COOP 30136 Performance Management Social Audit For Coops

COOP 30136
PERFORMANCE MANAGEMENT & SOCIAL

AUDIT FOR COOPERATIVES
SY
Compiled by:
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FOREWORD
This instructional material (IM) provides the students insights and

understanding on the different performance management and performance
standards that should be adhered by all cooperatives in country as mandated by the
Cooperative Development Authority. The different principles and concepts of
performance standards and performance management for cooperatives will be
discussed in this IM together with the Training Requirements for Cooperative
Officers, Social Audit, Gender Equality in Cooperatives, Governance and
Management, and the Philippine Financial Reporting Framework for Cooperatives.
Details of these topics will be thoroughly discussed in this IM. Sample exercises
and format templates and the mandated tools are also included to give the students
full view of what has been discussed each week lessons.
After each week lessons are provided the required activity for the students to
work on. The course adviser/s shall use the assigned tasks/activities in monitoring
the performance of the students. Self- assessment checklist will be given to the
students (in rubrics form/CDA mandated tools) to determine how the students are
coping with their assignments/required activity/self-test evaluations.
This IM is intended for blended learning modality in this time of COVID 19

Pandemic. The course advisers together with the students will have to utilize varied
on-line learning platforms to discover their course on COOP 30136 – Cooperative
Performance Management and Social Audit for Cooperatives. Submissions of the
required tasks/activity shall be done through Facebook, Viber, Canvas, Email,
Schoology, Edmodo, MSTeasm, Google Classroom, Zoom etc. as agreed upon for
this purpose. Tests and examinations will be designed through Tesmoz, Google
Form, MSForm, etc. Presentations of outputs will be via the agreed teaching
platform. In the event that the students will not be able to have access to on-line
submissions they have the option to mail their outputs. If ever students will choose
pure offline mode they will be sent this Instructional Materials via mail or e-mail.
The materials gathered for this IM are compiled carefully by the authors.
Deepest acknowledgements were cited for the insightful and informative articles
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gathered online. The authors and the users of this compilation swore to only utilize
this material for purpose of reference for the course on COOP 30136. Any
alterations or minimal revisions were only done in order that the coop students can
have the basic understanding of the concepts and principles behind performance
standards, performance management, and social audit in cooperatives.
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TABLE OF CONTENTS
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Polytechnic University of the Philippines
College of Social Sciences & Development
DEPARTMENT OF COOPERATIVES & SOCIAL DEVELOPMENT
Mabini Campus, Sta. Mesa, Manila
Tel. No. 3511777/3511778 to 36 loc. 316
Course Title : Performance Management & Social & Audit for Cooperatives
Course Code : COOP 30136
Course Credit : 6 Units
Course Description : The course is intended to provide the cooperative students on the concepts and fundamental principles
of performance management and standards for cooperative. This shall also allow the students to recognize and internalize the social
audit undertakings for the cooperative movement. Here the students will be able to assess the social and economic performance of
cooperatives via the varied assessment tools as mandated by the Cooperative Development Authority. Among these include
performance and management audit for cooperatives, social audit for cooperatives, governance and management audit for
cooperatives, assessing the gender equality progress of primary cooperative in the country, and other financial reporting framework,
etc.
Institutional Learning Programs Outcomes Course Outcomes

Outcomes
1. Creative and Critical ▪ Demonstrate high degree of analytical and At the end of the course the learners are able
Thinking creative thinking using acquired skills, to:
behaviours, characters and values anchored
on the cooperative environments and ▪ Determine the research thrusts and
learning areas. agenda of the university in relation to the
common cooperatives’ research agenda
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▪ Associate the International Cooperative
2. Effective Communication ▪ Apply learned skills of the different Alliance 2020 Blueprint with the
communication structures in the different cooperatives research concerns in the
situations needed for cooperative Philippines
businesses and endeavors and for building
relationships.
▪ Advocate in increasing public awareness ▪ Discuss the theories and concepts of
about co-peratives and their contributions to research
socio-economic development and the
achievement of the vision of the cooperative ▪ Identify the different types of researches
movement. and state their significance
▪ Ascertain what true research is and what

3. Strong Service Orientation ▪ Exhibit profound skills and deepened values research is not
and principle-based educational foundation
for effective cooperatives promotion, ▪ Recognize the processes involved in
4. Community Engagement organization and development, formation research proposal preparation
and growth of cooperatives and
demonstration of good sense of service to ▪ Determine criteria in selecting research
others, their communities and the society as problem for use in identifying prospective
a whole. research title and research undertaking
▪ Design ways to gather the research

5. Adeptness in the ▪ Adapt responsibly on the use of technology literatures
Responsible Use of and information systems on cooperatives’
Technology financial, management, audit and other ▪ Develop capability and competence to
coop’s performance standards. do research proposals for coops
▪ Present the research title before the

6. Passion to Life-Long ▪ Exhibit a higher degree of competence and panel of evaluators
Learning expertise in business management, financial
management and community development ▪ Prepare research proposal and present
and show responsiveness and competently before the panel of
7. High Level of Leadership understanding of education and training to evaluators
and Organizational Skills the present needs and emerging
requirements of the cooperative sector.
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8. Sense of Personal and ▪ Practice the ethical and organizational
Professional Ethics values of cooperation. Adapt strong sense
of justice, work ethics, and social
responsibility expressed in the core values of
love of God and neighbor, honesty, integrity,
care, service, sincerity among other values.
9. Sense of Nationalism and ▪ Support strategies for global co-operative

Global Responsiveness future and engage in operationalizing coop
business which is a practical vehicle for
promoting self-reliance amongst individuals
and society.
COURSE PLAN
Week Topic Learning Outcomes Methodology Resources Assessment
Week 1 ▪ Overview of the PUP At the end of the session, the Audio-Visual Digital Light Processing Oral
Vision, Mission, Goals & learners are able to: Presentation Equipment (DLP) Reflection/
Objectives
▪ The 8-Point Agenda ▪ Recognize the PUP VMGO & Discussion Power-point Presentation Impression
▪ The CSSD-DCSD Goals & ▪ Identify the 8-Point Agenda Templates
of the University in relation to Question & Answer
Objectives, Programs &
the BSC Program. Provision of Hand-Out
Activities
▪ Discuss the overall activities Materials
▪ General Orientation on the
Course and requirements for the
Internet Sourced
completion of the program
and course on COOP Materials
20053-Leadership & Social
Responsibility in
Cooperative Organizations.
Page 7 of 108
Week 2 Why and how to create After the session the learners ▪ Lecture & Fisic, Ivana, December 21, Essay Test
performance standards in an are able to: Discussion 2021, Why and how to
organization (plus examples) ▪ Small Group create performance
▪ Cite own idea of the concept Brainstorming via standards in an
and principles of zoom breakout organization (plus
performance standards and session examples),
performance management. ▪ Write up on https://clockify.me/blog/busin
▪ Discuss the purposes and reflections drawn ess/performance-standard,
levels of performance from group Retrieved March 10, 2022.
standards. discussions (Ivana Fisic is a time
▪ Determine the indicators of management researcher and
performance standards. writer. She has always been
passionate about writing,
which is why she has finished
her BA in Journalism, at the
Faculty of Philosophy, Novi
Sad. Ivana is always
exploring the new methods of
how time management can
help you organize your
workflow more effectively, as
well as how you can increase
your productivity).
Week 3 What is Performance After the session the learners ▪ Lecture & Tardi, Carla. Updated
Management? are able to: Discussion September 20, 2021. Narrative
▪ Reporting & Performance Management. Test
▪ Familiarize with the Discussion Reviewed by David Kindness
characteristics and key take- ▪ Critical reflections https://www.investopedia.co
aways of performance on the proposed m/terms/p/performance-
management. performance management.asp. Retrieved
management March 10, 2022.
Page 8 of 108
▪ Identify performance programs to be
management programs that presented before
may be undertaken by coops the class.
for effective and efficient
employee performance and
effectivity.
Week 4, 5 Training Requirements for After the session the learners ▪ Lecture & RA 9520: The Cooperative Oral
&6 Cooperative Officers: are able to: Discussion Code of the Philippines. Recitation &
Improving the Performance & ▪ Collaborative Quiz
2008. Cooperative
Productivity of Cooperative ▪ Classify the different discussions Assessment
Development Authority.
Officers education and training Comparative
requirements of the assessment and Republic of the Philippines.
cooperative officers. Brainstorming MC2011-27-Implementation-
▪ Identify at least three (3) of-Training-Requirements-
courses that are required for for-Coop-Officers
each cooperative officers
and discuss their importance
in the performance of their
functions, duties, and
responsibilities.
▪ Determine ways where
these education and training
have been significant in
terms of managing the
culture and business
operations of the
cooperative.
▪ Demonstrate awareness
and appreciation of the value
of cooperative education,
training and information in
the cooperatives.
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Week 7, 8 Social Audit & After the session the learners ▪ Lecture & Chris B. Murphy. Updated Practice Sets
&9 Social Audit for Cooperatives are able to: Discussion March 31, 2020. A practical using the
▪ Social Audit
▪ guide to social audit as a Social Audit
Determine the Simulation
significance of social participatory tool to Toolkit
audit for cooperatives. strengthen democratic
▪ Map out the areas and governance, transparency,
parameters to where the and accountability. Reviewed
cooperatives will be
assessed in relation to
by Gordon Scott. Investopia.
social audit. https://www.investopedia.co
▪ Categorize the indicators m/terms/s/social-audit.asp.
in conducting social Retrieved
auditing for cooperatives. https://www.local2030.org/lib
▪ Compute for the rary/112/A-practical-guide-
quantitative and
qualitative scales used in to-Social-Audit-as-a-
conducting social audit Participatory-Tool-to-
for cooperatives. Strengthen-Democratic-
▪ Assess the results of Governance,-Transparency,-
social audit and prepare and-Accountability.pdf
recommendations to
improve the performance Memorandum
of cooperatives socially, Circular#2013s016: Social
environmentally,
Audit for Cooperatives.
financially, etc.
Cooperative Development
Authority. Republic of the
Philippines. RA 9520:
Cooperative Code of 2008.
Memorandum
Circular#2018s01: Revised
Social Audit for
Page 10 of 108
Cooperatives. Cooperative
Development Authority.
Republic of the Philippines.
RA 9520: Cooperative Code
of 2008.
Week 10 On-line Mid Term Examination via Tesmoz, G-Form, MS-Form, etc.
Week 11 Gender & Development & After the session the learners ▪ Lecture & Asian Development Bank, Practice Sets
& 12 Assessing Gender Equality in are able to: Discussion Australian Aid. 2003. Tool using the
Primary Cooperatives ▪ Group Interactions Kit on Gender Equality CDA Toolkit
▪ Distinguish Gender & ▪ Student Self- Results and Indicators,
Development, Gender on Gender
Assessment and/or Published in 2013. Printed
Mainstreaming, and Reflections on in the Philippines. ISBN and Equality
Gender Equality (GE) as
Learning 978-92-9254-337-2 Progress of
applied to cooperatives. (Print), 978-92-9254-338- selected
▪ Assess the significance ▪ Submission of
9 (PDF) Publication Stock Primary
of gender equality in Coop’s Assessment
No. TIM135772
primary cooperatives. on Primary Cooperatives
Cataloging-In-Publication
▪ Measure the progress of Cooperatives’ Data Asian Development
primary cooperatives’ Assessment on GE Bank. Tool kit on gender
progress in gender progress. equality results and
equality using the indicators. Mandaluyong
Cooperative City, Philippines: Asian
Development Authority Development Bank, 2013
prescribed tool.
▪ Determine the primary Azad, Nandini Dr. 2017.
cooperatives’ own level of The Independent
assessment of the Commission for People’s
different Rights and Development
areas/parameters of (ICPRD) New
gender equality in their Delhi 3 Acknowledgement
organization.
Page 11 of 108
▪ Categorize the indicators “Gender is more than a
used to evaluate gender statistic”.
equality in cooperatives.
▪ Compute for the Global Campaign for
quantitative and Education. Web Post.
qualitative scales used in 2020 March 8. An equal
measuring primary world is an enabled
cooperatives’ compliance world’. Category: News,
using the CDA tool in GE Press Release.
progress. https://campaignforeducat
▪ Review some of the ion.org/en/2020/03/08/an-
results of the GE of some equal-world-is-an-
primary cooperatives in enabled-
the National Capital world/?gclid=Cj0KCQjwz
Region. 7uRBhDRARIsAFqjullDH-
vcqi18cFtYlIp270XorbilR
SissfXYCkulyHH84VFVcs
9DfHkaAvVrEALw_wcB.
Retrieved March 15,
2022.
International Labour
Organization. 2015.
Advancing gender
equality: The co-operative
way First published 2015
Publications of the
Office. ISBN 978-92-2-
130017-5 (print) ISBN
978-92-2-130018-2 (web
pdf) International Labour
Office Enterprises Dept.
ISBN 978-92-2-130017-5
(print) ISBN 978-92-2-
130018-2 (web pdf)
Page 12 of 108
Khan, Prabbiot R. &

Nikore Mitali. 2021. Data
Driven Female
Leadership is Key to
Recovering from COVID-
19. Asian Development
Bank 2022.
https://www.google.com/s
earch?q=gender+equality
+in+the+philippines.
Retrieved March 15,
2022.
Limocon, Ma. Elena C.

Vice Chairperson,
International Co-operative
Alliance’s Asia Pacific
Women’s Committee;
Member, Board of
Trustees, Asian Women in
Co-operative
Development Forum;
Member, Board of
Directors, National
Confederation of
Cooperatives (NATCCO)
—presented by Ms
Emelina M. Santos, Group
Head, Member Relations
and Networking
Group/SP-GE Committee
Member, NATCC2016
2nd National Summit on
Page 13 of 108
Gender and Development
(GAD) in Co-ops Crown
Legacy Hotel, Baguio City
29-31 March 2016.
Week 13 Governance & Management After the session the learners ▪ Lecture & MC 2017-05 | Practice Sets
& 14 Audit Report for Cooperatives are able to: Discussion Governance and using the
▪ Group Interactions Management Audit CDA Toolkit
▪ Elucidate the concepts & ▪ Student Self- Report for on
principles of cooperative Assessment and/or Cooperativesovernance Governance
governance & management. Reflections on and Management Audit
&
▪ Recognize the governance Learning Report for Cooperatives.
2017. MEMORANDUM Management
and management practices ▪ Submission of
CIRCULAR NO. 2017-05 Audit Report
of the different types of Governance & for
Series of 2017.
cooperative organization. Management Audit Cooperative Development Cooperatives
▪ Discuss the guidelines Report for Authority. Manila.
governing all types of Cooperatives Philippines.
registered cooperatives in
relation to cooperative Saxena, G. N.
governance and Cooperative Leadership &
management. Governance- An Indian
▪ Accomplish the CDA Perspective
Governance & Management G.N.SAXENA
Audit Report of selected DIRECTOR (Coop.
Development) IFFCO,
cooperatives in the National
INDIA COOPERATIVE
Capital Region. GOVERNANCE.
COOPERATIVE
GOVERNANCE IS
ABOUT STRIKING A FIN,
Retrieved March 5, 2022.
What is good
governance?
Page 14 of 108
CooperativesUK.
https://www.uk.coop/supp
ort-your-co-
p/governance/what-good-
governance. Retrieved
March 15, 2022.
Week 15, The Philippine Financial After the session the learners ▪ Lecture & Cooperative Development Practice
16, & 17 Reporting Framework for are able to: Discussion Authority. 2016. MC
Set on
Cooperatives ▪ Group Interactions 2015-06 | Philippine
Financial Reporting Coop’s
▪ Discuss the Philippine ▪ Student Self- Financial
Framework for
Financial Reporting Assessment and/or Reports
Cooperatives.
Framework for Reflections on MEMORANDUM
Cooperatives. Learning cCIRCULAR NO. 2015-
Unit Test
▪ Identify the different ▪ Submission of 06, Series of 2015.
reporting standards for all Coop’s Assessment SUBJECT : PHILIPPINE
types of cooperatives as on Primary FINANCIAL REPORTING
mandated by the Cooperatives’ FRAMEWORK FOR
Cooperative Development Assessment on GE. COOPERATIVES,
Authority (CDA). Manila, Philippines.
▪ Familiarize themselves with
the different financial reports
on cooperatives such as
PESOS, PISO, PEARL, etc.
▪ Calculate the financial
reports that needs to be
complied by all registered
cooperatives with the CDA.
Week 18 Final Examination & Exit Assessment for the Semester
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COURSE GRADING SYSTEM
Class Standing 70%

