Thursday, December 31, 2015

MORE 2016 REMINDERS





Happy New Year!!


Much as I wish 2016 would be a worry-free year for cooperatives, there are compliance issues that we need to be reminded of, as 2015 ended, and 2016 began.



PHIL. FINANCIAL REPORTING
FRAMEWORK FOR COOPERATIVES.



Starting 2016 and thereafter, the cooperative's Board of Directors, and the Audit Committee, as well as its external auditor, are required to ensure that the Audited Financial Statements (AFS) of the cooperative shall be fully-compliant with the Philippine Financial Reporting Framework for Cooperatives (PFRFC).



CDA Memo. Cir. 2015-06, provides that the cooperative shall have adopted PFRFC in its 2016 AFS, which shall be submitted to CDA in 2017.



The administrative sanctions are clear: for 1st non-compliance, the penalty is a written warning; 2nd violation, no Certificate of Compliance shall be issued; and on the 3rd, the cooperative's Certificate of Registration shall be revoked.



On the part of the external auditor, it shall be subject to the sanctions under Sec. 9, of CDA Memo. Cir. 2009-03.



MULTIPURPOSE CO-OP'S AMENDMENT
OF ARTICLES OF COOPERATION, BY-LAWS.



Many cooperatives are registered as multipurpose cooperatives.  In our co-op, we loaded in its purposes as many activities as we can, so that these will be covered by tax exemption, once we undertake such activities.  But for the longest time, many such activities remained not implemented.



It might be well to remind that CDA MC 2015-07 wishes to change this.  The Circular provides that any multipurpose cooperative, whose purpose indicated in its Articles of Cooperation and By-laws (ACBL) has not been undertaken after two (2) years from registration, said cooperative shall amend its ACBL to delete said purpose.



There was no specific sanction provided against non-compliance with this, but still, the same is a violation.



DEADLINE: REPORT OF MEDIATION
& CONCILIATION COMMITTEE (MCC)



The cooperative's MCC is required under CDA MC 2013-20 to file a semi-annual report to the CDA on co-op cases, within fifteen (15) days after end of every semester.  That means the deadline for the 2015 second semester report is on January 15, 2016.



ADDED REPORTS TO THE
GENERAL ASSEMBLY



Sec. 17, MC 2013-20 requires that the cooperative shall undertake an advocacy measure, including making a report on the status of the Conciliation-Mediation Program, in the cooperative's General Assembly meetings.



Furthermore, MC 2013-22 requires that reports to the General Assembly must include a) updates on the implementation of the cooperative's Gender Plans & Programs; and b) that the Social Performance Report of the cooperative to the CDA must include Gender and Development (GAD) accomplishments.



This assumes that the cooperative had adopted a GAD program in its Cooperative Development Plan, had formulated policies; provided a budget for this, etc.



Happy compliance !!  (END)



 



 

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