Report
Table 6 shows the level of awareness of the cooperatives on the reportorial
requirements of the CDA with regards to the CAPR. The CAPR deals with the
requirements and information on the operation of the cooperatives.
Requirements. Table 6 presents the level of awareness about the CDA
prescribed reportorial requirements by the cooperative. Table 5 shows the respondents
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are almost fully aware on the requirements which involves the rules and regulation
of CDA governing/mandating each cooperative on the submission of CAPR, the time
and schedule of preparation of the required report, the mode of submission such as
through registered mail, electronic mail or hand carried to concerned CDA extension
office, the preparation of supporting documents of the required report, preferably
assigned personnel accountant to fill up the CAPR form and CDA assigned personnel
in monitoring the required report of each cooperative.
Table 6. Level of awareness about the CDA prescribed reportorial requirements by the
cooperative.
WEIGTHED
REQIUREMENTS
MEAN
DESCRIPTION
1. Rules and regulation of CDA governing or
mandating each cooperative on the submission of
CAPR.
4.23
Almost fully aware
2. Time and schedule for the submission of CAPR
to CDA.
2.33
Slightly aware
3. Time and schedule of preparation of the required
report.
3.53
Almost fully aware
4. Mode of submission such as through registered
mail, electronic mail or hand carried to concerned
CDA extension office.
3.87
Almost fully aware
5. Preferably assigned personnel (within the
cooperative) to fill up the CAPR form.
3.90
Almost fully aware
6. Preferably assigned personnel accountant to fill
up the CAPR form.
3.90
Almost fully aware
7. Preparation of supporting documents of the
required report.
3.93
Almost fully aware
8. CDA assigned personnel in monitoring the
required report of each cooperative.
3.93
Almost fully aware
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However the respondents are slightly aware on the other requirements involve
such as the time and schedule for the submission of CAPR to CDA. This implies
that majority of the respondents complied on the required reports and have knowledge
on the preparation of CAPR.
Cooperative operational information. Table 7 presents the level of awareness
to cooperative operational information. Table 7 show that the respondents are almost
fully aware with regards to the qualification of management staff in accomplishing
the form and the availability of personnel with knowledge in the preparation of
CAPR. On the other hand, the respondents are moderately aware on the functions
of their staff which differ from their actual job. This indicated that besides the
awareness of the respondents on the qualification and the availability of personnel
there are times that what is being practiced is in contrary with the identified function
of the management staff in accomplishing the form to be submitted to the CDA.
Table 7. Level of awareness to cooperative operational information
COOPERATIVE OPERATIONAL
WEIGTHED
INFORMATION
MEAN
DESCRIPTION
1. Qualification of management staff to
accomplish the form.
3.67
Almost fully aware
2. Availability of personnel with knowledge in the
preparation of CAPR.
3.70
Almost fully aware
3. Functions of staff differ from actual job.
3.33
Moderately aware
Legend:
5 – Fully aware
3 – Moderately aware
1 - Unaware
4 – Almost fully aware
2 – Slightly aware
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Audited Financial Statements
This section shows the level of awareness of the respondents on the reportorial
requirements of the CDA with regards to the AFS. These AFS shows the financial
information and financial records for the preparation of different report of the cooperative.
Financial information. Table 8 revealed that the respondents are almost fully
aware on the financial information such as the time and schedule of CDA on the
submission of AFS, the preparation and updating of the AFS and the assigned
personnel who is tasked to prepare the AFS. On the other hand, the respondents
are moderately aware on adopting the Standard Chart of Accounts prescribed by the
CDA and the accuracy and adequacy of information needed to prepare financial
statements for auditing. The result revealed that the respondents are almost fully aware on
the financial information and have knowledge to prepare the required reports.