Class Participation
Individual / Group Report
Research Study
Synthesis of Readings
Critique of a Research Study
Collection of Literatures Review
Research Proposal Presentation
Critique of a Research Proposal
Final Defense of Research Proposal
Midterm / final Examination 30%
Class Standing x 2 + Midterm Exam = First Grading
3
Class Standing x 2 + Final Exam = Second Grading
3
First Grading + Second Grading = Final Grading
2
CLASSROOM POLICY
For Online Classes:
(Policy as prescribed for synchronous and asynchronous classes based on University Memorandum Order)
For Face to Face Classes:
▪ Use of cell phones is allowed when use appropriately inside the classroom e.g. reporting etc.
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▪ If a student is absent for 3 consecutive meetings, he/she should present a letter of excuse signed by his/her parents
and should secure absent slip from the Guidance Office.
▪ Cheating and plagiarism is not allowed in the class.
▪ No Smoking in class
▪ Be on time at the beginning of the day
▪ Wear proper attire/uniform
▪ The use of LCD/DLP in reporting is a must
▪ The use of English as medium of instruction is encouraged every time
▪ The classroom policy will be modified every so often depending on the instructor/professor who shall be given the
course assignment during the semester.
CONSULTATION TIME
(This will be based on the teaching assignment where consultation and advising time are indicated)
Prepared by: Noted by:
PROF. REBECCA E. PALMA ASST. PROF. MICHAEL S. PECHARDO DR. HILDA F. SAN GARIEL
Course Adviser Course Adviser Chairperson
Revised as of March 15, 2022
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Week 1. At the end of the session, the learners are able to:
▪ Recognize the PUP VMGO
▪ Identify the 8-Point Agenda of the University in relation to the BSCoop Program
▪ Discuss the overall activities and requirements for the completion of the
program and course on COOP 30136-Performance Management & Social
Audit for Cooperatives
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Week 2. At the end of the lessons, the students will be able to:
▪ Cite own idea of the concept and principles of performance standards and
performance management.
▪ Discuss the purposes and levels of performance standards.
▪ Determine the indicators of performance standards.
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Why and how to create performance standards in an organization (plus examples)
Every job has its own description of what needs to be done when working in that
position. In addition, there are performance standards. They prove how to perform these
tasks to do the job well.
So, when evaluating your employees, you’ll compare their performance with
predetermined standards – performance standards. Be sure that these standards are
founded on specific positions, not individuals.
This IM will guide you through all the details about performance standards, such as:
• the purpose of performance standards,

• the three levels of performance,
• what to consider when establishing performance standards,
• how to create a performance standard, and
• examples of performance standards.
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What is the purpose of performance
standards?
Before we explore the purpose of

performance standards, let’s have a step
back and define performance management.
Performance management is the
communication process between employers
and employees.
This process also involves giving feedback to the workers. To know how to conduct
their job with success, employees first need to see the performance standards for that
position.
The goal of performance standards is to ensure that both employers and employees
are on the same page regarding job expectations. That’s why managers need to provide
their new employees with the performance standards during the first month of employment.
Performance standards also equip employees with specific performance outlooks for every
skill.
Furthermore, performance standards foster communication between

managers/employers and workers.
When it comes to evaluations, managers use performance standards as a guideline.

Then, they compare employee performance with this fixed pattern. This way, there’s an
equal evaluation for all employees in the same position.
Regarding performance standards, all workers are equal and should be treated the
same way. According to the U.S. Equal Employment Opportunity Commission, both
employees with disabilities and without it, “must meet the same production standards,
whether quantitative or qualitative.”
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Performance standards should be:
• specific,
• achievable,
• easy to understand,
• relevant to the position, and
• easy to measure.
Once an employer or a manager has evaluated the employees, their expectations can be:
1. Met – if an employee showed adequate performance,

2. Exceeded – if the performance is beyond well, and
3. Not met – if the performance is below the performance standards levels.
So, in the case of insufficient performance, the employer or supervisor has to issue a
Performance Improvement Plan (PIP). The purpose of this document is to help an
employee improve his/her performance.
The PIP happens in the last phase of the performance management cycle – the review
phase. In brief, this is the phase when managers track employee performance by
conducting evaluations. We mentioned before that this cycle starts with setting
performance standards.
Now, performance management includes three levels within the organization.
What are the three levels of performance?
Performance management can be focused on the entire organization or its

departments. Besides, it can emphasize the performance of individual employees. Thus,
there can be three levels of performance management:
1. strategic performance management,
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2. operational performance management, and
3. individual performance management.
Strategic performance management
The purpose of this level is to achieve overall organizational goals. Thus, this is the
highest rank of using performance management standards in the organization.
To accomplish these objectives, company management strives to answer these

questions:
• Does this company have a strategy for achieving its goals? If so, does the company
implement this strategy?
• Is the organization bringing the expected results?
Operational performance management
The intention here is to get operational goals. This level focuses on processes within
the organization, such as projects or activities. Thus, the intent is to find out if these specific
projects/activities are working.
To reach these objectives, company management has to answer the following

questions:
• Is each department or project fulfilling its targets?

• Are operational activities aligned with the organizational strategy? If so, how do
these activities promote organizational strategy?
• Are projects or activities efficient enough or should they be changed?
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Individual performance management
Finally, this level emphasizes the performance of each employee in the company.
This process begins with setting work goals and standards, reviewing employee
performance, and enhancing learning skills of each employee.
To carry out these goals, company management needs to get answers to these
questions:
• How are individuals working?

• How can they boost their performance?
When reviewing employee’s work, performance standards are your point of

reference. These standards are vital because they analyze diverse areas of performance.
Let’s take a look at how to properly determine the performance standards and what to
consider when doing so.
What to consider when establishing performance standards?
To ensure that standards are suitable for a particular position, here are four points you
should consider:
1. Standards need to be motivational.

2. Standards should not be too easy nor too difficult to achieve.
3. Let your employees know that you’re analyzing their performance.
4. Establish a trial period.
Standards need to be motivational
Having motivational performance standards will make workers more inspired to do

their job better. Besides, if they’re able to see their progress within a project, this will also
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be their driving force. Thus, they’ll be more likely to achieve exceptional levels of
performance.
As a leader, you can encourage your workers to track their working hours. Employee
time tracking is beneficial to your employees, too, because they’ll be able to review their
project progress. So, they’ll discover what part of the project they have finished, and what
still needs to be done. Moreover, workers will continue with completing their tasks the best
they can.
Standards should not be too easy nor too difficult to achieve
If performance standards contain tasks that are too simple, they’ll be too easy to
achieve. So, employees won’t be motivated because they won’t be challenged to finish a
particular task.
On the other hand, performance standards should not be too complicated. If they
are, workers will struggle to complete almost every assignment. Therefore, their
performance levels may decline.
But, how do you find the right balance between these two? Be sure that performance
standards should be daring enough. That way, workers will have to search for an ideal
strategy to finish their tasks. Whenever they succeed, employees will feel that they’re
working towards accomplishing their goals. Thus, they will be more enthusiastic about their
job.
Let your employees know that you’re analyzing their performance
In case there’s a new employee, a supervisor has to inform an employee about

performance standards that regulate his/her position. Likewise, all the other workers need
to know that the company is evaluating their performance.
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So, a manager has to be transparent about performance standards. Throughout the
year, leaders should remind employees about these measures. If workers need an
explanation for some part of the standard, managers should provide them with clarification.
Establish a trial period
As a manager, you don’t have to set performance standards by yourself. Let the HR
staff help you write down these measures.
Aside from the HR team, you can also include your team members as well. This
step is crucial because your employees may have some concerns about the current
measures. If so, adjust these parts of the performance standard.
Then, you should start testing these new measures by setting a trial period, which
can last from six to eight weeks. This way, you’ll get straightforward feedback from your
employees. Once the trial period is complete, ask your workers if these standards were
suitable for them. Again, if there are any current issues, be sure to slightly modify the
measures.
Including your employees in creating performance standards will boost trust

between you and them. Moreover, when workers take part in such a process, they’ll feel
like valued members of the company. Plus, this will increase employee productivity, too.
We covered some general considerations for creating a performance standard. Now, let’s
take a look at some practical rules for writing these measures.
How do you create a performance standard?
Let’s say that you and your team want to create a new performance standard for
several positions within the team. If you’re still unsure how to start and what requirements
you should cover, here are a few simple steps to ease this process.
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Focus on the position, not individual
Remember that measures you’re writing should be about a position, not an

individual. So, if there are four employees in the same position, the performance standards
for them should be the same.
If more than one employee performs the same task, standards should be identical
for conducting this particular task. This rule applies even if these workers are in diverse
positions within the company.
Decide what tasks should be included in the standard
You shouldn’t incorporate every assignment into the performance measures.

Determine what tasks are the most important for each position. Then, write performance
standards only for these tasks.
By choosing the most significant ones, you’ll have a brief standard.
Choose parameters that make a performance successful
To perform a job successfully, employees must meet particular criteria. Here are some
indicators of an effective performance:
• precision,
• conducting job duties on time,
• customer satisfaction,
• showing signs of leadership,
• being productive,
• showing initiative,
• showing creativity, and
• quality of work.
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But, there’s more. An employee with the beyond-expectations performance will present
qualities such as:
• professionalism,
• constantly following professional protocols,
• their performance is constantly improving,
• always performing their best,
• being meticulous,
• having visionary ideas and solutions, and
• expressing their own opinions.
Think about the error rates
Performance standards always have to be clear and specific, so employees could

easily work in line with these standards. If you want to evaluate how individuals or teams
are performing, you can also do this with Key Performance Indicators (KPI).
Generally speaking, KPI can help you find out how your company is performing and
if it’s going towards achieving its goals. As you can imagine, all workers need to align their
performance with the company’s objectives. Plus, they need to do their job following
performance standards.
But, what happens when an employee presents inferior performance, below the
acceptable standards? The above-mentioned Performance Improvement Plan is one of the
solutions.
Before starting with this plan, first, you’ll need to decide how many errors are too
many. For example, an employee can have a performance below the suitable levels twice.
But, if this happens again, you may give him/her an “Improvement needed” rating.
You may have a different plan for setting error rates. Whatever you choose, just stick to
that plan.
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Create standards for solid performance first, then the others
When creating performance standards, begin with positive aspects first. So, you can
start by writing down the qualities of a solid performance. Then, continue with the qualities
of the above-expected performance.
Once you have these two categories, focus on indicators that are below the solid levels.
You can use phrases like this:
1. An employee proves a solid performance when…

2. An employee proves an above-expected performance when…
3. An employee proves a below-appropriate performance when…
The in-depth explanation for each sentence will depend on the employee position.
If you’re eager to see how these performance standards look like in practice, keep reading.
What are the examples of performance standards?
Performance standards can vary depending on the position and job description. The only
thing that’s common to all performance standards is that they demonstrate how one’s job
should be done well.
Performance standards for teachers
Let’s find out what performance standards would look like for teachers.
-more in the succeeding pages-
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As you can see from the table above, each measure has an in-depth explanation.
So, every new teacher will have to review these standards in the first month of employment.
The purpose of these measures is to find the proper ways of presenting the curriculum to
the students. To do so, teachers can use all available resources, so that the students can
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comprehend everything with ease. Besides, teachers have to maintain positive
relationships with students’ parents or guardians.
Performance standards for administrative assistants
Here’s an example of performance standards for administrative assistants.
When it comes to administrative assistants, their performance standards include

supervising support functions, arranging correspondence, and ensuring that all files and
databases are well organized and updated. In addition, administrative assistants need to
make sure that travel arrangements are within the budget and that travel documents hold
accurate information.
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Performance standards for technical support providers
Now, let’s take a look at an example of performance standards for technical support
providers.
As you can see from this table, performance standards for this occupation are
maintaining technical support, making recommendations to the users, and staying updated
with the latest trends in this field. The purpose of these measures is to ensure that technical
support providers offer only accurate information to the users. Besides, technical support
providers need to act friendly and to be as responsive as possible.
Performance standards linked with the company’s goals
Now, according to Lenny Pollack, a Professor of Practice at the Penn State

University, you can also link performance standards with responsibilities and company
goals.
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So, for instance, one of the company’s objectives is to improve customer service.
Let’s take a hotel as an example of this company. The first person you see when you enter
is a receptionist. Naturally, a receptionist’s responsibility is to greet visitors.
But, how the receptionist will greet visitors is what matters. To enhance customer
service, the receptionist has to be friendly and welcome visitors with a smile. Plus, the
receptionist needs to provide them with as much information about the hotel as they need.
Moreover, if visitors have any concerns, the receptionist has to find a way to solve these
issues.
By following these performance standards, the receptionist will present excellent

performance and achieve the company’s goal.
Conclusion
For employees, performance standards are a guideline on how to properly do their

job. For managers, these measures are a comparison point when they review employee
performance.
Performance standards need to be specific, easy to understand, and achievable.

This way, employees will be motivated to align their performance with the set measures.
Depending on how employees have performed over the last period, leaders can mark their
work as a solid, an above-expected, or a below-appropriate performance. It’s up to the
manager to decide what’s the limit when it comes to unsatisfactory performance.
This article underlined the most significant aspects of performance standards. Also, we covered
several examples of these measures. Whenever you struggle to create performance standards, you can go
through it one more time. Deepest acknowledgement to the author-Ivana Fisic for the insightful and
informative article. We the users of this compilation swore to only utilize this material for purpose of reference
for the course on COOP 30136. Any alterations or minimal revisions were only done in order that the coop
students can have the basic understanding of the concepts and principles behind performance standards
and performance management.
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--------------------------------------
Required Activity. Write your answers on the space provided in each item.
1. Briefly discuss the importance of performance standards.
2. Why do you think performance standards for cooperatives is essential? Explain

briefly.
3. Identify at least 3 parameters that make a performance successful for cooperatives.

Discuss briefly and give examples.
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Reference:
Fisic, Ivana, December 21, 2021, Why and how to create performance standards in an
organization (plus examples), https://clockify.me/blog/business/performance-standard,
Retrieved March 10, 2022. (Ivana Fisic is a time management researcher and writer. She
has always been passionate about writing, which is why she has finished her BA in
Journalism, at the Faculty of Philosophy, Novi Sad. Ivana is always exploring the new
methods of how time management can help you organize your workflow more effectively,
as well as how you can increase your productivity).
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Week 3. At the end of the lessons, the students will be able to:
▪ Familiarize with the characteristics and key take-aways of performance

management.
▪ Identify performance management programs that may be undertaken by coops for
effective and efficient employee performance and effectivity.
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What Is Performance Management?
Performance management is a corporate management tool that helps managers

monitor and evaluate employees' work. Performance management's goal is to create an
environment where people can perform to the best of their abilities and produce the
highest-quality work most efficiently and effectively.
Key Takeaways
• Performance management tools help people to perform to the best of their

abilities and produce the highest-quality work most efficiently and effectively.
• The precept of performance management is to view individuals in the context of
the broader workplace system.
• Performance management focuses on accountability and transparency and
fosters a clear understanding of expectations.
Understanding Performance Management
A formal performance-management program helps managers and employees see

eye-to-eye about expectations, goals, and career progress, including how an individual's
work aligns with the company's overall vision. Generally speaking, performance
management views individuals in the context of the broader workplace system. In theory,
you seek the absolute performance standard, though that is considered unattainable.
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Performance-management programs use traditional tools such as creating and measuring
goals, objectives, and milestones. They also aim to define what effective performance
looks like and develop processes to measure performance. However, instead of using the
traditional paradigm of year-end reviews, performance management turns every interaction
with an employee into an occasion to learn.
Managers can use performance management tools to adjust workflow, recommend

new courses of action, and make other decisions that will help employees achieve their
objectives. In turn, this helps the company reach its goals and perform optimally. For
example, the manager of a sales department gives staff target revenue volumes that they
must reach within a set period. In a performance management system, along with the
numbers, the manager would offer guidance gauged to help the salespeople succeed.
Focusing on continuous accountability creates a healthier, more transparent work
environment, and emphasis on regular meetings can improve overall communications.
Because performance management establishes concrete rules, everyone has a clearer
understanding of the expectations. When expectations are clear, the workplace is less
stressful. Employees are not trying to impress a manager by doing some random task, and
managers aren't worried about how to tell employees that they are not performing well. If
the system is working, they probably know it already.
Performance-Management Programs
Although performance-management software packages exist, templates are generally

customized for a specific company. Effective performance-management programs,
however, contain certain universal elements, such as:
• Aligning employees' activities with the company's mission and goals.

