TABLE OF CONTENTS

I. INTRODUCTION 1
Literature Review 2
Theoretical/Conceptual Framework/Paradigm of the Study 4
Significance of the Study 4
Aims and Objectives of the Study 5
II. METHODOLOGY 6
Study Design 6
Population of the study 6
Data Gathering tools 6
Data Gathering Procedures 7
Treatment of Data 8
Ethical Considerations 8
III. REFERENCES 9
IV. APPENDICES 10
Letter 10
Interview Questionnaire 11
Curriculum Vitae 12
 COMMUNITY DEVELOPMENT FUND
MANAGEMENT OF COOPERATIVE
IN LA TRINIDAD, BENGUET

Ansang, Liezel P
Bantigue, Rhein Kyle D.
Cunson, Michelle B.
Dewayen, Sarah Mae B.
Depalog, Ronnie S.
Ebias, Ellen Grace G.
Lami-ing, Donna Mae A.
Quiaño, Manel D.
Reyes, Charles Andrew L.
Tan, Joseph Wilson R.

Advisor: Pakias, Jeffreyson M.

INTRODUCTION

Republic Act Number 9520 ,otherwise known as the Philippine Cooperative Code
of 2008, defined a cooperative as 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 in accordance with universally accepted
cooperative principles. The Philippine Cooperative Code of 2008 also mentioned the
seven cooperative principles which are: Voluntary and Open Membership; Democratic
Control; Member Economic Participation; Autonomy and Independence; Education,
Training and Information; Cooperation among Cooperatives; and Concern for
Community. The seventh principle which is the Concern for Community is related to this
study. The said principle means that cooperatives work for the sustainable development
of their communities. (Republic Act Number 9520)

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 Cooperatives frequently have social goals which they aim to accomplish by
investing a proportion of trading profits back into their communities.
(https:en.m.wikipedia.org/wiki/cooperative) This proportion of trading profits, which is
also called net surplus, is being allocated to Reserve Fund; Education and Training Fund;
Optional Fund; Community Development Fund; and the remaining shall be made
available to the members in the form of interest on share, as stated in Article X, Section
86 of the Philippine Cooperative Code of 2008. This study is focused on the Community
Development Fund (CDF) of cooperatives. Furthermore, Article X, Section 86 of the
Cooperative Code stated that an amount for the Community Development Fund (CDF),
which shall not be less than three per centum (3%) of the net surplus, shall be used for
projects or activities that will benefit the community.
According to an article released online by Coop New on June 2017, cooperatives
today are already making changes and positive impacts on the communities that they
serve. (The Coop News Big Debate: How Co-ops Show Concern for Communities, 2017)
Having an effective and efficient management of cooperative’s Community Development
Fund (CDF) is very beneficial for the community. It will not only help the community to
bloom economically but also help the cooperative to build a good relations to the people
within the community.
There are many ways of spending cooperatives' Community Development Fund
(CDF). According to Lab-oyan, 2019, the Community Development Fund (CDF) of
cooperatives can be spent on health and sanitation; education; mutual aid or death aid;
calamity assistance; environmental concerns; support to elderly, persons with disabilities,
solo parents, children; gender and development; anti-drug campaign and peace and order;
infrastructure; and livelihood for non-members. By being able to develop a program or
activities on these areas, the people in the community can enjoy economic growth as well
as sustainable social development.

Literature Review

The Community development fund or CDF shall be used for projects or activities
that will benefit the community where the cooperative operates. The concern of the study
is to determine how this fund is allocated and to what area are prioritized in the