Financial records. Table 9 revealed the level of awareness as to financial
information required by CDA report. The respondents are almost fully aware on the
recording of financial transactions of the detailed information on financial condition such
as the assets. Moreover, the respondents are moderately aware on the liabilities and paid-
up share capital, on the detailed information on operations such as the revenues and
expenses, however the respondents are slightly aware on the undivided net surplus. With
regards to the information on loans receivable, the respondents are slightly aware on type
of loan and the maturity of these loans.
Table 9 Further presents the level of awareness as to financial information required
for CDA report. The respondents are slightly aware on the aging of accounts
Table 8. Level of awareness as to the preparation of financial statements
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WEIGTHED
FINANCIAL INFORMATION
MEAN
DESCRIPTION
1. Time and schedule of CDA on the submission
3.77
Almost fully aware
of audited financial statements.
2. Preparation of Audited Financial Statements.
3.80
Almost fully aware
3. Updating the Audited Financial Statements.
3.73
Almost fully aware
4. Preferably assigned personnel (auditor) to
prepare the Audited Financial Statements.
3.57
Almost fully aware
5. Adopting the Standard Chart of Accounts
prescribed by the CDA.
3.47
Moderately aware
6. Accuracy and adequacy of information needed
to prepare financial statements for auditing.
3.36
Moderately aware
receivables on delinquent loans, on the loan loss/ recovery information, the loans to
directors, officers and staff, the allocated net surplus and to the information on investments.
This implies that the respondents lack knowledge on the aging of the account
receivable and loans to directors, officers and staff especially the current loans, loan loss
information and investments in cooperative federation as they are unaware.
This could due to the lack of knowledge of assigned personnel in keeping of records of the
cooperatives. Moreover, the result explained that the keeping of financial transaction on
the different loans including the net surplus is not well recorded and not fully documented.
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Table 9. Level of awareness as to financial information required for CDA reports
WEEIGHTED
FINANCIAL RECORDS
MEAN
DESCRIPTION
Information on Financial Condition
Assets
3.53
Almost fully aware
Liabilities
3.03
Moderately aware
Paid-up share capital
3.13
Moderately aware
Information on Operations
Revenues
2.83
Moderately aware
Expenses
2.90
Moderately aware
Undivided net surplus
2.53
Slightly aware
Information on Loans Receivable
By type of loan
2.00
Slightly aware
By maturity
2.07
Slightly aware
Aging of Account Receivables
Current loans
1.43
Unaware
Delinquent loans
2.00
Slightly aware
Loans outstanding with one-day missed
payments up to 30 days.
2.07
Slightly aware
Loans outstanding with missed payments of
31 days up to 12 months.
2.03
Slightly aware
Loans outstanding with over twelve months
missed payments.
2.03
Slightly aware
Loan loss/ recovery Information
Loans written off during the year.
1.93
Slightly aware
Loans recovered within the year.
1.93
Slightly aware
Loans to Directors, Officers and Staff
Loan information
2.23
Slightly aware
Loan loss information
1.27
Unaware
Allocated Net Surplus
Mandatory reserves allocation
2.07
Slightly aware
Amount available for members
2.30
Slightly aware
Information on Investments
Long-term deposits in banks
1.90
Slightly aware
Investments in cooperative federation
1.47
Unaware
Government securities
2.13
Slightly aware
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Table 9. Continued…..
WEIGTHED
PARTICULARS
MEAN
DESCRIPTION
Information on External Borrowings
Foreign loans
1.33
Unaware
Currents loans
1.37
Unaware
Information on Savings Deposits
Withdrawable savings deposits
1.80
Unaware
Time deposits
1.77
Unaware
30 days
1.53
Unaware
More than 30 days to 90 days
1.43
Unaware
More than 90 days to 1 year
1.43
Unaware
More than 1 year to 5 years
1.40
Unaware
More than 5 years
1.53
Unaware
Non-withdrawable savings
2.03
Slightly aware
Operational Information. Table 10 presents the level of awareness of personnel to
prepare financial reports. The respondents are moderately aware on the operational
information such as the inadequacy of training of staff, availability of budget or
financial transactions to audit and the availability of personnel in the preparation of AFS.
