DARMPC 25th General Assembly

1

Contents 3

18

4

Board of Directors Audit and Inventory Committee Election Committee Credit Committee Education Committee Mediation & Conciliation Committee Ethics & Grievance Committee General Manager’s Report Accountant’s Report

Vision & Mission

Values

5

Messages

10 Notice of Meeting

11

General Assembly Procedures

12

Minutes of the 24th General Assembly

15

Minutes of the Special General Assembly

DARMPC Annual Report

22

Independent Auditor’s Report

About the cover DARMPC holds its 25th General Assembly, a milestone in its mission of empowering DAR employees and their families by uplifting their quality of life.

37

Governance & Management Audit Report

40

DARMPC Operational Plan 2018

42

DARMPC Strategic Plan 2018-2022

45 DARMPC Officers & Staff

Design, layout and editing

RICKY PARAS SUNGA

52

List of DARMPC Members 2

Our Vision A leading and responsive cooperative focused on the needs and aspirations of the members.

Our Mission To help uplift the quality of life of the members.

3

Our Values D isciplined and dedicated disciples who are A ccountable advocates of honesty and integrity, R esponsible and result –driven stewards, and M odel of fairness and equity with P rofessionalism in the performance of our duties towards

patronizing the programs and projects of our cooperative in the spirit of sincere commitment

C entered on God

4

Message Republic of the Philippines

DEPARTMENT OF AGRARIAN REFORM Tunay na Pagbabago sa Repormang Agraryo

On its 25th General Assembly, let me congratulate the DAR MultiPurpose Cooperative (DAMPC) for this very impressive achievement! On this momentous occasion, I would like to thank your steadfast and faithful service to the Department of Agrarian Reform.

May your ever-growing organization serve as a shining example of solidarity, strength and unity for all of us in government service!

Secretary John K. Castriciones

5

Message Office of the President of the Philippines COOPERATIVE DEVELOPMENT AUTHORITY

Greetings to DAR MULTI-PURPOSE COOPERATIVE on the occasion of your 25th General Assembly.

The Cooperative Development Authority together with eleven offices have been put under the Office of the Cabinet Secretary and have exemplified to the highest degree an amazing pro-people leadership with a strong national mindset that gives adherence to empowering the poor and the marginalize sectors so they can be drawn into the mainstream of development process.

We at the CDA have been vigilant in our commitment to give voice to the cooperative sector and for the “wheel� of cooperative development to be put into motion. There are now some 26,000 cooperatives in the Philippines with some 14 million members coming from all walks of life who have good stories to tell, of how they have been liberated from the quagmire of poverty, be they farmers, fisherfolks, workers, persons with disabilities and even former combatants who have left armed struggle to now peacefully working for social justice and equity through cooperativism.

Cooperatives have been successful in drawing the marginalized sectors into the mainstream of development process, bonding together productive members of our citizenry who contribute significantly to our economy. We have realized that cooperativism has come of age, not only as a vehicle of development but as a tool of empowerment. It is the pathway to make people more productive, becoming revenue-makers for our government.

Today, there is a need for paradigm shift: from unsustainability to sustainability! Money should not be used to make money but to improve the quality of life of the people. In this context, the essence of cooperativism has become the answer because its DNA is that of being members-owned, value-based and sustainable.

That is why advancing cooperativism means working for social transformation based on justice, equity and sustainability. It is a kind of revolution that is peaceful, yet forceful, that relies on the collective strength of the people.

ORLANDO R. RAVANERA Chairman

6

Message Office of the Mayor

QUEZON CITY Republic of the Philippines I extend my felicitous greetings to the directors, officers and members of the DEPARTMENT OF AGRARIAN REFORM MULTIPURPOSE COOPERATIVE on the occasion of your 25th General Assembly.

Your theme “DARMPC@25: Biyayang Matatag at Tuluy-Tuloy na Pag-unlad� manifests your firm belief on the capability of the cooperative system to provide alternative sources of livelihood among members and reinforces your commitment to be of service to DAR employees and their families. I always advocate the cooperative system in the government sector, the DARMPc being a prime example, as it forms a vital mechanism for your empowerment to ensure that our public sector workers carry out their services to the best of their abilities.

Quezon City is well on the path to inclusive growth. We count on your invaluable support to fulfill our aspirations of putting our City in the world map as a dynamic and growing economic center, encouraging people to lead quality lives to immensely contribute to the welfare of Quezon City. With an organizational model based on collective responsibility and shared ownership, the DARMPCis a force to reckon with in promoting the rights and welfare of cooperative members toward a rising standard and quality of life.

I count on your unwavering support in our common pursuit for equitable growth among all sectors of society. Remain our steadfast parther as our City is now on a new era of good and responsible governance.

MABUHAY TAYONG LAHAT!

HERBERT M. BAUTISTA, MPA, MNSA Mayor

7

Message of the Chairperson DEPARTMENT OF AGRARIAN REFORM MULTI-PURPOSE COOPERATIVE

-

-

Thank you for coming. Let us celebrate our 25th General Assembly with cheers and long blissful life ahead. My heartfelt greetings to all. Mabuhay!

Today’s theme: “DARMPC@25: Biyayang Matatag at Tuluy-tuloy na Pag-unlad” is an enabling declaration suggesting elation and satisfaction to aspire everyone to continue supporting the DARMPC to achieve such state of blissful change and reform to sustain delivery of goods and services with greater efficiency and effectiveness towards achieving socio-economic stability, growth and development amidst challenges. As trustees, this Board is committed to good governance empowered by the principles of cooperativism, democratic control by members, and social responsibility. The Board will continue in its mission to help improve the quality of life of the members and committed to the vision as a leading and responsive cooperative focused on the needs and aspiration of the members. Truly, we cannot over-emphasize our achievements in 2017 but our policy initiatives have been translated in your ROI-pay-slip, which speaks for itself, proving success in unconditional unity and collective actions. It is by your trust and support that enabled and empowered this Board for the success we enjoyed today.

Let us therefore celebrate this 25th General Assembly by truly expressing our heartfelt gratitude to all DARMPC patrons, benefactors, and members. Let us acknowledge the fact that success has been brought about by the converging pillars of quality cooperation among those in the agrarian reform community: first, economic patronage and trust of the membership; second, the DAR management for its continuing support; and last but not least, the dedicated officers and management staff. Such active cooperation has truly spurred socio-economic activities of this Cooperative resulting in this blissful 25th year. It is our prayer that such mutual cooperation will continue so as to catapult the DARMPC further into achieving our strategic perspective goals under the DARMPC Strategic Development Plan (2018-2022), to wit: 1) members’ impact; 2) financial profitability, stability and liquidity; 3) improve internal business processes, manualization, products and service delivery; and 4) organizational capacity. Again, our thanks and gratitude to the members, DAR Management, and management staff. Cheers!

In closing, we cannot do, plan, act and blessing of success cannot come our way without the grace and mercy of God. Success comes always with God in our midst. Therefore, we always dedicate our success for His Greater Glory!

Godbless!

FRANCIS B GADRINAB Chairperson, Board of Directors 8

Message of the Vice-Chairperson DEPARTMENT OF AGRARIAN REFORM MULTI-PURPOSE COOPERATIVE

-

-

I would like to extend my heartfelt greetings and congratulations to the men and women officers, management staff, and members of the DAR Multi-Purpose Cooperative on its 25th General Assembly.

As we celebrate our 25th year with the theme “DARMPC: Biyayang Matatag at Tuluy-Tuloy na Pagunlad,” let us continue to actively exercise our right for meaningful participation in the DARMPC activities and processes, in the true spirit of cooperativism, and collectively work for the continued growth and development of the DARMPC, our Cooperative!

Engaging the members in the DARMPC affairs will continue to be a banner program of the DARMPC in its newly-defined strategic direction for 2018-2022. Hence, the Education and Training Committee (EdCom) remains steadfast in its recognition of the pivotal role of human resource development in capacitating the key leaders, management staff and the members. This is to ensure optimum operational performance and service delivery excellence which will ultimately contribute to members’ and customer satisfaction. With this development thrust, I enjoin everyone to take part and take advantage of this year’s lined-up learning sessions and events for personal as well as institutional development.

Maraming salamat po at Mabuhay ang DARMPC!

DELIA BALDOVINO-GABALES Vice-Chairperson, Board of Directors and Chairperson, Education and Training Committee

9

Notice of Meeting FOR FROM SUBJECT DATE

: : : :

The General Assembly The Board Secretary 25th General Assembly & Election of New Officers March 27, 2018

The 25th General Assembly of the DAR Multi-Purpose Cooperative will be on 27 March 2018 (Tuesday) from 8:00 A.M. to 12 N.N. at DAR HRD Center. This will be followed by the Election of Officers at 1:00-4:00 P.M. to be held at the Basement, DAR Main Building, Diliman, Quezon City.

Order of Business I. Registration II. Opening Program

8:00—9:00 AM 9:00—9:30 AM



Invocation: DARMPC Prayer



The National Anthem



Cooperative Pledge



Welcome Remarks

 Inspirational Message III. General Assembly Proper A. B. C. D. E. F. G.

9:30—12:00 AM

Call to Order Proof of Due Notice Roll Call and Declaration of Quorum Reading of the Minutes of the 24th GA Approval of the Minutes Matters Arising from the Minutes Chairperson’s Report

IV. Election and Canvassing

H. I. J. K. L. M. N. O.

Financial Report Committee Reports Audit and Inventory Committee Election Committee Presentation of the DARMPC Strategic Plan 2018-2022 Presentation of Annual Operational Plan FY 2018 Presentation of Candidates Adjournment 1:00—4:00 PM

Delia Baldovino, Alma Pamittan & Ines B. Codia

Emcees

10

General Assembly Procedures speak. He/she will be allowed to speak for the second time only after other member/s who have been recognized by the Chairperson have been given their chance/s to speak.

Who are the facilitators?

The Chairperson is the Main Facilitator of the General Assembly, to be assisted by the Vice-Chairperson and Members of the Board of Directors.

Who can attend the GA?*



Silence and active listening shall be observed when a member has been recognized by the Main Facilitator and has the floor. Once given the floor, no member shall be allowed to stop the said member to speak.



Two violations of these rules by any member shall result in a prompt disciplinary action meted out by the Main Facilitator.

Only members in Good Standing can attend the General Assembly. a.

Who is deemed a Member in Good Standing (MIGS)?



b.

Regular or Associate Member who is NOT DELINQUENT in payments of his or her CAPITAL CONTRIBUTION AND ACCOUNTS AND OTHER OBLIGATIONS (DARMPC By-Laws: Secs4 and 5, Article II and Sec 13 Art. III);

Which member could vote and be voted upon?





Regular Members ONLY who are not delinquent in payments of his or her Capital shares and ACCOUNTS and OTHER OBLIGATIONS (The ByLaws: Secs 4 and 5, Art II in conjunction with Secs. 13 and 24, Article III) Regular Members without DISQUALIFICATION nor having violated ANY PROVISION OF THIS BY-LAWS, RULES AND REGULATIONS, CIRCULARS/MEMORANDA, AND OTHER ISSUANCES OF THE AUTHORITY (The By-Laws, Arts. II and III on membership and Governance, respectively)

Quorum: MIGs Entitled to Vote or at least 25% of the TOTAL NUMBER OF MEMBERS ENTITLED TO VOTE (By-Laws: Sec. 20 Art III in relation to Sections 4 and 5 of Art II and Sections. 13 and 24 Art. III) Right to Speak : General Rule: All members have the right to speak.

House Rules:



A member should be recognized/acknowledged by the Main Facilitator before he/she is allowed to speak.



Once recognized, a member will be given a maximum of two minutes to

Motion Only MIGS can submit a motion for consideration. Seconded motions without dissension shall be deemed passed/approved by the GA. Un-seconded motions shall be deemed not approved.

Vote A qualified member can vote only once (Section 21, Art III). “Proxy” or absentee voting is prohibited. (Sec 21, Art. III). Voting is done by secret balloting (Sec 21, Art III). Except for the amendments of By-Laws which shall require Two-Third (2/3) votes, all decisions may be passed by a simple majority. (Art 18, RA 9520). All election protests shall be decided by the Board upon endorsement by the ELECOM. (By-Laws: Sec.29, Art. III) Closing of Discussion

a.

Discussion on the Annual report by the Board and Committees, setting out Policy thrusts, business directions or proposals or motions may be closed by any member by virtue of a motion to vote.

b.

The Main Facilitator shall declare the said motion to a vote after the proponent/s or dissenters have spoken.

Guests and Observers Invited guests and observes shall be allowed during the GA upon approval by the Main Facilitator. They shall be given due recognition or acknowledgment.

* Waived for Item a on membership, pending the strengthening of the DARMPC database on members.

11

General Assembly Minutes Highlights of the Minutes of the 24th General Assembly 30 March 2017, 8:00 A.M. – 4:00 P.M. DAR-HRD Center/DAR Basement (Voting Area)

OPENING PROGRAM The 24th DARMPC General Assembly (GA) started at 9:00 AM. DARMPC Vice-Chairperson Delia B. Gabales welcomed the members. Ms. Alma Pamittan, Education Committee member, led the Invocation, Cooperative Prayer and the Cooperative Pledge, while Ms. Nenita dela Cruz led the singing of the National Anthem.

The Chairman of the DARMPC BOD, Engr. Francis B. Gadrinab delivered the Welcome Remarks. He welcomed the members to the 24th GA and expressed heartfelt thanks to the members for their support of the DARMPC activities and endeavors. He emphasized that the GA is the main venue where members can share their views/opinions to all the members, officers and the management of the Cooperative.

Inspirational Message Chairman Orlando R. Ravanera of the Cooperative Development authority (CDA), Undersecretary Marcos D. Risonar, Jr of DAR-Field Operations Office (FOO), and Undersecretary Rosalina Bistoyong of DAR-Support Services Office (SS0) delivered inspirational messages.

Chairman Ravanera shared that in 2015 the cooperatives celebrated the “Isandaang Taong Pagpupugay, Tulay sa Maunlad na Buhay”. He said that the Philippines now has twenty five (25) different types of cooperatives and a total of 26,576 registered cooperatives. He narrated that they are using cooperativism to serve those who may have deviated from the normal way of life, that is, victims of drug addiction and how it could bring peace in Mindanao. He said that the CDA has a partnership with DAR to make life better for agrarian reform beneficiaries (ARBs) and with the Department of Agriculture (DA) in advancing cooperativism for farmers. He noted the importance of support services to ARBs as this will ensure that they retain the awarded lands. With that he said that it is divine guidance that led to the partnership of CDA and DAR so that others would learn of how cooperatives led to the success of ARBs. Undersecretary Risonar said that he was able to go around the country and found how ARBs and their cooperatives are faring. He noted an exemplary cooperative that is managing a rubber plantation. He added that the cooperative was in the brink of dissolution due to inactivity and mismanagement but was revived because most of the leaders who succeeded the previous management are women. He noted that women are better at managing than men, hence he believed this was the reason why the said cooperative became successful. Furthermore, he congratulated DARMPC for being managed well. He stated that the essence of cooperativism is that each member will contribute to strengthen the group. Confederating ARB cooperatives will lead to a potential force that can influence government policy.