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distribution of the fund. Health and sanitation; education; mutual aid or death aid;
calamity assistance; environmental concerns; support to elderly, persons with disabilities,
solo parents, children, gender and development, anti-drug campaign, and peace and
order; infrastructure; and livelihood for non-members should be considered in the
utilization of the CDF (Lotes P. Lab-oyan, 2019).
In a banking institution, the most important function is the management of the
funds. The efficiency with which the funds are managed is reflected through the financial
margin of the bank, which, in turn, is influenced by many factors (Fulbag Singh &
Balwinder Singh, 2006).
A research titled “The Contribution of Cooperative Law to Economic
Development in
Malaysia” says that there is a significant potential for the movement to help reduce
members’ poverty and contribute to the social protection and economic growth of the
country. The characteristic of being community-centered and catering to those most
vulnerable to economic vagaries has rendered cooperatives as valuable institutions in
promoting agricultural development and trade, the creation of employment opportunities
and in advancing the social and economic positions of societies in general. (Nazura
Abdul Manap1 & Pardis Moslemzadeh Tehrani, 2014)
State University-Institute of Social Research that was published by Sunstar
Baguio, on actual usage of the CDF, cooperatives in the Cordillera Administrative
Region spent an average of P51, 827 per year based on a survey of actual community
projects and activities implemented by cooperatives in the last five years. The most
common community development projects implemented by cooperatives are support
services or programs in relation to primary and secondary education; health;
environment; and culture. Often in cooperation and collaboration with line agencies and
barangay LGUs, there is success in the implementation of these projects conducted or
funded from the Community Development Fund of cooperatives.
Going by the stated objective of CDF in Zambia and based on research findings,
CDF has the potential to be an effective tool for community development. The fund can
help to improve access to services to local communities by channeling public funds
directly to local communities to be utilized on projects identified by the community. In

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order to grow the potential of CDF and achieve holistic long term development, there is
need for stricter adherence to the provisions of CDF Guidelines accompanied with
increasing the knowledge levels of the owners of the fund, that is the members of the
community for whom the development is intended. (Doreen Nkombo Chibomba, 2014)
Furthermore, one point of interest that this study aims to achieve is to determine if
the utilization of the CDF is inclined with its purpose. The data analysis for CDF for
Mwea constituency shows that, though the project purposes were to benefit the
community, only the influential people were involved in implementing them.
Non-governmental and private sectors are important players in governance and
cooperatives lie hidden as either both. It is stated that the success of a cooperative is
beneficial to the local economy. Allocating a part of its surplus to the community for its
development. (Dr. Edna Co).

Theoretical/Conceptual Framework/Paradigm of the Study

Recently, MC No. 2019-11 also known as the “POLICY GUIDELEINES

GOVERNING THE ALLOCATION AND UTILIZATION OF THE COMMUNITY
DEVELOPMENT FUND (CDF) OF THE COOPERATIVE” has been issued. Although
the MC provided specific prohibitions for the usage of the CDF, the prescribed utilization
is broad. There is no specific directions as to how the CDF shall be utilized which infer
that it shall still rests within the cooperatives themselves to determine as to the specificity
of the usage of the CDF. The study aims to reach out to certain cooperatives so as to
discover how each of these cooperatives manages their CDF.

Significance of the Study

The study will help in identifying the challenges faced by the cooperatives in La
Trinidad, Benguet that are already following the Memorandum Circular no. 2019-11. It
will increase the awareness of the people in the community and its members and how
cooperative manages its transaction. Raising awareness is much needed as Cooperative
Development Fund is one of the direct help that a cooperative give to the community.
The findings will help the administrators of the cooperative align their goals and

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objectives toward the growth of the cooperative and improve its operation. This is to
inform and expand the understanding of incoming and existing members of the
cooperative on how cooperative works and their responsibilities as part of the entity. The
result of the study may be used by the administrators in implementing new policies and
strengthen their operations to grow and increase its value. The acquired information may
also be used by the cooperatives identify areas of improvement in their operation while
expanding its horizon and serving the needs of its member. The results of this study
would make a significant difference to the cooperative community in the province. The
cooperatives would be aware about the current operations regarding the management of
their funds as well as the financial problems they currently experience so as to be of
better position to uplift the livelihood, welfare, and economic status of the communities
whom they served. The results may use by the cooperatives to identify areas of
improvement in their operation while expanding its horizon and serving the needs of its
member. It serves as a guide for the administrators of cooperatives in better administering
and managing cooperatives. The cooperative policy makers would get ideas to update or
improve old policies as well as the making of new policies for the regulation of
cooperatives. This would likewise provide insights for Cooperative Development
Authority about the effects of their implemented Memorandum Circular no. 2019-11 that
they may take into consideration when administering interventions for the continuing
growth and development of cooperatives in the province.
.
Aims and Objectives of the Study

