Talaytay Communal Irrigation System Multi Purpose Cooperative

Barangay Paleg, Dinalungan, Aurora 3206 CDA Registration No.: 9520 0300 7630 9/2/2012

A Business Plan for CY 2013 to 2015

Agricultural Input Trading

The Project involves the expansion of the input trading for corn and swine production implemented by the cooperative two years ago. These projects were funded through the Agribusiness and Agricultural Development Component of Agrarian Reform Infrastructure Support Project (ARISP) III and the Livelihood Enterprise and Agricultural Development Expansion (LEAD). ARISP III and LEAD infused P 250,000 and 75,000 respectively. Expansion of the project involves collective buying, lending and selling of farm inputs, increasing capital, project reach and improvement of storage facilities.

Prepared by:

Alan O. Ibale

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Table of Contents 1. Executive Summary 2. Business Description 2.1 Current Situation and Future Outlook 2.2 Mission 2.3 Vision 2.4 Business Objectives 2.5 Major Strategies 2.6 Key Officers 2.7 Technical Support 2.8 The Board of Directors 3. Marketing Aspects 3.1 Market Overview 3.2 Market Segment and Growth Potentials 3.3 Target market 3.4 Supply and Demand Analysis 3.5 Analysis of Competition 3.6 Product/Service Features 3.7 Raw Material Sourcing and Procurement Strategy 3.8 Production Strategy 3.9 Pricing Strategy 4. Operational Aspect 4.1 Supply of Raw Material 4.2 Production, Warehousing and Storage 4.3 Manpower 4.3.1 General Administration Policy 4.3.2 Manpower Requirement 4.3.3 Manpower Hiring Schedule 4.4 Project Timetable 5. Financial Aspect 5.1 Financial Performance of TCISMPC Income Statement Cash flow Statement Balance Sheet 5.2 Funds Sought and Usage 5.3 Financial and Economic Viability of the Project 6. Social and Economic Aspect 6.1 Business Risks 6.2 Project Timetable 7. Appendices

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1. Executive Summary The agricultural input trading of the Talaytay Communal Irrigation System Multi Purpose Cooperative (TCISMPC) started two years ago. In 2010, the cooperative was able to access agricultural loans from the Department of Agrarian Reform and Department of Agriculture. Through the Agribusiness and Agricultural Development (AAD) Component of the Agrarian Reform Infrastructure Support Project III, the cooperative was granted with P 250,000.00. This fund was used for corn production for three cropping seasons. The cooperative was also granted with P 75,000.00 from the Livelihood, Enterprise and Agricultural Development (LEAD). This fund was used to establish the swine production. After the successful production cycles, for both projects, the cooperative finally decided to consolidate the funds and improve the agro-enterprise model by expanding its capital base, project reach; improving storage facilities and engaging institutional markets in the province. The Agricultural Input Trading requires P 700,000, broken down as follows:
Fund source in Peso Purpose Revolving capital Admin expense Freight Expense Total Project Cost TCISMPC 300,000 49,500 349,500 Department of Agriculture 300,000 300,000 Agri Supply 49,500 49,500 Sub total P 600,000 49,500 49,500 P 700,000

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2. Business Description 2.1 The Cooperative and its Businesses TCISMPC is currently engaged in collective buying-and-selling, lending and retailing businesses. It procures farm inputs in bulk; lend them to farmers and collectively sell the produce to local market. It also provides emergency loan to its members. Finally, it operates a retail store, situated at Paleg, Dinalungan, Aurora that sells consumer goods to members and the community in general. The members receive patronage refund and interest on share capital derived from the operations of said businesses. A commissionbased store keeper manages the daily operation of the store. 2.2 Current Situation and Future Outlook Below is the internal and external environment that affects the Agricultural Input Trading in the ARC and in Dinalungan, Aurora.
Revolving capital is P 300,000 Increase in Net Surplus (P1,400 to P77,000) With regular storekeeper coop acquired a commercial lot With active BOD and management 4 Cluster coordinators act as loan officers Members continued patronage Less than 5% loan delinquency Borrowers are productive farmers Management & BOD have meets regularly Coop has segregated books of accounts With audited financial statements Coop has Vision, Mission, Goals Presence of operations manual Well trained BOD and Management staff Share capital is P 110,000 as of Dec 2012 DF, MARO, TAPI assist coop regularly Brgy Hall used as meeting/training venues DAR provides trainings on enterprise devt DA, LGUs, DTI, PCO, CDA extend support DAR AAD-ARISP III Presence of local funding agencies Presence of partner agricultural store/buyer Good road networks Cellular phone facilities in the ARC Presence of free port zone in Casiguran Local tourism is booming Presence of ASCOT campus Presence of irrigation, FMR and PWS Vast area for corn production Local technology on corn is matured Presence of a warehouse owned by LGU

