DARMPC 27th General Assembly

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Contents 3

Vision & Mission

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Values

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Messages

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Minutes of the 26th General Assembly

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Independent Auditor’s Report

29 Governance & Management Audit Report

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DARMPC Operational Plan 2018

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DARMPC Officers & Staff

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DARMPC Annual Report

Our Members’ Stories of Success

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

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About the cover DARMPC’s 27th General Assembly is a milestone in its mission of empowering DAR employees and their families by uplifting the quality of their lives.

List of DARMPC Members

Design, layout and editing

RICKY PARAS SUNGA

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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.

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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

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Message Office of the President of the Philippines COOPERATIVE DEVELOPMENT AUTHORITY

Warm cooperative greetings and congratulations to the officers, staff and members of the Department of Agrarian Reform MultiPurpose Cooperative (DARMPC) on your 27th General Assembly and Election of New Officers.

Cooperativism has now come of age. The Cooperative Development Authority (CDA) is steadfast in advancing cooperativism, which DNA is members-owned (no one shall be left behind), value-based and principles driven (not for profits but for service) and sustainable (social inclusion, ecological sustainability and good governance).

The CDA is very grateful to have the DARMPC as one of the reliable partners of the authority in fulfilling its commitment to promote social justice and equity as well as in liberating those in the marginalized sectors into the mainstream of development process through cooperativism.

As you conquer another year of success with the theme: “Facing the New Decade with Confidence�, I am confident that you will be able to achieve more than what you have gained in the past years.

Subsequently, I encourage you to constantly look for possibilities and soar above the challenges to sustain the momentum of unfolding possibilities that will complement the programs of the government in transforming Filipino lives for the better.

Together, let us work hand in hand and be a standout team as countervailing force against poverty, hunger, insurgency and climate change.

ORLANDO R. RAVANERA Chairman 5

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

It’s an honor and privilege to be leading the Board of Directors of the DARMPC for its operations for Fiscal Year 2019–2020. In these most challenging times, I am fully aware of the responsibilities you have bestowed upon me.

DARMPC remains resilient and able to preserve its high morale despite the challenges we have encountered and surmounted for the past several years. While DARMPC had experienced financial struggle this year, we were able to surpass and generate significant increase of its targeted net surplus. These achievements do not come from one person, but through commitments and unified efforts of many.

With our theme “Facing the New Decade with Confidence.” DARMPC is poised to embark on another journey to achieve greater heights.

With profound gratitude, it is my great honor and pride to salute all the officers, management staff and the ever-supportive members of DARMPC in the celebration of our 27th General Assembly.

With the blessings and guidance of our Almighty God, and on behalf of the BODs and officers of DARMPC, I wish you all the best!

Mabuhay ang DARMPC!

(Sgd.) RHODELMELH D. LAGAYAN Chairperson, Board of Directors

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

Isang mapagpalang araw po sa ating lahat!

Sa pagdiriwang natin ng ika-27 General Assembly na may temang “Facing the New Decade with Confidence,” lubos ang aking pananalig na sa lahat ng maaari nating pagdaanang unos at pagsubok ay nakatitiyak tayong handa na ang ating pinakamamahal na DARMPC upang abutin at lasapin ang tamis ng mga pinapangarap nating katayuan at tagumpay. Masasabi nating subok na at matibay ang pundasyong itinatag natin sa mahigit na dalawang dekada sa ating kooperatiba.

Ang maibalik sa 5% dividend sa taong ito ay isang sukatan na hindi maaaring pasubalian. Tayo nga ay patuloy na aani ng marami pang tagumpay at makapag-hahatid ng mas maiinam at karampatang serbisyo sa ating buong kasapian, gayon na rin sa lahat nang ating pinag-sisilbihan sa DAR. Batid nating lahat na hindi naging madali ang mga hamon na kapit-kamay nating hinarap at nilagpasan sa tulong at malasakit ng bawat isa sa atin.

Nais ko pong pasalamatan ang mga sumusunod: ang ating Canteen Staff na halos dugo at pawis na ang inilaan masiguro lamang na masarap at masustansya ang ihahain sa ating kantina sa araw-araw at sa bawat oras na kailangan natin sila; ang ating Lending Staff na patuloy na ginagawa ang lahat upang kaagad na matugunan ang ating agarang pangangailang pinansyal; ang ating General Manager at Supervisor na patuloy na inilalaan ang kanilang mga sarili upang kagyat na tugunan ang ating mga pangangailangan at hinaing; ang mga kapwa ko opisyales na hindi nag-dadalawang-isip na makaambag sa kagalingan ng pamamahala at pagtitiyak sa paglago ng ating kooperatiba; at higit sa lahat, ang bawat-isa sa ating mga kasapi na patuloy na nagtitiwala, tumatangkilik, nakikilahok at nagmamalasakit sa ating kooperatiba.

Patuloy po nating punuin ang mundo ng pag-ibig sa pamamagitan ng paggawa ng kabutihan at pag-tulong sa bawat isa na ma-ibsan ang krus na kailangan nating pasanin sa araw-araw nating paglalakbay sa pagtahak natin sa buhay na walang hanggan na siya rin namang misyon nang ating kooperatiba – “To help uplift the quality of life of the members”.

Kaya mga kasama at kapwa kasapi ng DARMPC, sa ika-27 General Assembly na ito, sama-sama nating talakayin at tulung-tulong na balangkasin at pagka-isahan ang mga programang ilalatag natin upang patuloy na masiguro ang isang maayos at tuwid na direksyon – kapitkamay nating tatahakin para sa mas maganda at masaganang hinaharap.

Muli, isang mapagpalayang araw po para sa ating lahat. Pagpalain tayo ng Poong Maykapal!

(Sgd.) ERGENE I. REVECHE Vice-Chairperson, Board of Directors and Chairperson, Education Committee

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General Assembly Minutes 28 March 2019 – 8:00 AM – 4:00 PM DAR Gymnasium/DAR Basement (Voting Area) OPENING PROGRAM The DARMPC Assembly with the theme “Sama-samang Talino at Lakas Tungo sa Maunlad at Matagumpay na Bukas” started at 9:15 AM with the DARMPC Prayer and Pledge led by Vice Chair Jacqueline Dacasin, followed by the singing of the national anthem led by Ms. Agnes Rojas, DARPMC Board Secretary.

Messages Chairperson Delia Baldovino Gabales acknowledged and welcomed all the members as well as invited guests in the 26th General Assembly. In her message, Chairperson Gabales highlighted DARMPC’s focus on uplifting the socio-economic status not only of DARMPC members but their families as well.

She stressed the crucial role that each member plays to collectively address challenges that confront the organization’s growth and development and enjoins everyone to have a more meaningful participation and engagement towards enhancing the cooperative’s strategies and policies as well as programs that are more responsive to the actual needs of the members.

Atty. Emily Padilla, Undersecretary for Support Services, gave an inspirational message to the DARMPC members and challenged DARMPC to grow bigger, bolder and better than the past. She encouraged all the 1,000 DAR employees at the DAR Central Office to join the cooperative and enjoy the various service/product offerings of the cooperative. She concluded her speech with the statement, “always make your performance greater than your applause, and always make your gratitude greater than your success”.

Director Primo Lara, DAR Administrative Service, extended his congratulations on DARMPC’s celebration of its 26th General Assembly. He shared that the cooperative has a significant impact on his life and expressed his full support in all DARMPC endeavors and milestones. He likewise challenged the officers, the management staff, as well as the members to recruit the 650 permanent DAR employees including the contracts of service (COS) to become members of DARMPC. Atty. Eric Robles, CDA representative, emphasized the vital role of CDA in cooperative development.

He shared that there are opportunities that cooperatives like DARMPC can access from various sources such as the government. He highlighted that the bigger the number of members, the bigger the capital that can be generated from the members that can be utilized as capitalization for more diversified and responsive services/product offerings. He challenged the DARMPC to create new programs/services that provide larger profits while mindful of good governance and leadership.

Ms. Aida dela Cruz, representative from the Office of the Quezon City Mayor delivered the Mayor’s key message extending his congratulations to the DARMPC on its 26th General Assembly.

GENERAL ASSEMBLY PROPER Proof of Notice The Board Secretary, Ms. Rojas informed the body that all members were duly notified on the holding of the 26th GA through posting of streamers at the DAR main gate and in conspicuous designated posting areas in all floors in the main building, bulletin boards in all DAR buildings. Likewise, the notice was likewise posted on the DARMPC Facebook (FB) page several weeks before the activity was held.

Declaration of Quorum At exactly 9:00 am, with the presence and registration of 199 members representing 49% of the total 408 regular members, the Secretary declared the presence of a quorum, consistent with the DARMPC bylaws which states that 25% of the members constitutes a quorum.

Call to Order Having established a quorum, the 26th General Assembly was called to order by the Chairperson Gabales.

The reading of the GA Procedures (House Rules) and voting procedures during the election was briefly presented and explained by the assigned Facilitator, Ms. Ines Codia. She reminded the body that the said GA procedures which are consistent with the DARMPC By Laws, are also contained in the magazine that was distributed prior to the meeting.

Approval of the Minutes of the 25th (2018) General Assembly (GA) and Special General Assembly (SGA) Prior to the reading of the highlights of the minutes of the 25th GA and SGA held last 27 March 2018 and 21 December 2018, respectively, the Secretary informed the body that both minutes are contained on the 26th DARMPC magazine which were distributed in advance. On motion of Mr. Regente Dioneda, duly seconded by Ms. Erlinda Reyes, the reading of the minutes of the 25th GA and SGA was dispensed with to give more time for the discussion of the key agenda that need more extensively. It was further agreed that any comments on the minutes be forwarded to the Secretary. Otherwise, the minutes shall be deemed approved.