Undersecretary Bistoyong shared the stories of three (3) women from different cooperatives who are empowered not only as leaders but also as wives and mothers. She stated that she is a prime believer of the cooperative movement, evidence of which is her decision to deposit her money in a cooperative bank rather than in a commercial one. She then challenged the board members and the ones to be elected to expand the activities of DARMPC, diversify its services to the members, and strengthen its linkages with agrarian reform cooperatives and DAR employees’ cooperatives in various field offices. She said that although the DARMPC has done well as regards its asset building, it still needs to grow further. She also encouraged the members and officers of DARMPC to make the cooperative stronger and more prosperous in the coming years. In conclusion, she said that she will be supportive of the cooperative as she is a member and will deposit her savings to increase the cooperative’s assets.

GENERAL ASSEMBLY PROPER Proof of Due Notice

As proof of notice, all members were duly notified on the holding of the 24 th GA. This was through the posting of streamers at the DAR main gate and outside the canteen building as well as announcement on DARMPC Facebook page several weeks before the meeting.

Declaration of Quorum At exactly 10 a.m., a total of 274 regular members registered to participate in the GA, which is equivalent to 65% of the 418 total numbers of regular members. Accordingly, the presence of a quorum was established.

Call to Order The GA was called to order by the BOD Chairperson Gadrinab at 10:25 AM. Reading/Approval of the Minutes of the 23 rd General Assembly Meeting Held on 31 March 2016 and the Special General Assembly Held on 27 May 2016 Prior to the reading of the highlight of the minutes of the 23rd GA and Special GA, the Board Secretary reminded the body that the details of both minutes are to be found in the 23rd GA Annual Report. BOD Wilfredo S. Selva moved for the adoption of the 23rd minutes of the GA and SGA, the motion of which was seconded by Education and Training Committee (EDCOM) member Alma P. Pamittan.

Comments/Suggestions

Ms. Althea Oliveros proposed that discussion of issues and concerns should be in a matrix and in bullet-point style, where there is a column that will show whether such issues and concerns were addressed. She suggested that the FS should be given to members two (2) weeks before the GA so that the members will be able to give sound/constructive suggestions during the GA. She also suggest to disseminate the GA Minutes weeks prior to the GA so that the members will be able to determine whether the candidates who are running for the election are qualified to address the DARMPC’s leadership needs. Related to this, Ms. Nenita dela Cruz suggested

12

that the members should be given an advance copy of the contents of the GA magazine.

for breach of contract.

Vice-Chairperson Gabales explained that the reason for not being able to provide a copy of the magazine earlier to the members two (2) weeks before the GA is because of the short interval between the dates of the GA with that of the submission of duly audited financial statement (FS) of the external auditor. BOD member Rhodelmelh D. Lagayan added that the cooperative has a new accountant and there are several matters that have to be fixed with the system, noting that the database and financial records needs to be cleaned up.

Ms. Gabalfin also asked Ms. Alferez to explain the meaning of the financial ratios, and what service is appropriate for the members since the lending services has a higher income than that of the canteen services. Ms. Alferez explained that there are reasons why there are services that don not generate much income. She said that in lending, income could only be recognized when the borrower pays the loans, while on canteen operations, income is relatively low due to the high cost of supplies. She added that to maximize income and minimize expenses, close monitoring should be done. Ms. Alferez then explained the meaning and implication of financial ratios on the operation of DARMPC, to wit:

Vice-Chairperson Gabales related that as early as December 2016, they had already drafted the manuscript of the magazine Vice-Chairperson Gabales added that the minutes of the meeting have been duly approved and seconded, and that the suggestions of Ms. Oliveros will be noted.

Chairperson Gadrinab clarified that the audited financial report had been completed two (2) weeks prior to the GA and that it was posted in the bulletin board.

Chairperson’s Report Chairman Gadrinab began his report on DARMPC efforts to expand its services, link with ARBOs, provide capacity development for members and officers, members’ benefits, and lessening the dividend received because of the audit observation memorandum (AOM) issued by the Commission on Audit (COA) regarding the use of DAR’s facilities. He also discussed the report made by former accountant Ms. Arlene Moran. Chairperson Gadrinab informed the body that operationally the cooperative is viable and that the officers are doing their best to fine tune the internal business processes of the cooperative. He then assured the members that the cooperative was ran smoothly by the current set of officers and that he hopes that the members will select officers who really care for the cooperative. Related to this, he reminded the assembly to make intelligent choices in voting for candidates who will help the cooperative grow and become stronger.

General Manager’s Report General Manager (GM) Panes presented the activities that were undertaken by the DARMPC management through coordination with the Board and Officers. She also presented the comparative income statement on lending and canteen services for the period CY 2012-2016. She stated that for the period CY 2015-2016, there was an increased in the revenues of 1.04% and 1.54% for the lending and canteen services, respectively. Details of the said report are to be found in the GA magazine.

Accountant’s Report Accountant Ester V. Alferez presented the financial report for CY 2016. She noted the gross surplus on sales from canteen operation in 2016 as PHP 3.731 million and the total expenses at PHP 2.146 million. Thus, DARMPC obtained a surplus of P1.584 million which was 18 percent (18%) higher than the PHP 1.335 million surplus in 2015. On the lending operation, the total income for 2016 was PHP 2.921 million compared with PHP 2.691 in CY 2015. The total overall revenue in 2016 was PHP 4,804 million less the expenses at PHP 3.984 million, thus, a surplus of PHP 0.856 million because part of the income was already given as members’ benefits.

Ms. Adeliza Gabalfin asked why the cooperative is still investing in a business even though it is not generating any income. Accountant Alferez explained that with GPRS, the DARMPC is merely finishing the contract with the said company to avoid any legal actions

 Liquidity – DARMPC has enough assets to pay all debts as far as current liabilities are concerned.

 Current ratio – DARMPC has considerable assets that can be sold. Convertible to cash.  Profitability – Ratio of net surplus not yet allocated over the gross margin  ROI – on how the coop can improve, she said that the management and the officers are now closely monitoring the operations.

Ms. Gabalfin asked why the cooperative was having problems when it comes to profitability when the report shows that DARMPC has a 558% quick asset ratio which means that the cooperative has a lot of money that are not used for investment. Ms. Alferez explained that the management is studying/considering ways on how to utilize the money in a secured manner. In addition, Vice-Chairperson Gabales informed the body that out of the 7 new business plans in the strategic plans, three (3) were done last year, i.e., vegetable store, GPRS and ICT products.

On general qualifications for an elected position Ms. Victoria de Paz said that a training related to cooperative is required and that the qualification is restricted since only a few members have trainings on cooperative. She noted that the qualification requirement for candidates who will run for office is attached to the application form. She added that previously the only requirement to run for office is to be a member of the cooperative.

Vice-Chairperson Gabales said that it is not a requirement for new officers but she/he is required to undergo the mandatory training on the first half of her/his term. ELECOM Chair Froilan Malonzo explained that the qualification requirement should have been based on the approved election guidelines. However, the guidelines were not tabled during the special GA. Chairperson Gadrinab explained that the CY 2016 proposed election guidelines was not tabled by the Board on the GA because there are provisions on the said guidelines that are contrary to the by-laws. Once the by-laws are amended, that is the time that the qualification requirement shall be imposed.

Ms. Catalina T. Austria proposed that the suggestions/recommendations raised regarding the ELECOM should be considered and studied and then included in the agenda of the next assembly. She noted that highlights in the GA should be decided upon within the two (2) months since it is the clamor of the membership. The board noted Ms. Austria’s suggestion.

On former Accountant’s Report Ms. de Paz said that the former DARMPC accountant had manifested her plan to resign from

13

May to August 2016. The officers however relied only on what the accountant said and did not require her to provide a report or require her to turnover the records and ask her to explain the money that she had been reporting for four months before giving her last salary. She asked what the officers did in those four months.

Vice-Chairperson Gabales said that the BOD will call for a special GA to explain/present the details.

The Chairperson said that the Board pushed for the conduct of an external audit when the accountant could not produce the report that the Board was demanding. Two (2) external audits were therefore conducted in 2016 and the result is that the records or documents do not support the former accountant’s claim that there is such an amount of money earned.

Of the 484 voters, 265 or 54.7 percent exercised their right to vote from 1:30 to 4:00 P.M. at the DAR Basement Lobby. Listed below is the result of the election.

Distribution of Net Surplus

Ms. Purita R. Reynacido inquired if the manner of distribution of net surplus between dividend and patronage refund is reflected in the by-laws. She also asked the percentage of dividend and patronage refund. (Manner/ratio of dividend and patronage refund that was distributed form net surplus.)

The Chairperson replied that all mandatories in the by-laws are being followed. Accountant Alferez answered that it can be seen on the report that GM Panes will present and it could also be found in the magazine.

Presentation of Candidates

Board of Directors Pamittan, Alma P. Gadrinab, Francis B. Lagayan, Rhodelmelh D. Oligario, Joselito V. Bilog, Ma. Rowena B. Cordero, Adela C. Alvarez, Philip D. Election Committee Manzano, Elvie Z. Evangelista, Roberto B.

Audit and Inventory Committee Vasquez, Rowena M. 172 Amadar, Jimmy A. 156 Valdez, Onofre V. 142 Codia, Ines L. 127

147 142 111 107 69 59 42 232 177

Schedule of GA Ms. Oliveros said that the annual report should be in accordance with the accomplishment of the sitting officers because it would be unfair to make the sitting officers responsible for the mistakes of the past officers. With that she made a motion to hold the GA in April instead of March.

Chairperson Gadrinab replied that according to the by-laws or RA 9520, the GA should be conducted within 90 days from the end of the Fiscal Year. It was stated that if ever it is allowed the assembly should be moved in January and not March so that it covers the whole Fiscal Year.

Adjournment The 24th General Assembly was adjourned at 12:49 P.M. and the election of new officers at 4:00 P.M.

Certified true and correct

Attested by:

Presentation of Annual Operation Plan for FY 2017 GM Panes presented the proposed Operational Plan (OPLAN) for FY 2017. She informed the assembly that the details of the said OPLAN could be found in the GA magazine and that the budget approved by the board was conservative. Vice-Chairperson Gabales added that the budget decrease by six percent (6%) as DARMPC has affiliated with National Confederation of Cooperatives (NATCCO), thereby minimizing the cost of trainings as NATCCO offers discounted rates for cooperative members.

(Sgd.) Ma. Rowena G. Salinda Board Secretary

(Sgd.) Francis B. Gadrinab Chairperson, Board of Directors

Ms. Preciosa C. Osit made a query on the income projection based on the budget proposed.

Chairperson Gadrinab replied that the projection by the end of the year is three times (3x) the net surplus for CY 2016. Ms. Osit then asked where the members could find the documents so that they can be appraised of the target income. Chairperson Gadrinab noted that that there is a projected income of P6.00 million under the sustainability objective in the OPLAN. He explained that the average loan collection every month is P1.00 million and that this is the same amount needed to cover the loans every month. Hence, the projection is based on historical data and performance of DARMPC for the last strategic year.

There being no other comments, the OPLAN FY 2017 was moved and seconded for approval, subject to further study and the presentation of projections by DARMPC the management to ensure the achievement of the target income by the end of the year.

14

Special General Assembly Minutes Highlights of the Minutes of the Special General Assembly 22 December 2017.

DAR-HRD Center I. REGISTRATION Registration of members started at 8:00 a.m. followed by the opening program at 9:10 a.m.

II. OPENING PROGRAM Preliminaries The program started with the Cooperative Prayer followed by the Philippine National Anthem.

Confirmation of a Quorum At exactly 9:10 a.m., 62 out of 91 DARMPC members-in-good standing (MIGS) have registered at the assembly. They comprised 2/3 of the total MIGS and account for more than the needed 25% quorum for holding the SGA. Call to Order The Chairperson of the DARMPC Board of Directors (BOD), Engr. Francis B. Gadrinab called the meeting to order at 9:15 a.m.

III.

GENERAL ASSEMBLY PROPER Welcome Remarks Chairperson Francis B. Gadrinab gave thanks to the members for their continuous support to DARMPC. He emphasized that the main reason for the special assembly is the presentation of the proposed amendments in the DARMPC By-laws.

Presentation and Ratification of the Proposed Amendments in the DARMPC By-Laws

Chairperson Gadrinab presented the proposed amendments in the by-laws, for discussion and ratification by the assembly.

Provision Section 2.a Regular Members

Discussion

 Ms. Ma. Victoria de Paz suggested changing the term “Region” to “Regional.” She also asked if there will be problems on loan collection from members coming from the DAR regional, provincial and municipal office and what method should be done to avoid any loan collection problems in the future.



Decision Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Chairperson Gadrinab replied that the main objective of the said provision is for the expansion/growth of the cooperative. BOD member Rhodelmelh D. Lagayan added that all members will be subjected to DARMPC guidelines and that there will be Memorandum of Agreement (MOA) with DAR field offices to safeguard the cooperative’s fund.

Section 2.b Associate Members Section 3.c (Deleted)

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Section 5.e Definition of MIGS

Unanimously adopted/approved by the assembly.

Section 5.f Benefits and Privileges of MIGS Section 6 (Liability of Members)

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Section 14-a Delegation of Powers Section 21 Manner of Voting

15

Provision Section 22 Composition and Term of the Board of Directors (BOD)

Discussion



Ms. Myrah Ester M. Catibayan proposed to put a limit of twelve (12) to fifteen (15) years. If it is effective then it can be amended to unlimited terms. BOD member Rhodelmelh D. Lagayan replied that Sec. 22 was anchored on the provision of RA 9520. BOD member Abdon Owens B. Cabatu added that there is a mechanism that will check on the unlimited terms through impeachment and that there is already an Implementing Rules and Regulations (IRR) in impeachment proceedings.

Section 23 Powers of the BOD Section 24.f Qualification and Disqualification of BOD - Deleted



Mr. Jaime D. Mata suggested checking the banking regulations on loan application.

Section 29 (Election Committee) Section 30 (Audit Committee)

Section 31 (Credit and Collection Committee)

Section 33. (Education and Training Committee)

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.



Ms. Purita R. Reynacido suggested making it to three (3) working days. It was agreed upon that it is understood that even without the word working or calendar days, the presumption is “working days.”

Section 27.4 (Meetings of the BOD and Quorum Requirement) Section 28.a (Meetings of the Board of Directors and Quorum Requirement) - New

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Section 25.Election of BOD Section 26. BOD Directors Meeting and Election of Officers

Decision

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.



Mr. Godofredo S. Habon suggested changing it to one (1) month. BOD member Cabatu replied that three (3) months is reasonable in case the person is only recuperating from illness.



Mr. Raul M. Leonin asked for clarification if there’s a quorum or if the number of members present is enough to approve the proposed amendments, to which the reply was “yes, there is a quorum”. Mr. Mata also asked if it is allowed to discuss the proposed amendments of by-laws on special general assembly under the prevailing law on cooperative. Chairperson Gadrinab replied that under the by-laws it is allowed as long as you have a quorum.



