Asynchronous Excercise: Developing or updating our Cooperative Manual of Operation

with the following minimum contents.

VISION

A cooperative that can unite its members into a community to be self reliant, to provide their own
basic needs, to deploy the necessary resources for an ecologically-balance and equitable
development and
live in peace, happiness and justice.

MISSION

(1) To encourage members of the cooperative to be thrifty and to use their resources wisely. (2)
To uplift the economic condition of the people it serves by delivering financial and technical
assistance . (3) To provide assistance to the people by helping the to be entrepreneurs. (4) To
provide the general well being of the people and transform them to into a self-reliant community.

GOALS

That the goals of this cooperative is to help improve the quality of life of its members and
furtherance there to shall aim:

1. To attain increased income, savings, investments, productivity, and purchasing power, and
promote among themselves equitable distribution of net surplus through maximum utilization of
economies of scale, cost sharing and risk sharing;
2. To provide optimum social and economic benefits to its members;
3. To teach members efficient ways of doing things in a cooperative manner;
4. To propagate cooperative practices and new ideas in business and management;
5. To allow the lower income and less privileged groups to increase their ownership in the wealth
of the nation;
6. To actively support the government, other cooperatives and people oriented organizations,
local and foreign, in promoting cooperatives as a practical means towards sustainable socio-
economic development under a truly just and democratic society;
7. To institutionalize a dynamic savings mobilization and capital build-up schemes to sustain its
developmental activities and long term investments, thereby ensuring optimum economic benefits
to the members, their families and the general public;
8. To implement policy guidelines that will ensure transparency, equitable access to its resources
and services, and promote the interests of the members and;
9. To adopt such other plans as may help foster the welfare of the members, their families and the
community.

POLICIES

Credit Committee Policy

Composition: 3 members elected during a general assembly
Committee Members: 10 days after the election, the Credit Committee shall elect among
themselves a Chairperson, Vice Chairperson and a Secretary.
Term: 1 year
Restrictions: No member shall hold any other positions within the Cooperative during
his/her term of office
Reporting to: Credit Committee is directly accountable and responsible to the General
Assembly.

Credit Policy

1. Agricultural Loan

a) Without Collateral:

i. Agriculture loan without collateral shall only be up to the members contribution

only.

b) With Collateral

i. Credit application is required for each member who wish to obtain an agricultural
loan with collateral
ii. The Credit Committee shall assess the value of the property used as a collateral and
shall only provide an agriculture loan not exceeding 70% of the assessed value of
the property.
iii. The Credit Committee shall also review the documents related to the collateral
including insurance coverage, if any. Collateral documents should be the original
copy and should be under the name of the member requesting the loan.
iv. The Credit Committee shall also complete a form which contains the assessed
value of the property, % of assessed value to be loaned and submit these to the
Treasurer for processing (including the relevant collateral documents for
safekeeping).

c) After the assessment of the Credit Committee, the treasurer shall complete the
Shareholder Loan or the Loan Agreement (with collateral) and shall ensure that relevant
signatures are obtained prior to releasing the loan. Further, on any payment made, the
Treasurer shall ensure that the Annex to the Loan Agreement containing payments
made to date, be updated and duly signed by both the Treasurer and borrower.
d) Agriculture loans without collateral requires approval from the Treasurer and the
Manager.
e) Agricultural loans with collateral requires approval from the Treasurer, manager and
atleast 2 BOD members.

a) For non-cash transactions, the credit committee shall perform an initial credit investigation
procedure which includes (but not limited to) the following:

i. Number of ducks raised by the member obtaining feeds supply from the cooperative;
ii. Feeds consumption per day;
iii. Eggs production to date;
b) The Credit Committee shall provide the maximum number of bags to be extended via credit to
each member after its credit investigation.
c) The maximum credit term to be provided per member is only 30 days
d) The Credit Committee shall complete an assessment form which contains all the above details
and a copy shall be furnished to the Treasurer to ensure compliance.

Collection Policy

1) Collection of monthly membership contribution, amounts due on agriculture loan and feeds:

a. Each member shall be requested to drop by at the Cooperative’s office every Saturday (or when
the amount falls due) and pay to the Treasurer their monthly dues, payments

b. Each member shall ensure to obtain an acknowledgment receipt on their payment of their
monthly contribution, agriculture loan and on feeds borrowed on credit duly signed by the
Treasurer.

c. Additionally, on payment of agriculture loans, the borrower shall ensure that the Annex A to
the loan agreement be updated and duly signed for proper monitoring.