Matters Arising from the Minutes of the Previous Meeting Vice-Chair Dacasin presented the matters arising from the previous meetings, as follows: 1) On the Celebration of the DARMPC Foundation/Anniversary every 12th day of August, the first celebration was done on 13 August where the Car Raffle Project was undertaken as a highlight of the celebration; 2) On the Enhanced/Expanded DARMPC Savings Policy (t cover both borrowing and non-borrowing members), Resolution No. 458, Series of 2019 has been approved by the Board where a maintaining balance of at least PhP1,000.00, earns an interest rate of 1.25% and is not mandatory; and 3) On the need to fix the processing fee for loans, Resolution No. 0458 series of 2019 provides that the processing fee for all types of loans is fixed at PhP50.00.

General Manager’s Report 2018 Status of Performance

Ms. Aiza Velez, DARMPC General Manager. presented the status of 2018 DARMPC operations vis-àvis the CY2018 Operations Plan, anchored on the DARMPC 2018-2022 Strategic Plan. Her presentation focused on the DARMPC performance for the year based on the four (4) Perspectives of the DARMPC Balanced Scorecard, namely: a) Member/Customer Satisfaction, Retention and Impact; b) Financial Profitability, Stability and Liquidity; c) Internal Business Processes (Processes, Manuals, Products and Service Delivery); d) Organizational Capacity (Human Capital and IT System). She highlighted that significant accomplishments at 100 percent accomplishment were along the areas of membership recruitment, member patronizing/participating in coop services/activities, financial structures such as deposits, review of product, and completion of manual of operations of various services of the coop. In terms of members participating on savings, and accessing loans, an 80% accomplishment was achieved while DARMPC’s performance on developing new products and thereby increasing net surplus remains to be a challenge with about 50% accomplishment.

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2019 Proposed Operations Plan Furthermore, on DARMPC CY 2019 Operations Plan which reflected a total of PhP23.13 million budget was presented, consistently anchored on the DARMPC Strategic Plan’s Scorecard. Below is the summary breakdown of the budget per perspective:  Member-Customer Satisfaction Perspective – PhP.622  Financial Perspective – PhP21.89 M  Internal Business Processes – PhP.70  Capacity Development – PhP.540 Highlighted in the presentation was the financial perspective which constitutes the bulk of the budgetary requirement as it is where the capitalization for all the services and products and over-all operations of the DARMPC shall be drawn. After the presentation, some clarifications on the process of formulating the plan cropped up and the Chair expounded that the CY2019 Oplan is anchored and did not digress from the defined DARMPC Strategic Plan while taking cognizant of the CY2018 performance as basis for crafting the current year’s proposed plan. She reminded the body that the process of approval of the said plan as defined in the DARMPC bylaws is through the General Assembly. Deviations on the defined organizational processes would entail amendment of the bylaws . Having clarified the processes and on motion of Ms.Gloria Almazan, seconded by Mr. Wilfredo Selva, the DARMPC CY2019 OPLAN was approved by the body.

Awards and Recognition to Bonafide Members in Good Standing BOD Lita Rosales presented and discussed the DARMPC policy on the Annual Members Awards and Recognition Program which is envisioned to be institutionalized within DARMPC in order to recognize deserving MIGS members who have significantly contributed to the growth and development of DARMPC. She highlighted the five (5) categories which include the following: (a) Members with highest annual increment on savings (Top 5); (b) Members in with highest annual increment on capital build -up (CBU) (Top 2 -will be given a special award – a token will be given); (c) Members patronizing the canteen services with at least Php25,000.00 accumulated amount (Top 5); (d) Members patronizing the lending services with at least Php25,000.00 (Top 5); (e) Institutions/offices patronizing the canteen services (Top 3). The winners in every category were given with cash prizes deposited in their savings account, and for institution/office, a food token will be provided.

The DARMPC identification numbers of the deserving members in the various categories were announced by General Manager Aiza Velez and informed the body that the corresponding amounts shall be credited to the respective share capital of the winning members.

Claimant

Carmencita M. Diaz

Amount One Time Payment Five Year Payment (Php) (Php)* 1,200,000.00 2,321,364.16

Emma A. Cabigting Nita T. Samaniego Atty’s Fee Total

1,200,000.00 1,200,000.00 400,000.00 4,000,000.00

Difference (Php)

1,121,364.16

2,043,351.09 2,077,218.56 644,193.38 7,086,127.19

843,351.09 877,218.56 244,193.38 3,086,127.19

made accountable for their decisions to avoid the same mistakes in the future.

After all concerns were properly responded to, and on motion of Ms. Gloria Almazan duly seconded by Ms. Editha Salayog, the adoption of Option 1 (one-time payment) was approved by the body.

PRESENTATION OF CANDIDATES Mr. Roberto Evangelista, Chair of the Election Committee presented the Candidates vying for the following positions in the CY 2019 DARMPC Election: Board of Directors, Members of the Election Committee, and Audit Committee. He informed the body that the election shall be held at 1:00-4:00 PM at the basement.

Candidates for CY 2019 DARMPC Officers were presented thereafter. Of the 408 voters, 284 or 70% (inclusive of advance voters) exercised their right to vote from 1:00 P.M. to 3:00 P.M. at the DAR Basement (first floor). Below is the result of the election.

Election Committee Board of Directors

Reveche, Ergene I. Limbo, Ruel C Lagayan, Rhodelmelh D. Pamittan, Alma P. Gadrinab, Francis B. Selva, Wilfredo S. Santos, Edgardo P., Jr.

Audit Committee

160 121 108 105 97 75 50

Amadar, Jimmy A. Valdez, Onofre V. Reyes, Ricardo A. Valdez, Carolina T. Bilog, Ma. Rowena B.

157 143 136 130 77

Presentation of the Case Updates on the DARMPC vs. Diaz, Samaniego & Cabigting BOD Abdon Owens Cabatu provided updates on the case filed by the three (3) dismissed litigants. She informed the body that the NLRC computation covering the period, 2003 to 2013 is already PhP4.4 million. Utilizing the same basis for computing the additional period from 2014 to 2019, the DARMPC shall pay an estimated amount of PhP8 million, including 10% Attorney’s fees. To date, seven meetings have been conducted with the legal counsel of the litigants with the end in view of negotiating for a winwin solution through amicable settlement. The litigants are inclined to a one-time settlement of PhP1.2 million each or a total of about PhP3.6 million, exclusive of attorney’s fees amounting to some PhP400,000.00.

Manzano, Elvie Z. Malonzo, Froilan D.

BOD Rhodelmelh Lagayan likewise presented the opportunity cost estimates of payments to be incurred based on two options: one time payment and 5-year payment, (See Table).

Prepared by:

Attested by:

(Sgd.) AGNES U. ROJAS Board Secretary

(Sgd.) DELIA BALDOVINO-GABALES Chairperson, Board of Directors

BOD Lagayan emphasized that in option 1 - one-time payment, DARMPC can save the amount of Php2.6 million. After the presentation, clarifications from the body ensued i.e. where to source out the fund for the payments, how can we ensure that DARMPC will not incur net losses, among others. BOD Lita Rosales explained that the Reserve Fund can be utilized for the legal settlement and Chair Gabales assured the body that appropriate strategies shall be adopted by DARMPC to ensure that DARMPC shall continue to operate sustainably. Atty Althea Oliveros cautioned that DARMPC officials should be

250 240

ADJOURNMENT There being no other matters to be discussed, the 26th General Assembly was adjourned at 12:30 P.M., and the election of new officers was conducted at 1:00 P.M.

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DARMPC Annual Report BOARD OF DIRECTORS

1. Resolution Strengthening the Catering Services under the Imprest System.

The Board of Directors (BODs) is responsible for the strategic and development planning, direction-setting and policy formulation of the cooperative to ensure compliance or adherence to government regulations under the law. Its major activities and accomplishment for FY 20192020 are the following:

2. Resolution authorizing the transfer of funds under the following accounts of the DARMPC: Trust Fund account to Loaning Fund; Development Bank of the Philippines (DBP) account to new catering fund account and reserved fund account to loaning fund account

 Financial Stability and Growth:

3. Resolution No. 0458 re: Enhanced Members savings product policy and procedure.

1. Resolution granting authority of Petty Cash Custodian in the amount of Thirty Thousand Pesos (Php 30, 000.00) under the Imprest System 2. Resolution approving the proper recognition and recording of prior year adjustment in relation to litigation expense incurred by DARMPC 3. Resolution authorizing the transfer of funds from the Land Bank of the Philippines (LBP) savings account for canteen services to a new separate savings account for catering service under the account of the Department DARMPC

 Member-Customer Satisfaction, Retention and Impact: 1. Resolution amending Resolution No. 0464, series of 2019 granting authority to officers of DARMPC to transact business with LBP-Quezon City Circle branch in compliance to the e-banking and WeAccess facility requirements.

2. Resolution approving the enhanced cooperative Mutual Benefit Assistance (MBA) to all qualified DARMPC members.

3. Resolution granting the 2019 Pamaskong Regalo package for active members of DARMPC according to annual tradition and practice.

4. Resolution approving the implementation of Government Service Insurance System (GSIS) Financial Assistance Loan (GFAL) II to all qualified DARMPC members.

5. Resolution approving the Annual Awards and Recognition Program of DARMPC for 27th General Assembly 6. Resolution on the distribution of Dividends and Patronage Refunds for 2019 DARMPC operation 7. Resolution approving the advisory: Measures for the prevention of infection and control of 2019 Novel Corona Virus (N-Cov Virus) otherwise known as the Severe Acute Respiratory Syndrome CoranaVirus-2 (SARS-Cov-2)

 Internal Business Process:

4. Resolution No. 0447 re: Resolution approving the DARMPC Revised lending policies

 Organizational Capacity: 1. Resolution authorizing BOD Abdon Owens B. Cabatu as the principal representative and Election Committee Chairperson Roberto B. Evangelista as an alternate representative to represent DARMPC Board in the National Labor Relations Commission (NLRC) hearing.