Internal Weaknesses

The availability of financial resources from the funding agencies will help expand the agricultural trading project. The expertise of the TCISMPC management and Board of Directors in retailing and lending is another essential element in sustaining the proposed expansion. Agricultural infrastructures, communication and transport facilities will facilitate purchasing and storing of merchandises, consolidating of produce, and selling of consumer and agricultural goods. Local field personnel from DAR, DA, LGU, PCO, CDA, DTI and other stakeholders will ensure availability of technical assistance in managing a retailing business. With the current environment, the expansion of agricultural trading is inevitable and timely.

External Threats

Lack of capital to expand Coop has no office High cost of rent for coop store Limited space for storage Lack of fund for construction of store building

External Opportunities

Internal Strengths

Unfavorable weather conditions Competitors Loan usurers Middle men On and off supply of electricity`

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2.3 Mission TCISMPC provides lending, retailing, training, production, marketing and providential services for its shareholders. Ang Talaytay Communal Irrigation MPC ay isang pampinansyal na institusyon na pag-aari at pinamamahalaan ng mga magasasaka na may programa sa pagpapautang, pagtitinda, pagsasanay, pang-agrikulturang produksyon, pagsasapamilihan at probidensyal na serbisyo.

2.4 Vision TCISMPCs envisions a viable cooperative operated by shareholders with improved quality of life. Ang Talaytay Communal Irrigation MPC ay isang matatag na kooperatiba sa Dinalungan, Aurora, may kakayahang maghatid ng mga serbisyong pangkaunlaran at panlipunan, nangangalaga sa kalikasan at binubuo ng mga kasapi na may maunlad na kabuhayan.

2.5 Business Objectives The objectives of the Agricultural Input Trading are as follows: 1. Procure agricultural inputs in bulk worth P 600,000; 2. Dispose agricultural input to at least 60 cooperators; 3. Forge market agreement with 1 local agricultural supply store 4. Collect share retention 5. Collect savings retention 2.6 Major Strategies To ensure the effective implementation of the project the following strategies will be employed: 1. Forge market agreement with at least 1 local agricultural supply store. This agreement will cover supply, transport of agricultural inputs and bulk buying of corn; 2. Acquire loan or grant from funding agencies to augment the revolving capital of Agricultural Input Trading; 3. Engage cooperators who are member-in-good-standing, with good paying record and active in organizational and training activities 4. Organize at least three (3) production clusters 5. Engage assistance of agricultural technologists and experts who will assist the cooperators of corn production 6. Employ and Train a Project Team 7. Open a separate bank account and prepare a set of book of accounts for the agricultural input trading