Employees should understand how their goals contribute to the company's overall
achievements.
• Developing specific job-performance outcomes. What goods or services does
my job produce? What effect should my work have on the company? How should I
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interact with clients, colleagues, and supervisors? What procedures does my job
entail?
• Creating measurable performance-based expectations. Employees should give
input into how success is measured. Expectations include results—the goods and
services an employee produces; actions—the processes an employee uses to make
a product or perform a service; and behaviors—the demeanor and values an
employee demonstrates at work.
• Defining job-development plans. Supervisors and employees together should
define a job's duties. Employees should have a say in what types of new things they
learn and how they can use their knowledge to the company's benefit.
• Meeting regularly. Instead of waiting for an annual appraisal, managers and
employees should engage actively year-round to evaluate progress.
--------------------------------------
Required Activity.
▪ Be able to group yourselves into 5. Your group needs to come up with two (2)
proposed performance management programs for coops. Prepare concept paper
for this and power-point presentation. Be sure also to select your group leader.
▪ Be ready for a zoom presentation of the 2 proposed programs. Panel of evaluators
will be selected for this purpose.
Reference:
Tardi, Carla. Updated September 20, 2021. Performance Management. Reviewed by David
Kindness. https://www.investopedia.com/terms/p/performance-management.asp.
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Week 4, 5 & 6. At the end of the lessons, the students will be able to:
▪ Classify the different education and training requirement of the cooperative officers.
▪ Identify at least three (3) courses that are required for each cooperative officers and
discuss their importance in the performance of their functions, duties, and
responsibilities.
▪ Determine ways where these education and training have been significant in terms
of managing the culture and business operations of the cooperative.
▪ Demonstrate awareness and appreciation of the value of cooperative education,
training and information in cooperatives.
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FUNCTIONS, RESPONSIBILITIES AND TRAINING REQUIREMENTS OF THE

DIRECTORS, OFFICERS AND COMMITTEE MEMBERS (Ref: RA 9520 Art. 44, Rule #
7 of the Implementing Rules & Regulations of the Cooperative Code)
Rule # 7. Section 1. Legal Basis: Art. 44. The functions and responsibilities of the
directors, officers and committee members, as well as their training requirement, shall be
in accordance with the rules and regulations issued by the Authority.
Rule # 7. Section 2. The Cooperative Officers: The officers of the cooperative shall include
the Members of the Board of Directors, Members of the Different Committees created by
the General Assembly, General Manager or Chief Executive Officer, Secretary, Treasurer
and Members holding other positions as maybe provided for in their By-Laws. As such
they are entrusted with the power of exercising authority within the scope of their defined
functions which is permanent in nature and include the exercise of control and discretion
in the performance of their duty.
Rule # 7. Section 3. The Committees of Cooperatives: The bylaws shall provide for the
creation of the following committees:
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▪ Audit Committee
▪ Election Committee
▪ Mediation and Conciliation Committee
▪ Ethics Committee
Other Committees as may be necessary for the conduct of the affairs of the cooperative.
Note: The members of the Audit and Election Committee shall be elected by the General
Assembly while the Board of Directors shall appoint the rest.
Rule # 7. Section 3. The Functions & Responsibilities of Cooperative Officers:
4.1 Board of Directors
4.1.1 The Board of Directors shall have the following functions and responsibilities:
▪ Provide general policy direction;

▪ Formulate the strategic development plan
▪ Determine and prescribe the organizational and operational structure;
▪ Review the Annual Plan and Budget and recommend for the approval of the
General/Representative Assembly.
▪ Establish policies and procedures for the effective operation and ensure
proper implementation of such;
▪ Evaluate the capability and qualification and recommend to the
General/Representative Assembly the engagement of the services of an
External Auditor;
▪ Appoint the members of the Mediation/Conciliation and Ethics Committees
and Other Officers as specified in the Code and cooperative by-laws;
▪ Decide election related cases involving the Election Committee or its
members;
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▪ Act on the recommendation of the Ethics Committee on cases involving
violations of the code of Governance and Ethical Standards; and
▪ Perform such other functions as may be prescribed in the by-laws or
authorized by the General/Representative Assembly.
4.1.2 The Chairperson shall:
▪ Set the agenda for board meetings in coordination with the other members
of the Board of Directors;
▪ Preside over all meetings of the Board of Directors and of the
General/Representative Assembly;
▪ Sign contracts, agreements, certificates and other documents on behalf of
the cooperative as authorized by the Board of Directors or by the
General/Representative Assembly;
▪ Issue Certificate of Non-Affiliation with any Federation or Union; and
▪ Perform such other functions as may be authorized by the Board of Directors
or by the General/Representative Assembly.
4.1.3 The Vice Chairperson shall:
▪ Perform all duties and functions of the Chairperson in the absence of the
latter;
▪ To act as ex-officio Chairperson of the Education and training Committee;
and
▪ Perform such other duties as maybe delegated to him/her by the Board of
Directors.
4.2. Treasurer. The Treasurer shall:
▪ Ensure that all cash collections are deposited in accordance with the policies
set by the Board of Directors;
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▪ Have custody of all funds, securities, and documentations relating to all
assets, liabilities, income and expenditures;
▪ Monitor and review the financial management operations of the cooperative,
subject to such limitations and control as may be prescribed by the Board of
Directors;
▪ Maintain full and complete records of cash transactions;
▪ Maintain a Petty Cash Fund and Daily Cash Position Report; and
▪ Perform such other functions as may be prescribed in the By-laws or
4.3. Secretary. The Secretary shall:
▪ Keep an updated and complete registry of all members;

▪ Record, prepare and maintain records of all minutes of meetings of the Board
of Directors and the General/Representative Assembly;
▪ Ensure that necessary Board of Directors’ actions and decisions are
transmitted to the management for compliance and implementation;
▪ Issue and certify the list of members who are in good standing and entitled
to vote as determined by the Board of Directors;
▪ Prepare and issue Share Certificates;
▪ Serve notice of all meetings called and certify the presence of quorum of all
meetings of the Board of Directors and the General/Representative
Assembly;
▪ Keep copy of Treasurer’s reports and other reports;
▪ Keep and maintain the Share and Transfer Book;
▪ Serve as custodian of the cooperative seal; and
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4.4. Election Committee. The Election Committee shall:
▪ Formulate election rules and guidelines and recommend to the

General/Representative Assembly for approval.
▪ Implement election rules and guidelines duly approved by the
▪ Recommend necessary amendments to the election rules and guidelines, in
consultation with the BOD, for General/Representative Assembly’s approval.
▪ Supervise the conduct, manner and procedure of election and other election
related activities and act on the changes thereto.
▪ Canvass and certify the results of election.
▪ Proclaim the winning candidates.
▪ Decide election and other election related cases except those involving the
Election Committee or its members.
▪ Perform such other functions as prescribed in the Bylaws or authorized by
the General/Representative Assembly.
4.5 Audit Committee. The committee shall:
▪ Monitor the adequacy and effectiveness of the cooperative’s management

and control system.
▪ Audit the performance of the cooperative and its various responsibility
centers.
▪ Review continuously and periodically the books of account and other
financial records to ensure that these are in accordance with the cooperative
principles and generally accepted accounting procedures.
▪ Submit reports on the result of internal audit and recommend necessary
changes on policies and other related matters on operation to the BOD and
▪ Perform such other functions as may be prescribed in the Bylaws or
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4.6. Mediation and Conciliation Committee. The committee shall:
▪ Formulate and develop the Conciliation-Mediation Program and ensure that

it is properly implemented;
▪ Monitor Conciliation-Mediation programs and processes;
▪ Submit semi-annual reports of cooperative cases to the Authority within
fifteen (15) days after the end of every semester;
▪ Accept and file Evaluation Reports;
▪ Submit recommendations for improvements to the Board of Directors;
▪ Recommend to the Board of Directors any member of the cooperative for
conciliation-Mediation Training as Cooperative Conciliator-Mediator;
▪ Issue the Certificate of Non-Settlement (CNS); and
4.7. Ethics Committee. The committee shall:
▪ Develop Code of Governance and Ethical Standards to be observed by the

members, officers, and employees of the cooperative subject to the approval
of the BOD and ratification of the General/Representative Assembly.
▪ Disseminate, promote and implement the approved Code of Governance and
Ethical Standards and recommend to the BOD measures to address the gap,
if any.
▪ Monitor compliance with the Code of Governance and Ethical Standards and
recommend to the Board of Directors measures to address the gap, if any;
▪ Conduct initial investigation or inquiry upon receipt of a complaint involving
Code of Governance and Ethical Standards and submit report to the BOD
together with the appropriate sanctions.
▪ Recommend ethical rules and policy to the BOD.
▪ Perform such other functions as may be prescribed in the Bylaws or
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4.8 Other Committees
▪ Other committees that may be created shall assist in the formulation of

policies and rules and in the implementation of the service of the
cooperative. Their powers, functions and responsibilities shall be defined
in the By-laws.
4.9 General Manager. The General Manager shall:
▪ Oversee the overall day to day operations of the cooperative by providing

general direction, supervision, management and administrative control
over all the operating departments subject to such limitations as may be
set forth by the Board of Directors or the General/Representative
Assembly;
▪ Formulate and recommend in coordination with the operating
departments under his/her supervision, the Cooperative’s Annual and
Medium Term Development Plan, programs and projects, for approval of
the Board of Directors and ratification of the General/Representative
Assembly;
▪ Implement the duly approved plans and programs of the cooperative and
any other directive or instruction of the Board of Directors;
▪ Provide and submit to the Board of Directors monthly reports on the status
of the Cooperative’s operation vis-à-vis its targets and recommend
appropriate policy or operational changes, if necessary;
▪ Represent the Cooperative in any agreement, contract, business dealing,
and in any other official business transaction as may be authorized by the
Board of Directors;
▪ ensure compliance with all administrative and other requirements of
regulatory bodies; and
▪ Perform such other functions as may be prescribed in the the By-laws or
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Sec. 5. Training Requirements for the Officers of the Cooperative. Officers of the
cooperative shall be required to undergo necessary training conducted by cooperatives,
Federations, and/or other trainers or training institutions duly accredited by the Authority.
The training program should contain the minimum requirements in the module/curriculum
as prescribed by the Authority. The initial courses or any equivalent substitute thereof must
be undertaken.
BOARD OF DIRECTORS:
Basic Cooperative Course on:
▪ Articles of Cooperation & By-laws;

▪ Cooperative Vision
▪ Cooperative Mission
▪ Cooperative Strategic Plan
▪ Fundamentals of Cooperative
▪ Policies and Programs of Cooperatives
▪ RA 9520
▪ IRR of RA 9520
▪ Cooperative Management & Governance
▪ Policy Development
▪ Financial Management
▪ Conflict Management
▪ Parliamentary Procedures
▪ Leadership & Values Orientation
▪ Strategic Planning
▪ Orientation on Labor and Other Related Laws
SECRETARY:
▪ Basic Cooperative Course

▪ Records Management for Non Financial Transactions
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▪ Parliamentary Procedures
▪ Basic Computer Program
TREASURER:

▪ Records Management (Financial Transaction)
▪ Basic Accounting for Non-Accountants
▪ Cooperative Standards
▪ Investments & Banking Procedures
▪ Financial Management
AUDIT COMMITTEE:

▪ Audit Management
▪ Records management
▪ Basic Accounting for Non-Accountants
▪ Internal Control including Inventory System
ELECTION COMMITTEE:

▪ Records Management
▪ Rules Formulation
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ETHICS COMMITTEE:

MEDIATION/CONCILIATION COMMITTEE:

▪ Effective Communication
GENERAL MANAGER:

▪ Cooperative Management & Governance
▪ Human Resource Management
▪ Effective Communication Skills
▪ Entrepreneurial and Business Management Course
▪ Labor and Other Related Laws
▪ Computer Literacy Course
▪ Strategic Planning & Management
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--------------------------------------
Required Activity.
▪ What is your current observation of the application of cooperatives on the 5th

Principle of Cooperative Education? How would you assess the performance of the
Cooperative Officers in as far as the management of the organizational culture and
business operations are concerned? Prepare a narrative report on these.
Reference:
RA 9520: The Cooperative Code of the Philippines. 2008. Cooperative Development

Authority. Republic of the Philippines.
Page 47 of 108
Week 7, 8, and 9. At the end of the lessons, the students will be able to:
▪ Determine the significance of social audit for cooperatives.

▪ Map out the areas and parameters to where the cooperatives will be assessed in
relation to social audit.
▪ Categorize the indicators in conducting social auditing for cooperatives.
▪ Compute for the quantitative and qualitative scales used in conducting social audit for
cooperatives.
▪ Assess the results of social audit and prepare recommendations to improve the
performance of cooperatives socially, environmentally, financially, etc.
---------------------------------------------------------------------------------------------------------------------
Social Audit for Cooperatives
What Is a Social Audit?
A social audit is a formal review of a company's endeavors, procedures, and code

of conduct regarding social responsibility and the company's impact on society. A social
audit is an assessment of how well the company is achieving its goals or benchmarks for
social responsibility.
Key Takeaways
• A social audit is a formal review of a company's endeavors, procedures, and code

of conduct regarding social responsibility and the company's impact on society.
• A social audit is an assessment of how well the company is achieving its goals or
benchmarks for social responsibility.
• Ideally, companies aim to strike a balance between profitability and social
responsibility.
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Understanding a Social Audit
Ideally, companies aim to strike a balance between profitability and social

responsibility. A social audit is an internal examination of how a particular business is
affecting society. The audit helps companies to determine if they're meeting their
objectives, which may include measurable goals and benchmarks. A social audit serves
as a way for a business to see if the actions being taken are being positively or negatively
received and relates that information to the company’s overall public image.
In the era of corporate social responsibility, corporations are often expected to

deliver value to consumers and shareholders as well as meet environmental and social
standards. Social audits can help companies create, improve, and maintain a positive
public relations image. For many companies, a good public perception helps foster a
positive image of the company and ultimately reduce negative impacts on earnings from
bad press.
Items Examined in a Social Audit
The scope of a social audit can vary and be wide-ranging. The assessment can include
social and public responsibility but also employee treatment. Some of the guidelines and
topics that comprise a social audit include the following:
▪ Environmental impact resulting from the company's operations