2. DARMPC 2020 Handbook on Personnel Code of Conduct and Discipline.

3. DARMPC 2020 Handbook on Personnel Policies and Benefits.

AUDIT COMMITTEE The Audit Committee is responsible for monitoring the adequacy and defectiveness 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 and items delivered as to quantity and specifications. The Committee likewise monitored the daily sales from canteen operations and lending services (regular and on–the-spot cash count). It has also evaluated the ageing of accounts receivables (per loan window), recommended to the Board the replacement of ABACUS accounting system, audited the process of purchase and replenishment of kitchen utensils, office supplies, inventoried canteen and office equipment.

As to the DARMPC’s compliance with CDA requirements for CY2019, 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 the DARMPC By-Laws.

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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 fourth 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 28 March 2019 , following the Annual GA, a total of 284 voters or 69.6% (inclusive of 34 advanced voters), out of 408 members in good standing (MiGS), casted their ballots/votes without any issues. The Election Chairperson, Mr. Roberto Evangelista, supervised the conduct of the election at the DARMPC Conference Room. He was assisted by two (2) Precinct Election Assistants, three (3) IT Personnel from CISP, and one (1) support staff.

To keep abreast of developments in the cooperative sector, members of the ELECOM have participated in seminars and training courses related to cooperativism.

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 exercised general supervision over all loan applications and collections. Under this function, the committee evaluated and acted loan applications and withdrawals of share capital, broken down as follows: payroll deduction; direct payment scheme; post-dated check issuance scheme; payroll deduction (DARMPC Staff); and Contract of Service (COS).

The Committee reviewed existing lending policies and processes for enhancement and revision to improve collection efficiency and ensure fiscal strength of DARMPC. Related to this, it Recommended for the reduction of long-term payment from five (5) years to a maximum of three (3) years; for Provident Loan from five (5) years to a maximum of three (3) years; loans below PHP 20,000, maximum of one (1) year; and loans more than PHP 20,000.00 for a maximum of two (2) years. It also recommended that all application fees for loans should be fixed at PHP 50.00 and the service fee lowered from 1.5% to 1% for all loan windows.

In its review of financial documents, the Committee summarized and analyzed the ageing of receivables as of December 2019. Furthermore, it recommended the writing off of the loans of six (6) deceased members of the DARMPC. These members passed away during the time that the loans provided by DARMPC were not covered by loan insurance. Hence, loans of the deceased members could only be paid out of the value of their estate. If they do not have enough assets or there are no more available means by which to collect the loan, then it is recommended that the loans will be written off.

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 training courses, planning sessions and seminars.

For this reporting period, the Committee has conducted and managed the following In-House Trainings/Learning Events: two (2) batches of Pre-Membership Education Seminars (PMES) for prospective members in DAR MIMAROPA as well as DAR Central Office; 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 training courses, namely, Parliamentary Procedure Training/Workshop for the Officers, Staff and Members of DARMPC Among the Committee’s other major accomplishments include facilitating the following capacity development initiatives: Financial Literacy for DARMPC members, Cooperative Management and Governance, and Values Formation. It has spearheaded the preparation of the 27th annual GA magazine and facilitation of the conduct of regular GA. 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 was instrumental in settling the dispute between DARMPC employees. For capacity building and to keep itself updated on developments on mediation and conciliation, members of the committee have attended seminars related to their functions as well as participated in training on dispute settlement.

In relation to the DARMPC case that was decided by the Supreme Court of the Philippines, the chairperson of the Committee was part of the team that negotiated with the former DARMPC employees in determining the amount of payment to be awarded.

ETHICS AND GRIEVANCE COMMITTEE 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 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 conduct orientation for the Management Staff on the following: Code of Conduct & Good Governance; Personnel Policies; Personnel Benefits; and Ethical Standards. This was done in collaboration with the Education Committee, Mediation and Conciliation Committee and the General Manager.

As regards manualization of policies, the Committee spearheaded the printing of manuals and pamphlets related to these topics. With respect to the capacity building for the Committee itself, Members of the committee have been able to attend trainings and seminars related to Ethics and Grievance handling. As regards its contribution to policy development, the Committee spearheaded the crafting of policies on the increase monthly allowance of staff and the development of the handbooks on personnel policy and benefits as well as the code of conduct and discipline. The Committee was also instrumental in the crafting of the resolution on the advisory for the prevention of infection and control of the 2019 Novel Corona Virus .

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General Manager’s Report GM Aiza Velez As we enter a new decade, let us look back at the previous year at what your cooperative has accomplished.

In 2019, we have partnered with Land Bank of the Philippines (LBP) in the installation of Landbank We-Access facility for checking and monitoring of DARMPC accounts. Furthermore, this partnership with LBP also had an added feature which will prove beneficial to our members. Loan proceeds from DARMPC could now be accessed through LBP’s Auto-Credit Facility. This means that our members do not need to fall in line to encash the checks issued by DARMPC. The loans will now be credited straight to their LBP accounts.

Through our partnership with the National Confederation of Cooperatives (NATCCO), our cooperative has also availed of the Enhanced Mutual Benefit Assistance and Damayan to provide financial support to our members and their dependents in the form of death and sickness benefits, provident savings, and loan redemption assistance.

As we face considerable challenges related to health during this time, we would like to announce that we have been able to negotiate with Carehealth Plus Medical Insurance for a Family Package. This service is for our members who have selected Carehealth Plus Medical Insurance as their health service provider via the auspices of DARMPC. We hope that through this medical insurance, our members would be able to weather the issues related to accessing health care, such as rising cost of hospitalization, periodic medical checkups and medicine.

With regard to our status as a cooperative, we have complied with the mandatory requirements of the Cooperative Development Authority to ensure that we are operating optimally as an organization. These requirements include the Cooperative Annual Performance Report (CAPR) and the Certificate of Compliance (COC).

As a business entity, our cooperative has also complied promptly with the following: Fire Safety Inspection; Locational Clearance; Business Permit; Health and Sanitation; and employees’ annual physical examination. With the Bureau of Internal Revenue (BIR), we have remitted the monthly income taxes withheld from our DARMPC staff. We have also ensured that the benefits due to our staff and out employees, such as Social Security System premium, PAGIBIG, PhilHealth Insurance, are remitted monthly.

We know that the new decade will bring in more challenges. But we are confident that through our collective efforts we will surmount them and come out even stronger. Mabuhay DARMPC!

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Treasurer’s Report Ms. El-Alma Calingasan

As we hold our 27th General Assembly, let me provide a brief report on the cooperative’s financial standing for 2019.

Based on our consolidated reports, the total assets of

DARMPC as of CY 2019 now amount to PHP 47.409 million, while its total liabilities amount to PHP 11.608 million. The cooperative’s total members’ equity and statutory reserves, on the other hand, account for PHP 35.801 million.

I have therefore included the box on the right to illustrate the financial ratios on liquidity, profitability and solvency. Let me explain what these ratios could mean for

FINANCIAL HIGHLIGHTS TOTAL ASSETS

47,409,728.77

TOTAL LIABILITIES

11,608,535.64

TOTAL MEMBERS' EQUITY AND STATUTORY RESERVES

35,801,193.13

SELECTED FINANCIAL RATIOS:

our cooperative’s long-term operations..

For items under liquidity, the quick asset ratio indicates the extent to which a

LIQUIDITY

cooperative could pay current debt without relying on future income. Quick assets are 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.

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 oth-

QUICK ASSET RATIO

CURRENT RATIO

er relevant costs that it incurred during a specific period of time. Net income margin is 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, 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 long-term obligations.

Allow me to congratulate the officers, members and staff of DARMPC for the successful operations we had in 2019. May God continue to strengthen our cooperative as it confidently faces the new decade.

Mabuhay ang DARMPC!

43,813,336.19

Current Liabilities

5,401,520.91

Current Assets

43,994,813.93

Current Liabilities

5,401,520.91

Net Surplus Before Allocation

3,601,835.76

Gross Revenue

9,092,058.45

8.11 8.14

PROFITABILITY NET INCOME MARGIN

Based on these selected financial ratios as well as the other financial reports that I have read, I want to assure our members that DARMPC has remained a stable, viable and profitable cooperative that addresses the needs of its hundreds of members..

Cash + Receivables

40%

SOLVENCY LIABILITIES TO TOTAL ASSETS

Total Liabilities

9,810,627.83

Total Assets

11,608,535.64

85% 13

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, 2019 and 2018, 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, 2019 and 2018, 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.

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 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.

MA. ANELIA M. DE LOS REYES CPA Reg. No. 0058213 June 5, 1984-August 27, 2020 Tax Identification No. 151-744-585-000 PTR No. 2216432 January 3, 2020 Paranaque City CDA CEA No. 0727 Quezon City April 15, 2018 to April, 2021 BIR Accreditation No. 08-000813-001-2018 March 15, 2018 to March, 2021

January 22, 2020 Paranaque City

14

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, 2019, on which I have rendered my report dated January 21, 2019.

In connection with my examination of the financial statements of DAR MULTI-PURPOSE COOPERATIVE covering the period ended December 31, 2019 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, 2019 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.