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2.7 Key Officers of the TCISMPC The TCISMPC core management team is manned by seasoned leaders with proven track records and accomplishments on their fields, namely: 1. Francis N. Saludez, Manager Mr. Saludez is a graduate of Bachelor of Science in Agriculture from Central Luzon State University (CLSU), Science City of Muoz, Nueva Ecija. As an agriculturist, he has worked with the International Rice Research Institute, Los Baos, Laguna. After his stint at IRRI, he is now employed as agricultural technician with the Municipal Agricultural Office of Dinalungan, Aurora. He works with TCISMPS as Manager oncall-basis and during weekends. He regularly attends management meeting, training programs and organizational activities. He has been a Manager of TCISMPS for 1 year. 2. Cresencia N. Alamani, Treasurer Ms. Alamani is a high school graduate. She has served as local official of Barangay Paleg, Dinalungan, Aurora. She has attended basic and advanced training on bookkeeping and management related workshops. She is knowledgeable in preparing and updating cash book and managing cash on hand and in bank. She has served as Treasurer for five (5) years. 3. Maria Nelia N. Saludez, Bookkeeper Ms. Saludez is a high school graduate. She has attended basic and advanced training in bookkeeping. She is a competent bookkeeper. She has been updating the books of accounts in a regular basis. She has been a bookkeeper for a period of one year. 4. Cresenciano C. Marquez, Secretary Mr. Marquez is a high school graduate. He is also the President of Paleg Irrigators Association (IA). As President of Paleg IA, he is one of the representatives IAs of Aurora at the regional level. He is a seasoned leader and secretary at the same time. He has served his concurrent posts for a period of 5 years. 2.8 Technical Support The Department of Agrarian Reform, Department of Agriculture, Local Government Units, Cooperative Development Authority and Provincial Cooperative Office are the agencies that provide regular financial and technical support to development programs of TCISMPC.

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2.9 Board of Directors TCISMPC is currently governed by the following Board of Directors: 1. Mamerto C. Serra, Chairperson Director Serra is a fourth year level, Bachelor of Science in Agriculture from CLSU, Science City of Muoz, Nueva Ecija. He is also the secretary of Paleg IA. Mr. Serra has been with the Paleg IA and TCISMPC for a considerable time. Aside from his engagement with the farmers sector, he is also an active church leader of Jehovahs Witnesses. Mr. Serra is recognized by the community, as a farmer leader with high integrity and religiosity. He has been the Chairperson of the Board for three years. 2. Noel S. Bahillo, Vice Chairperson Director Bahillo is a farmer leader for 1 year. Prior to his assumption as Vice President, he was the Manager of TCISMPC. He used to be the caretaker of the vegetable nursery of the cooperative. He has been a member of the cooperative since it started. He is widely recognized as an industrious farmer and responsible leader. He has attended basic and advanced management courses. 3. Teodora D. Marquez, Director Director Marquez is a graduate of Bachelor of Science in Fisheries Education from CLSU, Science City of Muoz, Nueva Ecija. She has served the TCISMPC as Director for three (3) years. She is a full time farmer and an active leader. She has undergone management training courses as a farmer leader. 4. Venancio S. Sumawang, Director Director Sumawang is a high school graduate. He has served the cooperative for three (3) years. He has actively participated in various in-service trainings, meetings, assemblies and personally helping on the daily operation of the store managed by the cooperative. 5. Anselmo N. Prado, Director Director Prado is an elementary graduate. He has served as Director for two (2) years. He has actively participated in basic and advanced management training courses and organizational activities. 6. Roberto P. Peneyra, Director Director Peneyra has served the cooperative in different capacities for six (6) years. He has actively participated in basic and advanced management training courses and organizational activities.

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7. Rolando Hidalgo, Director Director Hidalgo is an active parliamentarian. He was able to finish two years of college education in Mount Carmel College. He has served as Director for two (2) years. He has actively participated in basic and advanced management training courses and organizational activities.

3. Marketing Aspects 3.1 Market Overview Corn production remains a profitable venture. In a national scale, from 2002 to 2011, volume of production increased from 4.3 to 6.7 million tons, while farmgate prices also increased from P 6 to P 12. Profitability, within the same period, jacked up by 100% from P 5,000 to P 15,000 per hectare. Cost per hectare covered cash, non-cash and imputed costs (see Annexes for details). In Aurora, corn production is more profitable. Particularly in the ARISP III Agribusiness and Agricultural Development project site, with total production area of 82.2 hectares, yield of corn reached as high as P 5.96 tons. Increase of 51% in net income from first crop to third crop was observed. However, a deficit occurred during the second crop due to typhoon. Overall, cooperators generated average net income of P 18,669 (see Annexes for details). 3.2 Market Segment, Target Market and Growth Potentials Institutional buyers will procure in bulk the corn produced by cooperators in the ARC. A formal market agreement between Gene Alamani and TCISMPC for procurement of corn produce in the ARC was made. This agreement has been in place a year ago. The volume of corn sold by TCISMPC was procured by Mr. Alamani. Fortaleza Agricultural Supply in Dinalungan and Palaruan Agro Farm Supply are two institutional suppliers/buyers which will be engaged for the expansion of corn production in the ARC. Palaruan Agro Farm has supplied the input requirement of corn production by TCISMPC during its first season. Fortaleza Agricultural Supply, a local supplier, has supplied inputs for the succeeding seasons. Collective buying and collective will soon be in place to ensure market and availability of inputs all year round. 3.3 Supply and Demand Analysis In Paleg-Dibaraybay ARC there are 50 hectares planted to corn. Corn are grown 2.5 cropping a year. Its most profitable season is from October to January. The average harvest is 90 cavans at 50 kilos per cavan per hectare. Prices fluctuate within average range of P 8.00 to P 10.00 per kilogram Corn growers sell sun dried corn kernel to local and mobile traders. It is a local practice among corn growers to sell back their produce to cooperatives or private lenders, from which they are indebted, at price dictated by the same creditors. Local supply of sun dried corn kernels are transported and sold outside Aurora.