Mr. Philip D. Alvarez made a query as to the basis that a member of the board is on a three (3) month leave of absence since there is no attendance at the cooperative. Chairperson Gadrinab replied that there is an attendance at regular monthly meetings and this is intended for Board members who will file a leave of absence for three (3) months or more where the Board will appoint an acting Board member. Vice-Chairperson Delia B. Gabales added that this will cover study leave outside of Manila or out of the country.



Mr. Alvarez proposed to specify that those who will run for Audit Committee should be accounting graduates so that they can do their job well instead of just acting as money “counters.”



Chairperson Gadrinab replied that part of the role of the Audit Committee is to act as money counter to verify that the amount given to the cashier is correct.



Vice-Chairperson Gabales clarified that with elected position, such as Audit Committee, there is no qualification under cooperative code because the committee does not only do financial audit but also social and institutional. The only requirement is for them to undergo mandatory trainings to be able to run for Audit Committee.



For those who will run under that position for the first time, they are given six (6) months to comply with the mandatory trainings, otherwise they will not be allowed to run in the next election.



Mr. Alvarez requested then that the mandatory trainings be offered to all members who are interested to run in the next election.

This was duly noted by Vice-Chairperson Gabales. Chairperson Gadrinab reminded the assembly that the proposed provision is only about the Audit Committee’s term of office.



Mr. Alvarez noted that abolishing the CreCom would be against the Cooperative Code and mainstreaming it under management would mean hiring additional staff which is another expense from the cooperative.



BOD member Lagayan stated that the CreCom is already abolished under RA 9520 and that means there will be savings from the abolished committee with three (3) members. Vice-Chairperson Gabales added that it is time to professionalize the services to ensure increase on profits and to be able to run the cooperative well. However, if the time comes that the cooperative needs to hire additional staff to be able to operate well then why not.



Chairperson Gadrinab made clear that only the functions stated on the said provision will be transferred to the management staff.

He explained that the primary concern is to be able to collect the collectibles in the past several years amounting to P5.00 million.

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

Adopted/approved by more than two‑thirds vote of the members of the general assembly.

16

Provision Section 33.a (Mediation and Conciliation Committee) Section 33.b (Ethics Committee) Section 35. (Removal of Board of Directors and Elected Committee Members) Section 37. (Officers and Their Duties, Obligations, and Responsibilities) Vice-Chairperson Board Secretary General Manager’s (GM) Qualifications (Duties of the GM)

Discussion

Decision Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

 Mr. Mata made a query on No. 4 OF Section 37 whether the plans of other committees will also fall under the duties

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

and responsibilities of the GM and which of these plans shall be implemented by the GM.

 Vice-Chairperson Gabales also suggested to insert “i.e., operations plan, annual operations plan” since GM’s function is to develop and implement what has been approved by the Board and the GA.

 Ms. De Paz proposed to note all the suggestions/comments and consolidate it. Chairperson Gadrinab explained that  

the plans of a committee cannot be executed solely by the committee but it goes hand in hand with the management, thus, it was suggested to leave the proposed provision as is.

Mr. Leonin concurred with the Chairperson that there is no need to amend No. 4 since the role of the GM is not limited to operational matters otherwise the GM’s authorities on other matters will be restricted. He added that the GM is still under the watch of the Board.

Chairperson Gadrinab made a motion for division of the assembly whether to modify paragraph No. 4 . There are 28 votes to have it “as is” and 10 votes to have it amended. Hence, Paragraph No. stays as it is.

Accountant’s Qualifications Duties of the Accountant Section 39.a (Compensation) – New Provision Section 70 (Transitory Provision) – New Provision

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Unanimously adopted/approved by the assembly.

Credit Committee Election Committee and Audit and Inventory Committee

Unanimously adopted/approved by the assembly.

UPDATES ON CY 2017 OPERATIONAL PLAN Ms. Josephine Panes, DARMPC General Manager, presented the revised version of the Operational Plan (OPLAN) for CY 2017. She stated that there was a decrease in the whole amount of the budget from P12.7 million to P11.1 million and the income target of P6 million was also lowered to P3.0 million. She also informed the assembly that the water sub-meter has already been installed on November 2017 and that DARMPC had already paid the November bill in the amount of P3,000. The installation of electric sub-meter is still in process.

UPDATES ON COMMISSION ON AUDIT–NOTICE OF CHARGE (COA-NC) Chairperson Gadrinab informed the assembly that the DARMPC was directed to settle the amount of PHP 826,486.78 to DAR in compliance with the order of the COA-NC. He added that the DARMPC was also given six (6) months to appeal at the COA Main Office. He said that the officers had already coordinated with the Office of the Undersecretary for FMAO and Office of the Director for Administrative Service on the said matter and were advised to make an appeal on the payment of PHP 450,000.00 until March 2018. In order to show the cooperative’s commitment to pay, the DARMPC submitted the approved Resolution for the immediate payment of PHP 100,000.00 as an initial payment and the payment schedule for the PHP 450,000.00 for two (2) years including plan of actions for the installation of water and electric sub-meters. He also said that the DARMPC is still waiting for feedback from DAR on the payment schedule and that there is still no firm decision from the resident COA if we have to pay for the space/building rental, He added that the COA advised the coop that there should have a written conformity from DAR on the payment schedule. Chairperson Gadrinab shared to the assembly that DAR Secretary Atty. John R. Castriciones expressed his support and said that he will review it once all the documents have been submitted. He added that the Secretary’s reaction on the proposed federation of all DAR employees cooperative from field offices was positive, He also announced that the raffle draw was moved to 14 February 2018 and is encouraging all members to support the project by buying raffle tickets. On that note, Chairperson Gadrinab gave his thanks to the members for being part of the Special GA. Adjournment The Special General Assembly was adjourned at 12:05 P.M..

Certified true and correct

Attested by:

(Sgd.) Ma. Rowena G. Salinda Board Secretary

(Sgd.) Francis B. Gadrinab Chairperson, Board of Direc

17

DARMPC Annual Report BOARD OF DIRECTORS

formulated DARMPC: Strategic Development Plan (2018-2022) with strategic themes on operational excellence, members engagement and human capital development.

These accomplishments chronicle the Balanced-Scorecard Operations Plan for 2017 based on the DARMPC’s mission and vision, and structural conception and functional mandates of the Board according to its By-laws, which delved on policy formulation preceded by policy review, coordination, monitoring and evaluation as overseer of the affairs of the Cooperative. These accomplishments are purpose-drive measures addressing specific issues and concerns, to wit:

AUDIT INVENTORY COMMITTEE



Financial Stability and Growth: passed 13 Resolutions particularly on loan facility, business investments, credit information, renewal, raffle, external loan, loan co-makers, among others.



Good Governance: passed 12 Resolutions pertaining to registry custodianship, shares, amendment of the by-laws, credit and audit reports, unpaid membership subscription, re-entry, loan availment, MIGS, mediation manual, among others.



Organizational Capacity: passed 12 Resolutions to include appointments of officers and personnel, workdays, support system, regular and joint meetings with the Committees, annual and special GA, among others.







Members’ Benefits: passed eight (8) Resolutions involving the policies and procedures that governed allocation and distribution of benefits to members, MBA and Damayan, loan protection, etc.

Regulatory Compliance: passed four (4) Resolutions that facilitated compliance to government agency regulations and city regulations, remittance, and participation in legislative action against repeal on coop’s tax exemptions.

Internal Business Process: passed three (30 Resolutions for the improvement of lending, catering and canteen services including enhancement risk protection.

Of the total 82 policy initiatives, 52 or 63% have been approved by the Board, 18 or 22% completed involving capacity buildup, social responsibility, implementation of Wage Order, amendments of the By-laws presented and ratified at the Special GA, part compliance with the COA-NOC obligations, and strategic and operations planning, among others. However, some 12 or 15% policy-related initiatives are considered as unfinished business, which include matters related to Gender and Development (GAD), business ventures, retirement plan and investment of personnel, resiliency fund formation, and federation of DAR-employees cooperatives.

The success in 2017 fits well with today’s Annual General Assembly theme, that is, “Biyayang Matatag at Tuluy-tuloy na Pag-unlad” whose membership is now ready to leap forward into its strategic mission and vision to help uplift the quality of life of members by leading and becoming a responsive cooperative focused on the needs and aspirations of the members. With the evident maturity of the DARMPC@25, the Board is expected to accomplish more under the

The Audit and Inventory Committee is responsible for monitoring the adequacy and effectiveness of the cooperative's management and control system, as well as auditing the performance of the cooperative. It also continuously and periodically reviews the books of account and other financial records to ensure that these are in accordance with the cooperative principles and generally accepted accounting procedures.

For this reporting period, the committee has conducted actual inspection of goods/items delivered as to quantity and specifications as well as monitored the daily sales from canteen operations and lending services (regular and on-the-spot cash count). It has also audited the process of purchase and replenishment of kitchen utensils and office supplies and inventoried canteen and office equipment.

As to the DARMPC’s compliance with CDA requirements for CY 2017, the Committee was instrumental in the preparation of the following forms: Cooperative Performance Report; Social Audit of Cooperative; and Cooperative Annual Progress Report (CAPR) in coordination with the General Manager.

In addition, Committee members have participated in the deliberation of the proposed amendment of By-Laws.

ELECTION COMMITTEE The Election Committee is in charge of, among others, formulating and implementing election rules and guidelines and recommending this to the General/Representative Assembly for approval. It also supervises the election of the cooperative, including canvassing and certifying the results of the election;, and proclaiming the winning candidates.

For the second year in a row, the annual election of the DARMPC was successfully conducted, engaging the services of the Cooperative Insurance Services of the Philippines (CISP) using its electronic election application tailor-fitted for cooperative elections.

On the afternoon of 30 March 2017 , following the Annual GA, a total of 265 voters or 54.7% (inclusive of 38 advanced voters), out of 484 voters, casted their ballots/votes without any issues. The Election Chairperson, Mr. Froilan Malonzo, supervised the conduct of the election at the DAR Basement Lobby. He was assisted by Ms. Arlene Cando and Mr. Godofredo Habon (as interim members of the ELECOM), three (3) IT Personnel from CISP, and one (1) support staff.

18

CREDIT COMMITTEE The Credit and Collection Committee is responsible for evaluating and approving credit applications as well as advising members on how to utilize the proceeds of their loans. For this reporting period, it processed and approved 851 loan applications amounting to PHP 15,005,646.78 which was released from January to December 2017. Related to this, the Committee has monitored monthly loan collections/payments thru payroll deductions and direct payments (cash and post-dated checks). Total Loan Collections/Payments from January to December 2017:

 Payroll Deductions = ₱12,414,812.64  Direct Payments (Cash & PDCs)=₱ 5,654,854.60

Trainings/Learning Events: two (2) batches of Pre-Membership Education Seminars (PMES) for prospective members; Ownership meeting for cooperative members; and Office Bearer’s Orientation Seminar, for those seeking elective posts to the cooperative. As part of its coordinating function, the Committee coordinated and co-managed with the National Confederation of Cooperative (NATCCO) Network the conduct of mandatory trainings, namely, Cooperative Management and Governance and Financial Management.

Among the Committee’s other major accomplishments include the preparation of the 25th annual GA magazine; facilitation of the conduct of regular and special GAs; and preparation of the design and proposal for the Strategic Planning Workshop. The Committee has also compiled relevant training and education files/materials (i.e. PMES, SDPW, Office Bearer’s Orientation, GA magazines, Strategic Plans, Operations Plans) in electronic format that shall be used for cooperative education as well as operations; and managed the DARMPC Facebook webpage.

 Total Loan Collections/Payments=₱18,069,667.24 The Committee has also monitored the loan payments of members though their DBP Salary Loan releases. Related to this, the Committee has issued certification to DARMPC members who availed of DBP Salary Loans.

As part of its collection functions, the Committee has issued reminder-letters to members with overdue accounts, issued Individual Statement of Loan Accounts (ISLA) to members who availed renewal of loans and for other updates on their loan accounts, and monitored moving and unmoving accounts of members. As part of continuous learning, members of the Committee attended CDA mandatory trainings .

The Committee also implemented Board Resolutions on Credit and Collection and reviewed existing lending policies and processes for enhancement and revision to improve collection efficiency and ensure fiscal strength of DARMPC. It has also proposed to the BOD the following resolutions and activities:

 Implementation of Revised DARMPC Loan Form  Manualization of Credit and Collection Policies and Processes  Conversion of 50% of Forced Savings earned from Loans to Members Savings Account to encourage members to save

 Application of Diminishing Balance Rate of Interest on Loans in line with CDA Memo-

MEDIATION AND CONCILIATION COMMITTEE The Mediation and Conciliation Committee is tasked to formulate and develop the Conciliation -Mediation Program and ensure that it is properly implemented and monitored. Likewise, the Committee has to submit recommendations for improvement on this program to the Board of Directors.

For this reporting period, the Committee has accomplished the following: prepared and submitted DARMPC Mediation and Conciliation Manual; assisted the DARMPC Credit Committee for the easy and fast collection of cooperative loans; mediated Letter-Complaint as regards the dividend received by a member in December 2016. The Committee has also proposed amendments on the DARMPC By-laws. To strengthen the committee members’ knowledge and skills, its members have attended cooperative-related workshop conducted by NATTCO. In relation to the DARMPC case pending before the Supreme Court, the Committee has prepared and submitted a case-brief to the BOD. Committee members have also participated in the crafting of the plan for the upcoming DARMPC 25th General Assembly.

ETHICS AND GRIEVANCE COMMITTEE

randum Circulars

 Massive Door-to-Door and Office-to-Office Collections during the release of 13th th

Month/14 Month/CNA and other employees benefits

EDUCATION AND TRAINING COMMITTEE To ensure continuous capability building for officers, members and staff of DARMPC, the Education and Training Committee is in charge of conducting as well as coordinating trainings, planning sessions and seminars.

The Ethics Committee is tasked to develop, disseminate and monitor compliance with the Code of Governance and Ethical Standards to be observed by the members, officers and employees. It is also responsible for conducting initial investigation of complaints involving and submit report to the Board of Directors as well as recommend ethical rules and policy to the BOD. For this reporting period, the Committee has been able to review and enhance the provisions of the 2017 Code of Governance and Ethical Standards. The Committee has designed and manualized the handbook on the “Ethical Standards and Its Implementing Rules of Procedures (2017)” which shall be distributed to members and prospective members as part of information dissemination campaign.

For this reporting period, the Committee has conducted and managed the following In-House

19

General Manager’s Report GM Josephine Panes It was indeed a profitable year for the DAR Multi-Purpose Cooperative as it is about to hold its 25th General Assembly.

Changes and enhancements in the policies, systems and procedures of our cooperative, implemented in the preceding years, have now bore fruit. These reforms have further strengthened our cooperative to tackle the challenges that lay ahead as well as press head on with potential business ventures that would have otherwise made relatively weak organizations shy away from.

