GOVERNANCE AND MANAGEMENT AUDIT REPORT

(Performance Audit Report)

As of December 31, 2020

XXXX CREDIT COOPERATIVE

TTTTTT, Bogo City, Cebu
Tel No. 434-8053

i. The XXXX CREDIT COOPERATIVE (referred hereinafter as "Cooperative") was

registered as a cooperative pursuant to RA 9520 with
ii. Cooperative Identification No. 70201843338 and
iii. The Cooperative's name was granted the CDA Registration No. 9520-000000000000 last
July 3, 2018
iv. The area of operation of the cooperative shall be in Bogo City and Municipalities of
Medellin and Daanbantayan, Cebu and its principal office is located at Taytayan, Bogo
City, Cebu.
v. The XXXX Credit Cooperative referred hereinafter as Primary Cooperative and engaged
with the business of Credit/Lending.
The audit was conducted by the committee appointed by the Board who are members of the
board themselves. The area covered are the Assets, Liabilities, Equity, Revenue and Expense
account with the end view of ascertaining the reliability of figures presented in the statements.
Approaches include inspection, validation, confirmation and re-computation of figures as
reflected.
The committee found out that in these areas the coop is strong: Credit/Lending and deposit
taking, membership admission and business operations. The areas to be improved are on the
internal control for cash; reconciliation of General Ledger versus Subsidiary Ledger and the
monthly Financial Statements Preparation.
Our conclusion and recommendations are:
 appoint/elect a permanent audit committee
 close coordination with external auditors
 Acquisition of software to help establish controls.

Thank you.

Appointed Audit Committee:

XXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX NA .

Chairperson Secretary Member

 GOVERNANCE AND MANAGEMENT AUDIT REPORT
(Performance Audit Report)
As of December 31, 2020

XXXX CREDIT COOPERATIVE

TTTTT, Bogo City, Cebu
Tel No. 434-8053

XXXX Credit Cooperative is a duly registered cooperative with the Cooperative Development
Authority (CDA) under Registration No. 9520-000000000 and Cooperative Identification Number
(CIN) 70201843338, with official postal address at TTTTT, Bogo City, Cebu engaging in the
provision of Credit/Lending Services.

The audit was conducted by the Committee appointed by the Board composed of three (2)
members to conduct audit for the twelve months ended December 31, 2020, to ascertain the
documents required by MC No. 2021-04 Series of 2021 issued by then CDA, a government agency
in-charge in the regulation and development of cooperatives. Methodologies employed include
verification of presence documents, whether the document is updated, and whether it is duly
approved by authorized representative of the CDA. Prior the conduct of the audit, a memorandum
was issued to the concerned units/person at least two (2) weeks before the conduct of the audit.

A. Governance and Management

Summary of observations and findings are found below:
STRONG AREAS AREAS TO BE IMPROVED

In order to address the findings, the following is hereby suggested:

AREAS TO BE IMPROVED NEEDED ACTION TIMELINES

B. Result of Financial Performance

STEPS STANDARD RATINGS COOP RATINGS
STABILITY 19 13
TURN-OVER RATIO 6 1.3333
EFFICIENCY 38 24
PROFITABILITY 15 1
STRUCTURE OF ASSETS 22 10
TOTAL RATING - STEPS 100 49.3333

*C. Total Points

Governance and Management x 40% 35.00
STEPS x 60% 29.60
Grand Total 100% 64.60
ADJECTIVAL RATING
The cooperative obtained a total rating of 64.60 with adjectival rating of Fair (please refer to our
M.C. 2021-04 for the matrix of adjectival rating), which means that t he cooperative has fair
performance and most of the areas of its operations, if left unchecked, would lead to conditions
that could threaten its viability. A high potential for failure is present but is not yet imminent.

ATTESTED TRUE AND CORRECT:

XXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX NA .

Chairperson Secretary Member

YYYYYYYYYYYYYYYYYY
Chairperson of the Board