This implies that the inadequacy of operational information of the AFS is due to lack of
Table 10. Level of awareness of personnel to prepare financial reports
WEIGTED
OPERATIONAL INFORMATION
MEAN
DESCRIPTION
1. Inadequacy of training of staff
2.67
Moderately aware
2. Availability of budget/financial transactions to audit
2.90
Moderately aware
3. Availability of personnel in the preparation of
audited financial statements.
2.73
Moderately aware
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training of the staff and the unavailability of budget and personnel at some point.
Factors Affecting Non-compliance of Primary
Cooperative on Reportorial Requirements
This section presents the personnel and financial and operational information on
factors affecting the non-compliance of primary cooperatives on reportorial requirements.
Personnel information. Table 11 presents the level of awareness about the
problems affecting the personnel or staff to prepare the report. The respondents are
neutral on the personnel information such as the cooperative management lack
bookkeeper. In addition the respondents disagreed on the personnel information especially
whether the personnel in charge in preparing reports lack knowledge in bookkeeping or
accounting and the bookkeeper being untrained. This further implies that the respondents
have bookkeeper who have knowledge on the preparation of different records to be audited.
Table 11. Level of awareness about the problems affecting the personnel or staff to prepare
the reports
WEIGTHED
PERSONNEL INFORMATION
MEAN
DESCRIPTION
1. Cooperative management lack bookkeeper
2.76
Neutral
2. Personnel in charge in preparing reports are
lack of knowledge in bookkeeping/accounting
2.03
Disagree
3. Untrained bookkeeper.
2.43
Disagree
Legend:
5 – Strongly agree
3 – Neutral
1 – Strongly disagree
4 – Agree
2 – Disagree
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Financial and operational information. Table 12 shows the level of awareness
about the factors affecting the preparation of financial statement. The respondents
are neutral on complete and accurate detailed information on financial condition and
operation on paid-up share capital and expenses. On the other hand, the respondents
disagreed on the financial and operational information on the completeness and
accurateness of the detailed information on financial condition on the assets,
liabilities, completeness and accurateness detailed information on operations on the
revenues and undivided net surplus, completeness and accurateness of the loans
receivable on the type of loan and maturity of loan, inadequacy and inaccuracy of
records on aging of accounts receivable, loan loss or recovery information on loans
recovered within the year and inaccuracy and inadequacy of records on loans to
directors, officers and staff.
This implies that the respondents lack knowledge and records in preparing
the reports to be submitted especially the inadequacy and inaccuracy of records on
the loan loss or recovery information on loans written off during the year as they
strongly disagreed.
Table 12 presents the factors affecting the non-compliance on reportorial
requirements of primary cooperatives in La Trinidad. The table shows that the
respondents disagreed on the inadequacy and inaccuracy of records on loan to
directors, officers, and staff on loan and loan loss information, the inadequacy and
inaccuracy of records on allocated net surplus on the amount available for members
and the completeness and accurateness of information on investment in cooperative
federation.
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Thus, it implies that these factors affecting the non-compliance of primary
cooperatives on the reportorial requirements of financial and operational information
are not complete and accurate especially the mandatory reserves allocation, long
term deposits in banks, government securities, foreign and current loans, and the
completeness and accurateness of information on savings deposits as they are strongly
disagree.
Furthermore it could be by the function of management and the cooperation
of the respondents to prepare the records undertaken to be submitted to the CDA
to avoid fines or penalties of being delayed in the submission of the different reports
as stated by Zubiri (2008) and for the issuance of CGS as stated by Santiaguel
(2011).
As explained by the respondents they just have their financial and operational
information on the detailed information on financial condition and operation because
they just engage on small cooperatives. Furthermore the other financial and
operational information are not available to them because they are just engage in
sari-sari store and they are just newly registered cooperative.