MA. ANELIA M. DE LOS REYES CPA Reg. No. 0058213 June 5, 1984-August 27, 2020 Tax Identification No. 151-744-585-000 PTR No. 2216432 January 3, 2020 Paranaque City BOA Accreditation. No. 0944 May 12, 2017 valid until May 12, 2020 CDA CEA No. 0727 Quezon City April 15, 2018 to April, 2021 BIR Accreditation No. 08-000813-001-2018 March 15, 2018 to March, 2021 January 22, 2020, Paranaque City

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.

MA. ANELIA M. DE LOS REYES CPA Reg. No. 0058213 June 5, 1984-August 27, 2020 Tax Identification No. 151-744-585-000 PTR No. 2216432 January 3, 2020 Paranaque City BOA Accreditation. No. 0944 May 12, 2017 valid until May 12, 2020 CDA CEA No. 0727 Quezon City April 15, 2018 to April, 2021 BIR Accreditation No. 08-000813-001-2018 March 15, 2018 to March, 2021 January 22, 2020, Paranaque City

15

Statements of Financial Condition Notes

A S S E T S Current Assets: Cash and Cash Equivalents Loans and Receivables-Net Inventories

5

2019

P

6

Total Current Assets Non-Current Assets: Investments Property, Plant and Equipment-Net Other Non-Current Assets Total Non-Current Assets TOTAL ASSETS L I A B I LI T I E S AND E Q U I T Y LIABILITIES Current Liabilities: Deposit Liabilities Accounts and Other Payables Accrued Expenses Other Current Liabilities Total Current Liabilities Non-Current Liabilities: Retirement Fund Payable Other Non-Current Liabilities Total Non-Current Liabilities TOTAL LIABILITIES EQUITY Paid-up Share Capital Statutory Funds TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

7 8 9

P

10

P

11 12 13,22

24

14,22

15 16,22

P

3,045,733.82 40,767,602.37 181,477.74

2018

P

13,154,994.98 36,751,805.14 182,303.60

43,994,813.93

50,089,103.72

239,586.35 418,150.11 2,757,178.38 3,414,914.84 47,409,728.77

239,586.35 289,165.34 1,648,063.27 2,176,814.96 52,265,918.68

1,886,584.44 651,045.46 71,391.20 2,792,499.81 5,401,520.91

P

P

2,120,580.11 650,958.38 129,628.72 1,128,129.67 4,029,296.88

301,603.26 5,905,411.47 6,207,014.73 11,608,535.64

110,773.94 8,271,398.71 8,382,172.65 12,411,469.53

33,897,672.07 1,903,521.06 35,801,193.13

37,242,864.36 2,611,584.79 39,854,449.15

47,409,728.77

P

52,265,918.68

16

Statements of Operations Notes

2019

2018

REVENUES Income from Credit Operation

17

P

Income from Canteen Operation

18

3,442,498.11

2,302,044.95

Income(Loss) Raffle

19

-

(354,380.17)

8,531,850.21

6,213,897.50

560,208.24

455,345.63

9,092,058.45

6,669,243.13

26,307.22

28,197.71

5,463,915.47

4,645,940.74

5,490,222.69

4,674,138.45

TOTAL GROSS REVENUES FROM OPERATION ADD: OTHER INCOME

20

TOTAL GROSS REVENUES

5,089,352.10

P

4,266,232.72

LESS: EXPENSES Financing Costs

Administrative Costs

21

TOTAL EXPENSES 22

P

3,601,835.76

P

1,995,104.68

Reserve fund

22a

P

360,183.58

P

199,510.47

Education and Training Fund (Local)

22b

180,091.79

99,755.23

Due to Union/Federation

22b

180,091.79

99,755.23

Optional Fund

22d

252,128.50

139,657.33

Community Development Fund

22c

108,055.07

59,853.14

Interest on Share Capital Payable

22e

1,764,899.52

837,943.97

Patronage Refunds Payable

22e

756,385.51

558,629.31

NET SURPLUS (FOR ALLOCATION)

ALLOCATION

TOTAL

P

3,601,835.76

P

1,995,104.68

17

Statements of Cash Flows 2019

Notes Cash Flows from Operating Activities: Net Surplus for the Year

P

3,601,835.76

2018

P

1,995,104.68

Adjustments to Reconcile Net Surplus to Net Cash Provided by Operating Activities: Depreciation Provision for Probable Losses

123,201.20 90,000.00

8,21

Retirement Benefit Expense Changes in Assets and Liabilities

338,808.80 -

190,829.32

(Increase)Decrease in: Loans and Receivables

6

Inventories Other Current Assets Increase(Decrease) in: Accounts and Other Payable

(4,105,797.23)

(5,075,623.73)

825.86 -

(13,596.53) 795,600.00

87.08

568,303.11

12 13,22

(58,237.52) (99,755.23) (257,010.76)

(326,611.03) (70,225.88) (1,788,240.58)

9 8,21 7

(1,109,115.11) (252,185.97) (1,361,301.08)

(1,127,584.68) (335,928.54) 250,094.75 (1,213,418.47)

Deposits Liabilities Interest on Share Capital Payable

10 13,22

(233,995.67) (378,622.14)

286,540.61 (1,623,894.79)

Patronage Refunds Payable Non-Current Liabilities

13,22

(558,629.31) (2,365,987.24)

(786,529.87) 3,056,931.04

15 16,22

(3,345,192.29) (1,608,522.67) (8,490,949.32)

2,634,657.91 (398,353.30) 3,169,351.60

(10,109,261.16) 13,154,994.98 3,045,733.82

167,692.55 12,987,302.43 13,154,994.98

Accrued Expenses Due to Union/Federation(CETF) Net Cash Used/Provided by Operating Activities

11

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

Paid-up Share Capital Statutory Funds Net Cash Provided by Financing Activities NET DECREASE IN CASH CASH AND CASH EQUIVALENTS, January 01 CASH AND CASH EQUIVALENTS, December 31

5

P

P

18

Statements of Changes in Equity 2019

Notes EQUITY PAID-UP SHARE CAPITAL

2018

15

Balance at beginning of year Net transactions during the year Balance at end of year

P

42,409,600.44 (3,345,192.29) 39,064,408.15

P

39,467,540.74 2,942,059.70 42,409,600.44

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

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

1,903,069.32

199,510.47 2,102,579.79

99,755.23 (99,755.23) 180,091.79 180,091.79

64,109.18 (64,109.18) 99,755.23 99,755.23

303,669.81 (278,000.56) 252,128.50 277,797.75

498,256.60 (334,244.12) 139,657.33 303,669.81

105,579.96 (24,841.40) 108,055.07 188,793.63 1,903,521.06 35,801,193.13

45,726.82 59,853.14 105,579.96 2,611,584.79 39,854,449.15

16,22d

Balance at beginning of year Net transaction during the year Distributed surplus during the year Balance at end of year Community Development Fund

2,102,579.79 (1,205,925.48) 360,183.58 1,256,837.89 16,22b

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

4,859,334.29 307,401.79 5,166,736.08 37,242,864.36

16,22 16,22a

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

5,166,736.08 5,166,736.08 33,897,672.07

16,22c

P

P

19

Notes to Financial Statement As of December 31, 2019 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.

The Cooperative is a duly registered taxpayer of 07-RDO-38 under Tax Identification No. 218898-156-000, secured its Certificate of Tax Exemption with the Bureau of Internal Revenue on October 30, 2018 and shall be valid for five (5) years or until October 30, 2023. 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 May 9, 2019 and shall be valid and effective until April 30, 2020.

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

Provides framework of financial statements presentation. It requires more specific balance sheet 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 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).

PAS 19/IAS 19- Employee Benefits

To facilitate the understanding of the financial statements, the more significant accounting policies and practices of the Cooperative are summarized as follows:

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).

Basis of Preparation/Partial Adoption of New/Revised Philippine Accounting Standards

PAS 24—Related Party Transactions

The Cooperative financial statements have been prepared in conformity with Financial Reporting Standards applicable to the Philippine cooperatives

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.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 32,39PAS 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

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.

20

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-

21

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 bylaws

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

22

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 states 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 have 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.

23

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: 2019 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

P

2018

909,098.19 P

955,046.98

60,140.06 (644,856.58) 765,062.18 469,287.35

5,231,105.00 464,417.46 717,605.33 1,035,443.01

Acct. No. 0702-1037-97 (CETF)

351,098.48

349,814.24

Acct. No. 0701-0467-49

365,674.85

566,844.56

Acct. No. 0455-036619-030

249,893.87

3,372,718.40

59,623.28

30,000.00

Petty Cash Fund Savings Withdrawal Fund

55,500.00

75,000.00

Cash Agad Fund

200,212.14

250,000.00

Catering Fund

200,000.00

100,000.00

5,000.00

5,000.00

-

2,000.00

Change Fund-Canteen Change Fund-GPRS Total

P

3,045,733.82 P

13,154,994.98

24

6.

LOANS AND RECEIVABLES

2019

This account consists of the following:

2019 Aging of Loans: Current Past Due- 1-30 days Past Due- 1-12 mos.

Over 1 year Total Loans 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 Raffle Ticket 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 Health Card Processing Fee Other Receivables Rice CHITS and DAR Receivable from Accountable Off. and Emp. Due to DAR Cashier Loan Payroll Deduction - DAR cashier Cash Advances - Education and Training Cash Advances - Lending and Canteen Total Other Receivables Net Loans and Receivables

P

P

P

P

2018

37,564,582.96 93,632.56 1,442,131.60 4,476,294.09 43,576,641.21

P

23,863,549.62 148,130.07 3,654,398.06 2,533,315.73 360,951.01 92,023.42 1,511,597.33 75,075.16 130,484.37 71,254.50 1,174,952.12 1,268,495.44 6,621.70 151,870.51 26,925.86 999.00 35,070,643.90 8,216,557.30 989,158.44 44,276,359.64 (9,220,037.92) (1,000,000.00) 34,056,321.72

P

60,481.25 880.00 50,515.12 16,083.31 3,951,122.61 1,362,256.69 37,107.79 1,277,885.93 (45,052.05) 6,711,280.65 40,767,602.37

P

P

29,788,091.88 230,877.04 3,178,388.43 4,772,445.13 37,969,802.48

20,875,049.86 112,052.69 3,870,129.95 2,124,348.26 310,678.84 92,023.42 1,136,626.24 75,075.16 130,484.37 71,254.50 1,040,875.02 1,042,007.97 6,621.70 151,870.51 26,925.86 115,044.04 31,181,068.39 6,740,124.37 790,434.76 38,711,627.52 (7,755,827.07) (910,000.00) 30,045,800.45

2018

Loan Balances Per Book

44,276,359.64

38,711,627.52

Per Subsidiaries

43,576,641.21

37,969,802.48

699,718.43

741,825.04

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

8.