Based on these enhancements, our cooperative has installed an updated Registry Book for shares and memberships to ensure that our members receive the benefits that are due them. With regard to business systems and operations, the DARMPC management has been able to upgrade its accounting system as well as update the Inventory System of its canteen operations to ensure efficiency and effectiveness. Related to this, we have upgraded our catering services by expanding our client base beyond the confines of the DAR Central Office.

Hence, aside from DAR units who have continuously patronized our canteen and catering, other government agencies near DAR have now availed of our services as well.

As regards our savings and lending services, we have subjected our loan products to review to determine whether they are responsive to the needs of our members. Related to this, we have intensified our collection of loans from members, particularly those with delinquent accounts. We have also installed safeguards to ensure that loan delinquency will be prevented. In addition, we have partnered with the Cooperative Insurance System of the Philippines (CISP) to insure the loan of members and protect our cooperative from losses.

As to our cooperative’s additional business ventures, we initially launched a vegetable business in partnership with an organization of agrarian reform beneficiaries based in the province of Nueva Vizcaya. And although we have reactivated the Global Pinoy Remittance Services (GPRS) franchise, we are nevertheless seeking other better opportunities. This is the reason why we have been exploring a potential franchise with the Bayad Center Firm which shall be managed by our cooperative.

To strengthen our delivery of services through efficient human resources, the cooperative management conducted an Employee’s Performance Evaluation to determine the effectiveness of our staff in performing their responsibilities as well as reward those who have contributed to the efficient use of our resources. We have also reviewed the Employee’s Handbook in order to revise or enhance certain features that will help the staff in performing their duties and functions well.

While we continue to strengthen our cooperative, we have also sought linkages to keep abreast of development among cooperatives. In solidarity with the .cooperative movement, our cooperative is now a member of the largest cooperative federation in the country, the National Confederation Cooperatives (NATCCO).

This year brings more challenges. But we are confident that through our collective efforts we will surmount them and come out even stronger. Mabuhay DARMPC!

20

Accountant’s Report Ms. Ester V. Alverez, CPA

As the DAR Multi-Purpose Cooperative conducts its 25th

FINANCIAL HIGHLIGHTS

General Assembly, allow me to provide a brief report on the cooperative’s financial standing for 2017.

TOTAL ASSETS

The total assets of the cooperative as of CY 2017 now amounts to PHP 46.929 million, while its total liabilities

46,929,996.20

TOTAL LIABILITIES

9,810,627.83

TOTAL MEMBERS' EQUITY AND STATUTORY RESERVES

amount to PHP 9.810 million. The cooperative’s total members’ equity and statutory reserves, on the other hand, account for PHP 37.119 million.

SELECTED FINANCIAL RATIOS:

The box on the right contain selected financial ratios on liquidity, profitability and solvency. Allow me explain what the ratios mean.

LIQUIDITY

For items under liquidity, the quick asset ratio indicates the extent to which a cooperative could pay current debt without relying on future income. Quick assets are

QUICK ASSET RATIO

37,119,368.37

Cash + Receivables

44,663,483.84

Current Liabilities

4,935,386.22

905%

highly liquid and immediately convertible to cash. On the other hand, current ratio gauges how able the cooperative is able to pay current debts using only its current assets.

CURRENT RATIO

Current Assets

45,627,790.91

Current Liabilities

4,935,386.22

925%

The profitability ratios, that is, net income margin and return on investment, assesses the cooperative’s ability to generate earnings compared to its expenses and other relevant costs that it incurred during a specific period of time. Net income margin is

PROFITABILITY

the percentage of revenue remaining after all operating expenses, interests, taxes and dividends have been deducted from the cooperative’s total revenue. On the other hand,

NET INCOME MARGIN

Return on Investment (ROI) measures the amount of return on an investment relative to the investment’s cost. Finally, solvency is related to the cooperative’s ability to meet

Net Surplus Before Allocation Gross Revenue

2,809,035.21 16,987,991.58

17%

long-term obligations.

Based on these selected financial ratios as well as the other financial reports that

RETURN ON INVESTMENT

Net Surplus after Allocation Average Share Capital

I have reviewed, let me assure our members that DARMPC continues to be a stable,

1,966,324.66 33,302,045.78

6%

viable and profitable cooperative.

Congratulations therefore are in order for the officers, members and staff of DARMPC!

SOLVENCY LIABILITIES TO TOTAL ASSETS

Total Liabilities

9,810,627.83

Total Assets

46,929,996.20

21%

21

INDEPENDENT AUDITOR’S REPORT The Board of Directors and Shareholders of DAR Multi-Purpose Cooperative DAR Compound, Elliptical Road Diliman, Quezon City

Report on the Audit of the Financial Statements Opinion I have audited the financial statements of DAR Multi-Purpose Cooperative, which comprise the statements of financial condition as at December 31, 2017 and 2016, and the statements of operations, statements of changes in equity and statements of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of DAR Multi-Purpose Cooperative as at December 31, 2017 and 2016, and of its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Framework for Cooperatives.

Basis for Opinion I conducted my audit in accordance with Philippine Standards on Auditing (PSAs) and the Standard Audit System for Cooperatives (SASC). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. I am independent of the Cooperative in accordance with the Code of Ethics for Professional Accountants in the Philippines, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Philippine Financial Reporting Framework for Cooperatives, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Cooperative’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Cooperative or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Cooperative’s financial reporting process.

could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Cooperative’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Cooperative’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Cooperative to cease to continue as a going concern.

 I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report on the Supplementary Information Required Under Revenue Regulations 15-2010 My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on taxes, duties and license fees in Note 23 to the financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a required part of the basic financial statements. Such information is the responsibility of management. The information has been subjected to the auditing procedures applied in my audit of the basic financial statements. In my opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as whole.

Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they

LEDOVINO A. MACAYAN CPA Cert. No 0075141 TIN No. 107-057-417 PRC/BOA Cert. No. 3661 valid until April 14, 2020 BIR No. 08-006005-001-2017 until August 7, 2020 CDA CEA NO. 0556 valid from December 8, 2017 to December 7, 2020 PTR No.5842119 , January 10, 2018, Pasay City

22

STATEMENT REQUIRED BY SECTION 8-A. REVENUE REG. NO. V-20

STATEMENT OF REPRESENTATION TO THE COOPERATIVE DEVELOPMENT AUTHORITY:

To the GENERAL ASSEMBLY THRU THE BOARD OF DIRECTORS DAR MULTI-PURPOSE COOPERATIVE DAR Compound, Elliptical Road Diliman, Quezon City I have audited the financial statements of DAR MULTI-PURPOSE COOPERATIVE for the year ended December 31, 2017, on which I have rendered my report dated January 9, 2018.

In connection with my examination of the financial statements of DAR MULTI-PURPOSE COOPERATIVE covering the period ended December 31, 2017 that are herewith submitted to the Cooperative Development Authority, I hereby represent the following: 1.

That said financial statements herewith attached are prepared and presented in conformity with the financial reporting standards applicable to the cooperatives in the Philippines;

2.

That in the conduct of my audit, I adhered to the Philippine Standards on Auditing and the Standard Audit System for Cooperatives (SASC) as required by Cooperative Development Authority;

3.

That I am qualified as provided in Section 14 of the Code of Professional Ethics for Public Accountants and Article 80 of R.A. No. 9520 (Cooperative Code of the Philippines);

4.

That I am fully aware of my responsibility as an independent auditor for the audit certificate issued and attached to the financial statements, and the sanctions to be bestowed on me for any misrepresentations that I may have willingly or unwillingly committed;

5.

That I nor any member of my immediate family do not have any direct or indirect financial interest with the cooperative;

6.

That I am not an employee nor an officer of a secondary cooperative or tertiary cooperative of which this cooperative is a member;

7.

That I am not an employee of the Cooperative Development Authority nor have I engaged an employee of the CDA in the course of audit;

8.

That I make representation in my individual capacity;

9.

That I am a member of Metro Manila PICPA Chapter.

In compliance with Section 8-A, Revenue Regulation V-20, I am stating the following: That taxes paid and accrued by the above Organization for the year ended December 31, 2017 are shown in the schedule of Taxes and Licenses.

I am not related by consanguinity or affinity to any of the Board of Directors, Officers, Staffs and Members of the Cooperative.

LEDOVINO A. MACAYAN CPA Cert. No 0075141 TIN No. 107-057-417 PRC/BOA Cert. No. 3661 valid until April 14, 2020 BIR No. 08-006005-001-2017 until August 7, 2020 CDA NO. 0556 valid from December 8, 2017 to December 7, 2020 PTR No.5842119

It is however, understood that my accountability is based on matter within the normal coverage of an audit conducted in accordance with Philippine Standards on Auditing and the Standard Audit Systems for Cooperatives.

January 10, 2018, Pasay City LEDOVINO A. MACAYAN CPA Cert. No 0075141 TIN No. 107-057-417 PRC/BOA Cert. No. 3661 valid until April 147, 2020 BIR No. 08-006005-001-2017 until August 7, 2020 CDA CEA NO. 0556 valid from December 8, 2017 to December 7, 2020 PTR No.5842119 January 10, 2018, Pasay City

23

STATEMENTS OF FINANCIAL CONDITION Notes

2017

Cash and Cash Equivalents

5

P 12,987,302.43

Loans and Receivables-Net

6

31,676,181.41

31,094,252.46

168,707.07

145,333.23

A

S

S E

T

2016

S

Current Assets:

Inventories Other Current Assets

P

10,928,535.51

795,600.00

-

45,627,790.91

42,168,121.20

8

489,681.10

547,010.78

Property, Plant and Equipment-Net

9

115,000.10

302,000.10

Other Non-Current Assets

10

697,524.09

167,500.00

7

Total Current Assets Non-Current Assets: Investments

Total Non-Current Assets TOTAL ASSETS

1,302,205.29 P 46,929,996.20

P

1,016,510.88 43,184,632.08

P

P

2,391,872.26

L I A B I LI T I E S AND E Q U I T Y LIABILITIES Current Liabilities: Deposit Liabilities

11

Accounts and Other Payables

12

82,655.27

83,315.52

Accrued Expenses

13

906,239.75

618,944.63

Other Current Liabilities

14,22

Total Current Liabilities

1,834,039.50

2,112,451.70

641,913.01

4,935,386.22

3,736,045.42

Non-Current Liabilities: Retirement Fund Payable

25

110,773.94

85,097.14

Other Non-Current Liabilities

15

4,764,467.67

3,877,114.28

4,875,241.61

3,962,211.42

9,810,627.83

7,698,256.84

34,608,206.45

33,352,089.46

Total Non-Current Liabilities TOTAL LIABILITIES EQUITY Paid-up Share Capital Statutory Funds TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

16 17,22

2,511,161.92

2,134,285.78

37,119,368.37

35,486,375.24

P 46,929,996.20

P

43,184,632.08

24

STATEMENTS OF OPERATIONS Notes

2017

2016

REVENUES Income from Credit Operation Income from Canteen Operation

18

P

19

TOTAL GROSS REVENUES FROM OPERATION ADD: OTHER INCOME

20

TOTAL GROSS REVENUES

3,594,519.46

P 4,290,824.59

3,735,120.52

1,584,448.76

7,329,639.98

5,875,273.35

350,566.58

374,057.31

7,680,206.56

6,249,330.66

28,662.16

27,058.56

4,842,509.19

5,366,388.08

4,871,171.35

5,393,446.64

LESS: EXPENSES Financing Costs Administrative Costs

21

TOTAL EXPENSES NET SURPLUS (FOR ALLOCATION)

22

P

2,809,035.21

P

855,884.02

P

280,903.52

P

85,588.40

ALLOCATION Reserve fund Education and Training Fund(Local) Due to Union/Federation Optional Fund Community Development Fund Interest on Share Capital Payable Patronage Refunds Payable TOTAL

22a 22b 22b 22d

22c 22e 22e P

140,451.76

42,794.20

140,451.76

42,794.20

196,632.46

59,911.88

84,271.05

25,676.52

1,179,794.79

359,471.29

786,529.87

239,647.53

2,809,035.21

P

855,884.02

25

STATEMENTS OF CASH FLOWS Notes

2017

2016

Cash Flows from Operating Activities: P

Net Surplus for the Year

2,809,035.21

P

855,884.02

Adjustments to Reconcile Net Surplus to Net Cash Provided by Operating Activities:

Depreciation

9,21

-

172,273.38

6

(581,928.95)

(6,098,520.78)

(23,373.84)

12,790.85

7

(795,600.00)

-

Accounts and Other Payable

12

(660.25)

(31,911.98)

Accrued Expenses

13

Changes in Assets and Liabilities (Increase)Decrease in: Loans and Receivables Inventories Other Current Assets Increase(Decrease) in:

Due to Union/Federation(CETF)

287,295.12

14,22

564,575.97

(21,397.10)

(113,379.97)

-

-

1,673,370.19

(4,638,288.51)

10

(530,024.09)

(167,500.00)

9,21

187,000.00

(222,000.00)

Other Current Liabilities Net Cash Used in Operating Activities Cash Flows from Investing Activities: (Increase)Decrease in: Other Non-Current Assets Property, Plant and Equipment

Investments

8

Net Cash Used/Provided by Investing Activities

57,329.68

(50,000.00)

(285,694.41)

(439,500.00)

Cash Flows from Financing Activities: Increase(Decrease) in: 11

(557,832.76)

578,306.88

Interest on Share Capital Payable

13,22

(435,105.00)

(1,186,292.73)

Patronage Refunds Payable

13,22

(179,735.63)

(593,999.58)

913,030.19

316,595.31

Deposits Liabilities

Non-Current Liabilities

Paid-up Share Capital Statutory Funds

16

1,256,116.99

646,903.05

17,22

(325,382.65)

(825,994.70)

671,091.14

(1,064,481.77)

2,058,766.92

(6,142,270.28)

Net Cash Used in Financing Activities NET DECREASE IN CASH CASH AND CASH EQUIVALENTS, January 01 CASH AND CASH EQUIVALENTS, December 31

5

P

10,928,535.51 12,987,302.43

P

17,070,805.79 10,928,535.51

26

STATEMENTS OF CHANGES IN EQUITY Notes

2017

2016

EQUITY PAID-UP SHARE CAPITAL

16

Balance at beginning of year

P

Net transactions during the year

Balance at end of year

37,960,183.75

P

35,821,577.00

1,507,356.99

2,138,606.75

39,467,540.74

37,960,183.75

4,608,094.29

3,116,390.59

TREASURY SHARES Balance at beginning of year Net transactions during the year Balance at end of year TOTAL SHARE CAPITAL STATUTORY FUNDS

17,22

Reserve Fund

17,22a

Balance Beginning of year Net transactions during the year Distributed surplus during the year Balance at end of year Education and Training Fund (Local)

1,491,703.70 4,608,094.29

34,608,206.45

33,352,089.46

1,616,310.80

2,155,722.39

5,855.00

(624,999.99)

280,903.52

85,588.40

1,903,069.32

1,616,310.80

17,22b

Balance at beginning of year Net transaction and adjustments during the year Distributed surplus during the year

220,218.55

285,792.35

(296,561.13)

(108,368.00)

140,451.76

Balance at end of year Optional Fund

251,240.00 4,859,334.29

42,794.20

64,109.18

220,218.55

17,22d

Balance at beginning of year

335,859.50

250,271.10

Net transaction during the year

(34,235.36)

25,676.52

Distributed surplus during the year

196,632.46

59,911.88

498,256.60

335,859.50

(38,103.07)

54,523.64

(441.16)

(118,303.23)

84,271.05

25,676.52

Balance at end of year Community Development Fund

17,22c

Balance at beginning of year Net transaction during the year Distributed surplus during the year Balance at end of year TOTAL STATUTORY FUNDS TOTAL EQUITY AT THE END OF THE YEAR

P

45,726.82

(38,103.07)

2,511,161.92

2,134,285.78

37,119,368.37

P

35,486,375.24

27

Notes to Financial Statement As of December 31, 2017

line items (tax liabilities, provisions, non-current interest bearing debt, among others; financial statements must be comparative; and, has a number of new disclosure requirements. The standard also requires presentation of comparative information.

PAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

1.

GENERAL INFORMATION

The DAR Multi-purpose Cooperative (referred hereinafter as “Cooperative”) was registered as a cooperative pursuant to RA 9520 for the purpose of encouraging thrift and granting loans to members for productive, educational and providential purposes, providing goods and services and other requirements of the members, among others. The cooperative was registered under RA 9520 with registration No. 9520-16014869 on March 22, 2010.

Under RA 9520, the cooperative is exempt from payment of income and sales taxes, provided that a substantial portion of its net income is returned to members in the form of interest and patronage refunds.

Cooperative Identification No. 0105161359 The cooperative Certificate of Compliance was issued on June, 2017, and shall be valid and effective until April 30, 2018.

The standards is applied in selecting and applying accounting policies, and accounting for changes in accounting policies, changes in accounting estimates and correction of prior period errors.

PAS 10—Events After Balance Sheet Date

The standard is applied in the accounting for, and disclosure of events after balance sheet date.

PAS 16—Property, Plant and Equipment PAS 16 (a) provides additional guidance and clarification on recognition and measurement of property, plant and equipment; requires capitalization of the costs of assets dismantling, removal or restoration; and requires measurement of an item of property and equipment acquired in exchange for a non-monetary asset or a combination of monetary and non-monetary assets at fair value, unless the exchange transaction lacks commercial substance. The standard also provides for derecognition (e.g., disposal).

The cooperative’s office address was located at DAR Compound, Elliptical Road, Diliman, Quezon City.

PAS 19/IAS 19- Employee Benefits

2.

Prescribes the accounting and disclosure for employee benefits, including short-term benefits (wages, annual leave, sick leave, annual profit-sharing bonuses, and non-monetary benefits); pensions, post-employment life insurance and medical benefits’ other long-term employee benefits (long-service lease, disability, deferred compensation, long-term profit sharing and bonuses, and equity compensation).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

To facilitate the understanding of the financial statements, the more significant accounting policies and practices of the Cooperative are summarized as follows: Basis of Preparation/Partial Adoption of New/Revised Philippine Accounting Standards The Cooperative financial statements have been prepared in conformity with Financial Reporting Standards applicable to the Philippine cooperatives

PAS 1 PAS 8 PAS 10 PAS 16 PAS 19 PAS 24 PAS 36 PAS 41 PAS 2 PAS 7 PAS 18 PAS 38 PAS 32,39 PAS 40 -

Presentation of Financial Statements Accounting Policies, Change in Accounting Estimates and Errors Events after Balance Sheet Date Property, Plant and Equipment Employees Benefit Related Party Transactions Impairment of Assets Agriculture if producers and agricultural type of coop Inventories Cash Flow Statements Revenue Intangible Assets for credit coops Investment Property

PAS 1 - Presentation of Financial Statements Provides framework of financial statements presentation. It requires more specific balance sheet

PAS 24—Related Party Transactions This Standard applies in: (a) identifying related party relationships transactions; (b) identifying outstanding balances between an entity and its related parties; identifying the circumstances in which disclosures to be made about these items.

PAS 36—Impairment of Assets This standard applies in accounting for the impairment of assets other than those covered by separate standards.

PAS 2 - Inventories Prescribes the accounting treatment for inventories.

PAS 7 - Cash Flow Statements Prescribes the provision of information about the historical changes in cash and cash equivalents of an entity by means of a cash flow statement which classifies cash flows during the period from operating, investing and financing activities.

PAS 18—Revenue Prescribes the accounting treatment for revenue arising from certain types of transaction and events.

28

PAS 38—Intangible Assets

Revenues Recognition

Prescribes the accounting treatment for Intangible Assets not dealt wit specifically in another Standard.

Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the Cooperative and the amount of revenue can be measured reliably. Revenues from transactions of the Cooperative are recognized on a modified accrual basis.

PAS 32,39- Financial Instruments Prescribes the accounting treatment, presentation and disclosure requirements for Financial Instruments.

Cash and Cash Equivalents

PAS 40—Investment Property

Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amount of cash and with original maturities of three months or less and that are subject to an insignificant risk of change in value.

Prescribes the accounting treatment and disclosure requirements for Investment Property.

Financial Assets

Management’s Use of Judgments and Estimates

Receivables

The financial statements are prepared in conformity with the above-mentioned accounting principles accepted in the Philippines which requires management to make estimates and assumptions that effects the amounts reported in the financial statements and accompanying notes.

Those estimates and assumptions used in the financial statements are based on management’s evaluation of relevant facts and circumstances as of date of the financial statements. Actual results could differ from such estimates.

Receivables, if any, are valued at face value, net of allowance for doubtful accounts and any anticipated adjustments that will reduce the amount to its estimated realizable value. The allowance for doubtful accounts is determined after a study of the estimated collectability of the receivable balances and evaluation of such factors as aging of the accounts, collection expense of the Cooperative in relation to the particular receivable, past and expected loss experiences and identified doubtful accounts.

The key estimates/assumptions concerning the future that have a significant risk of causing a material adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below: Estimated Useful Lives The useful life of each of the Cooperative’s property or equipment is estimated based on the period over which the asset is expected to be available for use. Such estimation is based on the collective assessment of industry practice, internal technical evaluation and experience with similar assets. The estimated useful life of each asset is periodically and updated if expectations differ from previous estimates due to physical wear and tear, technical and commercial obsolescence and legal or other limits on the used of the assets. It is possible, however, that future results of operations could be materially affected by changes in the amounts and timing of recorded expenses brought about by changes in the factory mentioned above.

Asset Impairment PFRS requires that an impairment review be performed when certain impairment indicators are present. Determining the value of property and equipment, which require the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets, requires to Cooperative to make estimate and assumptions that can materially affect its statement of assets, liabilities and stockholder’s equity. Future events could cause the Cooperative to conclude that the property and equipment are impaired. Any resulting impairment loss shall be charged to operations.

Functional and Presentation Currency Items included in the Cooperative’s financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in Philippine Peso, which is the Cooperative’s functional and presentation currency.

Inventories Inventories are assets which are held for sale in the ordinary course of business, in the process of production for such sale or in the form of materials or supplies to be consumed in the production process or in the rendering of services. Inventories are valued at the lower of cost and net realizable value.

Property and Equipment Property and Equipment are carried at cost less accumulated depreciation and impairment in value. Depreciation is computed using the straight-line method over the estimated useful lives of the properties.

Building Office Equipment Office Furniture and Fixtures Transportation Equipment Miscellaneous/Other Assets

20 years 1 to 5 years 1 to 5 years 10 to 15 years 1 to 5 years

Financial Liabilities Financial Liabilities include bank loans, trade and other payable, as well as Interest on Share Capital and Patronage Refund Payable to the cooperative’s members. These are recognized when the Cooperative becomes a party to the contractual agreements of the instrument. All interest related charges are recognized as Statement of Operations under the caption Finance Costs.

Trade Payable are recognized at their nominal value. Interest on Share Capital and Patronage Refund payable are recognized as financial liabilities based on the Cooperative’s By-Laws as well as Cooperative laws and regulations.

Financial liabilities are derecognized from the balance sheet only when the obligations are ex-

29

tinguished either through discharge, cancellation or expiration.

Impairment of Assets The carrying value of the cooperative’s non-current assets are viewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognized whenever the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount.

Costs and Expenses

Costs and expenses, not directly attributable to capitalizable assets or projects, are recognized and charged to operations as incurred.

Patronage Refund Payable – is the liability of the cooperative to its members and patrons for patronage refund, which can be determined only at the end of every fiscal year.

Due to Union/Federation (CETF) – is an amount set aside for the education and training fund of an apex organization, which is 50% of the amount allocated, by the cooperative in accordance with the provision of the cooperative’s by-laws and the cooperative code. The apex organization may either be a federation or union of which the cooperative is a member.

Revolving Capital Payable – is the deferred payment of interest on share capital and patronage refund whose payment has been withheld, which should be agreed upon in the General Assembly.

Accounting Estimates

Project Subsidy Fund Payable – Unused portion of the donation/grant for training, salaries and wages, etc.

The preparation of financial statements in accordance with accounting principles generally accepted in the Philippines requires the Cooperative to make estimates and assumptions that affect the reported amounts on income, expenses, resources, liabilities and disclosure of contingent resources and liabilities. Actual results could differ from those estimates.

Mutual Benefit and Other Funds Payable – are funds for special purposes such as members’ welfare and benefits, i.e. loan protection, hospitalization, death, scholarship assistance, etc. including KBGF/CGF, provision for accidents not taken from net surplus.

ACCOUNTS PECULIAR TO COOPERATIVES

EQUITY

The following accounts are peculiar to a Cooperative due to its nature as well as adherence to Cooperative laws, issued policies, rules and regulations, as well as cooperative principles and practices:

Donations/Grants – are amounts received by the cooperative as awards, subsidies, grants, aids and others. This shall not be available for distribution as interest on share capital and patronage refund, and shall form part of the members’ equity of the Statement of Financial Condition.

ASSETS:

Statutory Funds – are Mandatory funds established/set up in accordance with Articles 86 and 87 of the Cooperative Code. They are as follows:

Cash in Cooperative Federation – refers to money deposited in federations which are unrestricted and readily available when needed. These are treated as cash and other cash equivalents.

Due from Accountable Officers and Employees – refers to total collectibles from shortages and other losses due from accountable officers and employees that are subject to immediate settlement/sanction. These are recognized at cost, less allowance for impairment, if any.

Reserve Fund – amounts set aside annually for the stability of the cooperative and to meet net losses in its operations. It is equivalent to at least 10% of the net surplus. A corresponding fund should be set up either in the form of time deposit with local banks or government securities.

Only the amount in excess of the paid up share capital may be used for the expansion and authorized investment of the cooperative as provided for in its by-laws.

Investment in Cooperative Federation – refers to investments in secondary/tertiary cooperatives’ share capital where the cooperative is affiliated. These are non-transferable and non -negotiable investments and are recognized at cost.

Education and Training Fund – an amount retained by the cooperative out of the mandatory allocation as stipulated in the cooperative’s by-laws

Cooperative Development Cost – refers to expenses incurred prior to the actual operations of the cooperative. These are recognized at cost, subject to amortization for a period not exceeding 3 years.

Community Development Fund – this is computed at 3% of the cooperative net surplus. This is used for projects or activities that will benefit the community where the cooperative operates.

Other Funds and Deposits – refers to restricted funds set aside for funding of reserves (Statutory and Other Reserves) established by the cooperative such as Retirement, Mutual Benefit and other Funds.

LIABILITIES Interest on Share Capital Payable – refers to liability of the cooperative to its members for interest on share capital, which can be determined only at the end of every fiscal year.

Optional Fund – this fund set aside from the net surplus (should not exceed 10%) for future use such as land and building, community developments, etc.

EXPENSES General Assembly Meeting – expenses incurred in the conduct of regular/special general assembly meeting.

Members’ Benefit – all expenses incurred for the benefit of the members Affiliation Fee – amount incurred to cover membership or registration fees and annual dues to

30

a federation or union.

Social and Community Service – expenses incurred by the cooperative in its social community involvement including solicitations and donations to charitable institutions.

Provision for CGF(KBGF) – amount set up for the provision of CGF(KBGF) Provisions for Members’ Future Benefits – amount set up for future benefit of members, such as pension of members, etc. not taken from Net Surplus.

OTHER ITEMS

Project Subsidy – refers to the amount deducted from Project subsidy fund to subsidize project expenses. This shall appear in the statement of operation as a contra account to Subsidized Project Expenses.

Donation and Grant Subsidy – refers to an amount deducted from Donations and Grants account to subsidize depreciation funded by donations and grants.

Optional Fund Subsidy – refers to an amount deducted from Optional Fund to subsidized depreciation funded by Optional Fund and/or community development expense.

Subsidized Project Expenses – refers to a portion of the Project Subsidy Fund expended for training, salaries and wages and other activities subsidized by donations and grants.

INCOME TAXES The Cooperative Code state that a Cooperative transacting business only with its members is exempt from all government taxes and therefore cannot apply the PAS for income taxes because of its tax-exempt nature. However, should the cooperative exceed the limits as set forth in the cooperative code, it will adopt the accounting standards for income taxes as stated in PAS 12.

INCOME RECOGNITION As a rule, cooperatives adopt the accrual basis of accounting. However, for credit and other cooperatives, recognition of revenues is on a modified accrual basis; i.e., interest income, fines, penalties and surcharges shall be recognized when earned and collected. This is so because only interest income, fines penalties and surcharges on loans receivable that has been realized (i.e.. earned and collected) shall be the basis of the income available for distribution to its members through interest on share capital and patronage refund.

Also, due to the cash-based income distribution scheme of a cooperative as well as the inherent limitations of small-scale countryside credit cooperatives it cannot adopt the effective interest method in recognizing interest income on loans receivable.

3. MANAGEMENT’S SIGNIFICANT ACCOUNTING JUDGEMENT AND ESTIMATES Judgments

The preparation of the Cooperative’s financial statements in conformity with Financial Reporting Framework (in reference to the Generally Accepted Accounting Principles of the Philippines) requires management to make estimates and assumptions that affect the amounts reported in the Cooperative’s financial statements and accompanying notes. The estimates and assumptions used in the Cooperative’s financial statements are based upon management’s evaluation of relevant facts and circumstances as of the date of the Cooperative’s financial statements.

Actual results could differ from such estimates, judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Estimates In the application of the Cooperative’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following represents a summary of the significant estimates and judgments and related impact and associated risks in the Cooperative’s financial statements.

Allowance for Doubtful Accounts The Cooperative assesses whether objective evidences of impairment exist for receivables and due from related parties that are individually significant and collectively for receivables that are not individually significant. Allowance for doubtful accounts is maintained at a level considered adequate to provide for potentially uncollectible receivables.

The cooperative should provide for probable losses on loans with thirty five percent (35%) for loans one (1) to twelve (12) months past due, and one hundred percent (100%) for loans over twelve (12) months past due.

