COOPERATIVE ALLIANCE FOR RESPONSIVE ENDEAVOR

MUTUAL BENEFIT ASSOCIATION (CARE MBA), INC.

39 Ilang-Ilang Street ZaballeroSubd. Brgy. Gulang-gulang, Lucena City

POLICY on
CODIFIED APPROVING SIGNING AUTHORITY
(CASA)

The following sections identify the different transactions and activities in the area of
membership, withdrawal or resignation, reinstatement, refund of membership equity, claims of
members benefits, marketing, fund management, personnel, general and administrative affairs,
and turnover of accountability and business operations. For each of these activities,
responsible approving and signing authorities are indicated to serve as reference or guide to
leaders and management in the conduct of operations.

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A. Membership
Indicates the approving and signing authorities in all matters pertaining to membership,
withdrawal or resignation, reinstatement and affiliation in other different organizations.

The continuing dynamism of an MBA largely depends on the quality and quantity of its
members, as well as on its active participation as affiliates in other organizations. An
MBA must possess a well-defined approving and signing authorities to enable it to
immediately and adequately respond to the needs for continuous membership
recruitment and effective implementation of disciplinary actions against erring members
and other aspects related to membership.
TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

1. Approval of Application and Withdrawal of

Membership, Determination of Membership Status
1.1 Implementing Rules and regulations

1.2 Application for Membership

1.2.1 New Applicants

1.2.2 Reinstatements (Redate or Update)

1.3 Determination of Membership Status

(member is active or inforce or lapse status)

1.4 Withdrawal/Resignation of Membership

1.5 Determination of Members Benefits

2. Signing of Written Notice re BOT Action on
Membership Application, Membership Status, and
Withdrawal of Membership.
3. Approval of Disciplinary Action Against Members.

3.1 Board resolution

3.2 Written Warning

3.3 Suspension of Benefits, Rights and

Privileges

3.4 Expulsion of Member

4. Removal of Elective Officer, Trustee and Committee
member.

5. Signing of Notices to Implement Approved

Disciplinary Actions Against Members.
6. Approval of Affiliation/Partnership with Other
organizations.
6.1 Approval of Membership in Other
Organizations.

6.2 Approval of partnership with Other

Cooperatives, MFI & other Legally
Organized Groups.

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B. Claims

This section provides the approving and signing arrangements in Claims transactions.

This shall provide the association the capability to immediately address its need for
timely decisions and fast or effective delivery of claims.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

7. Approval of Application CLAIMS in BLIP/CLIP

7.1 Determination of Membership Status

(member is active or in-force or lapse
status) and amount of claims

7.2 Determination if CLAIMS are

acceptable/ payable/ deniable

8. Signing of Written Notice re BOT Action on

Denied Claims of Members Claim

9. Approval of Amount of CLAIMS

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C. Refund of Members Equity

The refund of Members Equity is a benefit intended for the member upon resignation or
upon death claims of the beneficiary, and as such must be clearly defined as to the
approving authority of the transactions in relations to said benefits.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

10. Approval of Application Refund of
Members Equity

10.1 Application for refund of

Members Equity

10.2 Determination of Membership

Status (member is active or
inforce or lapse status)

10.3 Determination if Refund of

Members Equity are
acceptable

11. Signing of Written Notice re BOT Action

on Members Refund of Members Equity .

12. Approval of Amount of Refund of

Members Equity

D. REINSURANCE

As a measure to lessen the risk mitigating situations for Credit Life Insurance Plan
(CLIP), partnership with other insurance providers is a prerogative. The association
must seek to address the need for insuring the loan amount in excess of the approved
amount by the Insurance Commission.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

13. Partnership with other Providers

13.1 Selection of reinsurance

providers

13.2 Signing of the MOA

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E. Fund Management Transactions

This section delineates responsibilities in all matters involving the investment of the
surplus funds of the association, which include among others determining what, when,
where and how to invest the funds as per provisions in the Insurance Code. Matters
pertaining to Membership Equity Contributions, other organizations,
disposition/withdrawal are considered. Approval and designation of authorized persons
as the official signatories for placements/investments, withdrawal slips, checks and other
negotiable instruments or documents in the designated banks of the association are also
defined.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

14. Granting of Authority to Invest

15. Approval of Amount, Terms and Type of

Investment

16. Selling or Purchasing of Investment

17. Approval of Membership Equity
Contributions and the like, with, other
Organization and Disposition/Withdrawal
thereof
18. For disbursements:
18.1 Not exceeding P30,000.00
covered by check/withdrawal
slip/request for MC, the
authorized official signatories are
the General Manager, Cashier,
Treasurer and President

18.2 In excess of P30,000.00 covered

by check/withdrawal slip/request
for MC, the authorized official
signatories shall be any one of
the signing officers in Class A and
any one of the countersigning
officers of Class B.