537,517.46

1,193,242.91

4,476,294.09

4,772,445.13

5,013,811.55

5,965,688.04

(1,000,000.00)

(910,000.00)

4,013,811.55

5,055,688.04

2019 139,586.35 P 100,000.00 239,586.35 P

2018 139,586.35 100,000.00 239,586.35

INVESTMENTS

This account consists of the following:

Metro South NATCCO Total

P

P

62,148.45 50,515.12 16,083.31 3,727,132.32 1,362,256.69 37,107.79 1,097,029.45 300,961.20 52,770.36 6,706,004.69 36,751,805.14

25

8.

PROPERTY, PLANT AND EQUIPMENT

11.

This account consists of the following:

This account consists of the following: 2019

Furnitures, Fixtures and Equipment-Lending

P

Less: Accumulated Depreciation

2018

612,453.50 P

591,453.50

(581,453.50)

(581,453.50)

497,631.30

480,842.30

(474,284.23)

(470,842.20)

22,600.03

22,600.03

Less: Accumulated Depreciation

(22,600.03)

(22,600.03)

Transport Equipment

629,970.00

609,000.00

(561,545.81)

(559,000.00)

616,541.08

563,279.51

(519,252.54)

(512,930.76)

64,004.00

37,660.00

(25,510.07)

(2,688.89)

Furnitures, Fixtures and Equipment-Canteen Less: Accumulated Depreciation Furnitures, Fixtures and Equipment-GPRS

Less: Accumulated Depreciation Kitchen Equipment Less: Accumulated Depreciation Office Equipment Less: Accumulated Depreciation Improvements - Canteen

84,183.75

58,432.75

Less: Accumulated Depreciation

(19,477.56)

(19,477.56)

Improvements - Lending

118,612.75

118,612.75

Less: Accumulated Depreciation

(23,722.56)

(23,722.56)

418,150.11 P

289,165.34

Net Property, Plant and Equipment 9.

P

OTHER NON-CURRENT ASSETS

10.

Loan insurance Payable - CISP

P

Other Payables Total 12.

P

SSS, Pag-ibig, Philhealth Payable

71,938.45

651,045.46

650,958.38

P

Accrued Expense Payable Total 13.

P

2018 42,256.21

56,329.03

29,134.99

73,299.69

71,391.20

129,628.72

OTHER CURRENT LIABILITIES

This account consists of the following:

2019 Due to Union/Federation

1,134,309.33

1,128,473.84

This account consists of the following:

P

50,000.00 6,090.76 1,251,202.61 2,757,178.38

P

50,000.00 9,136.00 70,352.59 1,648,063.27

P P

2019 1,886,584.44 1,886,584.44

P P

2018 2,120,580.11 2,120,580.11

This account consists of the following:

579,019.93

71,938.45

2019

14.

P

579,107.01

This account consists of the following:

2018 475,126.00 (85,025.16)

P

2018

ACCRUED EXPENSES

P

Patronage Refunds Payable 2019 485,626.00 (170,050.32)

DEPOSIT LIABILITIES

Savings Deposit Total

2019

Interest on Share Capital Payable

This account consists of the following: Computerization Costs Less: Accumulated Depreciation OF&D -Acct. No. 0702-1038-00-(SAGRF) Other Assets - Meralco Sub-Meter Other Assets - CCTV (Raffle) Deferred Debit Total

ACCOUNTS AND OTHER PAYABLES

Total

P

2018

271,714.77

191,378.21

1,764,399.52

378,122.14

756,385.52

558,629.32

2,792,499.81

1,128,129.67

OTHER NON-CURRENT LIABILITIES

Loan Protection Fund Members' Mutual Benefit Payable Damayan Fund Committee Fund Provisions for Contingencies Deferred Credits(Banks) Total

P

P

2019 947,067.43 3,333,286.26 1,169,492.28 5,565.50 450,000.00 5,905,411.47

2018 947,067.43 3,059,569.13 1,058,117.95 450,000.00 2,756,644.20 8,271,398.71

As per BOD Resolution No.0475-S2019 during a special BOD meeting dated June 17, 2019, stated that the litigation expense paid during the year amounting to Two Million Five Hundred Thousand Pesos was charged to deferred credits.

26

15.

19.

PAID-UP SHARE CAPITAL

This account consists of the following:

This account consists of the following: 2019

2018

Authorized Share Capital 250,000 shares 50,000,000.00

50,000,000.00

Common Shares of 187,500@200 per share

@Php200.00 par value

37,500,000.00

37,500,000.00

Preferred Shares of 62,500@200 per share

12,500,000.00

12,500,000.00

Subscribed Shares

32,107,871.00

32,107,871.00

Paid-up Share Capital-Common

P

Paid-up Share Capital-Preferred Total Less: Treasury Shares Capital-Common Net Paid-up Share Capital

16.

P

37,174,043.04 P

41,115,975.33

1,889,865.11

1,293,625.11

39,063,908.15

42,409,600.44

(5,166,736.08)

(5,166,736.08)

33,897,172.07 P

37,242,864.36

STATUTORY FUNDS

This account consists of the following: 2019 Reserve Fund

P

1,256,837.89 P

2018 2,102,579.79

Education and Training Fund(Local)

180,091.79

99,755.23

Optional Funds

277,797.75

303,669.81

Community Development Fund Total 17.

INCOME FROM CANTEEN OPERATION

188,793.63 P

1,903,521.06 P

105,579.96 2,611,584.79

2019 SALES Less: Cost of Sales: Inventory Beginning Add: Purchases

16,185,395.38 P

2018 13,678,746.06

182,303.60 9,732,422.04

168,707.07 8,719,935.14

Total Goods Available for Sale Less: Inventory, End

9,914,725.64 181,477.74

8,888,642.21 182,303.60

Cost Of Sales GROSS SURPLUS ON SALES

9,733,247.90 6,452,147.48

8,706,338.61 4,972,407.45

OPERATING EXPENSES: Salaries and Wages Employees' Benefit Expense SSS/ECC/Pag-ibig and Philhealth Cont.

Office Supplies Travel and Transportation Insurance Repairs and Maintenance Contracted Services Representation Kitchen cleaning supplies Kitchen fuel expense Kitchen utensils expense Depreciation and Amortization Miscellaneous Expenses

1,787,754.64 456,081.58 158,983.77 39,893.25 31,102.00 12,493.25 23,711.51 18,000.00 (140.00) 468,750.56 9,763.81 3,255.00

1,653,270.10 389,367.69 149,833.40 45,664.20 15,915.00 3,207.00 7,628.75 9,138.00 28,383.95 236,913.91 22,757.15 104,347.35 3,936.00

3,009,649.37 3,442,498.11 P

2,670,362.50 2,302,044.95

Total Operating Expenses Income from Canteen Operation

INCOME FROM CREDIT OPERATION

P

P

This account consists of the following:

20.

2019 Interest Income from Loans

P

4,190,172.50 P

2018

325,242.58

261,909.78

Filing Fees

25,100.00

21,790.00

Fines, Penalties, Surcharges

436,186.32

264,545.00

Pre-Termination Fee

112,650.70

127,984.58

P

5,089,352.10 P

This account consists of the following:

3,590,003.36

Service Fees

Total

OTHER INCOME

4,266,232.72

Membership Fees Income/Interest from Deposit/Investments Income on Other Business Ventures - Rental Income on Other Business Ventures Income from E-Loading

P

Miscellaneous Income

Total

P

2019 6,100.00 P 5,448.85 13,170.40 8,345.00

2018 7,300.00 9,632.84 329,200.00 5,781.80 573.00

527,143.99

102,857.99

560,208.24 P

455,345.63

27

21.

This is used for projects or activities that will benefit the community where the cooperative operates.

ADMINISTRATIVE COSTS

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

P

2019

2018

1,386,544.87 P 496,174.18

1,095,104.50 396,094.75

SSS/Philhealth and Pag-ibig Contribution

125,368.74

94,083.35

Retirement Benefit Expense

190,829.32

-

Trainings/Seminars

814,399.86

-

Office Supplies

60,165.00

74,735.00

Travel and Transportation

37,320.00

65,814.50

Gas, Oil and Lubricants

22,391.00

32,900.00

Power, Light and Water

310,699.00

292,016.00

Insurance

18,293.38

23,780.88

Repairs and Maintenance

24,828.50

9,168.00

Collection Expense

42,000.00

37,000.00

8,496.04

39,619.49

Professional Fees

39,000.00

37,000.00

Communication

53,277.62

46,986.06

Representation

88,046.67

97,070.73

470,504.00

333,423.00

1,001,578.42

1,438,967.26

1,871.50

-

Contracted Services

-

45,633.88

Social Services

-

72,385.41

Bank Charges

24,114.23

-

Bad Debts / Provision for Probable Losses

90,000.00

-

Donation Expenses Members' Benefit Expenses

36,000.00

520.00 -

113,437.39

338,808.80

8,575.75

74,829.13

Taxes, Fees and Charges

General Assembly Expenses Meetings and Conferences

Litigation Expense

Depreciation Miscellaneous Expenses Total

22.