The fundamental aim of this study is to evaluate and assess the

management of Community Development Fund as a tool for community
development. The main objectives of the study are:
 To obtain information regarding the utilization of CDF and
 To determine the priority projects supported by the fund.

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METHODOLOGY

Study Design

The researchers will use qualitative research as this will provide a greater
opportunity to get details in depth from the respondents. This method will be used to
gather reliable data by conducting an interview. If allowed, the researches will also use
the social audit of the cooperatives. The interpretivist paradigm will also be used as the
research aims to interpret the results and detail the meaning to the readers.

Population of the study

A research population is also known as a well-defined collection of individuals or

objects known to have similar characteristics (Explorable, 2019). The target population of
this research are the cooperatives in La Trinidad, Benguet. The accessible population is
the population in research to which the researchers can apply their conclusions. In this
case the accessible population will be the manager or an appointed representative of the
cooperatives. The managers or the appointed representative has the capability to answer
the interview questions because they have the general knowledge about the cooperatives
they are working for. The research will only include the cooperatives within La Trinidad,
Benguet. All other cooperatives outside the vicinity will be excluded in the research. In
this research there will be seven (7) cooperatives to be interviewed in La Trinidad,
Benguet. The cooperatives where selected using random sampling. Random sampling is a
subset of individuals randomly selected by researchers to represent an entire group as a
whole (Kendra Cherry, 2019).

Data gathering tools

For the purposes of this research, direct interviews were used to gather data.
Personal interview is considered to be the most common data collection instrument for
qualitative research, primarily because of its personal approach (Anastasia, 2017).
Considering data collection tools, the interview is conducted by the use of pre-
constructed questions which was used as an interview guide for the interviewer and was

6
prepared to guide the researcher in performing the interview for the satisfaction of the
research objectives.

Data Procedures

The researchers made use of various sources in gathering data. The researchers
have used the allotted time given to read different materials that are relevant to the study
being conducted in making the questions so as to serve the intended respondents. The
question consisted of a set of questions that were put forward to participants drawn from
the population under study. After being approved, a requesting letter to conduct the
interview will be presented to the Dean of School of Business Administration and
Accountancy to the selected locale of the study. The researchers will use video or voice
recorder upon conducting the interview, the tools will be using shall be informed to the
participant prior to the conduct of the interview and will only conduct a video recording
if the participant permits to do so. Some certain questions were prepared, so as for the
researcher to guide the interview encountered during the interview. The respondents will
be informed about the nature of the study. The informed consent of each respondent will
be secured to ensure freedom of choice and provide avenue for the respondents to
voluntarily consent or decline participation in the study. The interview that will be use in
the study is direct interview. The interview involves direct verbal interaction between the
researchers and the respondents. The researchers have maximized the use of intent to
gather related information from journals, researches, and websites. The researchers are
aware of the possible difficulties that there may be throughout the data collection process.
During the informed consent process, it will be informed to the participants that their
confidentiality will be kept hidden and with the expectation that it will not be divulged to
others without permission in ways that are inconsistent with the understanding of the
original disclosure. After concluding the study, participants shall have the right to be
informed of the results of the study.

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Treatment of Data

Responses in the interview guide questions will be used in the thematic analysis
by the researchers. Thematic Analysis is a flexible data analysis plan that qualitative
researchers use to generate themes from interview data. This is the process of becoming
familiar with the data through reading and re-reading interview transcripts (Braun, V., &
Clarke, V., 2013). The gathered data will be carefully examined and compiled to note the
relevant responses to facilitate the interpretation of the data.