▪ Transparency in reporting any issues regarding the effect on the public or
environment.
▪ Accounting and financial transparency
▪ Community development and financial contributions
▪ Charitable giving
▪ Volunteer activity of employees
▪ Energy use or impact on footprint
▪ Work environment including safety, free of harassment, and equal
opportunity
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▪ Worker pay and benefits
▪ Nondiscriminatory practices
▪ Diversity
There is no standard for the items included in a social audit. Social audits are
optional, which means that companies can choose whether to release the results publicly
or only use them internally.
The flexibility surrounding social audits allow companies the ability to expand or
contract the scope based on their goals. While one company might wish to understand the
impact it has on a particular town or city, other companies might choose to expand the
range of the audit to include an entire state, country, or throughout the globe.
Use of Social Audit Findings
Since social audits are voluntary, any release of the findings to the general public is
also voluntary. While positive results might be disclosed, negative results might be kept
internal and used to identify potential improvements that can make the results of the next
social audit more favorable.
For example, a company might find out through its assessment that the company
was not adequately involved in charitable activities within the community. As a result,
company executives could enact initiatives with measurable goals designed to increase
community involvement. The activities could be monitored and analyzed during the next
social audit.
By continuously striving to meet and exceed its social responsibility benchmarks,

the company can improve its public perception over time. In short, social audits help
companies achieve a balance between profits and ethics.
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Page 50 of 108
THE SOCIAL AUDIT OF COOPERATIVES
THE SOCIAL AUDIT
Social Audit is the process whereby a cooperative can account for its social
performance, report on and improve that performance. It assesses the social impact and
ethical performance of the cooperative in relation to its vision, mission, goals, and Code of
Social Responsibility.
It is also process to assess the cooperative’s contribution for the upliftment of the
status not only to its members’ economic needs but also social needs and the community
where it operates. The cooperative’s actual performance and accomplishment are
compared its vision, goals, and social responsibility as it relates to the impact not only to
the community but to its regular members as the immediate beneficiary of the decisions
and actions it promulgated, passed and implemented. Social Audit will serve as control
mechanism to account for its social performance and evaluate its impact in the community
taking into account the community development fund which shall be used for projects or
activities that will benefit the community where the cooperative operates.
Social Audit validates the support of the cooperative to the 7th cooperative principles,
i.e. the “Concern for Community” and determines whether the cooperative work for the
community’s sustainable development through policies approved by their members.
The audit focuses not only to the economic side of the cooperative but also the
social aspect of the organization and appraises the cooperative performance as value-
based organization usually participative, user and community oriented and non-profit but
service organization and how its social responsibility for its members and the community
as a whole was fulfilled.
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THE SOCIAL AUDIT TOOL
The social audit tool is an instrument to identify, measure, assess and to report on
their social performance. This will provide the user a framework on how to collect data and
what data is to be collected.
Similar to financial and management audit, the Social Audit has a one year cycle.
The audit steps are also comparable to activities carried out for financial audit.
Consideration of the various aspects of Social Audit is relevant. Verification of

records and documents is crucial to get vital information.
The tool will also present the score of the cooperative’s social performance, whether
outstanding, very good, good, fair or poor. The score/rating should not be taken as the
end of it. Any result thereof, shall be the major consideration for improved social
performance, which is actually the first and foremost goal of Social Audit.
THE COMPONENTS OF THE SOCIAL AUDIT TOOL
Social Audit for cooperative shall look into the following components with their
corresponding points:
I. Organization
This is a measurement of cooperative's fulfilment of its vision, mission and
goals, feedback mechanisms, code of good governance and ethical
standards.
II. Membership
Measurement on how the cooperative responded to the need of members,
observed governance practices, considered provision for benefits of
members, and involved members in the affairs of the cooperative.
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III. Staff/Employees
Assessment of the cooperative's fulfilment of the needs and welfare of the
employees in terms of safety workplace and sanitation, including the provision
for compensation and benefits.
IV. Cooperation among Cooperatives

Measurement of the cooperative's affiliation/s and linkages to
federations/unions and other cooperatives.
V. Community and Nation

Determines the involvement of the cooperative and its contributions to the
community and nation, in general.
VI. Network Alliance and Linkages

Assessment on how the cooperative relates to other organization and its
collaborative programs.
--------------------------------------
Required Activity.
▪ Accomplish the Social Audit Tool uploaded in the class Channel in the MSTeams.
Submit and be ready for a zoom presentation in the next synchronous online class
session.
References:
Chris B. Murphy. Updated March 31, 2020. A practical guide to social audit as a participatory tool
to strengthen democratic governance, transparency, and accountability. Reviewed by
Gordon Scott. Investopia. https://www.investopedia.com/terms/s/social-audit.asp.
Retrieved https://www.local2030.org/library/112/A-practical-guide-to-Social-Audit-as-a-
Participatory-Tool-to-Strengthen-Democratic-Governance,-Transparency,-and-
Accountability.pdf
Memorandum Circular#2013s016: Social Audit for Cooperatives. Cooperative Development

Authority. Republic of the Philippines. RA 9520: Cooperative Code of 2008.
Page 53 of 108
Week 11 & 12. At the end of the lessons, the students will be able to:
▪ Distinguish Gender & Development, Gender Mainstreaming, and Gender Equality

(GE) as applied to cooperatives.
▪ Assess the significance of gender equality in primary cooperatives.
▪ Measure the progress of primary cooperatives’ progress in gender equality using
the Cooperative Development Authority prescribed tool.
▪ Determine the primary cooperatives’ own level of assessment of the different
areas/parameters of gender equality in their organization.
▪ Categorize the indicators used to evaluate gender equality in cooperatives.
▪ Compute for the quantitative and qualitative scales used in measuring primary
cooperatives’ compliance using the CDA tool in GE progress.
▪ Review some of the results of the GE progress of some primary cooperatives in the
National Capital Region.
---------------------------------------------------------------------------------------------------------------------
Presented in the succeeding pages are Gender & Equality Statements from the Global Campaign Education
and the Report on the GE Context from the Asian Development Bank where we can draw the basic
understanding and stand of world nations on gender equality (copied as is)
Statement of the Global Campaign for Education on occasion of the International

Women’s Day
On the International Women’s Day, the Global Campaign for Education (GCE) is
renewing its commitment to fully realise women and girls’ right to education and calls for a
focus on and for resources to be invested into challenging, undoing and transforming the
social, economic and cultural barriers that prop up gender inequality and undermine the
universal right to education.
Page 54 of 108
Gender equality is a human right and a requisite for achieving broader social,
political and economic development goals, as stated in the Agenda for Sustainable
Development/Education 2030.
Education can play a key role in challenging gender based violence and
transforming patriarchal societies into ones that value equality, inclusion and justice.
However, this requires a comprehensive approach, recognizing that no one policy or
initiative alone will lead to gender transformative education.
Structural inequalities have a significant impact on education. By validating and

reproducing gender stereotypes, prejudices and inequalities, and subordinating the
diversity of cultural identities to one-fit education models, patriarchy has been deepening
discrimination and violence against women, including women with disabilities, who are
often victims of multiple forms of exclusion.
According to CEDAW, the elimination of prejudices and customary and all other
practices which are based on the idea of the inferiority or the superiority of either of the
sexes or on stereotyped roles for men and women constitutes the main challenge to identify
new education policies.
The Global Campaign for Education works for the full integration of gender equality
in its policy frameworks, planning processes and political engagement. GCE also calls on
States to ensure that education sector plans, policies, curricula and budgets are gender
responsive, including mainstreaming gender equality in teacher education and in-service
professional development.
Engagement in policy dialogue on gender equitable financing of education should

be a key State obligation: investments in the education of girls, especially those policies
that aim to improve their coverage and quality, have a benefit in their lives and in their
communities. These positive effects should lead to strengthening the integration of human
rights into the domestic law and public policies as well as in the modus operandi of
Page 55 of 108
international financial institutions, rather than reducing women’s rights to an instrumental
issue.
GCE calls on States to mobilise knowledge and implement policies and programs
that eliminate School Related Gender Based Violence (SRGBV) and introduce
Comprehensive Sexuality Education programs for both boys and girls, disregarding their
sexual identity and gender orientation, while guaranteeing the full right to education of
pregnant adolescents and mothers.
It is an unquestionable reality that no country has managed to eliminate the gender

gap in all aspects of social life. This means that gender inequality is not an automatic
consequence of poverty, since this inequality has been widely documented in developed
countries, where the right to education of migrants and refugee women is called into
question. It is also known that in contexts of conflict girls and women are targeted in attacks
on schools, as well as in refugee camps. Only a systematic approach to women and girls
needs and rights, covering emergency situations, can contribute to the solution of the
structural violence they face.
The Global Campaign for Education calls for the strengthening of feminist
organizations and, in general, civil society organizations, not to falter in their fight for the
empowerment of girls and women and to join forces to claim women’s right to free, quality
transformative education.
Data Driven Female Leadership is Key to Recovering from Covid-19 by Prabhjot R.

Khan, Mitali Nikore
To rebuild a just, equal, and inclusive global economy after the pandemic, we need
more female leaders and gender-focused data.
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“Women in Leadership,” the theme of the 2021 International Women’s Day
celebration, raised two big questions: What will leadership look like in the wake of COVID-
19, and why do we need more female leaders?
It’s easy to answer the first question. Leadership has become decentralized. It is no longer
limited to presidents, prime ministers and other politicians. It includes CEOs, community
leaders in cities and rural villages, civil society advocates, and academic experts.
Answering the second question–why we need more female leaders–is more complex.
There are three reasons to consider:
First, women are underrepresented as leaders. Women are heads of state in only
20 countries and hold only a quarter of parliamentary seats globally. They accounted for
just 18% of CEOs and 28% of managers in the private sector in 2019, according to the
United Nations.
Second, women bring diverse leadership skills. Female leaders’ response to

COVID-19 has proven effective thanks to their collaborative and collective leadership
styles, as well as their higher risk aversion when it comes to the loss of human life,
according to UN Women and U.K.-based researchers Supriya Garikipati and Uma
Kambhampati.
Third, women’s leadership has been associated with positive socioeconomic

impacts and financial performance. Cross-country studies have linked increases in
women’s political leadership to lower levels of corruption. Female politicians also prioritize
gender issues such as reproductive rights and sexual health, as well as social protections
in areas such as health, education, and welfare, according to the Global Institute for
Women’s Leadership.
In a study of financial data for Asian companies between 1997 and 2017,
researchers Soyoung Han and Marcus Noland found that those with at least one female
leader consistently outperformed those with none. Meanwhile, a 2019 study by the
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International Labour Organization concluded that companies with a gender-inclusive
culture are more likely to improve their business performance.
While leadership by women has grown in various fields in recent decades, COVID-
19 threatens these gains. The pandemic has intensified the “double shift” phenomenon–
burdening women with both office work and unpaid domestic work. In the US, 2 million
women thought about leaving the workforce between June and August 2020. This may
reduce the pool of current and future female leaders, according to McKinsey & Co.’s
Women in the Workplace 2020 study. A preference among companies for leaders with a
proven track record during the pandemic has caused female CEO appointments to fall by
almost 50%, according to the executive search firm Heidrick & Struggles.
Women are heads of state in only 20 countries and hold only a quarter of
parliamentary seats globally.
Women in senior leadership roles have also faced non-inclusive behavior and higher
rates of burnout than their male counterparts while working remotely during COVID-19.
Nearly half the women in a recent global survey by Deloitte said they felt compelled to
always be available for work, fearing their career might suffer otherwise, and that they felt
overwhelmed as a result.
Women also took on more domestic responsibilities, with a majority doing three
quarters of the care work, including childcare, elderly care, homeschooling and household
chores. The International Monetary Fund has also found that women’s mobility has been
restricted more than that of men during COVID-19. This could be an obstacle for female
community leaders who want to advance politically. Data is an important tool that can help
us tackle these challenges and nurture female leaders.
Data that’s collected and analyzed separately for men and women, known as sex-
disaggregated data, can yield insights that will help us track and understand how crises
such as COVID-19 affect men and women differently. Using this data, we can ensure that
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policy changes are gender-responsive, data-driven, and evidence-based. Without this, it is
difficult to create targeted policies for women, including efforts to promote their leadership.
Countries and organizations are already using data broken down by gender to draw
attention to gaps that might otherwise go unnoticed. In a 2016 survey, the IMF cited the
Republic of Korea’s “substantive” laws requiring gender budgeting, including balance
sheets that show whether budgets benefit men and women equally and whether they
remedy discrimination.
BMJ Global Health, an open-source online medical journal, has updated its
guidelines to ensure that reviewers comment on the gender aspects of each paper,
increasing the focus on gender differences in health data. Bloomberg launched a Gender
Equality Index and Gender Reporting Framework, which saw 380 global companies from
11 sectors across 44 countries, report on 74 sex-disaggregated metrics and document
actions they had taken to promote equality.
Leaders require solid evidence to understand women’s needs and how to meet
them, as well as how to vocalize them. Governments, companies, communities and
development partners such as the Asian Development Bank must therefore work together
to promote the use of sex-disaggregated data.
This is needed now more than ever. Female leaders are essential to help achieve a
fairer, more equal, and more inclusive world in the wake of COVID-19. (Published: 30
March 2021).
Gender & Development & Assessing Gender Equality in Primary Cooperatives
MC 2017-04 | Tool for Assessing Progress of Gender Equality in Primary

Cooperatives as Supplemental to Memorandum Circular 2013-22
MEMORANDUM CIRCULAR NO. 2017 – 04
Series of 2017
SUBJECT : TOOL FOR ASSESSING PROGRESS OF GENDER EQUALITY IN
PRIMARY COOPERATIVES AS SUPPLEMENTAL TO MEMORANDUM CIRCULAR
2013-22
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Section 1. Title
This Circular shall be known as the Tool for Assessing Progress of Gender Equality
(GE) in Cooperatives as Supplemental to Memorandum Circular 2013-22.
Section 2. Purpose
This Circular aims to disseminate to the cooperative sector the tool for assessing
gender equality in cooperatives. This TOOL shall assess the cooperative’s progress in
mainstreaming gender and development (GAD) toward achieving GE.
Section 3. Scope
This Circular shall be applicable to all primary cooperatives duly registered with the
Cooperative Development Authority (CDA).
Section 4. About the Tool

The Tool for Assessing Progress of GE in Cooperatives, attached as Annex A, will
assess the cooperative’s progress in implementing gender equality (GE). The Tool
determine the extent to which the cooperative lives the universal Cooperative Principles of
equality, equity, social responsibility, and caring for others as outlined in the “Statement on
the Cooperative Identity (SCI)” of the International Co-operative Alliance (ICA). The results
of this Tool can be used as basis for crafting the cooperative’s gender and development
(GAD) plan.
The Asian Women in Co-operative Development Forum (AWCF) developed this

Tool during its GAD mainstreaming project for Philippine cooperatives in 2010-2012,
funded by the Swedish Cooperative Centre (later known as We Effect). AWCF enhanced
the Tool in its GAD project for Philippine cooperatives in 2013, also supported by We Effect.
In March 2016, the Tool was improved by the Cooperative Development Authority (CDA),
the Gender Equality Resource Center (GERC), and the partner cooperatives.
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The Tool for Assessing GE in Cooperatives was developed in response to the
implementation of CDA Memorandum Circular 2013-22 or the Guidelines in Mainstreaming
Gender and Development (GAD) in Cooperatives, and Baguio GAD Summit 2016
Declaration and Call for Action.
4.1. Purpose of the Tool

• Rates the extent to which the cooperative lives the universal cooperative
principles of equality, equity, social responsibility, and caring for others as
outlined in the “Statement on the Co-operative Identity (SCI)” of the International
Co-operative Alliance (ICA); and
• Basis for crafting gender-responsive cooperative development plan.
4.2. Components of the Tool
1. Cooperative Information – basic and general information about the cooperative
including the number of members, officers, staff and members’ contribution to
share capital;
2. Level of Gender Equality in the Cooperative – the main component of the tool
where the status and levels of implementation of cooperative vis-a-vis gender
equality will be rated accordingly. These include determining the level of gender
awareness by the key players of cooperative, presence of the different aspects
of GAD mainstreaming, presence of GAD mainstreaming mechanisms and
instruments and status of implementation thereof, and other areas of concerns
indicated in CDA MC 2013-22;
3. Scoring Instruction – summary of scores and the corresponding qualitative
values for the overall scores including the scores for each area of improvement
and for improvement (people, policy, programs and enabling mechanisms) and
the qualitative interpretation of each; and
4. Interpretation of Scores – identification of strengths, weaknesses, opportunities
and threats (SWOT) and the needed actions.
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Section 5. Adoption of the Tool
All cooperatives must adopt the Tools for Assessing GE in Cooperatives herein
attached and shall come up with their respective gender-responsive cooperative
development plan in accordance with the result of the assessment. The cooperative shall
be guided by CDA Memorandum Circular 2013-22.
Section 6. Effectivity
This Memorandum Circular shall take effect upon the approval of the Board of
Administrators of the Cooperative Development Authority and fifteen (15) days after its
publication in the Office of the National Administrative Registry (ONAR).
Approved by the CDA Board of Administrators under Resolution No. 34, S-2017 dated
March 21, 2017.
FOR THE CDA BOARD OF ADMINISTRATORS

By: Sgd) ORLANDO R. RAVANERA
Chairperson
--------------------------------------
Required Activity.
▪ Prepare a narrative report on your assessment on the Gender Equality programs

and practices of the different countries and compare them within the Philippine
Situation.
▪ Accomplish the Tool for Assessing Progress of Gender Equality in Primary
Cooperatives as Supplemental to Memorandum Circular 2013-22 uploaded in the
class Channel in the MSTeams. Submit and be ready for a zoom presentation in
the next synchronous online class session.
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References:
Asian Development Bank, Australian Aid. 2003. Tool Kit on Gender Equality Results and
Indicators, Published in 2013. Printed in the Philippines. ISBN 978-92-9254-337-2 (Print),
978-92-9254-338-9 (PDF) Publication Stock No. TIM135772 Cataloging-In-Publication
Data Asian Development Bank. Tool kit on gender equality results and indicators.
Mandaluyong City, Philippines: Asian Development Bank, 2013
Azad, Nandini Dr. 2017. The Independent Commission for People’s Rights and Development
(ICPRD) New Delhi 3 Acknowledgement “Gender is more than a statistic”.
Global Campaign for Education. Web Post. 2020 March 8. An equal world is an enabled
world’. Category: News, Press Release.
https://campaignforeducation.org/en/2020/03/08/an-equal-world-is-an-enabled-
world/?gclid=Cj0KCQjwz7uRBhDRARIsAFqjullDH-
vcqi18cFtYlIp270XorbilRSissfXYCkulyHH84VFVcs9DfHkaAvVrEALw_wcB. Retrieved
March 15, 2022.
International Labour Organization. 2015. Advancing gender equality: The co-operative way First
published 2015 Publications of the International Labour Office. ISBN 978-92-2-130017-5
(print) ISBN 978-92-2-130018-2 (web pdf) International Labour Office Enterprises Dept.
ISBN 978-92-2-130017-5 (print) ISBN 978-92-2-130018-2 (web pdf) International Labour
Khan, Prabbiot R. & Nikore Mitali. 2021. Data Driven Female Leadership is Key to Recovering
from COVID-19. Asian Development Bank 2022.
https://www.google.com/search?q=gender+equality+in+the+philippines. Retrieved March
15, 2022.
Limocon, Ma. Elena C. Vice Chairperson, International Co-operative Alliance’s Asia Pacific
Women’s Committee; Member, Board of Trustees, Asian Women in Co-operative
Development Forum; Member, Board of Directors, National Confederation of Cooperatives
(NATCCO) —presented by Ms Emelina M. Santos, Group Head, Member Relations and
Networking Group/SP-GE Committee Member, NATCC2016 2nd National Summit on
Gender and Development (GAD) in Co-ops Crown Legacy Hotel, Baguio City 29-31 March
2016.
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Week 13 & 14. At the end of the lessons, the students will be able to:
▪ Elucidate the concepts & principles of cooperative governance & management.