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Table 12. Level of awareness about the factors affecting the preparation of AFS
FINANCIAL AND OPERATIONAL
WEIGHTED
INFORMATION
MEAN
DESCRIPTION
Complete and accurate detailed information on
financial condition.
2.26
Disagree
Assets
Liabilities
2.63
Disagree
Paid-up share capital
2.83
Neutral
Complete and accurate detailed information on
operations.
Revenues
2.33
Disagree
Expenses
3.30
Neutral
Undivided net surplus
2.36
Disagree
Complete and accurate information on loans
receivable.
By type of loan
2.13
Disagree
By maturity
2.06
Disagree
Inadequate and inaccurate records on aging of
accounts receivable.
Current loans
1.90
Disagree
Delinquent loans
1.90
Disagree
Loans outstanding with one-day missed
payments up to 30 days.
1.90
Disagree
Loans outstanding with missed payments of
31 days up to 12 months.
2.00
Disagree
Loans outstanding with over 12 months
missed payments.
1.93
Disagree
Inadequate and inaccurate records on loan
loss/recovery information.
Loans written off during the year.
1.83
Strongly disagree
Loans recovered within the year.
2.00
Disagree
Inadequate and inaccurate records on loans to
directors, officers and staff.
Loan information
1.90
Disagree
Loan loss information
1.93
Disagree
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Table 12. Continued…..
WEIGTHED
PARTICULARS
MEAN
DESCRIPTION
Inadequate and inaccurate records on allocated net
surplus
Mandatory reserves allocation
1.83
Strong disagree
Amount available for members
1.96
Disagree
Complete
and
accurate
information
on
investments.
1.80
Strongly disagree
Long-term deposits in banks
Investments in cooperative federation
1.97
Disagree
Government securities
1.77
Strongly disagree
Complete and accurate information on external
borrowings.
Foreign loans
1.43
Strongly disagree
Currents loans
1.40
Strongly disagree
Complete and accurate information on savings
deposits.
Withdrawable savings deposits
1.53
Strongly disagree
Time deposits
1.50
Strongly disagree
30 days
1.60
Strongly disagree
More than 30 days to 90 days
1.33
Strongly disagree
More than 90 days to 1 year
1.30
Strongly disagree
More than 1 year to 5 years
1.40
Strongly disagree
More than 5 years
1.30
Strongly disagree
Non-withdrawable savings
1.80
Strongly disagree
Suggestions of the Cooperatives Regarding
the Submission of Reportorial
Requirement to the CDA
Some of the cooperatives suggested the submission of AFS only to avoid
confusion in the preparation of the CAPR. Moreover, some of the respondents
suggested that the CDA should provide a pre-formatted form on the different reports
and distribute to each of the active cooperatives. Lastly, they also proposed that the
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CDA should assigned personnel to monitor each cooperative to know the problems
or needs of the respondents for non-compliance on the required reports.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine the level of awareness on the different
reportorial requirements to the CDA particularly in La Trinidad, Benguet. It also
aimed to identify the factors affecting non-compliance of primary cooperative on the
reportorial requirements. It further aimed to identify the suggestions from cooperatives
in compliance with the reportorial requirements.
Level of awareness on the non-compliance of reportorial requirements was
measured into five: (5) fully aware, (4) almost fully aware, (3) moderately aware,
(2) slightly aware, (1) unaware and (1) strongly disagree, (2) disagree, (3) neutral
(4) agree, strongly agree.
There are 226 cooperatives operating in La Trinidad, Benguet. Thirty (30)
primary cooperatives were selected as respondents for the non-compliance on
reportorial requirements.
A survey questionnaire was used to gather necessary data from the managers
and staff of the cooperatives as the respondents. Personnel interview was also done
to supplement the data gathered. Secondary data were also taken from the CDA
specially the data on the different cooperatives involve in non-compliance of reports
from 2007 to 2010.