Ethical Considerations

All respondents acknowledge their written acceptance regarding their

participation in the research through signed written consent. They will be interviewed at
their most convenient time and ask consent to record the conversation. The privacy and
confidentiality will not be taken lightly to ensure the respondents safety and security. The
disclosures of the information given will be based on the permission whether they are
willing to disclose their identity or otherwise. Furthermore, the usage of any secondary
information and valuable data from any source will be acknowledged with appropriate
reference. Hence, the ethical aspects mentioned above will be followed with strict
compliance in the making of this research.

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REFERENCES
 Braun, V., & Clarke, V (2013). Successful qualitative Research: A Practical Guide
for Beginners. Sage
 CHIBOMBA, D. N. (2013).The Constituency Development Fund as a tool for
Community Development: A case study of Katuba Constituency in Zambia.
Retrieved from
https://pdfs.semanticscholar.org/c8d2/2c090eda01320dfe8ecf826e9c04c410faab.pdf
 DeWalt, Kathleen M. & DeWalt, Billie R. (2002). Participant observation: a guide for
fieldworkers. Walnut Creek, CA: AltaMira Press
 Dr. Edna Co. Taking Stock: Philippine Experiences in Cooperative - LGU
Collaboration. Retrieved from http://www.ombudsman.gov.ph/UNDP4/wp-
content/uploads/2012/12/Chap1_CoopLGU.pdf
 Explorable.com (2009): Research Population. Retrieved from Snakk Om Mobbing:
http://explorable.com/research-population
 Fulbag Singh & Balwinder Singh, 2006. "Funds Management In The Central
Cooperative Banks Of Punjab— An Analysis Of Financial Margin," The IUP Journal
of Bank Management, IUP Publications, vol. 0(3), pages 74-80, August. Retrieved
from https://ideas.repec.org/a/icf/icfjbm/v5y2006i3p74-80.html
 Kendra Cherry(2019). Defining Random Sample. Retrieved from https://www.
.verywellmind.com/what-is-a-random-sample-279503
 Lab-oyan, L.P. (2019, April 11). Community Development Fund of Cooperatives.
Retrieved from https://www.baguioheraldexpressonline.com/community-
development-fund-of-cooperatives/
 Nazura Manap, Pardis Tehrani (2014). The Contribution of Cooperative Law to
Economic Development in Malaysia. Retrieved from
https://pdfs.semanticscholar.org/bca1/3f0c25a7b45f4fca6b9196a19b065173c1d1.pdf
 Philippine Cooperative Code of 2008 Art. 3(PH). Retrieved from
https://www.lawphil.net/statutes/repacts/ra2009/ra_9520_2009.html

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APPENDICES

Letter

SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

General Luna Road, Baguio City Philippines 2600
Prefax No.: (074)-442-3071 Website: www.ubauio.edu
E-mail Address: ub@ubaguio.edu

Dear Ma'am/Sir,
Good day! We, the students of University of Baguio currently enrolled in
SYNTHS1, would like to conduct an interview about the community development
managing system of your cooperatives and the overall management system.
This interview will be conducted to gather all the necessary information of our
research titled “Community Development Fund Management of Cooperatives in La
Trinidad, Benguet, which will allow us, and the other students of SYNTHS1 to get
acquainted with and obtain profound understanding of the cooperative management
system particularly about the managing system of the community development fund. We
look forward to the possibility of this interview, and your cooperation will be very much
appreciated.
Respectfully,

Tan, Joseph Wilson R. Bantigue, Rhein Kyle D. Depalog, Ronnie S.

Reyes, Charles Andrew L. Lami-ing, Donna Mae A. Ansang. Liezel P.

Cunson, Michelle B. Dewayen, Sarah Mae B. Ebias, Ellen Grace G.

Quiaňo, Manel D.

