Monday, November 9, 2015
COC (CGS), ANYONE?
Good thing that this early (Nov. 5, 2015), CDA issued/uploaded its MC 2015-08, titled, "Guidelines Governing the Issuance of Certificate of Compliance (COC).
COC is now your Certificate of Good Standing (CGS).
Most of the cooperatives' fiscal year, jives with the calendar year, which ends on December 31. The financial and operational reports are made/adjusted around this period, in time for the mandatory holding of the cooperatives' annual General Assembly (GA).
The GA is mandated to be held within 120 days thereafter. Hence, the deadline of filing requests for COC/CGS is up to April 30, every year.
We are all aware of the importance of getting a COC. Among other things, co-ops need it, as one of the key documents in securing from BIR a Certificate of Tax Exemption (CTE), or maintaining the effectivity of a CTE already secured.
MC 2015-08 is important as it lays down/reiterates the mandatory reports to be completed/submitted by cooperatives. It also spells out how these should be presented to their GA. Yes, many are still in the dark that the Cooperative Annual Progress Report (CAPR) and the other reports (financial, etc.) that have been integrated into the CAPR, had to be first presented to in a certain manner, and be accepted by the co-op's GA.
However, some provisions of the MC picks my curiosity. It is assumed that rules are supposed to make compliance easier for all concerned.
One. The MC says that a co-op needs to submit "proof of compliance that all required reports for the preceding fiscal year had been submitted, or complete copies of such reports (2 copies).."
It just crossed my mind that CDA earlier required the encoding/submission by cooperatives of their CAPR via the internet. Assuming that, the CDA computers should "know" offhand, if a co-op had complied or not. So why this?
Also, a ground (stated in the MC) for the suspension or non-release of COC, is if there is "..an existing dispute on the legitimacy of leadership, as evidenced by a complaint, filed with CDA.."
Pardon me, but some mischievous, losing co-op candidate-officers, or disgruntled members might use/abuse this latter rule. This could adversely/severely affect the cooperative. I hope that we can revisit this provision.
So there. Co-ops, let's start preparing to comply with these, now. Your comments on these are welcome. (END).