Cooperative Guided Questions

A. Organization and Management

Guide Questions Standard

1. Is there a realistic 3-5 years development - KRAs spelled out.

Plan? - Target set for each year.

2. Is there a clear 1 year business plan? - Detailed activities listed. Lifted from
Development plan.

3. Are regular members paid the required - 75% of regular members paid the
Capital Build-Up (CBU) per by-laws? Required CBU.

4. Are regular members participated in - 75% of regular member have savings

The savings program? In the coop.

5. Do regular members patronize the coop? - Each member patronized any of the coop’s
Business.
6. Are members classified as to members - based on membership policy or by-laws.
In good standing (MIGS) or nonMIGS?

7. Do members paid their loan on time? - 90% of he borrowers are not delinquent.

8. Ownership Meeting (OM) done regularly? - One OM per quarter.

9. Is attendance to annual GA satisfactory? - 50% of MIGS attended the GA.

10. Background check done for applicants - CI/BI done for all applicants.
Of membership?
11. Is the election of officers done properly? - Based on election policy.

12. Are all officers (BODs, Committees) in - No past due (PD) loans.
good standing? - Paid the required CBU
- With savings in the coop.
- Patronized the business
- 90% attendance to regular meetings.

13. Officers meeting done regularly? - BODs – monthly

- Committees - as required

14. Are all committees functional? - CRECOM = all loans reviewed or acted
- EDCOM = conducted regular OMs, MES
and PMES
ELECOM = conducted the election of
Officers properly

15. Is there a management team? - 1 manager, 1 bookkeeper, 1 treasurer

16. Are holders of key position not related? - not within the 1st, 2nd degree of consanguinity
and affinity.
17. Does management possess the - Manager = college level plus training
Skills required? Cashier = college level plus training
Bookkeeper = college level plus training

18. Is there segregation of duties and - Duties and responsibilities spelled out for
functions of management? each position.

19. Are turnovers of functions properly done? - Turnover between outgoing and incoming
Personnel done before effecting transfer or
Resignation.

20. Is there no conflict among officers and staff? - No personal conflict.

21. Are employees’ performance evaluated? - Semestral evaluation.

22. Are employees trained regularly? - One related training per staff per year.

23. Is the coop office/building well kept? - Office and building premises are neat and clean.

24. Is there a policy on membership? - Presence of a written and updated membership

policy.

25. Is there a policy on CBU? - Presence of a written and updated CBU policy.

26. Is there a policy on MSO, lending, - Presence of a written and updated MSO policy,
on record keeping and accounting lending policy, record keeping policy and
and bookkeeping? Accounting and bookkeeping policy.

27. Is there a CASA? - Presence of clear CASA.

28. Is there a policy on budgeting, auditing, - Presence of a written and updated budgeting
Personnel and administrative matters, and auditing policy, personnel and administrative
Fund management? matters policy and fund management policy.

29. Is there a plan for each new business? - Presence of a clear plan for new businesses.

30. Does BODs conduct regular performance review? - Monthly review on:
a. Financial indicators as to standard
Ratios versus actual
b. Management as to targets versus
Actual.
c. Budget variance.
31. Has the coop submitted reports to CDA? - Regular annual report submitted to CDA on
Time.

32. Has the coops adopted the SCA? - FS is in compliance with SCA.
B. Business Operation
.1. Is there a separate FS for each business? - Separate Income Statement and Cashflow
Statement for each business.

2. Are business profitable? - All business profitable.

3. Is there a policy for the business? - All businesses with operating policy/
guidelines.

4. Is there specific person assigned for each - One person is in charge for each business
Type of business? to oversea operation.

5. Is each business aligned with coop’s vision? - Businesses aligned to vision.

6. Are operational problems dealt with the - Problems resolved with one month.
soonest possible time?

7. Are employees/officers bonded? - All individuals handling cash are

Sufficiently bonded.

8. Is there a budget for the businesses? - Separate budget for each type of
business prepared.

9. Is there a cashflow monitoring for - Monthly cashflow for each business

for the businesses? prepared and monitored.

10. Is the coop’s businesses diversified? - Coop has undertaken projects/businesses

other than lending.

11. Is the coop providing providential - Provision of emergency loan to members

Service to members? - Provision of educational loan, etc..

12. Are there community projects - Provision of social services to the

implemented by the coop? community.

C. Cashiering

1. Is coop’s bank accounts well maintained? - Deposit balance is within the required amount.
- No checks bounced.

2. Are cash books properly maintained? - Updated everyday and cash balance fully
accounted.

3. Are surprise cash counts conducted? - Once a month.

4. Is the policy on cashiering strictly - No gross violation against cashiering policy.

5. Is the cash properly kept? - Cash kept in a vault.

6. Is the vault under joint control? - Vault opening must be done by two
authorized individuals.
7. Are vault combination and spare - Sealed envelop containing the spare key
keys properly kept? and vault combination must be properly
kept by another authorized individual.

