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DRAFT PROPOSED MC ON THE ISSUANCE OF COC February 14, 2022
DRAFT PROPOSED MC ON THE ISSUANCE OF COC February 14, 2022
Series of 2021.
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Pursuant to Section 4(a), (g) and (h) of Republic Act No. 11364, otherwise known as the
Cooperative Development Authority Charter of 2019, RA9520, Republic Act No. 10744 and its
Implementing Rules and Regulations (IRR), the following guidelines are hereby issued:
SECTION 1. TITLE
This Guidelines shall be known as the “Revised Guidelines Governing the Issuance of a
Certificate of Compliance (COC).”
Article 53 of RA 9520; Rule 8 of the Revised IRR, Section 4(a), (g) and (h) of RA11364, DOF-
CDA-BIR Joint Administrative Order 1-2019 and Sections 1 to 3, Rule 27 of RA 10744.
SECTION 3. SCOPE
SECTION 4. OBJECTIVES
As used in this amended Guidelines, the following terms shall be construed to mean:
2. Certificate of Compliance (COC) refers to the certificate, in lieu of the (then) Certificate
of Good Standing (CGS), issued to all cooperatives after compliance with the rules and
regulations being implemented of the Authority.
3. Fiscal Year refers to the operating cycle of business operation and activities of a
cooperative, covering a twelve (12) month period as provided in the By-Laws of the
cooperative. Calendar year may be adopted as the fiscal period.
5. Preceding Fiscal Year refers to the fiscal year immediately preceding the date of
issuance of a COC.
6. Suspension refers when the issued COC of the cooperative becomes temporarily invalid.
A COC shall be issued once a year and can be used for any of the following purposes:
3. To secure a Certificate of Tax Exemption (CTE) and other incentives and privileges set
forth in the CDA-BIR Joint Rules and Regulation Implementing Articles 60 and 61 of RA
9520 in relation to RA 8424 (National Internal Revenue Code);
4. To avail of local tax exemption privileges and secure permits and licenses prescribed
under the provisions of the RA7160 or Local Government Code of 1991;
5. To comply with the requirements for accreditation as CDA training provider; and
The following are the requirements for the issuance of a COC covering a Calendar
Year period which shall be submitted online through the Cooperative Assessment Information
System (CAIS):
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2. Annual Tax Incentive Report for cooperatives with CTE
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1. Cooperative Annual Progress Report (CAPR) with the following attachments
encoded/submitted through the Cooperative Annual Information System (CAIS):
a.1. Social Audit Report (SAR), including its program of activities pursuant to its
socio-civic goals;
a.2. Performance Audit Report (PAR), including copies of the semi-annual report
on Mediation and Conciliation pursuant to Rule 7 of the Revised IRR of R.A. No.
9520;
a.3 Financial Statements audited by an external auditor accredited by the Authority;
and
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a.4 List of Officers and Mandatory Trainings Undertaken/Completed.
Upon registration, the COC shall be issued after payment of a Certificate of Compliance (COC)
Fee of One Hundred Pesos (P100.00), which shall be valid until April 30 of the immediately
succeeding year, except for cooperatives whose fiscal year is other than the calendar year.
For the immediately succeeding year, cooperatives with less than one (1) year of business
operation from the date of registration shall be required to submit only the following:
Financial Status Reports signed by the Audit Committee and the Chairman of the
Cooperative:
● Statement of Financial Condition (Annex A)
● Statement of Operation (Annex B)
All cooperatives whose fiscal year ends on a date other than December 31 as stated in their
By-Laws shall submit the required report within 120 calendar days from the end of its Fiscal
Year.