P

5,463,915.47 P

23.

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.

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

2.

Taxable Sales amounting to Exempt Receipts Itemized Deductions-Disbursement amounting to

Php 9,092,058.45 Php 5,490,222.69

Local Taxes Business Permit and other taxes

Php 8,496.04

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. a. The cooperative has no deficiency tax assessment as of December 31, 2019. b. The Cooperative has no tax case, litigation and/or prosecution in courts or bodies o u t side the BIR. 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.

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:

b.

e.

1.

ALLOCATION AND DISTRIBUTION OF NET SURPLUS

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.

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

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.

4,645,940.74

a.

d.

b. Other Employees Benefits: Sick Leave/Vacation Leave13th Month Pay 13th Month Pay 26.

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).

Community Development Fund – this is computed at 3% of cooperative’s net surplus.

28

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.

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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

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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

       

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

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DARMPC Operational Plan

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DARMPC Operational Plan

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Our DARMPC Officers and Staff

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Board of Directors

ERGENE I. REVECHE Vice-Chairperson

ABDON OWENS B. CABATU

DELIA B. GABALES

JACQUELINE D. DACASIN RHODELMELH D. LAGAYAN

Chairperson

LITA M. ROSALES

RUEL C. LIMBO

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AUDIT COMMITTEE

Cooperative Committees

JIMMY A. AMADAR

ONOFRE V. VALDEZ

RICARDO A. REYES

Chairperson

ELECTION COMMITTEE

ELVIE S. MANZANO

ROBERTO B. EVANGELISTA

FROILAN D. MALONZO

Chairperson

CREDIT & COLLECTION COMMITTEE

CAROLINA T. VALDEZ

LINA B. ESPINAS

JOSELITO V. OLIGARIO

Chairperson

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EDUCATION & TRAINING COMMITTEE

NEREO T. TIERRA

ROWENA M. VASQUEZ

RICKY P. SUNGA

ETHICS COMMITTEE

MEDIATION & CONCILIATION COMMITTEE

JAZIRA M. ISMAEL Chairperson

EL-ALMA G. CALINGASAN Treasurer

JALILAH M. GURO Chairperson

JOSEPHINE P. SARVIDA Secretary

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AIZA L. VELEZ General Manager

Our DARMPC Staff 37

CANTEEN & CATERING SERVICES

ELMA E. ESTARAS Cashier

LUZ G. COLOQUIO Counter Crew

ARLENE S. CANDO Admin Supervisor

JUANITO C. DASOK Cook

SAVINGS & LENDING SERVICES

JOCELYN N. DIABORDO Inventory Clerk

GLORIA V. CUENCA Cook

CARMEN C. LOPEZ Cook MARY JANE R. GUERRA Cashier

KRISTINE ANTONETTE SESALIM Loan Account Officer

ZENIDO N. COLOQUIO Counter Crew

JON A. USON Bookkeeper

ROGELIO R. GACAD Bus Boy

RENE S. PAUAL Bus Boy

REA LYNN P. BARRERA Accounting Clerk/ Liaison Staff

ARON E. NATINO Computer Programmer

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39

Our Members’ Stories of Success Rowena G. Salinda

LUZ & PETER COLOQUIO

Those challenges are now behind them.

DARMPC Canteen Services

Luz is now proud to announce that their daughters are professionals, one is an architect while the other is a B.S. Mathematics and Computer Science graduate. Luz is also proud of the fact that she was able to send to school her nieces and nephews in the province .

A regular site at the canteen, the husband-and-wife team of Peter and Luz Coloquio have been working at DARMPC and serving its clients since 1986. Only after 10 years did they become members of the cooperative when both became regular employees of DARMPC. In their life together, Luz and Peter have been blessed with two lovely daughters. When their daughters were still in grade school, Luz and Peter invested in a pre-need educational plan which they intended to use to support the college education of their daughters. Once their daughters reached college, proceeds from the plan took care of their tuition fee. But only for two years. Midway through college, the pre-need company from which they relied on folded and ceased operations, leaving them and their daughters in the lurch.

With no cash available to support their children’s college studies, Luz applied for a loan at DARMPC. Luz now recalls that they needed the money not only to pay for their children’s education but also to spend for their daily needs.

“(Luz) will continue to encourage and guide people to join DARMPC by sharing her experience as both an

Luz says “Nang magpaaral na kami sa college, naging taga “London” (loan dito, loan doon) na kami. Kaya palitan kami ni Peter sa pag-loan kada semester para sa aming mga anak. “

Back in 2009, Luz and her family were one of the victims of typhoon employee and member. “ Ondoy Floodwaters washed away most of their furniture and personal belongings. On top of that, Peter was momentarily infected with leptospirosis. Luz recalls that DARMPC gave her and Peter one (1) sack of rice each and helped them resume with their lives.

Luz maintains that DARMPC has been behind her family through the years. She feels that aside from working at DARMPC and being a member, she is also a part owner of the cooperative, and has benefited from both those statuses.

No wonder Luz cherishes and is protective of DARMPC. She continues to encourage people to join DARMPC, sharing her experience as both employee and member, including the benefits which had a positive impact in her life. Indeed, Luz, Peter and their family are shining examples of the impact of DARMPC’s contribution to the lives of its members.

ARIEL GARCIA General Services Division “My children are now professionals through the help of DARMPC.” Ariel Garcia, one of the drivers assigned at the Motorpool-General Services Division (GSD) says when asked about DARMPC. He recalls that it was in 1992 that he was invited by a colleague to join DARMPC and he has been a member since.

His initial P5,000.00 capital has now grown considerably.

Ariel remembers that his first application was for a Provident Loan. When his children went to high school, he also availed himself of the various loan windows (Cash Agad and Educational Loan) offered by DARMPC. Once his children entered college, Ariel took out loans from DARMPC because the cooperative was the only place he depended on when he needed immediate cash for his children’s needs. He notes that although the tuition fee of his children have already been paid in full through their educational plans from the GSIS, he still needed additional cash for their daily allowance, accommodation and school projects.

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Ariel is proud to say that his eldest son is now a graduate of B.S. Marine Engineering while the youngest is a B.S. Criminology graduate. Career-wise, the eldest is now a soldier and the youngest is a police officer.

the daily expenses of their family, including the school expenses of their sons. This was the start of a long and enduring relationship with DARMPC. “Dodi notes that DARMPC

But he notes that his responsibilities did not stop with being a father. Being the eldest in a brood of ten (10) and living in the same compound with his parents, Ariel is also the one who takes care of them. His mother is currently confined in the hospital (as of this interview) and his father has been bedridden for six years now. This is the reason why he still renews his loans at DARMPC, the proceeds of which he uses to buy medicine and support the needs of his parents.

“My children are now

Dodi now recalls that one of his biggest challenges was the time he had already availed of all the loan windows of DARMPC but he was still in need of cash for an urgent family need.

The cooperative however helped him qualify for that loan even if he had reached the maximum amount that he could borrow. He was only asked to issue a waiver for his loan application to be approved.

With this in mind, he encourages othprofessionals through the help of ers to check on how DARMPC has DARMPC.” - Ariel Garcia helped its members. Ariel notes that “as a member, you have an investment in the cooperative and at the same time you benefit if it prospers. Aside from earning dividends from the share capital, we also receive a patronage refund from patronizing the cooperative’s services, such as when we buy our meals at the canteen or when we avail of the loans offered. Family members can also claim death benefit on behalf of a deceased DARMPC member.”

Ariel maintains that he will continue in supporting DARMPC’s goals to improve the lives of its members. He believes that no matter the stumbling blocks, the cooperative will always be remain standing. In parting, Ariel believes that DARMPC is changing lives in ways that most of its successful members cannot even begin to imagine.

DOMINADOR ROMEN Agrarian Reform Capacity Development Service Dominador Romen, or “Dodi” as he is fondly called by coworkers, is married to Ms. Vivencia “Vivian” Romen of the Internal Audit Division (IAD) and blessed with two (2) sons. Dodi and Vivian are both members in good standing (MIGS) of the DARMPC. Having been a member of DARMPC for 21 years, Dodi recalls that he first heard of DARMPC from his colleagues. He was told that to become a member, he must contribute at least PHP 5,000.00 as share capital. If a prospective member cannot afford it, he can start by contributing an initial P1,000.00 until he has fully paid that amount. Dodi took this to heart and became a member soon after.

He remembers that when he applied for his first loan, Dodi and his wife Vivian used the proceeds to pay part of the tuition fee of their sons while they used the rest the amount for their daily needs. Being rank-and-file employees, their salaries were sometimes insufficient to cover

helped him and his wife sustain the education of his children ... He is proud that one of his sons graduated

magna cum laude.”

Dodi adds that he could not even pay the loan through salary deduction and had to pay it through over-the-counter means. Missing a couple of payments, his loan incurred a penalty. Yet he soldiered on. As of now, he can pay his loans on time and he is hopeful that he will be able to settle all in due course.

Looking back, Dodi notes that DARMPC helped him and his wife sustain the education of his children until they finished college. He is proud that one of his sons graduated magna cum laude from San Sebastian College-Recoletos. He believes that with the grace of God, his sons became professionals. The eldest, now married, works at the Department of Agriculture (DA) while the youngest is employed at Sykes Asia.

Dodi maintains that DARMPC has helped him and his wife Vivian to fulfill their dreams for their children, which was to finish school. He believes that whatever success they may have reached is not just theirs, but it is the Cooperative’s as well.