The study on the information about the cooperative presents the brief profile
of the cooperative, the registration and organization, the profile of the members
such as the number of membership and the status of membership, the attendance of
members to the PMES, the attendance of officers to seminars or trainings and the
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profile of the management staff employed such as the number of staff and their
positions or functions and their attendance to trainings and seminar. The result
revealed that some of the respondents attended the seminars or training while some
are not attending. And about half of the cooperatives employ three staff. The results
further revealed that majority of the respondents are slightly aware on the level of
awareness on reportorial requirement of cooperatives such as the CAPR and AFS.
On the other hand, majority of the respondents disagreed on the factors affecting
the preparation of reportorial requirements involving the financial records and
operational information of the cooperative. Furthermore on the suggestions most of
the respondents proposed that they just only submit the AFS so as not to confuse the
preparation and submission of other reports to the authority.
Conclusions
Based on the findings the following conclusions were drawn:
1. Some of the cooperatives are not updated on the activities undertaken;
2. Some of the cooperatives are not complying because they lack staff to prepare
the different report to be submitted to the CDA as requirements;
3. Some of the cooperatives are not complying because they lack time in the
preparation of reports required;
4. Some of the cooperatives do not maintain the preparation of AFS even if it is
required due to lack of cooperation;
5. Some of the cooperatives are not complying because of insufficient budget for
the preparation of AFS of records;
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6. Some of the cooperatives are not complying because of lack knowledge of
bookkeeper on the preparation of required reports;
7. Some of the cooperatives are not complying because they fail to follow the
prescribed rules and regulations of the Authority regarding the submission of the required
reports;
8. Not all the cooperatives have a manager and a bookkeeper;
9. Some of the cooperatives have only one staff which is below the minimum
required number of staff; and,
10. Some of the registered primary cooperatives in La Trinidad, Benguet are
currently operating. However, some of the listed cooperatives are not located at their
registered address.
Recommendations:
Based on the findings and conclusions the following recommendations were
introduced:
1. The CDA should come up with a systematized way of monitoring and evaluating
the cooperatives to determine whether the cooperative is operating in accordance with the
rule and regulations of the CDA;
2. The Authority should continuously inform the cooperative in case there are
changes with the policies set by them;
3. The CDA should provide seminars on bookkeeping and accounting for small
cooperatives that cannot sponsor training or cannot afford to send their staff to training and
seminars. These concerned cooperatives could also seek help from the big cooperatives to
provide them tutorial on bookkeeping and accounting;
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4. The CDA should monitor the availability of staff, manager, officers of the
cooperative to do the preparation of required reports to be submitted specially the small
cooperatives;
5. The CDA should check the timing and schedule of submission of the required
reports;
6. The respondents should follow the rules and regulations of the CDA to avoid
delay on the submission of reports and to avoid penalties; and,
7. Each of the cooperative must have a manager as prescribed by the rules and
regulations of the Philippine Cooperative Code.
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LITERATURE CITED
AGAPITO, B. A. 1991. Primer on the cooperative code of the Philippines (RA No. 6938)
P. 21.
AQUINO, A. B. 2008. Philippine Cooperative Code, (RA No. 9520), and Implementing
Rules & Regulations P. 29 & Pp. 121-123.
BENGAWEN, M. P. 2002. Evaluation of cooperative policies managed and practiced.
MS thesis. Benguet State University La Trinidad, Benguet. P. 12.
PHILIPPINE COOPERATIVE CODE of 2008. Published by Atty. Fred March 9th, 2009
in Cooperatives and Corporate and Investments.
PIMENTEL, Q. A. & R. M. CUA, 1999. Cooperative Code of the Philippines;
Theory, Law and Practice. Pp. 91-95.
SANTIAGUEL, S. M. 2011. Cooperative Development Authority, Memorandum Circular
No. 2011-2016 Revised Guidelines Governing the Issuance of Certificate of Good
Standing (CGS).
ZUBIRI, JM. F. 2008. Philippine Cooperative Code, (RA No. 9520) Pp. 51-52 & Pp. 143-
145.
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