▪ Recognize the governance and management practices of the different types of
cooperative organization.
▪ Discuss the guidelines governing all types of registered cooperatives in relation to
cooperative governance and management.
▪ Accomplish the CDA Governance & Management Audit Report of selected
cooperatives in the National Capital Region.
----------------------------------------------------------------------------------------------------------------------
What is Cooperative Governance?
The key to a successful co-op:
Governance is, to put it simply, all about how running a business. And good
governance is about running a successful business. It's about people and performance;
policies and processes; rules and regulations... and lots more.
It's the same for co-operatives, but with a good twist. Co-ops exist to serve the needs
of their members. And they're founded on a set of values and principles which set the
agenda for a different, fairer and better way of doing business. So good governance has
to encapsulate those fundamental elements as well.
Code for good governance
The code is a fantastic tool to help chart what good governance practice can look
like. The accompanying resources cover key roles and responsibilities, codes of conduct,
induction checklists and more. The wheel of good governance. To help with your
governance, our Co-operative Governance Expert Reference Panel has created a
great resource. It depicts the key areas of governance that should be in place within a
thriving co-operative businesses. They are:
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• Purpose
Four key elements. The framework supporting a co-op's purpose comprises four key
elements. Here we take a look at each of those and also offer expert support for co-ops
looking to strengthen their governance.
Governing Document. Having a good, well structured governing document is key to laying
the foundation for co-operative governance. Whether it is referred to as the constitution,
articles or rules, it's important that a co-operative's governing document is fit for purpose,
up to date and reflects how the co-operative's current governance operates. We have
created an extensive range of model rules to cover co-ops of different type, size and
operating in different sectors.
Governing document reviews. As circumstances change it's important governing document

changes too. From minor updates to complete reviews, we'll ensure changes reflect the
law, follow best practice and are correctly filed with the regulator.
Mission and vision. Every co-operative is formed for a particular purpose or purposes. It's
important for the board, in consultation with stakeholders, to set out objectives and the
approach to meeting these in a mission and vision statement in order to focus resources
and achieve success.
Strategy and objectives. Every co-operative should plan for the future of its business.
Having a clear business strategy focusing on long term goals will provide the check and
balances the board need in order to determine what success looks like.
Culture and values. Fostering a healthy culture in a co-operative is key to its success.
Creating an environment where people are motivated, challenged and rewarded are values
that will enable them to work together to strive towards and and achieve success together.
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• An effective board
Five key elements. We identify five key elements in creating an effective board.
Composition and recruitment. A understanding of the role of the board is a vital step when
considering the optimum size of the board and the skills and experience required on the
board in order to meet the needs of the co-operative. It can also help a co-operative to
develop its recruitment processes for new directors and identify how to develop the skills
of its existing directors. Having a balanced board comprised of elected members and, in
many cases, independent non-executive directors can contribute the development of an
effective board.
Board of bad board behaviour? Work with your board to improve its dynamic with this great
guide. Board Behaviour in Co-operatives
Dynamics and behaviour. Having the correct mix of skills and experience on a co-operative
board must go hand in hand with enabling directors to develop appropriate behaviours
when carrying out their role whether this is when participating in a board meeting or when
reporting to members and other stakeholders on co-operative performance. A growing co-
operative must develop the softer skills of its directors in order to develop a healthy board
culture.
Succession planning. Developing a pipeline of suitably experienced and skilled directors

ready to serve on a co-operative's board can be challenging. However, it is important for
the long term success of a co-operative to align succession planning with the co-operative's
business planning and strategy, identify appropriate mechanisms to source experienced
directors and adopt a continual process of board assessment and evaluation to ensure
an effective board.
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Planning for board excellence. This short guide runs through the process of recruiting
directors to co-operative boards.
Recruit the right board members
Skills. Having a good understanding of the role of the board and how this aligns with a co-
operative's business planning and strategy will assist a co-operative to identify and
celebrate the contribution of existing directors but also understand where skills gaps
are. This understanding will help underpin the personal development of existing directors
but will also assist with the evaluation of the board as a whole. Got the skills? We
undertake board and director evaluations and skills audits to provide you with a map of
strengths and areas and a board development plan.
Supercharge your board. Evaluation. Evaluating the board's performance and that of
individual directors provide a valuable insight into how well the board is working collectively
as well as examining the individual input of individual directors. Evaluation forms part of
the wider development of an effective board as done regularly it can be a useful tool to
identify the positive contributions of directors, skills gaps and assist succession planning.
• Operations and processes
Achieving and maintaining a good standard of governance requires a co-operative to

establish robust operations and processes that act as a road-map to signpost its appointed
officers to carry on governance in an effective way. Here's five key elements of operations
and processes:
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Policies and procedures. In addition to the governing document, any co-operative
regardless of size, type or business operation will need to establish a range of policies and
procedures to support its operation. From developing a detailed set of standing orders to
a statement on how the co-operative will embrace equality and diversity, a growing co-
operative should continually review and update its policies so that they are clear, workable
and complement and develop good governance.
What are the chair of the board's responsibilities? We've got the answers in our essential
guide for a co-operative chair.
Checks and balances. A key aspect of good corporate governance is to ensure that any
co-operative has the appropriate checks and balances in place to support its Board to act
in the co-operative's best interests. These checks and balances will depend on the
complexity of a co-operative's governance structure but include ensuring, where
appropriate, that there is a clear delination between the key roles of chief executive and
chair and that there are effective mechanisms in place to evaluate the performance of the
board.
Structure and plan. The Board is responsible for ensuring that its co-operative has an
appropriate system of governance in place and establish frameworks for risk management
and internal controls that are delegated, as appropriate, to committees who can
oversee this work. This framework will depend on the co-operative's size and complexity
but at a fundamental level will play a key role in the management of risks that may impact
the Board being able to carry out its role effectively.
Decision-making. Effective decision-making happens when people in clearly defined roles

have clear objectives and priorities and are supported with the appropriate resources and
processes in place to make them. Asking questions like those below (and
knowing/finding the answers) will enable a growing co-operative to operate effectively:
• Who is empowered to make which decision?
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• Who must they consult when they make those decisions?
• What process must they use to make and record each decision?
• How will outcomes be monitored?
• How will effectiveness of the decision-making process be monitored?
Sociocracy for co-operatives. Sociocracy, also known as dynamic governance, is a values-

based governance system centered on the concept of equal voice (every member heard).
Read our guidance on how your co-op could start to adopt it.
Behaviours . n order to operate as an effective board, it must be able to do so in an

environment where its members adopt and observe appropriate boardroom behaviours.
Developing appropriate behaviours is a continual process that all co-operatives must
develop as part of their systems of governance and is especially important for co-
operatives operating through a period of growth, change or expansion when effective
decision-making is often at its most important.
• Performance and roles
✓ A co-operative is driven by its members, by the people who own and control it.
Those members take up various positions in the co-operative and have, either
individually or collectively, a range of governance responsibilities.
✓ Compliance. Like any other business, co-operatives operate in a complex
commercial setting. To trade successfully, co-operatives should have a
compliance strategy in place that keeps pace with new and existing legislation
and member and other stakeholder expectations. This strategy will enable co-
operatives to understand how they comply with governance and regulatory
requirements, such as various co-operative codes of good governance, and
specific legislation such as the UK Bribery Act.
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✓ Reporting. The amount and scale to which co-operative must report on their
business activities does vary depending on size, scale and business sector. For
a co-operative to comply with relevant legislation and remain accountable to
its members and wider stakeholders, it is important that any corporate reporting
is timely, transparent and precise. It is also important to understand basic
reporting requirements through annual reporting as well as keeping up to date
on different and new methods of reporting.
✓ Roles and duties. The people involved in steering the governance of the co-
operative are required to take on different roles and wear different hats. The
people who take on these roles must be fully informed about their duties and
responsibilities in order to carry them out effectively. Co-operatives
should support and develop people who take on these roles, recognise when
improvements may be required and take action to ensure the appropriate people
are carrying out their roles effectively.
✓ Delegation and limitations. As a co-operative grows and changes, it is
impossible for the board to discharge its duties effectively if it does not delegate
some tasks to other stakeholders and groups who can be focused on achieving
particular outcomes. It is important that the board is aware of what and how tasks
can be delegated and establish clear reporting lines so that it can remain
accountable. Co-operatives should understand limitations to the board's powers
of delegation to help establish and ensure clear lines of delegation.
✓ Stakeholder management. Co-operatives are driven by the members who own
and control it and so any board must remain accountable to that membership
with the ultimate aim of acting in the members' collective best interests. To do
this effectively, a co-operative's board must manage relationships with a range
of internal and external stakeholder.
• Members and participation
✓ Member participation is hugely important and there are numerous important

avenues for member involvement:
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✓ General meetings. General Meetings act as the members' democratic
connection to the co-operative and provide the primary space in which members
can exercise their rights. General meetings provide opportunities for members
to hold the board to account and as the elected representatives it is important
that the board make general meetings accessible, encourage a wide
participation of members and promote opportunities for members to effectively
challenge decisions.
✓ As owners of the co-operative, members have a right to request and be provided
with information on the co-operative's position and prospects so that they can
adequately challenge the board on its decision-making. To enable this to happen
it is important for quality information to be provided and for members to have the
necessary skills to interpret the information put before them and to have the tools
and develop the necessary skills to effectively challenge this information.
✓ Connection to business. As owners of the co-operative, members must continue
to believe and feel that their input matters to the successful growth of their co-
operative. As co-operatives grow and the environment in which they trade
because more complex it is often easy to lose sight of the reason the co-
operative was established in the first place - to benefit the economic, social and
cultural needs of those members. Co-operatives should establish ways to
continually understand their membership base, consider their needs and
encourage involvement in the business of the co-operative.
✓ Communications and engagement. The methods a co-operative adopts to
communicate and engage with its members and encourage greater participation
in the co-operative will vary depending on the needs of those members. Those
needs may change over time and as such the way a co-operative communicates
with its members will also need to change to ensure that it is addressing the right
needs.
✓ Rights and responsibilities. Membership rights and responsibilities derive from
the co-operative's governing document and from in some cases from statute. As
a very minimum it is important the members are provided with a copy of their co-
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operative's governing document, can develop a broad understanding of the key
elements in order for them participate fully in the governance of the co-operative.
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MC 2017-05 | Governance and Management Audit Report for
Cooperativesovernance and Management Audit Report for Cooperatives
MEMORANDUM CIRCULAR NO. 2017-05
Series of 2017
SUBJECT: GOVERNANCE AND MANAGEMENT AUDIT REPORT FOR
COOPERATIVES
----------------------------------------------------------------------------------------------------------------------
This Memorandum Circular shall be known as the GOVERNANCE AND MANAGEMENT

AUDIT REPORT FOR COOPERATIVES (PERFORMANCE AUDIT REPORT).
Section 2. Legal Basis

1. Article 53 of R.A. 9520, otherwise known as the Philippine Cooperative Code of
2008, to wit:
“Every cooperative shall draw up regular reports of its program of activities, including those
in pursuance of their socio-civic undertakings, showing their progress & achievements at
the end of every fiscal year. xxx”
2. Article 80 of the same Code states:
“Cooperatives registered under this Code shall be subject to an annual financial,
performance, and social audit. xxx”
Rule 8, Section 2 (b) of the Implementing Rules and Regulations of R.A. 9520 specifies
Performance Audit Report as one of the mandatory reports to be submitted to the Authority.
Section 3. Definition of Terms

1. Governance and Management Audit Working Paper – refers to the working paper
to be used by the Audit Committee or Internal Auditor in analyzing/assessing the
performance of the cooperative in a form to be prescribed by the Authority.
2. Governance and Management Audit Report – refers to the summary report of
analysis/assessment to be undertaken by the cooperative based on the result of the
audit using the tool prescribed by the Authority.
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Section 4. Purpose
The purpose of the Governance and Management Audit Report is to determine the
presence of the documents needed to be maintained by every cooperative in the operation
and management of its business. Specifically, the report will serve as:
1. regulatory and supervisory tool of CDA in programming the roadmap of
developmental intervention for management and governance of cooperatives; and
2. management tool of cooperative to identify problem areas in its governance and
management practices.
Section 5. Coverage
This Guideline shall govern and cover all registered cooperatives, regardless of types and
categories, except for micro cooperatives which have the option to use and/or submit the
report.
Section 6. Governance and Management Audit Working Paper

This document shall serve as the working paper in the conduct of performance audit which
shall be kept and maintained by the cooperative.
The Governance and Management Audit Working Paper must be filled up by the Internal
Auditor or the Audit Committee in coordination with the responsible person/s in the key
units of the cooperative signifying the presence of the documents being asked. The
remarks portion should indicate findings in the document whether it is not in the possession
by the right person, found to be incomplete in substance, or the document is not duly signed
by responsible officers.
There are two (2) major components in the working paper. The 1st component is the
Governance Reports while the 2nd component is the Management Report/Records.
Section 7. Governance and Management Audit Report

The presentation of the Governance and Management Audit Report (see Annex A – Format
Template) shall at least include the following parts:
1. Basic Information – presents the general information about the cooperative.
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2. Executive Summary – presents the overview of the objectives and scope of the
audit, over-all rating and rating per component, and the summary of the key
observations and conclusions together with the key recommendations identifying
the strong points and main areas which need to be addressed by the cooperative.
3. Objectives and Scope of the Audit – presents the objectives set and brief scope of
audit including the actions chosen for audit and broad details of the procedures
carried out.
4. Observations /Findings – presents a clear and logical analysis of the identified
strong points or problems confronted by the cooperative within the auditing period.
The report should provide sufficient details of the observations and findings to
substantiate the points given
5. Recommendation and Conclusion – This part should be clear and precise on the
need for appropriate action to address the issue. The recommendation shall form
as basis for any follow-up audit, evaluation or examination.
Section 8. Period of Submission and Sanctions

The Governance and Management Audit Report (see Annex B – Sample Report) shall be
submitted by the cooperative to the CDA not later than 120 days from the end of each
Calendar Year as attachment to the CAPR.
The cooperative who failed to submit the report shall not be issued Certificate of
Compliance (COC) or may also be subjected to a procedural process of cancellation.
Section 9. Consolidation, Evaluation and Submission of Governance and

Management Audit Reports
The Supervision and Examination Unit (SEU) of every CDA Extension Offices shall be
responsible in the consolidation, evaluation and analysis of the Governance and
Management Audit Report. After the sixty (60) days deadline of submission by the
cooperatives, the consolidated evaluation and analysis shall be submitted by the SEU
Extension Offices to the Extension Office Directors for possible intervention by the other
operating units of CDA.
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The summary report of analysis and intervention shall be submitted to SEU Central Office
through the Executive Director.
Section 10. Repealing Clause

Memorandum Circular No. 2013-15, Series of 2013 dated February 25, 2013 Re:
Performance Report Standards for Cooperatives is hereby repealed accordingly.
Section 11. Effectivity

This Memorandum Circular shall take effect upon approval of the CDA Board of
Administrators and fifteen (15) days after its publication in the Office of National
Administrative Register (ONAR).
Approved by the CDA Board of Administrators on August 15, 2017 per BOA Resolution
No. 213 Series of 2017.
For the CDA Board of Administrators:
By:
(SGD) ORLANDO R. RAVANERA
Chairman
--------------------------------------
Required Activity.
▪ Prepare a narrative report of your assessment on the Governance & Management

Audit Report from a selected cooperative adjacent the your place of residence; and
▪ Accomplish the Governance & Management Audit Report of your selected Primary
Cooperatives. You may refer to the CDA Memorandum Circular uploaded in the
class Channel in the MSTeams. Submit and be ready for a zoom presentation in
the next synchronous online class session.
Page 76 of 108
References:
MC 2017-05 | Governance and Management Audit Report for Cooperativesovernance and

Management Audit Report for Cooperatives. 2017. MEMORANDUM CIRCULAR NO.
2017-05 Series of 2017. Cooperative Development Authority. Manila. Philippines.
Saxena, G. N. Cooperative Leadership & Governance- An Indian Perspective G.N.SAXENA

DIRECTOR (Coop. Development) IFFCO, INDIA COOPERATIVE GOVERNANCE.
COOPERATIVE GOVERNANCE IS ABOUT STRIKING A FIN, Retrieved March 5, 2022.
What is good governance? CooperativesUK.

https://www.uk.coop/support-your-co-op/governance/what-good-governance.
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Week 15, 16, and 17. At the end of the lessons, the students will be able to:
▪ Discuss the Philippine Financial Reporting Framework for Cooperatives.