Because of what the cooperative did for them, Dodi says that he will continue to support DARMPC so that it will continue to help other members who are struggling financially, especially those who are sending their children to school, just like they once did. He concludes that being a member of the DARMPC will surely prove to be a blessing to other members—as it has once been to his family.

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DARMPC Regular Members Abad, Vitaliano Jr. T. Abalos, Guia S. Abante, Jonie P. Abatay, Andrea Rosario S. Abillar, Jeanette S. Acedillo, Leah M. Afable, Ma. Celerina Agbada, Arnold G. Agliam, Emma Concepcion D. Alejo, Florence O. Ali, Alexander Alimmundin J. Almazan, Gloria P. Alobba, Ramon M. Alvarez, Benilda D. Alvarez, Cenaflor D. Alvarez, Philip D. Amadar, Jimmy A. Aman, Ma. Cleofe M. Amatonding, Jamil Jr. Ancheta, Gregoria E. Ancheta, Marlene S. Ancheta, Sonia F. Ang, Aurita C. Ang, Johnny R. Ang, Jonathan R. Angeles, Marisse C. Anis, Marisol S. Antiporda, Florante Jr. D Apolinar, Reynolito P. Apostol, Bobby Arcaina, Resurrecion E. Artificio, Marites P. Arzaga, Nenette Novelline I. Asas, Clarita F. Austria, Catalina T. Azcuna, Erwin L. Babida, Emmanuel Babida, Remelyn A. Baccay, Marissa Arlene B. Bacuyag, Jener Urfindo C. Balagot, Sharon Terrie Balcita, Marites P. Baldevia, Jose A. Balleras, Elizer A. Balmaceda, Janelle Dela Cruz Baltazar, Carol Christine Bardillon, Ricardo Jr. U.

Basilio, Girlie Ann T. Bastasa, Dinah Florella F. Batalla, Belinda O. Baui, Nilda P. Bautista, Dinah G. Baybayon, Lolita C. Bejar, Gloria E. Bello, Edgardo T. Bernabe, Agnes V. Bernabe-Falucho, Regina II Bicera, Leonor M. Bidaure, Marivic S. Bilog, Ma. Rowena B. Braganza, Susan S. Bravo, Amalia S. Briones, Gonzalo Bueno, Cornelia B. Bulanon, Lilibeth F. Bulanon, Monette F. Bulayungan, Laurence A. Bumatay, Norberto Bunyi, Cynthia R. Buo, Ford Bustamante-Mendoza, Agnes Cabanes, Jimmy G. Cabanes, Ma. Elena C. Cabatu, Abdon Owens B. Cabrera, Roselle O. Cacananta, Carlito S. Calaca, Acmad N. Calbitaza, Eduardo L. Calica, Elsa M. Calingasan, El-Alma G. Calleja, Ma. Concepcion F. Caluag, Olivia S. Caluya, Leonides A. Campued, Jake C. Caranza, Lory Carillo, Loida B. Carolino, Estrella C. Casica, Marinelia Castro, Salvador Jr. V. Catacutan, Ma. Cielo C. Catibayan, Myrah Ester M. Cayaban, Marlon D. Cellona, Blesilda F. Codia, Ines L.

Coleto, Jim G. Colocar, Rene E. Colon, Lea Corbilla, Anne M. Corpuz, Corazon S. Cristobal, Milagros Isabel A. Cruz, Baltazar T. Cruz, Helen C. Cruz, Lourdes V. Cuarteros, Garland Leila A. Cuerdo, Ma. Joy P. Dacasin, Jacqueline D. Dagdag, Ma. Cristina C. Dalangin, Jeffrey P. Dalisay, Marie Ann P. Damasco, Elizabeth F. Damole-Canales, Letecia Dasoy, Raymond Augustus C. David, Ma. Angela S. David, Richard C. Dayao, Henrito Jr. C. Dayao, Joana C. De Francia, Cecille De Paz, Felvie De Paz, Henry M. De Paz, Ma. Victoria S. De Silva, Felix C. Dela Cruz, Cecilia F. Dela Cruz, Gina T. Dela Cruz, Zaida C. Delas Alas, Samuel J. Delgado, Maria Theresa B. Delos Reyes, Ma. Christina C. Diana, Dinan Lyn B. Dimailig, Joycelyn V. Dimalanta, Julieta I. Dioneda, Regente D. Dionisio, Othello D. Domingo, Amor SB Domingo, Conchita M. Domagas, Gracia Fe Duavis, Leonora B. Dubongco, James Arthur B. Ducay, Erlinda T. Dulay, Sarah S. Edon, Yolanda Enciso, Shiela

Enriquez, Estrella Espanol, Vida R. Espinas, Anna Liza T. Espinas, Corazon M. Espinas, Lina B. Esteban, Ma. Elizabeth D. Estrada, Isabelita Falar, Ma. Estralita C. Falcon, Fe Lezzie A. Fallaria, Emmanuel M. Farinas, Elmo A. Faustino, Ma. Elizabeth R. Fausto, Aj Cristy Ian J. Felix, Marilou E. Fernandez, Joel Floresta, Ferdinand A. Floresta, Leila E. Foz, Anita A. Fresnido, Emily Purita P. Gabales, Delia B. Gabalfin, Adeliza F. Gacad, Lily B. Gadrinab, Annalie T. Gadrinab, Francis B. Gaffud, Virgilio S. Galang, Cristina M. Gallardo, Bernardo Jr. C. Gambalan, Ma. Susan S. Garcia, Ariel D. Garcia, Eugeneliza A. Garcia, Josephine E. Garcia, Ricardo C. Garingan, Julius Garrero, Zenaida M. Gealan, Walter V. Gleyo, Noel B. Golong, Efren A. Gonzales, Cristina Z. Gonzales, Dindo B. Gonzales, Marcelo Jr. E. Guro, Jalilah M. Gutierrez, Irene T. Gutierrez, Rodel SJ. Hebron, Chris Roland M. Hipolito, Cesar C. Hipolito, Henry B. Idlisan, Rolando P.

Igama, Cornelia A. Ingente, Bernardo, C. Ismael, Jazira M. Isurena, Nolita L. Juliano, Gloria M. Katigbak, Ester R. Labad, Gay L. Ladao, Leroy B. Ladera, Edna D. Lagan, Dante R. Lagayan, Rhodelmelh D. Laggui, Marissa C. Lagoy, Jose S. Landingin, Myrna J. Laplana, Ulysses J. Lara, Primo C. Laureta, Leodegario Layug, Ricardo Jr. M. Lee, Lilibeth G. Legaspi, Gloria A. Leones, Susana E. Leonin, Raul Libayan, Juanito G. Limbo, Ruel C. Linag, Cynthia M. Lizada, Lynnie V. Lomibao, Rosemarie S. Lopez, Anicia P. Lucero, Corazon Lucman, Annisah D. Macalalad, Lyn D. Macalincag, Norman C. Macasieb, Marizel O. Macob, Marc Anthony M. Maestro, Romelo G. Magabo, Danilo Magno, Liberty T. Malagayo, Bernabe Jr. L. Malagayo, Maricris G. Malinao, Ma. FE Malitan, Elizabeth T. Malonzo, Froilan D. Mambuay, Anita Mambuay, Faisar A. Manuel, Felipa Manzano, Elvie Manzano, Planario

Mata, Jaime D. Mata, Leticia M. Matias, Alfonso Jr. T. Mendoza, Luis Angelo M. Mingoa, Lourdes V. Montano, Marian F. Montero, Gerryza R. Montoya, Emelita D. Morales, Maria Lorna E. Morta, Lilet P. Naz, Alexandra M. Nicolas, Gerardo Obcena, Alberto M Obcena, Danilo M. Olarte, Benilda E. Oligario, Filipina G. Oligario, Joselito V. Oliveros, Althea R. Ortaliz, Haydee N. Ortega, Nenita S. Osiana, Abraham, F. Pabalan, Rosalina B. Pacanza, Rebecca O. Pacho, Charito Eden G. Padilla, Maria Fides J. Padrinao, Clemencia H. Pagulong, Carmela O. Pamittan, Alma P. Pandapatan, Lia Melcha M. Paragas, Roberto B. Paras, Frederick L. Parba, Raquel Parial, Leonora C. Pascua, Gerry A. Peralta, Hermogena R. Peralta, Ma. Soledad Peraz, Ma. Susana G. Perez, Ma. Lourdes M. Perol, Jose Adrian Roger S. Pinga, Araceli B. Pinga, Edward E. Ponce, James Arsenio O. Ponio, Allan A. Pulgar, Lucienne S. Quiambao, Mary Ann M. Quinola, Charlyne P. Radam, Mary Sobel D.

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DARMPC Regular Members Ramos, Celestina G. Ramos, Minerva D. Recaña, Myrell Angela M. Refil, Catherine E. 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.

Rivera, Angel S. 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 Rosales, Lita M. Rosario, Editha Y. Rualo-Bello, Ma. Patricia P.

Rubio, Maura P. Rubio, Roldan A. Sadio, Rosemarie Salacup, Castor F. Salazar, Bernardita T. Salinda, Ma. Rowena G. Saludsong, Rowena G. Sanchez, Milagrosa V. Sanidad, Napoleon C. Santiago, Adelaida S. Santiago, Nilda A. Santos, Angelica S. Santos, Edgardo Jr. P. Santos, Ma. Luisa E. Sario, Alma R.

Sarvida, Josephine P. Sarvida, Virgilio B. Sasi, Florence Sazon, Mauro Jr. A. 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.