2) For monitoring purposes, the Bookkeeper and the Treasurer shall accomplish the below logs:

i. Petty Cash Monitoring log for funds designated for the Cooperatives operations.
ii. Cash and check monitoring log for funds designated for Monthly contribution log;
iii. Investments;
iv. Loan Monitoring log;
v. Feeds Monitoring log;
vi. Eggs production, feeds consumption (and other by products) and expenses log (related
to the duck poultry business.)
3) The Treasurer shall ensure that collections are deposited to the bank within 5 banking days
from the date of receipt and shall retain the deposit slip for documentation.
4) For delinquent accounts, the Credit Committee shall:

a. Designate the Cooperative’s official collector;

b. The Credit Committee shall be also responsible for the monitoring members delinquent
members especially members nearing the involuntary termination (I.e, overdue
contributions beyond 6 months);
c. The Credit Committee shall serve the notification of the overdue account after non-
collection after the 3rd month and shall serve this notice up to a maximum of 3 times
(with the last notice as the termination of membership notice).
d. The Credit Committee, in coordination with the Treasurer, shall issue a monthly report
to the Manager and the BOD the following:

i. Members with overdue accounts;

ii. Members with final involuntary termination notice;
iii. List of members with agriculture loan or feeds loan including the credit terms and
thresholds provided.
Bank Deposit:

1) The Treasurer shall ensure that cash/checks are deposited on time and deposit slips kept intact.
Further, the Treasurer shall ensure that the cash and/or checs on hand should not exceed the
below amount:

a. Cash on Hand - Php. 50,000

b. Checks - Php. 200,000

Election Committee Policy

Composition: 3 members elected during the Annual General Assembly

Committee Members: 10 days after the election, the Election Committee shall elect among
themselves a Chairperson, a Vice Chairperson and a Secretary.
Term: 1 year
Restriction: No member shall hold any other position within the Cooperative during
his/her term of office.
Reporting To: Election Committee is directly accountable and responsible to the
General Assembly.
Objective: To ensure fair and transparent election procedures.

Qualifications and Disqualifications:

Any member who is entitled to vote has the following qualifications can be elected or continue as
member of the Board of Directors.

a. Has paid the minimum capital requirement;

b. Has no delinquent account with the cooperative
c. Have continuously patronized the cooperative services;
d. A member in good standing for the last two (2) years;
e. Completed or willingness to complete within the prescribed period the required
education and training whichever is applicable; and
f. Other qualifications prescribed in the Implementing Rules of regulations (IPR) of R.A
9520

Disqualifications:

Any member who is under any of the following circumstances shall be disqualified to be elected
as a member of the Board of Directors or any committee, or to continues as such:

a. Holding any elective position in the government, except that of a party list
representative being an officer of a cooperative he/she represents.
 b. The members of the Board of Directors shall not hold any other position directly
involved in the day-to-day operation and management of the cooperative;
c. Having direct or indirect personal interest with the business of the cooperative;
d. Having been absent for in three (3) consecutive meetings or in more than fifty percent
(50%) of all meetings within the twelve (12) month period unless with valid excuse as
approved by the Board of Directors.
e. Being an official or employee of the Cooperative Development Authority, except in a
cooperative organized among themselves;
f. Having been convicted in administrative proceedings or civil/criminal suits involving
financial and/or property accountability; and
g. Having been disqualified by law.

Audit Committee Policy

Composition: 3 members elected during the Annual General Assembly

Committee Members: 10 days after the election, the Audit Committee shall elect among
themselves a Chairperson, a Vice Chairperson and a Secretary
Terms: 1 year
Restrictions: No member shall hold any other position within the Cooperative during
his/her term of office
Reporting to: Audit Committee is directly accountable and responsible to the General
Assembly
Objective: To continuously monitor the adequacy and effectiveness of the
cooperative’s management control system and audit the
performance of the cooperative and it’s various responsibility centers.

Audit Procedures

1. The Audit Committee shall perform the following on a monthly basis:

a. Audit of the cash balance (cash in bank, petty cash and outstanding checks);
b. Audit of the cooperative’s profit and expenses;
c. Audit of agriculture loans granted including the collateral posted and should tally with
the Loan Agreement Monitoring Report;
d. Audit of the feeds inventory and should tally with the number of bags per Feeds
Monitoring Report.
e. Audit of feeds consumption rate (including other by products) and audit of egg
production rate for the Cooperative’s duck poultry business;

Differences noted should be reconciled within 10 calendar days. Further, audit performed on a
monthly basis should be documented (via monthly audit form) and duly signed by the
Bookkeeper, Treasurer and a member of the audit committee.