▪ Identify the different reporting standards for all types of cooperatives as mandated
by the Cooperative Development Authority (CDA).
▪ Familiarize themselves with the different financial reports on cooperatives such as
PESOS, PISO, PEARL, etc.
▪ Calculate the financial reports that needs to be complied by all registered
cooperatives with the CDA.
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MC 2015-06 | Philippine Financial Reporting Framework for Cooperatives

MEMORANDUM CIRCULAR NO. 2015-06
Series of 2015
SUBJECT : PHILIPPINE FINANCIAL REPORTING FRAMEWORK FOR
COOPERATIVES
Presented below are identified salient provisions of MC 2015-06. These are identified important aspects that
students need to learn pertaining to provisions indicated below. Remaining Chapters will be discussed in the
synchronous online class session via seminar type.
Pursuant to Section 3 of Republic Act No. 6939 and Republic Act No. 9520 and its
Implementing Rules and Regulations (IRR) , the Authority hereby adopts and prescribes
the use of this Philippine Financial Reporting Framework for Cooperatives:
CHAPTER I.
GENERAL PROVISIONS
Section 1. Title. This Memorandum Circular shall be known and cited as the Philippine
Financial Reporting Framework for Cooperatives.
Section 2. Statement of Policy

It is hereby declared a policy of this Authority to promote the principle of transparency and
accountability in the financial reporting of cooperatives to protect the interest and welfare
of their members and other stakeholders.
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Section 3. Rationale
The emergence of cooperatives as a form of business enterprise in the Philippines is
indeed inevitable. Unlike the other collective organizations recognized by the Philippine
Constitution to own, manage and operate business enterprise, cooperatives do not have
financial reporting standards that truly reflect the cooperatives’ financial condition and
results of operation. The uniqueness and peculiarities of cooperatives make it necessary
for the Authority to prescribe the comprehensive financial reporting framework that will
address the needs of the users of the cooperatives’ financial statements.
Presently, cooperatives cannot strictly follow the PFRS for the reason that Republic Act
No. 9520, otherwise known as the Philippine Cooperative Code of 2008, specifically
provides for treatment of certain accounts which are unique only to cooperatives and such
peculiarities are in accord with universally-accepted cooperative principles. As a
consequence, cooperative external auditors are left with no option but to render, at times,
qualified opinion because the cooperatives could not comply with the PFRS. As a matter
of fact, other cooperative external auditors express varied opinions on the presentation of
the audited financial statements of cooperatives ranging from unmodified, qualified,
adverse and disclaimer of opinion on the items presented in the financial statements. For
so many years, the cooperative external auditors have long been clamoring for a separate
financial reporting framework that is truly applicable for Philippine cooperatives.
This Financial Reporting Framework for Cooperatives was developed from the Philippine
Financial Reporting Standards (PFRS) for Small and Medium-Sized Enterprises (SMEs) .
Modifications were made on several provisions of the standards taking into considerations
cooperative laws, rules, regulations and principles.
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CHAPTER II
CONCEPTS AND PERVASIVE PRINCIPLES
Section 1. Scope
This Chapter describes the objective of financial statements of Cooperative and the
qualities that make the information in the financial statements useful. It also sets out the
concepts and basic principles underlying the financial statements.
Section 2. Objective of financial statements of Cooperative

The objective of financial statements of a cooperative is to provide information about the
financial condition, performance and cash flows of the cooperative that is useful for
economic decision-making
Financial statements also show the results of the stewardship and the accountability of
management for the resources entrusted to it.
Section 3. Qualitative characteristics of information in financial statements

3.1 Understandability
The information provided in financial statements should be presented in a way that
makes it comprehensible by users who have a reasonable knowledge of business
and economic activities and accounting and a willingness to study the information
with reasonable diligence. However, the need for understandability does not allow
relevant information to be omitted on the grounds that it may be too difficult for some
users to understand.
3.2 Relevance
The information provided in financial statements must be relevant to the decision-
making needs of users. Information has the quality of relevance when it is capable
of influencing the economic decisions of users by helping them evaluate past,
present or future events or confirming, or correcting, their past evaluations.
3.3 Materiality
Information is material—and therefore has relevance—if its omission or
misstatement could influence the economic decisions of users made on the basis of
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the financial statements. Materiality depends on the size of the item or error judged
in the particular circumstances of its omission or misstatement. However, it is
inappropriate to make, or leave uncorrected, immaterial departures from this
framework to achieve a particular presentation of a cooperative’s financial condition,
financial performance or cash flows.
3.4 Reliability
The information provided in financial statements must be reliable. Information is
reliable when it is free from material error and bias and represents faithfully that
which it either purports to represent or could reasonably be expected to represent.
Financial statements are not free from bias if, by the selection or presentation of
information, they are intended to influence the making of a decision or judgment in
order to achieve a predetermined result or outcome.
3.5 Substance over form
Transactions and other events and conditions should be accounted for and
presented in accordance with their substance and not merely their legal form. This
enhances the reliability of financial statements.
3.6 Prudence
The uncertainties that inevitably surround many events and circumstances are
acknowledged by the disclosure of their nature and extent and by the exercise of
prudence in the preparation of the financial statements. Prudence is the inclusion of
a degree of caution in the exercise of the judgments needed in making the estimates
required under conditions of uncertainty, such that assets or income are not
overstated and liabilities or expenses are not understated. However, the exercise of
prudence does not allow the deliberate understatement of assets or income, or the
deliberate overstatement of liabilities or expenses. In short, prudence does not
permit bias.
3.7 Completeness
To be reliable, the information in financial statements must be complete and within
the bounds of materiality and cost. An omission can cause information to be false
or misleading and thus unreliable and deficient in terms of its relevance.
3.8 Comparability
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Users must be able to compare the financial statements of a cooperative through
time to identify trends in its financial condition and performance. Users must also be
able to compare the financial statements of different cooperatives to evaluate their
relative financial condition, performance and cash flows. Hence, the measurement
and display of the financial effects of like transactions and other events and
conditions must be carried out in a consistent way throughout a Cooperative and
over time for that Cooperative and in a consistent way across cooperative. In
addition, users must be informed of the accounting policies employed in the
preparation of the financial statements, and of any changes in those policies and
the effects of such changes.
3.9 Timeliness
To be relevant, financial information must be able to influence the economic
decisions of users. Timeliness involves providing the information within the decision
time frame. If there is undue delay in the reporting of information it may lose its
relevance. Management may need to balance the relative merits of timely reporting
and the provision of reliable information. In achieving a balance between relevance
and reliability, the overriding consideration is how best to satisfy the needs of users
in making economic decisions.
3.10 Balance between benefit and cost
The benefits derived from information should exceed the cost of providing it. The
evaluation of benefits and costs is substantially a judgmental process. Furthermore,
the costs are not necessarily borne by those users who enjoy the benefits, and often
the benefits of the information are enjoyed by a broad range of external users.
Section 4. Financial condition

The financial condition of a cooperative is the relationship of its assets, liabilities and equity
as of a specific date as presented in the statement of financial condition.
These are defined as follows:
a. An asset is a resource controlled by the cooperative as a result of past events
and from which future economic benefits are expected to flow to the cooperative.
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b. A liability is a present obligation of the cooperative arising from past events, the
settlement of which is expected to result in an outflow from the cooperative of
resources embodying economic benefits.
c. An equity is the residual interest in the assets of the cooperative after deducting
all its liabilities.
Some items that meet the definition of an asset or a liability may not be recognized
as assets or liabilities in the statement of financial condition because they do not
satisfy the criteria for recognition as an asset or a liability. In particular, the
expectation that future economic benefits will flow to or from a cooperative must be
sufficiently certain to meet the probability criterion before an asset or liability is
recognized.
4.1 Assets
The future economic benefit of an asset is its potential to contribute, directly or indirectly,
to the flow of cash and cash equivalents to the cooperative. Those cash flows may come
from using the asset or from disposing of it.
Many assets, for example property, plant and equipment, have a physical form. However,
physical form is not essential to the existence of an asset. Some assets are intangible.
In determining the existence of an asset, the right of ownership is not essential. Thus, for
example, property held on a lease is an asset if the cooperative controls the benefits that
are expected to flow from the property.
4.2 Liabilities
An essential characteristic of a liability is that the cooperative has a present obligation to
act or perform in a particular way. The obligation may be either a legal obligation or a
constructive obligation. A legal obligation is legally enforceable as a consequence of a
binding contract or statutory requirement. A constructive obligation is an obligation that is
derived from cooperative’s actions such as when:
(a) by an established pattern of past practice, published policies or a sufficiently specific
current statement, the cooperative has indicated to other parties that it will accept particular
responsibilities, and
(b) as a result, the cooperative has created a valid expectation on the part of those other
parties that it will discharge those responsibilities.
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The settlement of a present obligation usually involves the payment of cash, transfer of
other assets, provision of services, the replacement of that obligation with another
obligation, or conversion of the obligation to equity. An obligation may also be extinguished
by other means, such as a creditor waiving or forfeiting its rights.
4.3 Equity
Equity is the residual of recognized assets minus recognized liabilities. It is classified in the
statement of financial condition as Members’ Equity, Statutory Funds, Donations and
Grants, and Revaluation Surplus.
Section 5. Performance
Performance is the relationship of the income and expenses of a cooperative during a
reporting period. Profits or losses are frequently used as measures of performance or as
the basis for other measures, such as return on investment. Income and expenses are
defined as follows:
(a) Income is increases in economic benefits during the reporting period in the form
of inflows or enhancements of assets or decreases of liabilities that result in
increases in equity, other than those relating to contributions from members and
donations.
(b) Expenses are decreases in economic benefits during the reporting period in the
form of outflows or depletions of assets or incurrence of liabilities that result in
decreases in equity, other than those relating to distributions to equity investors.
The recognition of income and expenses results directly from the recognition and
measurement of assets and liabilities.
5.1 Income
The definition of income encompasses both revenue and gains.
(a) Revenue is income that arises in the course of the ordinary activities of a cooperative
and is referred to by a variety of names including sales, service income, commission,
interest, dividends, royalties and rent.
(b) Gains are other items that meet the definition of income but are not revenue. When
gains are recognized in the statement of operation, they are usually displayed separately
because knowledge of them is useful for making performance economic decisions.
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5.2 Expenses
The definition of expenses encompasses losses as well as those expenses that arise in
the course of the ordinary activities of the cooperative.
(a) Expenses that arise in the course of the ordinary activities of the cooperative include,
for example, cost of sales, wages and depreciation. They usually take the form of an
outflow or depletion of assets such as cash and cash equivalents, inventory, or property,
plant and equipment.
(b) Losses are other items that meet the definition of expenses and may arise in the course
of the ordinary activities of the cooperative. When losses are recognized in the statement
of operations, they are usually presented separately because knowledge of them is useful
for making economic decisions.
Section 6. Recognition of assets, liabilities, income and expenses

Recognition is the process of incorporating in the financial statements an item that meets
the definition of an asset, liability, income or expense and satisfies the following criteria:
(a) it is probable that any future economic benefit associated with the item will flow
to or from the cooperative, and
(b) the item has a cost or value that can be measured reliably.
The failure to recognize an item that satisfies those criteria is not rectified by
disclosure of the accounting policies used or by notes or explanatory material.
6.1 The probability of future economic benefit
The concept of probability is used in the first recognition criterion to refer to the degree of
uncertainty that the future economic benefits associated with the item will flow to or from
the cooperative. Assessments of the degree of uncertainty attaching to the flow of future
economic benefits are made on the basis of the evidence relating to conditions at the end
of the reporting period available when the financial statements are prepared. Those
assessments are made individually for individually significant items, and for a group for a
large population of individually insignificant items.
6.2 Reliability of measurement
The second criterion for the recognition of an item is that it possesses a cost or value that
can be measured with reliability. In many cases, the cost or value of an item is known. In
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other cases it must be estimated. The use of reasonable estimates is an essential part of
the preparation of financial statements and does not undermine their reliability. When a
reasonable estimate cannot be made, the item is not recognized in the financial
statements.
An item that fails to meet the recognition criteria may qualify for recognition at a later date
as a result of subsequent circumstances or events.
An item that fails to meet the criteria for recognition may nonetheless warrant disclosure in
the notes or explanatory material or in supplementary schedules. This is appropriate when
knowledge of the item is relevant to the evaluation of the financial condition, performance
and changes in financial condition of a cooperative by the users of financial statements.
Section 7. Measurement of assets, liabilities, income and expenses

Measurement is the process of determining the monetary amounts at which a cooperative
measures assets, liabilities, income and expenses in its financial statements.
Measurement involves the selection of a basis of measurement. This framework specifies
which measurement basis a cooperative shall use for many types of assets, liabilities,
income and expenses.
Two common measurement bases are historical cost and fair value:
(a) For assets, historical cost is the amount of cash or cash equivalents paid or the
fair value of the consideration given to acquire the asset at the time of its acquisition.
For liabilities, historical cost is the amount of proceeds of cash or cash equivalents
received or the fair value of non-cash assets received in exchange for the obligation
at the time the obligation is incurred, or in some circumstances the amounts of cash
or cash equivalents expected to be paid to settle the liability in the normal course of
business.
(b) Fair value is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable and willing parties in a normal transaction.
Section 8. Accrual basis

Unless expressly allowed in this framework, a cooperative shall prepare its financial
statements, except for cash flow information, using the accrual basis of accounting. On the
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accrual basis, items are recognized as assets, liabilities, equity, income or expenses when
they satisfy the definitions and recognition criteria for those items.
Allowance for probable losses on receivables shall be based on the past due amount using
portfolio at risk for purposes of prudence in financial reporting.
Section 9. Recognition in financial statements