Impairment of Available-for-sale Financial Assets The Cooperative follows the guidance of PAS 39 in determining when an asset is other-thantemporarily impaired. This determination requires significant judgment. In making this judgment, the Cooperative evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its costs; the financial health of and near-term business outlook of the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.

If the assumption made regarding the duration that, and extent to which the fair value is less than cost, the Cooperative would suffer an additional loss in its financial statements, representing the write down of cost at its fair value.

31

Estimated Useful Lives of Property, Plant and Equipment

counter-parties.

The Cooperative estimates the useful lives of property, plant and equipment based on the period over which the property, plant and equipment are expected to be available for use. The estimated useful lives of the property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the property, plant and equipment. In addition, the estimation of the useful lives of property, plant and equipment is based on the collective assessment of industry practice, internal technical evaluation and experience with similar assets. It is possible, however, that future financial performance could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances.

The Cooperative’s management considers that all the above financial assets that are not impaired or past due for each balance sheet dates are of good credit quality.

A reduction in the estimated useful lives of the property, plant and equipment would increase the recorded expenses and decrease the non-current assets.

The company assesses the value of the property, plant and equipment which require the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets, and require the Company to make estimates and assumptions that can materially affect the financial statements. Future events could cause the Company to conclude that property, plant and equipment and other long-lived assets are impaired. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations.

The preparation of the estimated future cash flows involves significant judgment and estimations. While the Company believes that its assumptions are appropriate and reasonable, significant changes in these assumptions may materially affect the Company’s assessment of recoverable values and may lead to future additional impairment charges.

Revenue Recognition

The Company’s revenue recognition policies require the use of estimates and assumptions that may affect the reported amounts of revenues and receivables. Differences between the amounts initially recognized and actual settlements are taken up in the accounts upon reconciliation. However, there is no assurance that such use of estimates may not result to material adjustments in future periods.

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Cooperative is exposed to credit, liquidity, and other risks that arise in the normal course of its business. Its risk and control framework includes a focus on minimizing negative effects on the Company’s financial performance due to unpredictability of financial markets that drives the risks.

Credit Risk Generally, the maximum credit risk exposure of financial assets is the carrying amount of the financial assets as shown on the face of the statement of financial condition.

The Cooperative continuously monitors defaults of customers and other counter-parties, and incorporate this information into its credit risk controls. The Cooperative’s policy is to deal only with creditworthy

With respect to trade and other receivables, the Cooperative is not exposed to any significant credit risk exposure to any single counter-party or any group of counter-parties having similar characteristics. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, money market funds, debentures and derivative financial instruments is considered negligible, since the counter-parties are reputable banks with high quality external credit ratings.

Liquidity Risks Liquidity or funding risk is the risk that an entity will incur difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from either the inability to sell financial assets quickly at their fair values; or counter-party failing on repayment of contractual obligation; or inability to generate cash flows as anticipated.

In order to minimize liquidity risk, the Cooperative maintains sufficient cash and has the availability of funding through an adequate amount of committed credit facilities.

Other Price Risk Sensitivity The Cooperative’s market price risk arises from its investments carried at fair value (financial assets classified as financial assets at fair value through profit or loss and available-for-sale financial assets). It manages its risk arising from changes in market price by monitoring the changes in the market price of the investments.

5.

CASH AND CASH EQUIVALENTS

This account consists of the following: 2017 Cash on Hand Cash in banks Acct. No. 0702-1000-38 Acct. No. 0702-1012-55 Acct. no. 0702-1037-70 Acct. No. 0702-1012-89 Acct. No. 0702-1038-00 Acct. No. 0702-1037-97 Acct. No. 0701-0467-49 Acct. No. 0455-036619-030 Petty Cash Fund Savings Withdrawal Fund Cash Agad Fund Change Fund-Canteen Change Fund-GPRS

P

Total

P

669,632.66 P 3,708,235.99 1,377,979.06 697,671.48 650,281.07 1,124,180.69 38,141.08 148,267.92 4,105,912.48 130,000.00 75,000.00 250,000.00 10,000.00 2,000.00 12,987,302.43 P

2016 143,593.23 1,053,119.74 1,234,277.99 713,694.67 481,993.98 1,123,180.69 347,141.09 314,146.82 5,098,387.30 90,000.00 75,000.00 250,000.00 2,000.00 2,000.00 10,928,535.51

32

6.

LOANS AND RECEIVABLES

2017

This account consists of the following: 2017 Aging of Loans: Current

P

27,075,325.91 P

2016 27,657,074.03

Past Due- 1-30 days

104,492.23

33,859.45

Past Due- 1-12 mos Over 1 year

2,474,443.00 4,197,265.50

1,832,547.42 4,071,186.30

Total Loans

P

33,851,526.64 P 2017

LOANS Provident Loan Appliance Loan Cash Agad Loan Educational Loan Emergency Loan Enap Loan Health Card Loan Productive Loan Surplus Loan Gift Check Loan Medical Loan Birthday Loan Calamity Loan ATM Loan Bonus Loan Total Loan Loan Interest Receivables Loan Insurance Receivables Total Loan Receivables Less: Unearned Interest and Discounts Less: Allowance for Probable Losses Net Loans Receivables RECEIVABLES OTHER RECEIVABLES Accounts Receivable-Canteen Other Receivables Rice CHITS and DAR Receivable from Accountable Off. and Emp. Due to DAR Cashier Total Other Receivables Net Loans and Receivables

P

19,047,339.90 P 49,494.19 3,860,460.59 2,064,736.88 277,604.72 98,270.48 432,055.10 75,075.16 130,484.37 71,254.50 976,332.01 955,726.44 7,920.70 155,347.05 27,052.27 28,229,154.36 6,033,419.29 483,647.77 34,746,221.42 (6,957,342.21) (910,000.00) 26,878,879.21

33,594,667.20 2016 23,998,002.76 39,502.76 3,670,665.49 2,464,828.32 345,848.95 100,417.14 574,473.38 462,788.44 130,484.37 71,254.50 1,195,028.96 334,820.34 8,121.70 171,079.27 27,350.77 33,594,667.15 33,594,667.15 (6,320,081.51) (910,000.00) 26,364,585.64

2016

Loan Balances Per Book

34,746,221.42

33,594,667.15

Per Subsidiaries

33,851,526.64

33,594,667.20

894,694.78

(0.05)

Difference Allowance for Probable Losses Amount of Allowance for 1-12 months (35%)

Amount of Allowance for over 1year (100%) Should be Allowance Allowance Provided Difference

7.

902,627.33

653,242.40

4,197,265.50 5,099,892.83 (910,000.00) 4,189,892.83

4,071,186.30 4,724,428.70 (910,000.00) 3,814,428.70

OTHER CURRENT ASSETS

This account consists of the following : 2017

2016

Car Raffle Project Raffle Car - VIOS

P

875,000.00 P

Raffle Ticket Printing

21,000.00

Raffle Ads and Promo

5,900.00

Bank Charges - Raffle

50.00

Raffle Tickets - Sales

(58,000.00)

TPL - Raffle

1,650.00

Purchase Discount on Car Total

(50,000.00) P

795,600.00 P

This account refers to prepaid expenses for Car Raffle Project of the Cooperative.

8.

INVESTMENTS

This account consists of the following:

P

1,291,308.49 50,515.12 18,701.90 2,037,412.21 1,362,256.69 37,107.79 4,797,302.20 31,676,181.41 P

1,294,774.81 37,830.12 8,190.99 1,989,506.42 1,362,256.69 37,107.79 4,729,666.82 31,094,252.46

Metro South NATCCO Franchise-GPRS Total

P

P

2017 138,586.35 P 100,000.00 251,094.75 489,681.10 P

2016 138,397.28 50,000.00 358,613.50 547,010.78

33

9.

PROPERTY, PLANT AND EQUIPMENT

12.

This account consists of the following:

This account consists of the following: 2017

Furniture, Fixtures and Equipment-Lending

P

Less: Accumulated Depreciation

2016

591,453.50 P

(581,453.50)

480,842.30

480,842.30

(470,842.20)

(470,842.20)

22,600.03

22,600.03

Less: Accumulated Depreciation

(22,600.03)

(22,600.03)

Transport Equipment

609,000.00

609,000.00

(559,000.00)

(559,000.00)

557,930.76

557,930.76

(512,930.76)

(512,930.76)

-

187,000.00

Furniture, Fixtures and Equipment-Canteen Less: Accumulated Depreciation

Furniture, Fixtures and Equipment-GPRS

Less: Accumulated Depreciation Kitchen Equipment Less: Accumulated Depreciation Office Equipment Net Property, Plant and Equipment

P

115,000.10 P

2017

591,453.50

(581,453.50)

10.

ACCOUNTS AND OTHER PAYABLES

302,000.10

Other Payable

P

82,655.27 P

83,315.52

Total

P

82,655.27 P

83,315.52

13.

ACCRUED EXPENSES

This account consists of the following: 2017 SSS, Pag-ibig, Philhealth Cont. Payable

20,856.41

Withholding Tax Payable

4,088.22

4,088.22

Accrued Expense Payable

850,000.00

594,000.00

906,239.75 P

618,944.63

Total

P

P

OTHER CURRENT LIABILITIES

This account consists of the following:

This account consists of the following:

2017

2017 Computerization Costs

P

425,126.00 P

2016 167,500.00

Due to Union/Federation

Other Assets - Meralco Sub-Meter

25,000.00

-

Interest on Share Capital Payable

Improvements -Canteen

58,432.75

-

Patronage Refunds Payable

Improvements -Lending

118,612.75

-

Total

Deferred Debit Total

2016

52,151.53 P

14.

OTHER NON-CURRENT ASSETS

2016

P

P

161,848.86 P

2016 42,794.20

1,164,072.96

419,383.17

786,529.88

179,735.64

2,112,451.70 P

641,913.01

70,352.59 P

697,524.09 P

167,500.00

15.

OTHER NON-CURRENT LIABILITIES

This account consists of the following: 11.

DEPOSIT LIABILITIES

2017

This account consists of the following:

Loan Protection Fund

P

Members' Mutual Benefit Payable

2017 Savings Deposit

P

Time Deposit Total

1,763,458.69 P 70,580.81

P

1,834,039.50 P

2016 2,323,055.40 68,816.86

Damayan Fund Other Fund Payable Total

947,067.43 P

454,998.96

2,719,889.11

2,421,926.86

978,418.19

881,095.52

119,092.94 P

2016

4,764,467.67 P

119,092.94 3,877,114.28

2,391,872.26

34

16.

19.

PAID-UP SHARE CAPITAL

INCOME FROM CANTEEN OPERATION

This account consists of the following:

This account consists of the following: 2017

2017

2016 SALES

Authorized Share Capital 250,000 shares @Php200.00 par value

P

2016

13,042,905.54 P

14,929,120.26

Less: Cost of Sales:

50,000,000.00

50,000,000.00

Common Shares of 187,500@200 per share

37,500,000.00

37,500,000.00

Add: Purchases

6,594,424.82

11,207,409.30

Preferred Shares of 62,500@200 per share

12,500,000.00

12,500,000.00

Total Goods Available for Sale

6,739,758.05

11,343,554.65

Subscribed Shares

32,107,871.00

32,107,871.00

Less: Inventory, End

168,707.07

145,333.23

Cost Of Sales

6,571,050.98

11,198,221.42

GROSS SURPLUS ON SALES

6,471,854.56

3,730,898.84

Paid-up Share Capital-Common

P

Paid-up Share Capital-Preferred

38,878,933.84 P

37,960,183.75

Inventory Beginning

145,333.23

136,145.35

OPERATING EXPENSES:

588,606.90

Total

1,861,035.21

1,389,743.79

39,467,540.74

37,960,183.75

Employees' Benefit Expense

475,022.14

142,570.69

Less: Treasury Shares Capital-Common

(4,859,334.29)

(4,608,094.29)

SSS/ECC/Pag-ibig and Philhealth Cont.

136,485.60

96,896.74

34,608,206.45 P

33,352,089.46

Office Supplies

26,635.18

22,560.50

Travel and Transportation

10,257.64

3,642.00

Net Paid-up Share Capital

17.

P

Salaries and Wages

STATUTORY FUNDS

This account consists of the following: 2017 Reserve Fund

P

Education and Training Fund(Local) Optional Funds Community Development Fund Total

18.

P

1,903,069.32 P

2016 1,616,310.80

64,109.18

220,218.55

498,256.60

335,859.50

45,726.82

(38,103.07)

2,511,161.92 P

2,134,285.78

23,060.00

-

107,123.50

Contracted Services

-

5,184.14

1,232.50

47,508.50

Representation Kitchen cleaning supplies Kitchen fuel expense Kitchen utensils expense

Depreciation and Amortization Miscellaneous Expenses Income from Canteen Operation

This account consists of the following:

P

20.

2017

2016

3,087,516.93 P

3,894,141.24

Service Fees

199,726.00

294,655.80

Filing Fees

14,990.00

2,330.00

Fines, Penalties, Surcharges

188,187.26

99,697.55

Pre-Termination Fee

104,099.27

-

Total

-

Repairs and Maintenance

Total Operating Expenses

INCOME FROM CREDIT OPERATION

Interest Income from Loans

Insurance

P

3,594,519.46 P

4,290,824.59

P

31,127.00

20,643.60

114,025.78

129,761.25

67,351.85

136,263.31

-

12,759.76

13,561.14

8,732.30

2,736,734.04

2,146,450.08

3,735,120.52 P

1,584,448.76

OTHER INCOME

This account consists of the following:

Membership Fees Income/Interest from Deposit/Investments Income on Other Business Ventures Income from Vegetables Miscellaneous Income Total

P

P

2017 6,100.00 P 10,450.03 292,612.50 1,767.09 39,636.96 350,566.58 P

2016 2,100.00 21,439.57 277,387.50 73,130.24 374,057.31

35

21.

e.

ADMINISTRATIVE COSTS

This account consists of the following: 2017 Salaries & Wages Employees Benefits

P

SSS/Philhealth and Pag-ibig Contribution Management Support

2016

941,691.66 P 288,836.93

941,091.35 245,094.40

66,956.50

81,127.91

883,442.30

743,000.00

Office Supplies

22,192.75

15,846.60

Travel and Transportation

12,765.00

35,605.50

Gas, Oil and Lubricants

18,090.00

-

Power, Light and Water

3,510.00

-

Insurance

6,006.00

33,106.38

Repairs and Maintenance

35,419.40

1,845.00

Collection Expense

28,500.00

30,000.00

6,179.06

7,079.00

Professional Fees

72,000.00

-

Communication

44,665.12

32,821.38

Representation

43,560.68

12,660.10

411,017.65

239,728.23

86,185.06

67,496.94

-

2,000.00

Contracted Services

156,465.39

23,610.93

Social Services

107,602.33

58,147.28

Taxes, Fees and Charges

General Assembly Expenses Meetings and Conferences Affiliation Fees

Promotion and Advertisement Provisions for Contingencies Members' Benefit Expenses

Depreciation Miscellaneous Expenses

7,275.00

-

450,000.00

594,000.00

1,148,818.51

2,042,613.46

1,329.85

159,513.62 -

23.