2. On a quarterly basis, the Audit Committee shall perform an analysis of the business
performance per segment using the below analysis:

a. Actual profit (year to date) per business segment vs. Capitalization required;
b. Current quarter vs. Previous quarter revenues, cost of sales and variable margin;
c. Current quarter vs. Prior year quarter revenues, cost of sales and variable margin
 d. Current year-year to date vs Prior year - year to date revenue, cost of sales and variable
margin

3. On a semi-annual basis, the Audit Committee shall reevaluate any procedures and policies of
the Cooperative and recommend changes, if necessary.
4. At the Annual General Assembly, the Audit Committee along with the Manager and Treasurer
present the following:

a. Audited financial statements and related financial performance;

b. Results of the audit and/or internal control procedures
c. Recommendation on revisions on the current policies and procedures;
d. Dispute resolutions and/or issues noted during the year;
e. Others - all transactions should be substantiated with receipts and/or signature from the
Treasurer/Manager

Complaint Procedure (Procedure similar with Mediation and Conciliation)

1. The complaining party must submit a complaint letter to any member of the Audit Committee
which includes the following information:
a. Subject matter of the complaint
b. Practices that are alleged to constitute improper accounting
c. Allegations of fraud, if any; or;
d. Other details that may help build the case.
2. To ensure that the complaints are dealt with on a timely manner, the complaining party shall
keep 1 copy of the complaint letter for him/herself which contains the signature and date of the
receiving member. The complaining party may also submit the complaint letter anonymously.
3. Within 10 days of receipt of the complaint letter, Audit Committee shall conduct an initial
evaluation of the complaint.

a. Whether the complaint requires immediate investigation;

b. Whether it can be held for discussion at the next scheduled meeting of the Audit
Committee;
c. Whether it does no relate to accounting allegations of fraud and if it should be reviewed
by a party other than by the Audit Committee.
4. In any event, each complaint shall be discussed and evaluated as to whether and how such
complaint shall be investigated, or if the investigation has commenced how to proceed with such
investigation. The Audit Committee may elect among the following options:

a. The Audit Committee may choose to investigate on its own;

b. The Audit Committee may select a responsible designee within the Cooperative to
investigate the complaint. The person in charge of the investigation shall be in any way
related and/or have current business transactions with the person under investigation;
c. The Audit Committee may retain an outside party to investigate and assist in the
evaluation;
d. The Audit Committee may retain outside counsel to initiate an investigation and work
either with internal or outside parties to assist in such investigation;
e. The investigating party shall be permitted reasonable access to the Cooperative
documents for the purpose of conducting the investigation;
f. At the conclusion of the investigation, the investigating party shall prepare a full report
to the Audit Committee and if requested, may make recommendations for corrective
actions.
 g. The Audit committee shall consider, if applicable, the recommendations of the
investigating party and determine whether any corrective actions shall be taken by the
Cooperative.
h. The Audit Committee shall report to the Board of Directors not later than its next
regularly-scheduled meeting with respect to the complaint for which such investigation
has been completed and, if applicable, any recommended corrective actions. In the
event that the complaint involves any Director of the Cooperative (whether in his or her
role as a director, employee or officer of the company or the Board of Directors
(exclusive of any Director involved such Complaint).
i. In cases where the complaint involves multiple directors, the Audit Committee may
request a Special General Assembly meeting to vote on corrective actions to be
implemented.
5. Lastly, the Audit Committee shall ensure that all complaints are treated in a confidential
manner.

Mediation and Conciliation Committee Policy

Composition: 3 members during general assembly

Committee Member: 10 days after the election, the Mediation and Conciliation committee
shall elect among themselves a Chairperson, a Vice Chairperson
and Secretary.
Term: 1 year
Restrictions: No member shall hold any other position within the Cooperative during
his/her term of office
Reporting to: Mediation and Conciliation Committee is directly accountable and
responsible to the General Assembly
Objective: To act as a conciliator/mediator on any disputes between members
and/or BOD etc. And to act with fairness and integrity.

Complaint Procedures (Procedure similar with Audit Committee)

1. The complaining party must submit a complaint letter to any member of the Mediation and
Conciliation Committee which includes the following information:

a. Subject matter of the complaint;

b. Practices that are alleged to constitute improper accounting;
c. Allegations of Fraud, if any; or;
d. Other details that may help build the case.