9.1. Assets
A cooperative shall recognize an asset in the statement of financial condition when
it is probable that the future economic benefits will flow to the cooperative and the
asset has a cost or value that can be measured reliably. An asset is not recognized
in the statement of financial condition when expenditure has been incurred for which
it is considered not probable that economic benefits will flow to the cooperative
beyond the current reporting period. Instead such a transaction results in the
recognition of an expense in the statement of operations.
A cooperative shall not recognize a contingent asset as an asset. However, when
the flow of future economic benefits to the cooperative is virtually certain, then the
related asset is not a contingent asset, and its recognition is appropriate.
9.2 Liabilities
A cooperative shall recognize a liability in the statement of financial condition when:
(a) the cooperative has an obligation at the end of the reporting period as a result of
a past event,
(b) it is probable that the cooperative will be required to transfer resources
embodying economic benefits in settlement, and
(c) the settlement amount can be measured reliably.
A contingent liability is either a possible but uncertain obligation or a present
obligation that is not recognized because it fails to meet one or both of the conditions
(b) and (c) above. A cooperative shall not recognize a contingent liability as a
liability.
9.3 Income
The recognition of income results directly from the recognition and measurement of
assets and liabilities. A cooperative shall recognize income in the statement of
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operations when an increase in future economic benefits related to an increase in
an asset or a decrease of a liability has arisen that can be measured reliably.
This applies to all accounts, except for cooperatives with lending operations, where
interest income is recognized only when earned and received during the period.
9.4 Expenses
The recognition of expenses results directly from the recognition and measurement
of assets and liabilities. A cooperative shall recognize expenses in the statement of
operations when a decrease in future economic benefits related to a decrease in an
asset or an increase of a liability has arisen that can be measured reliably.
9.5 Profit or loss
Profit or loss is the arithmetical difference between income and expenses. Profit or
loss, as used in this framework, is a general term that refers to net surplus or loss
of a cooperative. It is not a separate element of financial statements, and a separate
recognition principle is not needed for it.
Unless otherwise provided, this framework does not allow the recognition of items
in the statement of financial condition that do not meet the definition of assets or of
liabilities regardless of whether they result from applying the notion commonly
referred to as the ‘matching concept’ for measuring profit or loss.
Section 10. Measurement at initial recognition

At initial recognition, a cooperative shall measure assets and liabilities at historical cost
unless this framework requires initial measurement on another basis such as fair value.
Section 11. Subsequent measurement

11.1 Assets
Most assets that a cooperative initially recognized at historical cost are subsequently
measured on other measurement bases. For example:
(a) A cooperative measures property, plant and equipment at the lower of
depreciated cost and recoverable amount.
(b) A cooperative measures inventories at the lower of cost and selling price less
costs to complete and sell.
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(c) A cooperative recognizes an impairment loss relating to non-financial assets that
are in use or held for sale.
(d) A cooperative measures investment in listed securities at fair value.
Measurement of assets at those lower amounts is intended to ensure that an asset
is not measured at an amount greater than the cooperative expects to recover from
the sale or use of that asset.
11.2 Liabilities other than financial liabilities
Most liabilities other than financial liabilities are measured at the best estimate of
the amount that would be required to settle the obligation at the reporting date.
A cooperative shall not offset assets and liabilities, or income and expenses, unless
required or permitted by this framework.
(a) Measuring assets net of valuation allowances—for example, allowance for inventory
obsolescence and allowance for probable losses on receivables—is not offsetting.
(b) If a cooperative’s normal operating activities do not include buying and selling non-
current assets, including investments and operating assets, then the cooperative reports
gains and losses on disposal of such assets by deducting from the proceeds on disposal
the carrying amount of the asset and related selling expenses.
CHAPTER III
FINANCIAL STATEMENTS PRESENTATION
Section 1. Scope
This Chapter explains fair presentation of financial statements, what compliance with this
framework requires, and what a complete set of financial statements is.
Section 2. Fair presentation

Financial statements shall present fairly the financial condition, financial performance and
cash flows of a cooperative. Fair presentation requires the faithful representation of the
effects of transactions and events in accordance with the definitions and recognition criteria
for assets, liabilities, income and expenses.
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The application of this framework with additional disclosure when necessary is presumed
to result in financial statements that achieve a fair presentation of the financial condition,
financial performance and cash flows of cooperatives. The additional disclosures are
necessary when compliance with the specific requirements in this framework is insufficient
to enable users to understand the effect of particular transactions and events on the
cooperative’s financial condition and financial performance.
Section 3. Compliance with the FRAMEWORK for Cooperatives

A cooperative whose financial statements comply with the Philippine Financial Reporting
Framework for Cooperatives shall make an explicit and unreserved statement of such
compliance in the notes. Financial statements shall not be described as complying with the
Philippine Financial Reporting Framework for Cooperatives unless they comply with all the
requirements of this framework.
Section 4. Going concern

When preparing financial statements, the management of a cooperative using this
framework shall make an assessment of the cooperative’s ability to continue as a going
concern. A cooperative is a going concern unless management either intends to liquidate
the cooperative or to cease operations, or has no realistic alternative but to do so. In
assessing whether the going concern assumption is appropriate, management takes into
account all available information about the future, which is at least, but is not limited to
twelve months from the reporting date.
When management is aware, in making its assessment, of material uncertainties related
to events or conditions that cast significant doubt upon the cooperative’s ability to continue
as a going concern, the cooperative shall disclose those uncertainties. When a cooperative
does not prepare financial statements on a going concern basis, it shall disclose that fact,
together with the basis on which it prepared the financial statements and the reason why
the cooperative is not regarded as a going concern.
Section 5. Frequency of reporting

A cooperative shall present a complete set of financial statements at least annually.
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Section 6. Consistency of presentation
A cooperative shall retain the presentation and classification of items in the financial
statements from one period to the next unless:
(a) it is apparent, following a significant change in the nature of the cooperative’s operations
or a review of its financial statements, that another presentation or classification would be
more appropriate having regard to the criteria for the selection and application of
accounting policies in Chapter IX Accounting Policies, Estimates and Errors, or
(b) this framework requires a change in presentation.
When the presentation or classification of items in the financial statements is changed, a
cooperative shall reclassify comparative amounts unless the reclassification is
impracticable. When comparative amounts are reclassified, a cooperative shall disclose
the following:
(a) the nature of the reclassification.
(b) the amount of each item or class of items that is reclassified.
(c) the reason for the reclassification.
If it is impracticable to reclassify comparative amounts, a cooperative shall disclose why
reclassification was not practicable.
Section 7. Comparative information

Except when this framework permits or requires otherwise, a cooperative shall disclose
comparative information in respect of the previous comparable period for all amounts
presented in the current period’s financial statements. A cooperative shall include
comparative information for narrative and descriptive information when it is relevant to an
understanding of the current period’s financial statements.
Section 8. Materiality and aggregation

A cooperative shall present separately each material class of similar items. A cooperative
shall present separately items of a dissimilar nature or function unless they are immaterial.
Omissions or misstatements of items are material if they could, individually or collectively,
influence the economic decisions of users made on the basis of the financial statements.
Materiality depends on the size and nature of the omission or misstatement judged in the
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surrounding circumstances. The size or nature of the item, or a combination of both, could
be the determining factor.
Section 9. Complete set of financial statements

A complete set of financial statements of a cooperative shall include all of the following:
(a) a statement of financial condition as of reporting date.
(b) a statement of operations for the reporting period.
(c) a statement of changes in equity for the reporting period.
(d) a statement of cash flows for the reporting period.
(e) notes, comprising a summary of significant accounting policies and other
explanatory information.
Because comparative amounts are required in respect of the previous period for all
amounts presented in the financial statements, a complete set of financial statements
means that a cooperative shall present, as a minimum, two of each of the required financial
statements and related notes.
In a complete set of financial statements, a cooperative shall present each financial
statement with equal prominence.
Section 10. Identification of the financial statements

A cooperative shall clearly identify each of the financial statements and the notes and
distinguish them from other information in the same document. In addition, a cooperative
shall display the following information prominently, and repeat it when necessary for an
understanding of the information presented:
(a) the registered name of the cooperative.
(b) the date of the end of the reporting period and the period covered by the
financial statements.
(c) the presentation currency.
(d) the level of rounding, if any, used in presenting amounts in the financial
statements.
A cooperative shall disclose the following in the notes:
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(a) Registration number
(b) Date of Registration.
(c) The address of its registered office (or principal place of business, if different
from the registered office )
(d) A description of the nature of the cooperative’s operations and its principal
activities.
(e) Area of Operations
CHAPTER IV
STATEMENT OF FINANCIAL CONDITION
Section 1. Scope
This section sets out the information that is to be presented in a statement of financial
condition and how to present it. The statement of financial condition presents a
cooperative’s assets, liabilities and equity as of a specific date—the end of the reporting
period. Information to be presented in the statement of financial condition:
As a minimum, the statement of financial condition shall include line items that present the
following amounts:
(a) Cash and Cash Equivalents
(b) Loans and Receivables
(c) Financial Assets (excluding amounts shown under (a) , (b) , (i) (j) and
(d) Inventories
(e) Property, Plant and Equipment
(f) Investment Property
(g) Intangible Assets
(h) Biological assets
(i) Investments in Associates
(j) Investments in Joint Ventures
(k) Investments in Subsidiaries
(l) Trade and Other Payables
(m) Interest on Share Capital Payable
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(n) Patronage Refund Payable
(o) Due to Unions and Federations (CETF)
(p) Financial Liabilities (excluding amounts shown under
(l) (m) (n) (o) and (s)
(q) Liabilities and Assets for current tax (if applicable)
(r) Deferred Tax Liabilities and Deferred Tax Assets (if applicable)
(s) Provisions
(t) Members’ Equity
(u) Donations and Grants
(v) Statutory Funds (Reserve Fund, Education & Training Fund, Optional
Fund and Community Development Fund)
(w) Revaluation Surplus
A cooperative shall present additional line items, headings and subtotals in the statement
of financial condition when such presentation is relevant to an understanding of the
cooperative’s financial condition.
Section 2. Current/non-current distinction

A cooperative shall present current and non-current assets, and current and non-current
liabilities, as separate classifications in its statement of financial condition, except when a
presentation based on liquidity provides information that is reliable and more relevant.
When that exception applies, all assets and liabilities shall be presented in order of
approximate liquidity (ascending or descending) .
2.1 Current assets
A cooperative shall classify an asset as current when:
(a) it expects to realize the asset, or intends to sell or consume it, in the normal
operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realize the asset within twelve months after the reporting date; or
(d) the asset is cash or a cash equivalent, unless it is restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting
date.
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A cooperative shall classify all other assets as non-current. When the cooperative’s
normal operating cycle is not clearly identifiable, its duration is assumed to be twelve
months.
2.2 Current liabilities
A cooperative shall classify a liability as current when:
(a) it expects to settle the liability in the normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting
date; or
(d) the cooperative does not have an unconditional right to defer settlement
of the liability for at least twelve months after reporting date.
A cooperative shall classify all other liabilities as non-current.
Section 3. Sequencing of items and format of items in the statement of financial

condition
This framework does not prescribe the sequence or format in which items are to be
presented. It simply provides a list of items that are sufficiently different in nature or function
to warrant separate presentation in the statement of financial condition. In addition:
(a) line items are included when the size, nature or function of an item or
aggregation of similar items is such that separate presentation is relevant to an
understanding of the cooperative’s financial condition, and
(b) the descriptions used and the sequencing of items or aggregation of similar
items may be amended according to the nature of the cooperative and its
transactions, to provide information that is relevant to an understanding of the
cooperative’s financial condition.
The judgment on whether additional items are presented separately is based on
an assessment of all of the following:
(a) the amounts, nature and liquidity of assets.
(b) the function of assets within the cooperative.
(c) the amounts, nature and timing of liabilities.
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Section 4. Information to be presented either in the statement of financial condition
or in the notes
4.1 A cooperative shall disclose in the notes, the following sub-classifications of
the line items presented:
(a) Property, Plant and Equipment in classifications appropriate to the cooperative.
(b) Loans and receivables showing separately loans receivables, trade
receivables, amount due from related parties and other receivables. Disclosure
shall also present current, past due, restructured and in litigation using Portfolio at
Risk.
(c) Inventories, showing separately amounts of inventories:
(i) held for sale in the ordinary course of business.
(ii) in the process of production for such sale.
(iii) in the form of materials or supplies to be consumed in the production process
or in the rendering of services.
(d) Trade and Other Payables, showing separately amounts payable to trade
suppliers, payable to related parties, deferred income and accruals.
(e) Provisions for employee benefits and other provisions.
4.2 A cooperative shall disclose the following, either in the statement of financial
condition or in the notes:
(a) for each class of share capital:
(i) the number of shares authorized;
(ii) the number of shares subscribed;
(iii) the number of shares issued and fully paid;
(iv) par value per share;
(v) a reconciliation of the number of shares issued at the beginning and at the end
of the period;
(vi) treasury shares
(b) a description of each statutory fund within the equity.
(c) a description of each donation including the donor, amount, and condition of
donations.
(d) details of the revaluation surplus including additions to and charges made
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4.3 If, at the reporting date, a cooperative has a binding sale agreement for a
major disposal of assets, or a group of assets and liabilities, the cooperative shall
disclose the following information:
(a) a description of the asset(s) or the group of assets and liabilities.
(b) a description of the facts and circumstances of the sale or plan.
(c) the carrying amount of the assets or, if the disposal involves a group of assets
and liabilities, the carrying amounts of those assets and liabilities.
4.4 The Allocation of Net Surplus shall be presented in the Statement of
Operations in accordance with the provisions of the cooperative by-laws which
should be consistent with Articles 85 and 86 of RA 9520 (Cooperative Code) . The
balance of each of the statutory funds after allocation shall be incorporated in the
presentation of the Statement of Financial Condition for the year then ended.
CHAPTER V
STATEMENT OF OPERATIONS
Section 1. Scope
This Chapter requires a cooperative to present its financial performance for the period. It
sets out the information that is to be presented in the statement and how to present it.
Section 2. Presentation of Total Income

A cooperative shall present its profit or loss:
As a minimum, a cooperative shall include, in the statement of operations, line items that
present the following amounts for the period:
(a) Revenue
(b) Cost of Sales or Direct Cost of Services
(c) Finance Cost
(d) Selling or Marketing Cost
(e) Administrative Cost
(f) Other Income or Expense
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(g) Tax expense, if applicable
(h) Allocation of Net Surplus
A cooperative shall present additional line items, headings and subtotals in the statement
of operations, when such presentation is relevant to an understanding of the cooperative’s
financial performance.
Section 3. Analysis of expenses

A cooperative shall present an analysis of expenses based on the function of expenses
within the cooperative where expenses are aggregated according to their function as part
of cost of sales or, for example, the costs of distribution or administrative activities. At a
minimum, a cooperative should disclose its cost of sales separately from other expenses.
Section 4. Accounts peculiar to cooperatives affecting the statement of operations
4.1. Other Income and Expenses
(a) Project subsidy
(b) Optional Fund Subsidy
(c) Donation and Grants Subsidy
(d) Education and Training Fund Subsidy
(e) Subsidized Project Expense
4.2. Expense Account
(a) Provision for CGF (KBGF)
(b) Members’ Benefit Expense
(c) Incidental Expenses
(d) General Assembly Meeting
(e) Affiliation Fee
(f) Social and Community Service Expense
Section 5. Allocation/Distribution of Surplus

Net Surplus of cooperatives is distributed in accordance with the provisions of Articles 85
and 86 of RA 9520 (Cooperative Code).
Page 98 of 108
CHAPTER VI
STATEMENT OF CHANGES IN EQUITY
Section 1. Scope
This Chapter sets out requirements for presenting the changes in equity for a period in a
statement of changes in equity.
Section 2. Statement of Changes in Equity

