CO-OPERATIVES

OUTLINE
OUTLINE
• EXECUTIVE SUMMARY
– OBJECTIVES
– TYPE OF COOPERATIVE
– MEMBERSHIP
– BENEFITS OF MEMBERS
– NUMBER OF FOUNDING MEMBERS
– TIME - TABLE
• OPERATIONAL STUDIES
– FINANCIAL ASPECT
– COST COMPARISON
– ORGANIZATIONAL STRUCTURE
– ADVANTAGE AND DISADVANTAGE
 EXECUTIVESUMMARY
EXECUTIVE SUMMARY
• OBJECTIVES
– TO ORGANIZE A CO-OPERATIVE THAT WILL
PROVIDE SERVICES TO ALL PROJECT SITES
• TYPE OF CO-OPERATIVE
– WORKERS’ COOPERATIVE
• MEMBERSHIP
– SKILLED WORKERS
– CLERKS
– OTHER SERVICE PROVIDER
 EXECUTIVESUMMARY
EXECUTIVE SUMMARY
• MEMBER’S BENEFITS
– GOVERNMENT MANDATED BENEFITS
– SSS
– PHIL HEALTH
– HDMF
– 13TH MONTH PAY
– ADDITIONAL BENEFITS
– HEALTH MAINTENANCE INSURANCE CARD
– ACCIDENT INSURANCE
 EXECUTIVESUMMARY
EXECUTIVE SUMMARY
– AFTER 6 MONTHS CONTRACT
– 5 DAYS EMERGENCY LEAVE WITH PAY
– 5 DAYS SICK LEAVE WITH PAY
– 5 DAYS EMERGENCY LEAVE
– OTHER BONUSES
• INITIAL FOUNDING MEMBERS
– MINIMUM OF 15 MEMBERS
 TIME- -TABLE
TIME TABLE
Month 1
Critical Activites
1st Week 2nd Week 3rd Week 4th Week
Identification of Founding Members        
Meeting with the Founding Members        
Setting-up Interim BOD        
Pre - Membership Seminar (PMES)        
Discussion about Arcticles of Cooperation and By-
Laws        
Accomplishing the Economic Survey        
Accomplishing of all Documents and Requirements        
Submission of Requirements to CDA        

• Certificate of Registration will be issued :

• Regular : 60 days after Submission of Requirements
• Express Lane : Not more than 30 days after submission of requirements
 OPERATIONALSTUDIES
OPERATIONAL STUDIES

• FINANCIAL PROJECTION
– START – UP CAPITAL
– PROJECTED INCOME
– PROJECTED DISTRIBUTION OF
NET SURPLUS
 START-UP CAPITAL
Operational Expense
Bills and Utilities
Electricity 10,000.00
Water 2,000.00
Rentals 15,000.00
Communication 3,000.00
Telephone and Internet 2,000.00
Cell Phone Load 1,000.00
Office Supplies 5,000.00
Manpower 91,000.00
Supervisor / Manager 30,000.00
Accountant 25,000.00
HR Officer 14,000.00
Administrative Staff 12,000.00
Messenger 10,000.00
Revolving Fund 5,000.00
TOTAL OPEX PHP 131,000.00
 CAPITAL EXPENDITURES
Office Equipment
Personal Computer 5 units at Php 20,000.00 100,000.00
Printer 2 units at Php 5,000.00 10,000.00
Aircon 15,000.00
Office Furniture
Office Table 5 units at Php 5,000.00 25,000.00
Office Chair 20 units at Php 1,000.00 20,000.00
Conference Table 1 units at Php 7,000.00 7,000.00
Side Desk Drawer 5 units at Php 2,000.00 10,000.00
TOTAL CAPEX PHP 187,000.00

TOTAL START - UP CAPITAL WITH 6 MONTHS OPEX PHP 973,000.00

 Projected Income
Income
Admin Fee at 20 % per month PHP 172,816.80
Operational Expenses
Bills and Utilities PHP 27,000.00
Electricity 10,000.00
Water 2,000.00
Rentals 15,000.00
Communication PHP 3,000.00
Telephone and Internet 2,000.00
Cell Phone Load 1,000.00
Office Supplies PHP 5,000.00
Manpower PHP 144,000.00
Manager / Supervisor 30,000.00
Accountant 25,000.00
HR Assistant 14,000.00
Administrative Staff 12,000.00
Messenger 10,000.00
Revolving Fund PHP 5,000.00
Total Operating Expense PHP 131,000.00
Income per month PHP 41,816.80
 Projected Distribution of Net Surplus
Income per Month 41,816.80

Net Surplus (for 1 year) 501,801.60

Provision for:
General Reserve Fund ( at least 10% of Net Surplus) 50,180.16
Cooperative Education and Training fund (not more than 10%
of Net Surplus) 50,180.16
Optional Fund (will not exceed 10% of Net Surplus) 50,180.16
Total Provision 150,540.48
Net Surplus After Reserves 351,261.12
Patronage Refund (70% of Net Surplus after Reserves) 245,882.78
Interest on Capital (30% of Net Surplus after Reserves) 105,378.34

* Patronage Refund will be given at the end of the year

equally divided to all members 2,826.24
 COSTCOMPARISON
COST COMPARISON

Existing Agency Other Co-ops and Proponent Co-op

other Agencies
35.85% without 12% as minimum 20% with
administrative and it depends on the complete
Fees and Admin payroll services service they will administrative and
Costs
offer payroll services
etc.

Savings - Php 206,113.44 Php 136,986.72

 ORGANIZATIONALSTRUCTURE
ORGANIZATIONAL STRUCTURE

General Assembly

Board of Director
Chairman
Vice Chairman

Management
Treasurer
Team

BOD Secretary

Education Election Other Committee

Committee Committee as per by-laws
 ADVANTAGESAND
ADVANTAGES ANDDISADVANTAGES
DISADVANTAGES

ADVANTAGES EXISTING OTHERS PROPOSED

COOP
Administrative Work 
Depends on

the rate
Payroll and time – keeping   
Hiring and Recruitment   
Training and Development 
Depends on

the rate
Benefits – Government
Mandated   
Additional Benefits   