8. Are ORs issued for cash received? - All cash received must be issued with OR.

9. Is encashment of checks controlled? - Following should not be encashed:

a. Personal checks
b. Second endorsed checks
c. Postdated checks
d. Stilled checks and out of town checks

10. Is CASA properly followed on disbursements? - All disbursement dully approved based on
CASA.

11. Are disbursements duly supported ? - All disbursements fully supported with
Appropriate documents.
12. Are all paid documents marked “PAID”? - All pages stamped “PAID”.

13. Is there no pre-signing of checks and - All approvals done after full compliance
other documents? To documentary requirements.

14. Are checks issued to specific person/payee? - All checks issued in the name of specific
Person/payee.
D. Lending Operation

1. Is loan application duly filled up by the - All blanks filled up

Borrower? - Not applicable marked as “NA”.

2. CI/BI conducted properly? - Documented thru a report.

3. CI/BI updated regularly? - Updated annually per borrower.

4. Is pre-signing not allowed? - All documents must be signed by concerned

party upon full completion.

5. Is the lending policy strictly followed? - No gross violation against the lending policy.,

6. Are appraisals properly done? - Done in accordance with policy.

7. Is loan counseling done for every borrower? - All borrowers must attend loan counseling
Before the release of loan.

8. Are loan ceilings set followed? - Loans to any individual does not exceed the
Single Borrower Limit or does not exceed
His paying capacity.

9. Are loan documents safely kept? - One folder for each borrower containing loan
Files and all folders are kept in safe cabinet.
Access limited to authorized individuals.

10. Is collection rate maintained at - 85% to 95%

Favorable level?
 11. Is aging of accounts done monthly? - Loans are classified as to age to wit:
-30 days
- over 30 to 180 days
-over 180 to 12 months
-over 12 months
Reports are prepared every quarter

12.Is loan classification done properly? - As to Unclassified, substantial, doubtful and

Loss

13.Are remedial measures undertaken to - Problematic accounts are subjected to

Problematic accounts? Remedial measures like: restructuring,
Litigation, foreclosure and etc.
E. Bookkeeping

1.Are FS prepared regularly? - Monthly

2..Are FS prepared by authorized individual? - By the accountant or bookkeeper

3..Are accounting documents systematically - Segregated on a monthly basis and kept

Filed and properly kept? In safe cabinet.

4..Is bookkeeping properly done? -with complete set of books and updated on a
Daily basis.

5..Are accountable forms kept properly? - kept by custodian in the vault and inventory of
Accountable forms done quarterly.

6..Is bank accounts properly maintained - Bank accounts reconciled.

Adequacy of Internal Control

Observe adequate internal control processes to safeguard the assets of the

cooperative.

1. Is the accounting system well defined?

2. Are the signing authorities clearly defined and approved?

3. Are the accountable officers of the coop bonded?

4. Are the recording of transactions updated?

5. Are the accounting records properly maintained and secured?

6. Are the duties and responsibilities of officers and employees separated and segregated?

7. Is the program on job rotation practiced?

8. Is joint custody implemented for physical protection and in the handling of Cash and
vital documentation?

9. Is dual control implemented? Is the work of one person verified by a second person to
ensure to ensure that the transaction is properly authorized?
10. Is the number control of documents implemented?

11. Is the confirmation/verification of accounts practiced?

12. Is the record preservation system established?

13. Is the internal audit conducted periodically?

14. Is the internal audit observations/comments acted upon by management immediately?

Additional compliance requirements?

1. Is Performance report prepared by the coop as a management tool in identifying

problem areas in the operation and determining the state of the coops’ health?

2. Is Social Audit conducted by the coop in order to assess its social impact and
ethical performance vis-à-vis its mission, vision and goals and code of social
responsibility? It assess the cooperatives’ contribution for the upliftment of the
status not only to its members’ economic needs but also community needs where it
operates. This will validates the support of the coop to the 7th coop principles on
the “concern for community” and determine whether the coop work for the
community’s sustainable development through policies approved by their
members.

3. Are the guidelines on the submission of cooperative list of officers and training
undertaken/completed?

4. Did the coop follow the revised guidelines governing the issuance of certificate of
good standing (CGS)?

5. Are the training requirements for cooperative officers implemented?

6. Are policy guidelines mandating a cooperative to put-up a signage in their

respective offices followed especially the signage specification?

7. Is the coop’s organizational structure shown as provided in RA 9520?

8. Is the limitation on share capital holdings implemented?

9. Is the prohibition on the election and appointment of elective officials as officers of

the cooperative implemented?

10. Are policy guidelines prescribing the minimum information in the membership
registry of cooperatives implemented?