Sunga, Ricky P. Tabago, Jocelyn F. Tabayoyong, Estrella Jona B. Tabut, Glenda Martha F. Tacata, Reynante U. Taguinod, Gloria V. Tam, Maria Celestina M. Tapel, Gerardo D. Tapel, Ma. Victoria S. Tenorio, Lenie A. Tiaga, Elmer T. Tierra, Estelita Tierra, Nereo T. Timbas, Resty S. Tonogbanua, Angelita D.

Torio, Rollo D. Trinidad, Annie M. Tuazon, Homer Urgena, Vivian E. Valdez, Onofre V. Valencia, Hernane G. Valenzuela, Ruth R. Valle, Andrew P. Valley, Daniel M. Vazquez, Rowena M. Velarde, Gina V. Victoria, Valentino J. Villanueva, Charito Q. Villareal, Leonides Villa-Venancio, Frauline M.

DARMPC Associate Members Abiog-Respicio, Julie M. Acsay-Reyes, Merla Afable, Francisco L. Agasang, Daniel Alejandro, Ava Rebecca Alejandro, Ma. Venida V. Alferez, Ester Aloria, Jhon Vanedolf Anolin, Jaira Evaina Marloji A. Antonio, Diana Rose T. Arro, Rhoda M. Bacalso, Lilia A. Balonzo, Flores C. Balonzo, Grace Bandal, Arden D. Baniaga, Eden B. Barandino, Alberto L. Barrantes, Dennis Nicolas Barrera, Rea Lynn P. Bergonia, Nilda C. Cabatu, Gwyneth Danielle Cabatu, Lorelie

Cahilig, Efren Calla, Mierandy R. Camacam, Rina C. Cando, Alrik Casaclang, Teresa Cataggatan, Socorro A. Cesar, Maria Edna S. Coloqio, Zenido N. Coloquio, Luz G. Cuaresma, Estelita M. Cuenca, Gloria Dalit, Edgar Sr. A. Dasok, Juanito C. Dayuday, Jay-Andrewson B. De Guzman, Evelyn De Guzman, Ramel De Guzman, Romeriza De paz, Benilda A. Delos Santos, Edmar A. Delos Santos, Michelle P. Diabordo, Jocelyn N. Dulay, Maria Rhodora V.

Egana, Denmar S. Enero, Melinda V. Enriquez, Allan Estras, Elma E. Falucho, Dovalier M. Farinas, Raquel S. Fernandez, Enrico Focbit, Lysevith C. Gabales, Anna Sophia Gacad, Rogelio R. Galabin, Gloria R. Galvan, Myrna L. Garcia, Jennifer Garcia, Mamerto I. Gonzales, Maria O. Guerra, Mary Jane R. Gurra, Maricel J. Gutierrez, Roger A. Hayahay, Leonilyn M. Hilario, Luz Ilagan, Amalia F. Inciso, Susana G.

Inocentes, Jacqueline Intela, Jade M. Jubac, Severina Jula, Bernievan Juzgaya, Arnel L. Lacap, Jeanny Ann Marie Lacson, Raginnie S. Lappay, Joana Grace A. Lardizabal, Cathyrine B. Lazarra, Evelyn B. Legson, Imelda Lopez, Carmen DC. Malitan, Ellaine Mallillin, Arnel Mallillin, Merced Manaog, Debbie S. Mari, Allyssa Anne G. Mariano, Lucimar S. Matalicia, Vergie Meñes, Maria Lourdes C. Millamina, Rizza A. Mirontos, Vivian

Monteiro, Manuel R. Natino, Aron E. Nazarrea, Genalyn Nicolas, Sarah Jane P. Oligario, Marl Paul Olores, Kim Q. Palenzuela, Arlene G. Pamonag, Roger A. Pangcoga, Monaliza P. Paual, Rene S. Pelagio, Gina P. Peña, Larnie Pilapil, Roberto D. Racimo, Aida Remasog, Rommel Reyes, Orlando R. Reynacido, Rachelle R. Reynacido, Rita R. Reynacido, Rizza R. Rivera, Dulcie Saculles, Charen Berlyn T. San Miguel, Marilyn A.

Seguirre, Fernando S. Selva, Romeo Serrano, Girlie Servado, David Carlos R. Sesalim, Kristine Antonette B. Soriaga, Laida May Soriano, Romeo Tamba, Jesery DS. Tamboan, Jonathan T. Tano, Ronie J. Timbas, Maria LeonoravC. Tolentino, Ronaldo V. Uson, Jon Jon A. Vargas, Joselyn C. Vasquez, Maria Laurena M. Velasquez, Lilibeth Velez, Aiza L.

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Members Retired/Resigned from DAR Abad Santos, Carlos Bernardo O. Abiog, Christine M. Abiog, Mary Jane Adina, Romana T. Agbayani, Rowena U. Agdeppa, Ines Liberty M. Aldover Lynne M. Alecha, Lorelei C. Alfiler, Emmanuel A. Ali, Jacqueline Jamillah J. Amoroso, Edgar B. Ancheta, Tita Antonio, Janice S. Apostol, Genara G. Aquino, Edwin B. Aragoncillo, Erlinda E. Balaoing, Jocelyn Banzuela, Jose Edgar Bayogos, Rhogel Benosa, Maria Lourdes B. Bistoyong, Rosalina L. Bolina, Jaime B. Bonilla, Violeta M. Borre, Mary Edralin P. Bueno, Rodolfo Bernardo

Cabacang, Aurora N. Cabuenos, Tomas Jr. A. Caminong, Katherine A. Cando, Arlene S. Cansanay, Consolacion C. Capistrano, Lucille G. Capitulo, Luzviminda Castanares, Araceli Castillo, Angelito G. Castillo, Monina G. Cendana, Luzviminda D. Cielo, Wilma M. Clemente, Olga M. Contreras, Merlie R. Cordero, Adela C. Corpus, Florencia David Ruth C. Daypuyat, Teodora De Ocampo, Reymart A. Del Socorro, Myrna O. Dela Cruz, Nenita A. Dela Cruz, Romeo Z. Dela Cruz, Virgilia I. Dela Torre, Rosa I. Dizon, Melinda B.

Domingo, Araceli C. Escarcha, Shirley E. Esmade, Araceli C. Evangelista, Robert B. Fabricante, Marissa N. Fabros, Marie Procelyn P. Faigao, Marnie Fornoles, Jean M. Fran, Julieta C. Gabalfin, Razhel Gamboa, Ricardo Gonzales, Joan DC. Guerrero, George G. Gutierrez, Arlene Habel, Junamil c.

Habel, Milagros C. Habon, Gedofredo S. Heredia, Mary Luvie E. Ilagan, Betty Ilagan, Blyth Jawali, Erlinda B. Lagao, Felicisimo G. Landicho, Teresita P. Lappay, Marnida A. Lat, Elizabeth

Laurena, Petronilla DR. Legado, Lydia Leonin, Digna M. Lisondra, Leo Lorenzo, Rosalinda P. Macalino, Emilio I. Magabo, Emelita Malonzo, Divinaflor R. Manahan, Nelia I. Maningas, Romeo C. Manulat, Flordelina C. Marzo, Marissa M. Mendoza, Perpetuo P. Mirasol, Lily K. Montines, Karla Venice Moran, Arlene P. Nery, Lucila Ngalatan, Juahmah DR. Oquendo, Josefina Ordono, Marvi M. Osiana, Emelia Pacquing, Ma. Teresa R. Pailden, Fleda A. Pamplona, Dominga S. Panes, Josephine

Panlilio, Teresita L. Pebrada, Marnie O. Penson, Leny A. Pertierra, Josefina Planta, Josephine Ponio, Zenaida S. Pulmano, Estela P. Quijano, Flora L. Quite, Norberto S. Ramos, Jesusa L. Ramos, Liwliwa R. Ranara, Ma. Lourdes G. Respicio, Corazon C. Reyes, Cristita B. Reyes, Lorenzo R. Rigonan, Gloria C. Ringor, Rogelia Rodriguez, Erlinda M. Romines, Herminio T. Royo, Erlinda Ruiz, Jeremiah S. Salayog, Monica Editha L. Saloma, Cherry C. Salvo, Erlindo P. Sanidad, Delia P.

Santos, Saturnina H. Sarvida, Vicente B. Silvano, Lolita A. Soliva, Jose Somogat, Remegio O. Sucuangco, Frederick B. Tagudin, Anania D. Tan, Jarrid Paul J. Torralba, Priscilia Evelyn M. Tribiana, Ofelia E. Valdez, Carolina T. Valentino, Ernesto C. Vargas, Nenita Wella A. Vasquez, Ma. Malena Villaverde, Loreto B. Villegas, Susana P. Vinoya, Thelma Viola, Felicisima M. Ylagan, Jonathan D. Ylagan, Neriza G. Zamora, Luzviminda Zapata, Gloria

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

Rosemarie Duma Percy C. De Guzman Luzviminda B.Fonacier Ida Gaa Mutya Genito 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 Perla Yazon 44

By Ferdinand Taniegra

Herbal Coffee Products

Home of the famous Ensaimada

By Virgilio Espinola Jr. 45

REGINA FELICIANO

Pastries

RAMEL DE GUZMAN

Fish and Vegetables Dealer

BLESALYN

BLESALYN

JENOLITE

PURIFIED WATER STATION BLOCK 10 Lot 16 Carnation St.

Capitol Park Homes II, Caloocan City Tel. 401-3497  351-7031  0917-829-9920

A FRANCHISE OF

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DEPARTMENT OF AGRARIAN REFORM MULTI-PURPOSE COOPERATIVE DAR Central Office Compound Elliptical Road, Diliman, Quezon City Telephone: 3426-9339 darmpc92@gmail.com Like us on Facebook: DARMPC

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