Interest on Share Capital and Patronage Refunds – After deduction of the statutory accounts, any remaining net surplus shall be distributed to the cooperative’s members in the form of interest not to exceed the normal rate of return on investments and patronage refunds, Interest on Fixed Deposits shall be allocated in proportion to the individual members’ average share monthly, while patronage refund is divided according to their individual patronage; i.e., volume of loans availed.

SUPPLEMENTARY INFORMATION REQUIRED UNDER REVENUE REGULATION (RR) 19-2011 A. RR-19-2011prescribed the new income tax forms to be used effective calendar year 2012. In case of corporation using BIR Form 1702, the tax payer is now required to include as part of its Notes to Audited Financial Statements, which will be attached to the income tax returns (ITR), the schedule and information on taxable income and deductions to be taken.

1.

1.

Taxable Sales amounting to Exempt Receipts Itemized Deductions-Disbursement amounting to Local Taxes Business Permit and other taxes

Php7,680,206.56 Php4,871,171.35 Php6,179.06

A. Supplementary Information Required Under Revenue Regulation 15-2010 On November 25, 2010, the BIR issued Revenue Regulation (RR) No.15-2010 for the amendments in certain provisions of RR 21-2002 as Amended, Implementing Section 6 (H) of the Tax Code of 1997, Authorizing the Commissioner of Internal Revenue to Prescribe Additional Procedural and/ or Documentary Requirements in Connection with the Preparation and Submission of Financial Statements Accompanying the Tax Return.

24.

EMPLOYEES BENEFIT a. Retirement Benefits Republic Act (RA) No. 7641 (New Retirement Law) took effect on January 7, 1993. Under the new law, the Cooperative is required to provide minimum retirement benefits to qualified retiring employees. The Cooperative provides funds in compliance with the law but still insufficient. b. Other Employees Benefits: Sick Leave/Vacation Leave13th Month Pay 13th Month Pay

25.

CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES

5,366,388.08

The Cooperative’s capital management objectives are to ensure the Cooperative’s ability to continue as a going concern and to provide an adequate return to shareholders by pricing products and services commensurate with the level of risk.

The Cooperative’s constitution and by-laws explicitly provides that its net surplus at the end of the year shall be distributed in the following manner:

The cooperative monitors’ capital on the basis of the carrying amount of equity as presented on the face of the balance sheets. Capital for the reporting periods under review is summarized as follows:

Total 22.

P

4,842,509.19 P

ALLOCATION AND DISTRIBUTION OF NET SURPLUS

a. b.

Reserve Fund - 10 percent (10%) shall be set aside for the reserve fund. The reserve fund shall be used for the stability of the cooperative and to meet net losses in its operations.

Education and Training Fund – 10 percent (10%) for the education and training fund. Half of the amount transferred to the education and training fund annually under this subscription may be spent by the cooperative for education and training and other purposes; while the other half shall be credited to the Cooperative education and training fund of the apex organization of which the cooperative is a member.

c.

Community Development Fund – this is computed at 3% of cooperative’s net surplus. This is used for projects or activities that will benefit the community where the cooperative operates.

d.

Optional Fund – This is computed at 7% of the cooperative’s net surplus.

2017 Total Liabilities Total Equity Debt-to Equity Ratio 26.

9,810,627.83 37,119,368.37 1 : .26

2016 7,698,256.84 35,486,375.24 1 : .22

STATEMENT PRESENTATION

Certain accounts have been reclassified to conform with the standard chart of accounts for all types of cooperatives and financial statement presentation as prescribed by the Cooperative Development Authority and Philippine Financial Reporting standards (PFRS).

36

Governance and Management Audit Report OFFICERS

DOCUMENTS

A. GOVERNANCE REPORTS A.1 General Assembly 1. Approval of plans and budget 2. Acceptance/approval/confirmation/ratification of the following report of the Board (including BR) and Committees 2.1 Board Report 2.2 Committee Reports 2.3 Management Report 3. Engagement of the external auditors 4. Election of officers 5. Presentation of Annual Report 6.Acceptance of Audited Financial Statements 7. Other Resolutions/Policies, including amendments of CBL, if any A.2 Board of Directors 1. Written duties and responsibilities 2. Duly signed Oath of Office 3. Copies of minutes of meeting/BR/Report 3.1 Discussion of financial statement 3.2 Formulation of VMG 3.3 Budget 3.4 Policy review 3.5 Discussion of audit findings or recommendations (internal and external) 3.6 BR specifying the regular schedule of meetings of the Board and the Committees 4. Rules and Procedures in conducting a meeting 5. Succession Program A.3 Election Committee 1. Minutes and Committee Reports and Recommendations 2. Written duties and responsibilities 3. Duly signed Oath of Office 4. Duly approved election guidelines 5. Education program for elective position 6. Screening program of members with voting rights 7. List of Members with voting rights 8. Results of Election 9. Documents as to turn-over of documents to new officers

check if available



                          

REMARKS

OFFICERS

DOCUMENTS

A.4 Audit Committee 1. Minutes and Committee Reports and Recommendations 2. Written duties and responsibilities 3. Duly signed Oath of Office 4. Audit Systems and Procedure 5. Audit Program of Work 6. Internal Audit Report 7. Monitoring report on audit recommendations 8. Report to General Assembly A.5 Education Committee 1. Minutes and Committee Reports and Recommendations 2. Written duties and responsibilities 3. Appointment Paper/BR 4. Copies of minutes of meeting/BR/Reports 5. Training Plan/Program with budget 6. Training Report 7. Training modules 8. Training materials/paraphernalia 9. List of pool of trainers 10. Feedback/evaluation tool A.6 GAD Committee 1. Minutes and Committee Reports and Recommendations 2. Written duties and responsibilities 3. Appointment Paper/BR 4. Copies of minutes of meeting/BR/Reports 5. GAD Plan with Budget 6. Sex-disagrregated data of members, officers and staff 7. GAD Assessment Report A.7 Mediation and Conciliation Committee (Medcon) 1. Minutes and Committee Reports and Recommendations

check if available

REMARKS

                         

2. Written duties and responsibilities



3. Appointment Paper/BR



4. Copies of minutes of meeting/BR/Reports



5. Conflict resolution policies and procedures



6. Medcon Plan/program



7, Medcon Semi-annual Report



*Governance and management audit report is a summary report of analysis/assessment to be undertaken by the cooperative based on the result of the audit using the tool prescribed by the CDA. Its purpose is to determine the presence of documents needed to be maintained by every cooperative in the operation and management of its business. The report will serve as regulatory and supervisory tool of CDA in programming the roadmap of developmental intervention for management and governance of cooperatives; and management tool of cooperatives to identify problem areas in governance and management. The report shall be submitted by the coop to the CDA not later than 120 days from the end of each calendar year.

37

OFFICERS

DOCUMENTS

check if available

REMARKS

A.8 Ethics Committee Minutes and Committee Reports and Recommendations Written duties and responsibilities Appointment Paper/BR Copies of minutes of meeting/BR/Reports Code of Ethical Standards Ethics Committee Plans and Programs

     

A.9 Other Committees, specify: Credit and Collection Committee Minutes and Committee Reports and Recommendations Written duties and responsibilities Appointment Paper/BR Copies of minutes of meeting/BR/Reports Program of Work Accomplishment Report

     

A.10 Secretary Book of Minutes of meetings of GA and the BOD



Registry of Members

Not in possession by the right person Not in possession by the right person

Share and transfer book

Cooperative copy of COR, ACBL, COC

Contracts, MOA, other docs (specify) ________

   

Cash Book



Cooperative securities (investment, titles, and other negotiable instruments) Cash Position Report



Compilation of Board Resolutions Cooperative Seal

A.11 Treasurer

Pretty Cash Book

 

A.12 General Manager/C.E.O./or its equivalent Appointment paper Board Resolution Files

 

Monthly/quarterly/semi-annual/annual management report



OFFICERS

DOCUMENTS

B. MANAGEMENT REPORTS/RECORDS B.1 Organizational/Operational Structure Organizational Chart Management Functional Chart Functional Statement of each unit/departments/ sections B.2 System and Procedures 1. Complete book of accounts 2. Updated recording 3. Internal Control 3.1 CASA 3.2 Accounting system 3.3 Bond of accountable officer 3.4 Record preservation (maintenance and disposal/ archiving plan) 3.5 Continuity/contingency Plan 4. Manual of Operation 4.1 Business Operation Manual 4.2 Accounting Manual 4.3 Code of Governance and Ethical Standards 4.4 Personnel Policy Manual 4.5 Election Guidelines 4.6 Audit Manual 4.7 Others, specify _____________ B.3 Human Resource Records Contract/Certificate of employment Personnel File B.4 Performance Evaluation Standards of measurement Rating of all management staff B.5 Compensation and Benefits Salary scaling program Incentive and Reward Program Retirement Plan/Program/Package B.6 Career Development Capacity building program Scholarship program Immersion program B.7 Compliance to Government Requirements Certificate of Compliance (CDA) Certificate of Tax Exemption (BIR) Registration (SSS) Registration (PHILHEALTH) Registration (PAGIBIG) Certificate of Exemption/DO 174 (DOLE) Business Permit (LGU)

check if available

REMARKS

       

        

              

38

DARMPC Strategic Map

39

DARMPC Operational Plan

3,766,649.00

40

DARMPC Operational Plan manualization

Manualization

CAPDEV

A. Leadership Development Program B. Management Staff/Employee Development Program C. Members’ Development Program

CAPDEV

Review and upgrade of IT Infrastructure

41

DARMPC Strategic Plan

42

DARMPC Strategic Plan

43

DARMPC Strategic Plan

44

DARMPC Officers & Management Staff

45

Board of Directors

ALMA P. PAMITAN

DELIA B. GABALES Vice-Chairperson

WILFREDO S. SELVA

RICARDO A. REYES

FRANCIS B. GADRINAB

Chairperson

RHODELMELH D. LAGAYAN

ABDON OWENS B. CABATU

46

AUDIT & INVENTORY COMMITTEE

Cooperative Committees

JIMMY A. AMADAR

ROWENA M. VASQUEZ

ONOFRE VALDEZ

Chairperson

ELECTION COMMITTEE

ELVIE S. MANZANO

ROBERTO B. EVANGELISTA

FROILAN MALONZO

Chairperson

CREDIT & COLLECTION COMMITTEE

LEROY B. LADAO

JACQUELINE D. DACASIN

Chairperson

JOSELITO OLIGARIO

47

EDUCATION & TRAINING COMMITTEE

NEREO T. TIERRA

INES B. CODIA

RICKY P. SUNGA

ETHICS COMMITTEE

MEDIATION & CONCILIATION COMMITTEE JALILAH M. GURO Chairperson

JAZIRA M. ISMAEL Chairperson

JOSEPHINE P. SARVIDA Treasurer

ESTER V. ALFEREZ Accountant

MA. ROWENA G. SALINDA Secretary

48

CANTEEN OPERATION

SAVINGS & LENDING SERVICES KAREN M. ULANG Accounting Officer

ARLENE S. CANDO Admin Supervisor

MYDEE V. VISITACION Accounting Clerk ELMA E. ESTARAS Cashier

LUZ G. COLOQUIO Counter Crew

MARY JANE R. GUERRA Cashier

JOSEPHINE P. PANES General Manager

AIZA L. VELEZ Loan Processor JOCELYN N. DIABORDO Inventory Clerk

JUANITO C. DASOK Cook

CARMEN C. LOPEZ Cook

ZENIDO N. COLOQUIO Counter Crew

GLORIA V. CUENCA Cook

RENE S. PAUAL Bus Boy

JON A. USON Data Encoder

ROGELIO R. GACAD Bus Boy

DARMPC STAFF 49

50

51

DARMPC Members Abad, Vitaliano Jr. T. Abalos, Guia S.

Abante, Jonie P. Abatay, Andrea Rosario S. Abillar, Jeanette S. Abiog, Christine M. Abiog, Mary Jane B. Abiog-Respicio, Julie M. Acedillo, Leah M. Acsay-Reyes, Merla Adina, Romana T. Afable, Francisco L. Afable, Ma. Celerina Agbada, Arnold G. Agbayani, Rowena U. Agliam, Emma Concepcion D. Agustin, Rogelio R. Alejandro, Ma. Venida V. Alejo, Florence O. Alferez, Ester V. Alfiler, Emmanuel A. Ali, Jacqueline Jamillah Jacinto Almazan, Gloria P. Alobba, Ramon M. Alvarez, Benilda D. Alvarez, Cenaflor D. Alvarez, Philip D. Alvior, Gloria C. Amadar, Jimmy A. Aman, Ma. Cleofe M. Amatonding, Jamil P. Jr. Amoroso, Edgar B. Ancheta, Gregoria E. Ancheta, Marlene S. Ancheta, Sonia F. Ancheta, Tita V. Ang, Aurita C. Ang, Johnny R. Ang, Jonathan R. Angeles, Marisse C. Anis, Marisol S. Anolin, Jaira Evaina Marloji A. Antiporda, Florante Jr. D. Apolinar, Reynolito P. Apostol, Bobby Arnel V. Aragoncillo, Erlinda E. Arcaina, Resurreccion E. Arellano, Sherwin D. Artificio, Marites P. Arzaga, Nenette Novelline I

Asas, Clarita F. Austria, Catalina T. Azcuna, Erwin L. Bacalso, Lilia A. Bacuyag, Jener Urfindo C Balaoing, Jocelyn B. Balcita, Marites P. Baldevia, Jose A. Balleras, Elizer A. Balonzo, Flores C. Baltazar, Carol Cristine Bandal, Arden D. Baniaga, Eden B. Banzuela, Jose Edgar Bardillon, Ricardo Jr. U. Bastasa, Dinah Florella F. Batalla, Belinda O. Bautista, Dinah G. Baybayon, Lolita C. Bayogos, Rhogel E. Bejar, Gloria E. Bernabe, Agnes V. Bernabe-Falucho, Regina II Bicera, Leonor M. Bidaure, Marivic S. Bilog, Ma. Rowena B. Bistoyong, Rosalina L. Bonilla, Violeta M. Braganza, Susan S. Bueno, Cornelia B. Bulanon, Lilibeth F. Bulanon, Monette R Bulayungan, Laurence A. Bunyi, Cynthia R. Buo, Ford E. Cabacang, Aurora N. Cabañes, Jimmy G. Cabañes, Ma. Elena C. Cabantac, Marie Louie P. Cabatu, Abdon Owens B. Cabrera, Roselle O. Cacananta, Carlito S. Calaca, Acmad N. Calbitaza, Eduardo L. Calleja, Ma. Concepcion F. Calingasan, El-alma Caluag, Olivia S. Caluya, Leonides A. Caminong, Katherine A. Campued, Jake C.