Class A
Manager
Cashier
Class B
Tresurer
President
Chairman Emeritus

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F. Human Resource Development (HRD)

To implement a more efficient human resource development, Personnel matters shall be

under the supervision of HRD Committee. As the arm of the BOT, he/she shall be
appointed under the supervision of GM to facilitate the management of such. Below is
the suggested delineation of accountabilities and responsibilities between and among
concerned officers.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

19. Approval of the following:
19.1 Organizational Structure and
Personnel Plantilla Including
Compensation Structure and
Amendments Thereto

19.2 Recommendation of the HRD

Committee

19.3 Review the approval of the

proposed revisions/ amendments/
changes in the existing policy

19.4 Approve the implementations of

decisions recommended by HRD
concerning but not limited to:
a. Grave Penalties

b. Termination of Staff

c. Salary Increases

d. Grant Bonuses/Incentives

e. Acceptance/Hiring of New Staff

19.5 Pass recommendations to the

HRD Committee

19.6 Act upon the recommendations of

the General Manager

19.7 Over all supervision of the

personnel welfare

19.8 Sign on the employment papers/

records (leave, service record etc.)
and certificate of employment and
compensation

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 19.9 Implementation of disciplinary
actions against erring personnel,
depending on the gravity of
offense set by the BOT

19.10 Issuance of Administrative

procedural policy for
implementation

19.11 Recommend training

program/needs of employees

19.12 Approval of application for leave,

loans (SSS, Pag-Ibig, etc.)

19.13 Other matters that may be

authorized by the BOT

G. General and Administrative Affairs

This section provides signing authorities to ensure that internal control has been
installed to safeguard disbursements and CARE MBA, Inc. properties.

As an internal control measure, it is proper for the association to identify the responsible
persons/units responsible for making decisions on expenses, acquisition and disposition
of assets, and other related administrative matters. for making decisions on expenses,
acquisition and disposition of assets, and other related administrative matters. A clearly
defined and delineated approving and signing accountability will help prevent
unreasonable and excessive spending by any officer or personnel.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

1. Approval of Procurement/Purchase of Non-
expendable Items, e.g., land, building, other
capital expenditures

1.1 Depreciable within three (3) years but

the total purchase amount shall not
exceed the P5,000,000.00 amount
within the budget year
1.2 Depreciable for more than three (3)
years

1.3 Land

2. Minor repair and maintenance of MBA’s

assets and rented assets up to P10,000.00

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 TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

3. Approval of Procurement/Purchase of
Expendable Items, such as:
3.1 Supplies and materials up to
P10,000.00
3.2 Laptop, computer P10,001.00-
50,000.00

4. Approval and Signing of Contracts for

Lease/ Rental of
Furniture/Equipment/Building/Vehicle

4.1 Lease

4.2 Rental

5. Approval of Travel

5.1 Within the Province/City

5.2 Domestic (Within the Country)

5.3 Foreign

6. Approval of Cash Advances/Reimbursement

of Representation and Travel Expenses
Incurred by BOT Members, Manager and
Committee Chairmen

6.1 P100,001.00 & above

6.2 P30,001.00 - P100,000.00

6.3 P30,000.00 & below

7. Approval of Advertising and Promotion

7.1 P3,001.00 & above

7.2 P3,000.00 & below

8. Approval for the use of Office Equipment’s

9. Approval of Cash Donations

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 9.1 P10,001.00 & above
9.2 P5,001.00 – P10,000.00
9.3 P5,000.00 & below

10. Approval of Payroll and Other Personnel

Expenses
11. Approval of normal and recurring expenses
necessary for operations, i.e., electricity,
water, telephone, and the like
12. Sign contract in behalf of the MBA
13. To represent the association in any meeting,
conferences, forum and the like

TURNOVER OF ACCOUNTABILITY

This section provides the approving and signing authorities for clearances of outgoing
key CARE MBA, Inc. leaders and officers. The delineation of these responsibilities is
vital in ensuring the proper transfer of important documents and records to CARE MBA,
Inc. staff who shall take-over the roles and functions that will be left behind by the
outgoing personnel.

TRANSACTIONS/ LIMITS GA BOT Treas Com Mngt

1. Approval of Clearance of Outgoing

Personnel:

1.1 General Manager

1.2 Officers

1.3 Staff