The Authority shall forthwith issue the COC within the period stated in the Citizen’s Charter
upon receipt of the original copy of the complete Audited Financial Statements and system’s
generated acknowledgment receipt from CAIS. These documents may either be submitted
personally or through courier to the CDA Provincial/Field Office having jurisdiction over the
principal office of the cooperative. In the case of Cooperative Banks and Insurance
Cooperatives, the same shall be submitted to the CDA Head Office:
Complete Audited Financial Statements shall consist of the following, except for newly
registered cooperatives as stated in Section 7.6 hereof:
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3. Statement of Changes in Equity, Statutory Funds, and Donations and Grant
4. Statement of Cash Flows
5. Notes to Financial Statements
6. Statement of Management Responsibility signed by the Chairman and Treasurer.
7. Auditor’s Report/Opinion
8. Statement of Representation, if audited by Cooperative External Auditor (CEA)
Issuance of COC shall be made not later than December 31 of the current year whose validity
ends 120 days of the succeeding calendar/fiscal year. Required reports or compliance to the
issued Show Cause Order submitted after December 31 shall no longer be issued a COC.
The COC hereby issued shall cover the operations of the cooperative for the year immediately
preceding the reporting period and shall be valid and effective until April 30 of the succeeding
year unless suspended or revoked for cause.
For cooperatives with fiscal year other than calendar year, the COC shall be valid 120 days
after the close of the immediately succeeding fiscal year.
Cooperatives who have failed to submit the required reports in the prior year/s are still required
to submit the late reports and pay the corresponding penalties before issuing the COC.
Provided: However, that a COC whose period of validity is beyond the date of
submission shall no longer be issued.
2. Willful failure to comply with the mandatory trainings for all officers despite due notice;
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4. Non-fulfillment of the monetary and non-monetary obligations to the CDA, such as but
not limited to unliquidated grants/loans until arrangement for such liquidation or payment is
made/approved;
7. The cooperative has been issued with Cease and Desist Order; and
8. The previous COC has been suspended or revoked and the reason/s for such
suspension or revocation has not been complied.
In case, a cooperative cannot be issued a COC on any of the afore-cited grounds, the
CDA HO/Extension Office shall notify the cooperative in writing specifying therein the ground
for non-issuance.
Any of the following shall constitute a ground for suspension or revocation of a COC:
1. The cooperative has two or more sets of Board of Directors claiming to be the legitimate
officers of the cooperative and the dispute becomes the subject of a verified complaint filed
with the Authority;
3. The cooperative has been issued with Show Cause Order (SCO);
4. The cooperative is issued with cease and desist order to refrain from the business
operation and/or undertaking business activities.
1. The Authority shall issue Order of Suspension of the issued COC stating therein the
ground/s of suspension;
2. A public notification shall be posted in the CDA website and other CDA official social media
sites; and
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The Order of Suspension shall be lifted in the following instances:
1. In case of leadership dispute, upon the election of a new set of officers or the issue
becomes moot and academic; and
Upon the favorable recommendation of the concerned Extension Office Director, and upon
approval of the CDA Board of Directors, the submission of the mandatory reportorial
requirements may be waived in case of total destruction/loss of records and reports due to
force majeure or fortuitous events.
In order for the said waiver to apply, the cooperative shall submit the following:
1. Certification issued by the Local Government Unit (LGU) or Barangay or through their
respective local Disaster Risk Reduction Management Council (DRRMC) where the
principal office of the cooperative is located stating the occurrence of such force majeure
or fortuitous event;
2. Letter of application for relief in the submission of regulatory requirements signed by the
Chairperson and/or the General Manager of the cooperative;
3. Damage Assessment Report
This Guidelines repeals Memorandum Circular No. 2016-07, dated October 18, 2016,
MC2019-04, dated January 22, 2019, and other related issuances which are inconsistent
herewith.
All Extension Offices of the Authority shall cause the information dissemination of this
Guidelines.
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SECTION 20. EFFECTIVITY
This Memorandum Circular shall take effect after fifteen (15) days following the completion of
its publication in the Official Gazette and the filing of the copy thereof with the Office of the
National Administrative Register (ONAR).
Approved pursuant to Board Resolution No. ____ Series of 2022 dated _____________.
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