Canales, Letecia D. Cando, Arlene S. Cansanay, Consolacion C. Capistrano, Lucille G. Capitulo, Luzviminda B. Car, Loretta P. Carillo, Loida B. Carolino, Estrella C. Casica, Marinelia C. Castañares, Araceli J. Castro, Salvador Jr. V. Catacutan, Ma. Cielo C. Cataggatan, Socorro A. Catibayan, Myrah Ester M. Cayaban, Marlon D. Cellona, Blesilda F. Clemente, Olga M. Codia, Ines L. Coleto, Jim G. Colocar, Rene E. Coloquio, Luz G. Coloquio, Zenido N. Contreras, Merlie R Corbilla, Anne M. Cordero, Adela C. Corpuz, Corazon S. Cristobal, Milagros Isabel A. Cruz, Carmelita N. Cruz, Helen C. Cruz, Lourdes V. Cuaresma, Estelita M. Cuarteros, Garland Leila A. Cuenca, Gloria V. Cuerdo, Ma. Joy P. Dacasin, Jacqueline D. Dagdag, Ma. Cristina C. Dalangin, Jeffrey P. Dalisay, Marie Ann P. Dalit, Edgar Sr. A. Damasco, Elizabeth F. Dasok, Juanito C. Dasoy, Raymond Augustus C. David, Richard C. Dayao, Joana C. Dayao, Lucinda O. Dayuday, Jay-Andrewson B. De Francia, Cecille M. De Francia, Virgilio A. De Guzman, Ramel DC. De Las Alas, Samuel J.

De Paz, Henry M. De Paz, Ma. Victoria S. De Silva, Felix C. Dela Cruz, Cecilia F. Dela Cruz, Gina T. Dela Cruz, Janelle R. Dela Cruz, Nenita A. Dela Cruz, Romeo Z. Dela Cruz, Virgilia I. Dela Cruz, Zaida C. Delos Reyes, Ma. Christina C. Diabordo, Jocelyn N. Diana, Diana Lyn B. Dimailig, Joycelyn V. Dimalanta, Julieta I. Dioneda, Regente D. Dionisio, Othello D. Dizon, Melinda B. Domagas, Gracia Fe C. Domingo, Amor S.B. Domingo, Araceli C. Domingo, Conchita M. Dubongco, James Arthur T. Ducay, Erlinda T. Dulay, Sarah S. Duma, Rosemarie B. Edon, Yolanda V. Enero, Melinda V. Escarcha, Shirley E. Español, Vida R. Espinas, Anna Liza T. Espinas, Corazon M. Espinas, Lina B. Estaras, Elma E. Esteban, Ma. Elizabeth D. Estero, Lilia G. Estrada, Isabelita Q. Evangelista, Roberto B. Fabros, Marie Procerlyn T. Falar, Ma. Estrellita C. Falcon, Fe Lezzie A. Fallaria, Emmanuel M. Falucho, Dovalier M. Fariñas, Elmo A. Farinas, Raquel S. Faustino, Ma.Elizabeth R. Fausto, AJ Cristy Ian J. Felix, Marilou E. Fernandez, Enrico V. Floresta, Ferdinand A.

Floresta, Leila E. Fornoles, Jean M. Foz, Anita A. Fresnido, Emily Purita P. Gabales, Delia B. Gabalfin, Adeliza F. Gacad, Lily B. Gacad, Rogelio R. Gadrinab, Annalie T. Gadrinab, Francis B. Galang, Cristina M. Gallardo, Bernardo, Jr. C. Galvan, Myrna L. Garcia, Ariel DC. Garcia, Eugeneliza A. Garcia, Josephine E. Garcia, Mamerto I. Garcia, Ricardo Jr. G. Garrero, Zenaida M. Gealan, Walter V. Genito, Mutya Addynel M. Golong, Efren A. Gonzales, Cristina Z. Gonzales, Dindo B. Gonzales, Marcelo Jr. E. Gonzales, Maria O. Guerra, Mary Jane R. Gumpal, Juanito Jr. B. Guro, Jalilah M. Gutierrez, Rodel S.J. Habel, Junamil C. Habon, Godofredo S. Hebron, Chris Roland M. Hipolito, Cesar C. Hiponia, Salvacion J. Idlisan, Rolando P. Igama, Cornelia A. Ilagan, Amalia F. Ilagan, Betty V. Ilagan, Blyth V. Inciso, Susana G. Ingente, Bernardo C. Intela, Jade M. Ismael, Jazira M. Isureña, Nolita L. Juliano, Gloria M. Juzgaya, Arnel L. Katigbak, Ester R. Labad, Gay L. Ladao, Leroy B.

Ladera, Edna D. Lagan, Dante R. Lagayan, Rhodelmelh D. Landingin, Myrna J. Laplana, Ulysses J. Lappay, Marnida A. Lara, Primo C. Lasay, Ramon J. Laurena, Petronila dR. Laureta, Leodegario V. Layug, Ricardo Jr. M. Lee, Lilibeth G. Legaspi, Gloria A. Leones, Susana E. Leonin, Raul M. Libayan, Juanito G. Limbo, Ruel C. Linag, Cynthia M. Lisondra, Leo, V. Lizada, Lynnie V. Llegado, Lydia U. Lobederio, Emilio Jr. G. Lomibao, Rosemarie S. Lopez, Anicia P. Lopez, Carmen C. Lopez, Patricia D. Lucman, Annisah D. Macalalad, Lyn D. Macalincag, Norman C. Macasieb, Marizel O. Macob, Marc Anthony M. Maestro, Romelo G. Magabo, Danilo Z. Magabo, Emelita L. Magno, Liberty T. Malagayo, Bernabe Jr. L. Malitan, Elizabeth T. Malonzo, Divinaflor R. Malonzo, Froilan D. Mambuay, Anita F. Mambuay, Faisar A. Manahan, Nelia I. Mangompia, Jaharah A. Maningas, Romeo C. Manuel, Felipa M. Manzano, Elvie Z. Manzano, Planario Jr. M. Mari, Allysa Anne G. Mariano, Lucimar S. Mata, Jaime D.

52

DARMPC Members Mata, Leticia M. Matias, Alfonso Jr. T. Mendoza, Agnes B. Mendoza, Luis-Angelo M. Mendoza, Perpetuo P. Millamina, Rizza A. Mingoa, Lourdes V. Monta単o, Marian F. Montero, Gerryza R. Montoya, Emelita L. Morales, Maria Lorna E. Morta, Lilet P. Nang, Karen Ann M. Naraja, Vicenta B. Naz, Alexandra M. Nicolas, Gerardo D. Obcena, Danilo M. Olarte, Belinda E. Oligario, Filipina G. Oligario, Joselito V. Oliveros, Althea R. Ortaliz, Haydee N. Osiana, Abraham F. Osiana, Emilia M. Osit, Preciosa C. Pabalan, Rosalina B. Pacanza, Rebecca O. Padilla, Maria Fides J. Padrinao, Clemencia H. Pagulong, Carmela O.

Pamittan, Alma P. Pamplona, Dominga S. Panes, Josephine P. Panlilio,Teresita L. Paragas, Roberto B. Paras, Frederick L. Parba, Raquel P. Parial, Leonora C. Pascua, Gerry A. Pascual, Antonia H. Paual, Rene S. Pelagio, Gina P. Peralta, Hermogena R. Perez, Ma. Lourdes M. Perez, Ma. Susana G. Perol, Jose Adrian Roger S. Pertierra, Josefina E. Pilapil, Roberto D. Pinga, Araceli B. Pinga, Edward E. Ponce, James Arsenio O. Ponio, Allan A. Pulgar, Lucienne S. Quite, Norberto S. Racimo, Aida Radam, Mary Sobel D. Ramos, Celestina G. Ramos, Jesusa L. Ranara, Ma.Lourdes G.

Reca単a, Myrell Angela M. Refil, Catherine E. Regachuelo, Julie D. Regalado, Rosario R. Repotente, Liza B. Resuello, Jerry G. Retero, Edilberto M. Retoma, Maria Rosario C. Reveche, Ergene I. Reveche, Raquel V. Reyes, Erlinda C. Reyes, Leonora M. Reyes, Ricardo A. Reynacido, Purita R. Rigonan, Gloria C. Rivera, Angel S. Rivera, Dulcie Rivera, Sulpicio M. Rodriguez, Alvin York R. Rojas, Agnes U. Roldan, Rosvale C. Romen, Dominador J. Romen, Vivencia G. Romero, Florida M. Ronquillo, Bernadette M. Roque, Domingo Jr. G. Roque, Imelda M. Rosacay, Virgilio L. Rosales, Lita M.

Rosario, Editha Y. Rualo-Bello, Ma. Patricia P. Rubio, Roldan A. Ruiz, Jeremiah S. Sadio, Rosemarie J. Salacup, Castor F. Salayog, Monica Editha L. Salazar, Bernardita T. Salcedo, Zenaida P. Salinda, Ma. Rowena G. Saloma, Cherry C. Saludsong, Rowena G. San Juan, Herminia Fe B. Sanchez, Milagrosa V. Sanidad, Delia P. Sanidad, Napoleon C. Santiago, Nilda A. Santos, Angelica S. Santos, Edgardo Jr. P. Santos, Ma. Luisa E. Santos, Saturnina H. Sapunto, Leo Wishly C. Sarvida, Josephine P. Sarvida, Vicente B. Sarvida, Virgilio B. Sasi, Florence A. Sazon, Mauro Jr. Selva, Wilfredo S. Serrano, Catherine B.

Serrano, Susana R. Servado,Theresa R. Sevilla, Lorenza G. Sevillano, Ma. Victoria C. Sineneng, Maria Luisa G. Soriano, Nelia S. Suan, Maribel R. Sumatra, Geraldine, S. Sumatra, Joey G. Su単ga, Ricky P. Tabago, Jocelyn F. Tabayoyong, Estrella Jona B. Tabut, Glenda Martha F. Tacata, Reynante U. Taduran, Glenn Joy B. Tagudin, Anania D. Taguinod, Gloria V. Tam, Maria Celestina M. Tambaoan, Jonathan T. Tano, Ronie J. Tapel, Gerardo D. Tapel, Ma.Victoria S. Tenorio, Lenie A. Tiaga, Elmer T. Tierra, Nereo T. Timbas, Maria Leonora C. Timbas, Resty S. Tonogbanua, Angelita D. Torio, Rollo D.

Tribiana, Ofelia E. Trinidad, Annie M. Tuazon, Homer Ulang, Karen M. Urgena, Vivian E. Valdez, Carolina T. Valdez, Onofre V. Valencia, Hernane G. Valenzuela, Ruth R. Valle, Andrew P. Valley, Daniel M. Vargas, Joselyn C. Vasquez, Ma. Malena Vasquez, Maria Laurena M. Vasquez, Rowena M. Velarde, Gina V. Velez, Aiza L. Victoria, Valentino J. Villanueva, Charito Q. Villareal, Leomides R. Villa-Venancio, Fraulien M. Villaverde, Loreto B. Viola, Felicisima M. Visitacion, Mydee V. Yu, Robert Anthony P. Zacate, Ma. Cynthia A. Zamora, Luzviminda C. Zapata, Gloria J. Zoleta, Maria Concepcion G.

Members Retired/Resigned from DAR Abad Santos, Carlos Bernardo O. Agdeppa, Ines Liberty M. Aldover, Lynne M. Alecha, Lorelei C. Antonio, Janice S. Apostol, Genara G. Aquino, Edwin B. Bagro, Susan Laarni Benosa, Maria Lourdes B. Bolina, Jaime B. Borre, Mary Edralin P. Bueno, Rodolfo Bernardo M. Bumatay, Norberto N. Cabue単os, Tomas Jr. A. Carranza, Lory P.

Castillo, Angelito G. Castillo, Monina G. Cielo, Wilma M. Corpus, Florencia B. Cosca, Amelia Dalawis, Reynaldo M. David, Ruth C. Daypuyat, Teodora V. De Paz, Belinda A. Dela Torre, Rosa I. Esmade, Araceli C. Estero, Rosalina G. Fabricante, Marissa N. Faigao, Marnie C. Farrales, Joseph, S.

Fran, Julieta C. Gabalfin, Razhel A. Gamboa, Ricardo J. Gonzales, Joan DC. Guerrero, George G. Gutierrez, Arlene, Q. Habel, Milagros C. Heredia, Mary Luvie E. Jawali, Erlinda B. Lagao, Felicisimo G. Lanas, Aracelli Landicho, Teresita P. Lat, Elizabeth R. Leonin, Digna M. Macalino, Emilio I.

Manluctao, Erlinda M. Manulat, Flordelina C. Mariano, Marichu L. Marzo, Marissa M Mirasol, Lily K. Montines, Karla Venice R. Moran, Arlene P. Nery, Lucila H. Ngalatan, Juaymah DR. Nicomedes, Romeo L. Oquendo, Josefina Pacho, Charito Eden G. Pacquing, Ma Teresa R. Pebrada, Marnie O. Penson, Leny A.

Planta, Josephine A. Pulmano, Estela P. Quijano, Flora L. Ramos, Antonio P. Ramos, Liwliwa R. Respicio, Corazon C. Reyes, Cristita B. Reyes, Lorenzo R. Ringor, Rogelia D. Rodriguez, Erlinda M. Romines, Herminio T. Royo, Erlinda D. Saculles, Charen Beryl T. Salvo, Erlindo P. Sambilay, Celsa A.

Sario, Alma R. Silvano, Lolita A. Soliva, Jose Somogat, Remegio O. Sucuangco, Frederick B. Tan, Jarrid Paul J. Torralba, Priscila Evelyn M. Valentino, Ernesto C. Vargas, Nenita Wella A. Villegas, Susana P. Vinoya, Thelma Yazon, Perla C. Ylagan, Jonathan D. Ylagan, Neriza G.

53

In memoriam Milagros J.Abaya Ofelia Abdon Jocelyn M. Abiog- Anolin Nestor T. Ambalina Jacinto Baccay Lerma M. Barte Sally N. Barte Ernesto O. Buhayan Eduardo Beltejar (DARMPC Officer) Jaime C. Cansino Maximiano C. Cruz

Percy C. De Guzman Luzviminda B.Fonacier Ida Gaa Nelson G. Genito Benjamin V. Guilles, Herald C. Hamto (DARMPC Officer) Romeo P.Jimenez Bonifacio P.Lagumbay Lorna G. Lim Jose C. Lizardo Severino T.Madronio (DAR Asst. Secretary)

Amparo Marcos Amiel S.Mercado Zenaida A.Micu Loreta A.Olaguer LydiaPatubo Erlyn Paual Teodosio Pernitez Jose Pervera Jr. Milani O.Ponce Debbie C. Quezon Elmore Racelis,

Roberto F. Racelis Clemente E. Rarela Ernesto O. Regacho Amador Roan Fe C. Romero Olivia O. Rubiales Delfin Samson Sr. (DAR Undersecretary) Ma. Isabel M. Sanchez Romeo L. Sanchez Romeo E.Sison Jr. Rufino S.Villegas 54

55

DEPARTMENT OF AGRARIAN REFORM MULTI-PURPOSE COOPERATIVE DAR Central Office Compound Elliptical Road, Diliman, Quezon City Telephone: 426-9339 darmpc@gmail.com

56