Noted by:

Jeffreyson M. Pakias, CPA, MBA

Group Adviser

Approved by:

Rhad Vic F. Estoque, CPA, CMA, MBA

BSAC Program Chair

Dr. Kareen B. Leon, CPA, CMA

SYNTHESIS1 Adviser/Dean of SBAA

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Interview Questionnaire

1. How is the cooperative's CDF being used to help the community?

2. How much of the net surplus in percentage is being allocated to the CDF?
3. Do you believe that this percentage is enough to fund the community
development programs in such a way that the programs will be sustainable
moving forward?
4. What are the internal controls put into place in the management of the community
development fund?
5. Have there been instances wherein the recorded amount and the actual amount of
the community development fund differed?
6. Do you personally see an opportunity for the improvement on how the fund is
being managed?
7. What experiences do you have with respects to this particular CDF personnel/
manager position?
8. How often do you conduct projects involving the CDF?
9. Are the accounting records are properly maintained and secured?
10. Does the coop follow the developed budget plan?
11. Does the coop prepare audit report on a timely basis?

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Curriculum Vitae

RHEIN KYLE DE LEON BANTIGUE

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Resilient to any situation
 Sense of leadership
 Microsoft Office Word, Excel, and Access Specialist
 Able to work well with others and open-minded

Experiences

 On-the-job trainee at Robinsons Bank, June - July, 2019

 1st Junior Philippine Institute of Accountants League – First Runner -Up in
Auditing Quiz Bee

Education

Bachelor of Science in Accountancy 2016 to present

University of Baguio
Baguio City

Bachelor of Science in Accountancy 2015-2016

Adventist University of the Philippines
Silang, Cavite

Pangasinan National High School March 2015

Lingayen, Pangasinan

UCCP Binmaley Economical Learning Center Inc. March 2011

Binmaley, Pangasinan

Childrens’s World Special School 2005-2010

Binmaley, Pangasinan

Organizations/Affiliations

Member National Federation of JPIA 2015-present

12
 Seminars and Trainings

Microsoft Office Specialist May 4, 2016

History of Indigenous People in the Cordillera March, 2017
Knowing Your Rights as Future Employee April, 2017
National Accounting Summit July, 2019

13
 RONNIE SINONG DEPALOG

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication

Experiences

 On-the-job trainee at Pakias Accounting Firm, January 2019 – April 2019

Education

Bachelor of Science in Accountancy 2016 to present

University of Baguio
Baguio City

Bachelor of Science in Accountancy 2014-2016

Saint Louis University
Baguio City

Saint Paul’s Academy 2012-2014

Sayangan, Paoay, Atok Benguet

Benguet State University – Secondary Laboratory School 2010-2012

La Trinidad, Benguet

Organizations/Affiliations

Member National Federation of JPIA 2014-present

14
 CHARLES ANDREW LERIN REYES

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication

Experiences

 On-the-job trainee

Education

Bachelor of Science in Accountancy 2015 to present

University of Baguio
Baguio City

Organizations/Affiliations

Member National Federation of JPIA 2015-present

15
 JOSEPH WILSON ROŇ O TAN
Skills Summary

1. Theoretical knowledge and understanding of Accounting

1) Good communication skills
2) Computer Literate

Experiences

 Accumulated 160 hours of On-the-Job Training (OJT) at Robinsons Bank

Baguio Branch - June to July 2019
 1ST UB JPIA League – Participant, MAS Quiz Bee
 1st UB JPIA League – Participant , RFBT Quiz Bee

Education

Bachelor of Science in Accountancy 2015 to

present
University of Baguio
Baguio City

Mount Carmel College of Casiguran 2011

to 2015
Casiguran, Aurora

Organizations/Affiliations

 2015–2019: National Federation of Junior Philippines Institute of

Accountants - Member
 2013-2015: School Publication (THE BEADS) – News Writer
 2013-2015: School Broadcasting (CNBS) - Technical

Seminars and Trainings

 Accumulated 45 hours training in Fundamentals of Computer, MS Windows,

MS Word, MS Excel & MS PowerPoint of APEC Mobile Digital Opportunity
Center Program of FilChi Love and Care Foundation - from April 06, 2015 to
April 25, 2015
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 1st National Accounting Summit - June 2019
 Train Law Updates Seminar – October 2018

