REFLECTIVE ESSAY

INTRODUCTION
What exactly is a cooperative? Who should be involved in the formation of this type
of company? What is the best way to organize it? Is there a link between the cooperative
model and the concept of specialized industries? How can I use the audit of a particular
cooperative to evaluate its social effect and ethical performance? What effect does it have on
the overall presentation of the social audit? As soon as I heard the word "cooperative" in our
topic course Acctg 36 Auditing and Assurance: Specialized Industries, these questions
popped into my head. During these days, I was challenged to devote myself to studying this
topic in depth so that I could relate to and comprehend the process of executing a
cooperative's audit and assessing its social development services impact.
Gradually, I began to solve those perplexing problems using the many references
provided. To begin, a cooperative is defined 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 profits." Those with comparable requirements band together and pool their
resources for mutual benefit in this sort of business organization.
Cooperatives are considered to be one of the specialized industries because they met a
certain criteria that makes it as one. These criteria stated are the reasons as to why
cooperative is included, and these are summarized as follows: (a) This form of business
organization is not necessarily rare and it provides specialized services to its member by
improving the economic well-being of the members. (b) Cooperatives are likely to have a
specific financial reporting standards applicable only to them in accordance with Philippine
Standards on Auditing and the Standard Audit System for Cooperatives (SASC). (c)
Cooperatives have distinct account titles for their specialized transactions offered and; (d)
Cooperatives also have the distinct significant accounting policies in accordance with the
Philippine Financial Reporting Framework for Cooperatives taken into consideration the
Cooperative laws, rules, regulations and principles.
Stated in Article 80 of the Republic Act 9520 that “Cooperatives registered under the
Code shall be subject to an annual financial, performance and social audit.” Every
cooperative shall draw up regular reports of its program of activities, including those in
pursuance of their socio-civic undertakings, showing their progress and achievements at the
end of every fiscal year. [Article 53 (1)].
Social Impact Assessment is being defined as the process of monitoring, analyzing,
and evaluating the intended and unintended social outcome/result, both positive and negative
as well as planned interventions and social change processes involved in said interventions.
 BACKGROUND OF K-COOP
To gain a better understanding of social impact assessment, I chose to study the
Kabuhayan sa Ganap na Kasarinlan Credit and Savings Cooperative, also known as the
Kasagana-Ka or K-Coop, which serves as my foundation for reflecting and measuring the
cooperative's social development services' effectiveness.
Stated in the Cooperative Notes to Financial Statements’ General Information, The
Kabuhayan sa Ganap na Kasarinlan Credit and Savings Cooperative (Kasagana-Ka or K-
Coop) with address at 4th Flr. KMBA Members’ Center Bld. No. 5 Matimpiin St. Pinyahan
Quezon City, 1100 was organized and registered on February 5, 2016 with the Cooperative
Development Authority with Registration No. 9520-1016000000028521 in accordance with
Republic Act 9520, otherwise known as the Philippine Cooperative Code of 2008. The
primary purpose of the Cooperative is to engage in thrift and savings mobilization amount the
members, particularly women in urban and peri-urban poor communities, to mobilize and
generate funds in order to provide credit services, providing its members the financial means
for financial sustainability and social protection, to adhere to and promote the principles and
processes of cooperativism, as a way of improving the social and economic well-being of its
members and create social infrastructures and networks with viable systems and processes
and to do any related activities for the members by way of self-government, improving their
social and economic empowerment thereby contributing to the creation of truly just, gender-
equal and democratic society.
The Cooperative started its business operations on August 18, 2016 with 30 branches
around National Capital Region.

Vision and Mission

The cooperative was organized to improve the quality of life of its members in urban
and peri-urban communities through economic and social empowerment using microfinance
as a strategy for its members to gain collateral-free credit for self-help activities.
In pursuit of its mission and vision, K-Coop provides the following programs and
services:
 Livelihood and Enterprise Development
 Education, Training and Formation
 Health and Wellness
 Security, Shelter and Safety
 Social Protection
Kasagana-Ka Synergizing Organizations
 K-Coop is the fourth organization under the Kasagana-Ka Synergizing Organizations.
It was a spin-off from Kasagana-Ka Development Center, Inc. (KDCI), to clearly separate the
social programs from the credit and savings programs and services.
KDCI and K-Coop recognize that it is through their synergy that their common goal
of improving the lives of their target beneficiaries will be attained. It is, therefore, in their
mutual interest to ensure each other’s sustainability.

CONCLUSION
In August 2016, the Board of Trustees of the KDCI resolved to approve the grant of a
program subsidy fund of One Hundred Twenty Million Pesos Php 120,000,000 to K-Coop.
This program subsidy fund is part of a bundle of assistance for K-Coop, and was created to
further KDCI’s livelihood assistance and other social programs for the members. It was
intended to help the Cooperative build its capital and to be used solely to finance K-Coop’s
various loan facilities. The fund was granted by KDCI to K-Coop in the form of an
endowment.
K-Coop commits to support the operations of KDCI by providing program grants to
cover KDCI expenses on programs designed and implemented for Cooperative members,
extend annual donations of KDCI in support of its corporate affairs and allow KDCI’s use of
the cooperative structure in engaging client-beneficiaries.
Reflected in the auditor’s independent report where stated that the accompanying
financial statements present fairly, in all material respects, in accordance with Philippine
Standards on Auditing (PSAs) and the Standard Audit System for Cooperatives (SASC). The
audit evidence obtained is sufficient and appropriate to provide a basis for the said opinion.
This simply means that all the amounts presented in the financial statements are accurate as it
is from the various social programs implemented. It shows that there were no irregularities
and discrepancies found in the audited financial statements of the Cooperative. Also, there
were no going concern issues that have to be disclosed involving the cooperative as of the
Balance Sheet date.
The challenges of COVID-19 in the country may seem unnerving yet, K-Coop
undoubtedly find ways in prioritizing help to its employees and members through the
implementation of these social programs. Upon reading their annual report presented as of the
year ended December 31, 2020, I found out that the Cooperative mainly brought a positive
impact in evidence as for employment, access to goods and services, production and most
especially it has a strong social protection guided by a closely monitoring process to improve
the lives of its members and the people involved in the organization.
To summarize everything that has been said based on the information provided, I
conclude that Kasagana-Ka Cooperative's social programs and audit were remarkably
successful despite the challenges exacerbated by the pandemic, as all of the fund's purposes
have been fulfilled and K-Coop is indeed viable and sustainable.