ANNUAL REPORT OF THE AUDIT COMMITTEE

Hereunder are the significant accomplishments of BADEVCO’s Audit Committee for the preceding year of 2021 in line
with its mandated functions as stipulated in the Philippine Cooperative Code of 2008 (R.A. No. 9520), viz:
Auditing the performance of the cooperative and its various responsibility centers
The Audit Committee conducted the annual Performance Audit of BADEVCO for the year 2020 and submitted the
covering Report to meet the deadline on April 30, 2021 as required by the Cooperative Development Authority. The
Performance Audit covered the Governance and Management of BADEVCO and the result of its financial
performance for the year 2020. BADEVCO obtained a total adjectival rating of “Needs Improvement”. Incidentally,
for year 2021, BADEVCO retained this same rating. The Audit Committee also performed the mandated annual Social
Audit of BADEVCO for 2020 to measure the effectiveness of its social development services.
Monitoring the adequacy and effectiveness of BADEVCO’s management control system
- Conducted an inventory count of office equipment and verified the existence of Memorandum Receipts signed by
the co-op personnel accountable for them.
- Checked the old Cash Disbursement Vouchers, General Vouchers and Official Receipts for the years 1987 to 2006 to
be disposed by the General Services Department.
- Inspected/reviewed the Promissory Notes, their notarization, and other documentations of loan accounts with
original amounts of P500,000.00 and above granted from July to December, 2020
- Traced/inspected Official Receipts covering members’ payments to individual members’ electronic ledger/s.
- Reviewed the purchase vouchers of the Koopstore (March 11-31, 2021 during the discontinuance in the use of the
old Point-of-Sale (POS) recording machine as to their proper approval, receipt of goods from suppliers, and
recording in the POS terminal.
- Looked into the cause of the discrepancy of Revolving Operations Fund/Cash on Hand (ROF/COH) between its
recorded balance and the actual ROF/COH assets in the custody of the Treasurer as adjusted via general voucher on
11/17/20.
- Verified the completeness and accuracy of the manually-prepared/issued Official Receipts of the Koopstore during
the period in which the use of the old POS terminal was temporarily discontinued.
- Reviewed/inspected the documents used in evaluating the creditworthiness and ability to pay of loan applicants for
production loans.
- Verified and checked the General Vouchers and Cash Disbursement Vouchers for selected months as to proper
authorization/approval and correctness of entries.
- Monitored the Tempo Debit and Tempo Credit accounts for the 3-month period from March to May, 2021.
- Conducted random physical count of the inventory on hand of the Koopstore as of October 31, 2021 and observed
complete physical inventory count at year-end of 2021.
- Monitored the DOSRI loan accounts of BADEVCO’s directors, officers and employees.
- Examined the big past due loan accounts in the Aging of Accounts Report as of September 30, 2021 and checked
the sufficiency of the Allowance for Probable Loss on Loans (APLL) account.
- Checked the monthly total sales transactions of the Koopstore for selected months to supporting documentation.
- Verified the Cash Disbursement Vouchers covering the co-op’s expenses in selected month/s as to proper approval.
Reviewing continuously and periodically BADEVCO’s books of account and other financial records
- Conducted surprise cash counts at least twice a month from January to December, 2021 to compare the combined
balances of Cash on Hand and Revolving Operations Fund accounts against the physically existing cash on
hand/revolving operations fund in the custody of the Treasurer.
- Verified the General Vouchers (showing non-cash transactions) for selected month/s as to proper approval and
correctness of entries.
- Traced Official Receipts for selected month/s to the Cash Receipts Journal and to individual members’ electronic
ledgers.
- Checked the Cash Disbursement Vouchers in selected months as to supporting documents and proper approval.
- Checked/reviewed the bank reconciliation statements for March, April May, June, July, and August. November,
2021 prepared by the Accounting Department.
Submitting reports on the result of the internal audit and recommend necessary changes on policies and other
related matters on operation to the Board of Directors and General Assembly
The Audit Committee submitted monthly audit reports to the Board of Directors, copy furnished the General
Manager, containing its audit findings and conclusions on the audit work it had conducted. Based on the audit
findings and conclusions, we also made relevant recommendations intended for improving the effectiveness and
efficiency of operations of BADEVCO.

AUDIT COMMITTEE:

ALVIN M. TAPIA, MBA MARILYN J. NAING Ed.D. ELISE D. SULLIVAN

Chairperson Vice-Chairperson Secretary