17
 LIEZEL P. ANSANG

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication
 Able to work under pressure
 Multi-task effectively
 Profound interpersonal skills

Experiences

 On-the-job trainee at Adag, Bialno & Co.(AB&Co), June, 2019 – July, 2019

Education

Bachelor of Science in Accountancy 2015 to

present
University of Baguio
Baguio City

Mabaca Elementary School March, 2010

Valedictorian
Mabaca, Tanudan, Kalinga

Organizations/Affiliations

Member National Federation of JPIA 2015-present

Seminars and Trainings

Born into a faction, Choose to progress, Serve to excel August 2018

A proper mindset of a leader in the corporate world April 2018
Impact of Student Leadership to Corporate Life April 2017
Knowing your rights as future employees April 2017

18
 MICHELLE BAJADOR CUNSON

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication

Experiences

 On-the-job trainee at Zambales Rural Bank, Magsaysay Avenue, January,

2019-March,, 2019

Education

Bachelor of Science in Accountancy 2014 to

present
University of Baguio
Baguio City

Organizations/Affiliations

Member National Federation of JPIA 2014-present

19
 SARAH MAE BAWAYAN DEWAYEN

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication

Experiences

 On-the-job trainee at National Commission on Indigenous Peoples, January,

2019-March,, 2019

Education

Bachelor of Science in Accountancy 2013 to

present
University of Baguio
Baguio City

Bachelor of Business Administration 2016 to

present
University of Baguio
Baguio City

Organizations/Affiliations

Member National Federation of JPIA 2013-present

Seminars and Trainings

Financial Management Practicum December

2019
Bookkeeping NCIII April 2019

20
 ELLEN GRACE GABRIEL EBIAS

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication

Experiences

 On-the-job trainee

Education

Bachelor of Science in Accountancy 2015 to

present
University of Baguio
Baguio City

Organizations/Affiliations

Member National Federation of JPIA 2015-present

21
 DONNA MAE A. LAMI-ING

Skills Summary

 Sound knowledge in computer literacy with background in using SAP

 Effective Oral and Written Communication
 Quick to adapt to different work surroundings
 Able to build relationships with co-workers
 Ability to work under pressure
 Quick-learner

Experiences

 On-the-job trainee at Acosta-Corpuz Business Consulting and Advisory, July,

2019

Education

Bachelor of Science in Accountancy 2015 to

present
University of Baguio
Baguio City

Urdaneta City National High School 2015

Urdaneta City, Pangasinan

Cabaruan Elementary School 2011

Urdaneta City, Pangasinan

Organizations/Affiliations

Member National Federation of JPIA 2015-present

22
 MANEL D QUIAŇ O

Skills Summary

 Hardworking, Honest and Trustworthy

 Ability to finish quality task on time with less supervision
 Able to work well with others and open-minded

Experiences

 On-the-job trainee at Adag Bialno and Company, May to July, 2019

 Treasury Assistant at Shopping Center Management Corporation SM Baguio
Mall Admin,May 21,2013-May21,2016

Education

University of Baguio 2018 to

present
Bachelor of Science in Accountancy
Baguio City

Saint Louis University 2012

Bachelor of Science in Business Administration
Major in Financial Management
Mary Heights Bakakeng Campus
Baguio City, Philippines

Lepanto National High School 2008

PacoMankayanBenguet

Lepanto Elementary School 2004

PacoMankayanBenguet

Organizations/Affiliations

Member National Federation of JPIA 2018-present

Seminars and Trainings

23
Monetary Policies and Central Banking September
16, 2012
Know your Legal Rights Lecture Series II: September
16, 2012
Anti-Violence against Women and Their Childrens Acts of 2004
Trends in Financial Management September
25, 2011
Stock Trading and Investment: Fundamental and Technical Analysis February 20,
2011

24