2.1 Purpose
The statement of changes in equity presents the amounts of investments and
withdrawals by members, addition and utilization of statutory funds, movement in
donations and grants, and revaluation surplus during the period.
2.2 Information to be presented in the statement of changes in equity
A cooperative shall present a statement of changes in equity showing reconciliation
between the carrying amount at the beginning and the end of the period, separately
disclosing changes resulting from:
(a) the amounts of investments and withdrawals by members, showing
separately issued shares, and treasury shares
(b) donations and grants
(c) movements in statutory funds (includes allocation of net surplus as
reconciled with amounts per statement of operations)
(d) movements in revaluation surplus
CHAPTER VII
STATEMENT OF CASH FLOWS
Section 1. Scope
This Chapter sets out the information that is to be presented in a statement of cash flows
and how to present it. The statement of cash flows provides information about the changes
in cash and cash equivalents of a cooperative for a reporting period, showing separately
changes from operating activities, investing activities and financing activities.
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Section 2. Cash equivalents
Cash equivalents are short-term, highly liquid investments held to meet short-term cash
commitments rather than for investment or other purposes. Therefore, an investment
normally qualifies as a cash equivalent only when it has a short maturity of, say, three
months or less from the date of acquisition.
Section 3. Information to be presented in the statement of cash flows
A cooperative shall present a statement of cash flows that presents movements in cash
and cash equivalent for a reporting period classified into operating activities, investing
activities and financing activities.
3.1 Operating activities
Operating activities are the principal revenue-producing activities of the cooperative.
Therefore, cash flows from operating activities generally result from the transactions
and other events and conditions that enter into the determination of profit or loss
(surplus or loss) . Examples of cash flows from operating activities are:
(a) cash receipts from: (1) sale of goods, (2) interest, penalties and other charges
on loans receivables, and (3) rendering of services
(b) cash receipts from royalties, fees, commissions and other revenue.
(c) cash payments to suppliers for goods and services.
(d) cash payments to and on behalf of employees.
(e) cash payments for income tax (if applicable)
(f) cash receipts and payments from investments, loans and other contracts held for
dealing or trading purposes, which are similar to inventory acquired specifically for
resale.
Some transactions, such as the sale of an item of property, plant and equipment,
may give rise to gain or loss that is included in profit or loss. However, the cash
flows relating to such transactions are cash flows from investing activities.
3.2. Investing activities
Investing activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents. Examples of cash flows arising from
investing activities are:
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(a) cash payments to acquire property, plant and equipment (including self-
constructed property, plant and equipment) , intangible assets and other long-term
assets.
(b) cash receipts from sales of property, plant and equipment, intangibles and other
long-term assets.
(c) cash payments to acquire equity or debt instruments of other cooperative and
interests in joint ventures (other than payments for those instruments classified as
cash equivalents or held for dealing or trading) .
(d) cash receipts from sales of equity or debt instruments of other cooperative and
interests in joint ventures (other than receipts for those instruments classified as
cash equivalents or held for dealing or trading) .
3.3 Financing activities
Financing activities are activities that result in changes in the size and composition
of the members’ equity and borrowings of a cooperative. Examples of cash flows
arising from financing activities are:
(a) cash proceeds from issuing shares
(b) cash payments to members to acquire or redeem the cooperative’s own shares.
(c) cash proceeds from loans, notes, mortgages and other short-term or long-term
borrowings.
(d) cash repayments of amounts borrowed.
(e) cash payments by a lessee for the reduction of the outstanding liability relating
to a finance lease.
(f) cash payment for interest on share capital and patronage refund.
(g) utilization of statutory fund.
Section 4. Reporting cash flows from operating activities

A cooperative shall present cash flows from operating activities using either:
(a) the indirect method, whereby profit or loss is adjusted for the effects of non-cash
transactions, any deferrals or accruals of past or future operating cash receipts or
payments, and items of income or expense associated with investing or financing cash
flows, or
Page 101 of 108

(b) the direct method, whereby major classes of gross cash receipts and gross cash
payments are disclosed.
4.1 Indirect method
Under the indirect method, the net cash flow from operating activities is determined by
adjusting profit or loss for the effects of:
(a) changes during the period in inventories and operating receivables and payables;
(b) non-cash items such as depreciation, provisions, accrued income (expenses) not yet
received (paid) in cash, and unrealized foreign currency gains and losses.
(c) all other items for which the cash effects relate to investing or financing.
4.2 Direct method
Under the direct method, net cash flow from operating activities is presented by disclosing
information about major classes of gross cash receipts and gross cash payments. Such
information may be obtained either:
(a) from the accounting records of the cooperative; or
(b) by adjusting sales, cost of sales and other items in the statement of comprehensive
income (or the income statement, if presented) for:
i.changes during the period in inventories and operating receivables and payables;
ii.other non-cash items; and
iii.other items for which the cash effects are investing or financing cash flows.
Section 5. Reporting cash flows from investing and financing activities

A cooperative shall present separately major classes of gross cash receipts and gross cash
payments arising from investing and financing activities.
Section 6. Foreign currency cash flows

A cooperative shall record cash flows arising from transactions in a foreign currency in the
cooperative’s functional currency by applying to the foreign currency amount the exchange
rate between the functional currency and the foreign currency at the date of the cash flow.
Unrealized gains and losses arising from changes in foreign currency exchange rates are
not cash flows. However, to reconcile cash and cash equivalents at the beginning and the
end of the period, the effect of exchange rate changes on cash and cash equivalents held
Page 102 of 108

or due in a foreign currency must be presented in the statement of cash flows. Therefore,
the cooperative shall re-measure cash and cash equivalents held during the reporting
period (such as amounts of foreign currency held and foreign currency bank accounts) at
period-end exchange rates. The cooperative shall present the resulting unrealized gain or
loss separately from cash flows from operating, investing and financing activities.
Section 7. Interest on Share Capital, Patronage Refund, and Deposit Liabilities

A cooperative shall also present separately cash flows from
a.interest on share capital,
b.patronage refund paid and received,
c.dividend received, and
d.other interest paid and received as part of operating activities.
Section 8. Income tax

If applicable, a cooperative shall present separately cash flows arising from income tax and
shall classify them as cash flows from operating activities.
Section 9. Non-cash transactions

A cooperative shall exclude from the statement of cash flows investing and financing
transactions that do not require the use of cash or cash equivalents. A cooperative shall
disclose such transactions elsewhere in the financial statements in a way that provides all
the relevant information about those investing and financing activities.
Many investing and financing activities do not have a direct impact on current cash flows
even though they affect the equity and asset structure of a cooperative. The exclusion of
non-cash transactions from the statement of cash flows is consistent with the objective of
a statement of cash flows because these items do not involve cash flows in the current
period. Examples of non-cash transactions are:
(a) the acquisition of assets either by assuming directly related liabilities or by means
of a finance lease.
(b) the conversion of debt to equity.
Page 103 of 108

Section 10. Components of cash and cash equivalents
A cooperative shall present the components of cash and cash equivalents and shall
present a reconciliation of the amounts presented in the statement of cash flows to the
equivalent items presented in the statement of financial condition. However, a cooperative
is not required to present this reconciliation if the amount of cash and cash equivalents
presented in the statement of cash flows is identical to the amount similarly described in
the statement of financial condition.
The composition of cash and cash equivalent accounts shall include cash on hand, cash
in banks, checks and other cash items, cash in cooperative federation/s, revolving fund,
change fund, and petty cash fund.
CHAPTER VIII
NOTES TO THE FINANCIAL STATEMENTS
Section 1. Scope
This Chapter sets out the principles underlying information that is to be presented in the
notes to the financial statements and how to present them. Notes contain information in
addition to that presented in the statement of financial condition, statement of operations,
statement of changes in equity, and statement of cash flows. Notes provide narrative
descriptions or disaggregation of items presented in those statements and information
about items that do not qualify for recognition in those statements. In addition to the
requirements of this section, nearly every other section of this framework requires
disclosures that are normally presented in the notes.
Section 2. Structure of the notes

The notes shall:
(a) present information about the basis of preparation of the financial statements
and the specific accounting policies used;
(b) disclose the information required by this framework that is not presented
elsewhere in the financial statements; and
Page 104 of 108

(c) provide information that is not presented elsewhere in the financial statements
but is relevant to an understanding of any of them.
A cooperative shall, as far as practicable, present the notes in a systematic manner.
A cooperative shall cross-reference each item in the financial statements to any
related information in the notes.
A cooperative normally presents the notes in the following order:
(a) a statement that the financial statements have been prepared in compliance with
the Philippine Financial Reporting Framework for Cooperatives;
(b) a summary of significant accounting policies applied;
(c) supporting information for items presented in the financial statements, in the
sequence in which each statement and each line item is presented; and
(d) any other disclosures.
Section 3. Disclosure of accounting policies

A cooperative shall disclose the following in the summary of significant accounting policies:
(a) the measurement basis (or bases) used in preparing the financial statements.
(b) the other accounting policies used that are relevant to an understanding of the financial
statements.
Section 4. Information about judgments

A cooperative shall disclose, in the summary of significant accounting policies or other
notes, the judgments, apart from those involving estimations that management has made
in the process of applying the cooperative’s accounting policies and that have the most
significant effect on the amounts recognized in the financial statements.
Section 5. Information about key sources of estimation uncertainty

A cooperative shall disclose in the notes, information about the key assumptions
concerning the future, and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year. In respect of those assets and liabilities,
the notes shall include details of:
Page 105 of 108

(a) their nature; and
(b) their carrying amount as at the end of the reporting period.
--------------------------------------
Required Activity.
▪ Be able to secure a cooperative’s financial report (FR) and familiarize yourself with
the different FRs and assess in relation to the Memorandum Circular presented in
the lesson. Be able to discuss in the scheduled synchronous online class session
for this purpose.
NOTE: Midterm & final examination will be administered in g-form in reference to the
university calendar.
Reference:
Cooperative Development Authority. 2016. MC 2015-06 | Philippine Financial Reporting

Framework for Cooperatives. MEMORANDUM CIRCULAR NO. 2015-06, Series of 2015
SUBJECT : PHILIPPINE FINANCIAL REPORTING FRAMEWORK FOR
COOPERATIVES, Manila, Philippines.
Page 106 of 108

REFERENCES
Asian Development Bank, Australian Aid. 2003. Tool Kit on Gender Equality Results and
Indicators, Published in 2013. Printed in the Philippines. ISBN 978-92-9254-337-2 (Print), 978-92-
9254-338-9 (PDF) Publication Stock No. TIM135772 Cataloging-In-Publication Data Asian
Development Bank. Tool kit on gender equality results and indicators. Mandaluyong City, Philippines:
Asian Development Bank, 2013
Azad, Nandini Dr. 2017. The Independent Commission for People’s Rights and Development
(ICPRD) New Delhi 3 Acknowledgement “Gender is more than a statistic”.
Cooperative Development Authority. 2016. MC 2015-06 | Philippine Financial Reporting

Framework for Cooperatives. MEMORANDUM CIRCULAR NO. 2015-06, Series of 2015
SUBJECT : PHILIPPINE FINANCIAL REPORTING FRAMEWORK FOR COOPERATIVES, Manila,
Philippines.
Chris B. Murphy. Updated March 31, 2020. A practical guide to social audit as a participatory tool
to strengthen democratic governance, transparency, and accountability. Reviewed by Gordon Scott.
Investopia. https://www.investopedia.com/terms/s/social-audit.asp. Retrieved
https://www.local2030.org/library/112/A-practical-guide-to-Social-Audit-as-a-Participatory-Tool-to-
Strengthen-Democratic-Governance,-Transparency,-and-Accountability.pdf
Fisic, Ivana, December 21, 2021, Why and how to create performance standards in an organization (plus
examples), https://clockify.me/blog/business/performance-standard, Retrieved March 10, 2022.
(Ivana Fisic is a time management researcher and writer. She has always been passionate about
writing, which is why she has finished her BA in Journalism, at the Faculty of Philosophy, Novi Sad.
Ivana is always exploring the new methods of how time management can help you organize your
workflow more effectively, as well as how you can increase your productivity).
Global Campaign for Education. Web Post. 2020 March 8. An equal world is an enabled
world’. Category: News, Press Release. https://campaignforeducation.org/en/2020/03/08/an-equal-
world-is-an-enabled-world/?gclid=Cj0KCQjwz7uRBhDRARIsAFqjullDH-
vcqi18cFtYlIp270XorbilRSissfXYCkulyHH84VFVcs9DfHkaAvVrEALw_wcB. Retrieved March 15,
2022.
International Labour Organization. 2015. Advancing gender equality: The co-operative way First
published 2015 Publications of the International Labour Office. ISBN 978-92-2-130017-5 (print) ISBN
978-92-2-130018-2 (web pdf) International Labour Office Enterprises Dept. ISBN 978-92-2-130017-5
(print) ISBN 978-92-2-130018-2 (web pdf) International Labour Office Enterprises Dept.
Khan, Prabbiot R. & Nikore Mitali. 2021. Data Driven Female Leadership is Key to Recovering
from COVID-19. Asian Development Bank 2022.
https://www.google.com/search?q=gender+equality+in+the+philippines. Retrieved March 15, 2022.
Limocon, Ma. Elena C. Vice Chairperson, International Co-operative Alliance’s Asia Pacific
Page 107 of 108

Women’s Committee; Member, Board of Trustees, Asian Women in Co-operative Development
Forum; Member, Board of Directors, National Confederation of Cooperatives (NATCCO) —presented
by Ms Emelina M. Santos, Group Head, Member Relations and Networking Group/SP-GE Committee
Member, NATCC2016 2nd National Summit on Gender and Development (GAD) in Co-ops Crown
Legacy Hotel, Baguio City 29-31 March 2016.
MC 2017-05 | Governance and Management Audit Report for Cooperativesovernance and

Management Audit Report for Cooperatives. 2017. MEMORANDUM CIRCULAR NO. 2017-05 Series
of 2017. Cooperative Development Authority. Manila. Philippines.
Memorandum Circular#2013s016: Social Audit for Cooperatives. Cooperative Development

Authority. Republic of the Philippines. RA 9520: Cooperative Code of 2008.
RA 9520: The Cooperative Code of the Philippines. 2008. Cooperative Development

Authority. Republic of the Philippines.
Saxena, G. N. Cooperative Leadership & Governance- An Indian Perspective G.N.SAXENA

DIRECTOR (Coop. Development) IFFCO, INDIA COOPERATIVE GOVERNANCE. COOPERATIVE
GOVERNANCE IS ABOUT STRIKING A FIN, Retrieved March 5, 2022.
Tardi, Carla. Updated September 20, 2021. Performance Management. Reviewed by David
Kindness. https://www.investopedia.com/terms/p/performance-management.asp.
What is good governance? CooperativesUK.

https://www.uk.coop/support-your-co-op/governance/what-good-governance.
Page 108 of 108

COOP 30136 Performance Management Social Audit For Coops

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COOP 30136

PERFORMANCE MANAGEMENT & SOCIAL

This instructional material (IM) provides the students insights and

This IM is intended for blended learning modality in this time of COVID 19

Course Code : COOP 30136

Course Credit : 6 Units

Institutional Learning Programs Outcomes Course Outcomes

▪ Ascertain what true research is and what

▪ Design ways to gather the research

▪ Present the research title before the

9. Sense of Nationalism and ▪ Support strategies for global co-operative

Week Topic Learning Outcomes Methodology Resources Assessment

Khan, Prabbiot R. &

Limocon, Ma. Elena C.

Week 18 Final Examination & Exit Assessment for the Semester

Class Standing 70%

For Online Classes:

For Face to Face Classes:

Prepared by: Noted by:

Revised as of March 15, 2022

Why and how to create performance standards in an organization (plus examples)

• the purpose of performance standards,

Before we explore the purpose of

Furthermore, performance standards foster communication between

When it comes to evaluations, managers use performance standards as a guideline.

1. Met – if an employee showed adequate performance,

Now, performance management includes three levels within the organization.

What are the three levels of performance?

Performance management can be focused on the entire organization or its

1. strategic performance management,

Strategic performance management

To accomplish these objectives, company management strives to answer these

Operational performance management

To reach these objectives, company management has to answer the following

• Is each department or project fulfilling its targets?

• How are individuals working?

When reviewing employee’s work, performance standards are your point of

What to consider when establishing performance standards?

1. Standards need to be motivational.

Standards need to be motivational

Having motivational performance standards will make workers more inspired to do

Standards should not be too easy nor too difficult to achieve

Let your employees know that you’re analyzing their performance

In case there’s a new employee, a supervisor has to inform an employee about

Establish a trial period

Including your employees in creating performance standards will boost trust

How do you create a performance standard?

Remember that measures you’re writing should be about a position, not an

Decide what tasks should be included in the standard

You shouldn’t incorporate every assignment into the performance measures.

By choosing the most significant ones, you’ll have a brief standard.

Choose parameters that make a performance successful

Think about the error rates

Performance standards always have to be clear and specific, so employees could

1. An employee proves a solid performance when…

What are the examples of performance standards?

Performance standards for teachers

-more in the succeeding pages-