2. To ensure that the complaints are dealt with on a timely manner, the complaining party shall
keep 1 copy of the complaint letter for him/herself which contains the signature and date of the
receiving member. The complaining party may also submit the complaint letter anonymously.
3. Within 10 days of receipt of the complaint letter, Audit Committee shall conduct an initial
evaluation of the complaint.
A. Whether the complaint requires immediate investigation;
B. Whether it can be held for discussion at the next scheduled meeting of the Audit
Committee;
C. Whether it does no relate to accounting allegations of fraud and if it should be reviewed
by a party other than by the Audit Committee.
4. In any event, each complaint shall be discussed and evaluated as to whether and how such
complaint shall be investigated, or if the investigation has commenced how to proceed with such
investigation. The Audit Committee may elect among the following options:

A. The Mediation and Conciliation Committee may choose to investigate on its own;
B. Mediation and Conciliation Committee may select a responsible designee within the
Cooperative to investigate the complaint. The person in charge of the investigation shall be in
any way related and/or have current business transactions with the person under investigation;
C. Mediation and Conciliation Committee may retain an outside party to investigate and assist in
the evaluation;
D. Mediation and Conciliation Committee may retain outside counsel to initiate an investigation
and work either with internal or outside parties to assist in such investigation;
E. The investigating party shall be permitted reasonable access to the Cooperative documents for
the purpose of conducting the investigation;
F. At the conclusion of the investigation, the investigating party shall prepare a full report to the
Mediation and Conciliation Committee and if requested, may make recommendations for
corrective actions.
G. Mediation and Conciliation Committee shall consider, if applicable, the recommendations of
the investigating party and determine whether any corrective actions shall be taken by the
Cooperative.
H. Mediation and Conciliation Committee shall report to the Board of Directors not later than its
next regularly-scheduled meeting with respect to the complaint for which such investigation has
been completed and, if applicable, any recommended corrective actions. In the event that the
complaint involves any Director of the Cooperative (whether in his or her role as a director,
employee or officer of the company or the Board of Directors (exclusive of any Director involved
such Complaint).
I. In cases where the complaint involves multiple directors, the Audit Committee may request a
Special General Assembly meeting to vote on corrective actions to be implemented.

5. Lastly, the Audit Committee shall ensure that all complaints are treated in a confidential
manner.

Gender and Development GAD Policy

I. Rationale
The cooperative Policy on Gender and Development will adopt mainstreaming as per
memo Circular No. 2013-2012 as key strategy in promoting gender equality.

II. Objective

1. To comply with its requirements of Memo Circular No. 2013-2022 pertaining to Guidelines on
Mainstreaming Gender and Development in Cooperative issued by the CDA on November 12,
2013
2. To ensure the promotion of Gender Equality and the institutionalization of GAD program in
the cooperative.
3. To monitor the programs in the implementation of GAD Plans and Programs as per MEMO
Circular No. 2017-04 towards achieving Gender Equality.
III. Elements of GAD Mainstreaming

The elements of cooperative policy will include gender sensitively gender analysis, gender
planning, mainstreaming, and agenda setting. To operationalize the policy, the cooperative’s
focus of activities through the following:

1. Policy

The Board shall adopt and approved a policy relevant to GAD and GE and its Implementing rules
and Regulations (IRR)

The Board shall adopt and approved p policy relevant to GAD and GE and its Implementing
Rules and Regulations (IPR)

- Election Policy : Number of seats of BOD’s Male and Female

- Membership Policy : Sex-dis-aggregated of Data
- Credit Policy : consent to the loan application for the married member
- Use of gender-neutral language in documents

2. Cooperative Development Plan

Cooperative Development Plan shall include Programs/Projects/Strategies/Activities that will

address issue and concern of Gender Development

- Amendment : Provision of the GAD Committee in the Bylaws

- Conduct of GST from Coop Officers to all members.
- Inclusion of GAD related Training’s in the coop education and training program

3. Programs/Project/Activities

The Cooperative shall prove that Gender Programs and Projects in the Cooperative Development
Plans are implemented.

- Gender Sensitively Training

- Family Day
- Wellness Program

4. Budget

A GAD budget must be allocated to the programs/projects/activities in the Cooperative

Development Plan

- Allocation of Funds for the GAD programs and activities (CETF)

5. Mechanics and Instruments

There shall be mechanics and instruments adopted and approved by the Board of Directors to
ensure GAD mainstreaming is facilitated and implemented and monitored.

- Implement the GAD mainstreaming mechanisms and instruments.

IV. GAD MAINSTREAMING MECHANICS AND INSTRUMENT
The cooperative shall create, appoint and establish the following GAD mainstreaming mechanics
instruments.

1. GAD Committee
The Board of Directors shall create the GAD Committee and appoint its members
composed of the following who will elect from among themselves the Chairperson, Vice-
Chairperson and Secretary.

2. GAD Focal Person (GFP)

The Board shall designate a GAD Focal Person from the pool of employees of the
cooperative and shall perform GFP roles as additional function.

3. GAD Education & Training Program

The cooperative shall identify Gender and Development and Gender Equality Integrated
to Education and Training Programs that shall be included in the Annual Education and Training
Plan.

4. GAD Support Systems and Services

The cooperative shall develop and establish necessary support system and services to
fully address the Gender and Development and Gender Equality Issues & Concerns and the
Implementation of such Systems and Services.