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3.4 Analysis of competition Within the Paleg ARC, only few of corn growers are not members of TCISMPC. The corn production of TCISMPC, from November 2010 to April 2012, covering an average of 27.33 hectares per cropping season was successfully implemented. Throughout the project duration, TCISMPC financed the technical and financial needs of 46 corn growers in the ARC. These farmers represent majority of corn growers in the ARC. Corn production in the ARC is dominated by corn growers financed and supported by TCISMPC. 3.5 Service Features The following are the features of the Agricultural Input Trading. I. Collective buying-lending-selling scheme

Apply for production loan to

Buys input in bulk to

Local Corn Growers

Grants production loan for

TCISMPC Agri Input Trading

Supplies input in bulk to

Palaruan Agro Farm Supply

Pay loan in kind to

Sells in bulk to

II.

Loan Product

Name of loan product Loanable amount Form of loan Eligible crops Interest rate Retention on Share capital Retention on savings Loan Period Payment scheme Eligible borrowers Experience in farming Farm land Farm location

TCISMPC Agro Loan P 10,000 / season In-kind, non-cash Corn and Rice 3% per month/flat rate 1% 2% 4 months Single payment, after harvest, cash or in-kind Member-in-good-standing Have grown corn and rice At least 1 hectare, suitable for corn or rice Within Paleg and Dibaraybay, Dinalungan

3.6 Raw Materials Procurement Strategies The farm inputs will be procured in bulk from the partner agricultural supply store. The said store will deliver the inputs on site. This procurement and delivery scheme will be stated in the market agreement that will be forged between TCISMPC and the said store.

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3.7 Production Strategies To reach the desired quality and volume of produce the following strategies will be employed: 1) 2) 3) 4) 5) 6) 7) 8) Use of production protocol; On-season farming; Formation of production clusters; Selection of good borrowers; Improvement of storage facility; Adoption of good agricultural practices (GAP); Peer pressure and support; and Creation of policies, systems and procedure for the project.

3.3 Pricing Strategy Corn will be procured based on prevailing farm gate prices in the locality.

4 Operational Aspects

4.1 Production Corn production will be implemented twice a year, from November to March and December to April. During off season of corn, swine production will be implemented. 4.2 Warehousing The inputs and produce will be stored in the warehouse owned by Barangay Paleg and in the retail store. An agreement will be signed between Barangay Paleg and TCISMPC for the use and maintenance of the storage facility. TCISMPC will also maximize the storage space of the retail store. 4.3 Manpower Plan 4.3.1 General Administration Finance and administration will be done by the loan and marketing officers, warehouse in-charge headed by the project manager. 4.3.2 Manpower Requirement Below are the manpower requirements of the project: Position
Manager Loan & Marketing Officers Ware house in-charge Bookkeeper Treasurer

Number
1 2 1 1 1

Status
Already hired For hiring For hiring Already hired Already hired

Functions
Oversee daily operations Screen and approve loans and market produce Procure, store and release farm inputs Prepare books of accounts & financial reports Fund and property custodian

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4.3.3 Project Management Structure

Board of Directors TCISMPC

DA / DTI Representatives (Marketing & Technical Support)

Project Manager TCISMPC

DARPO/DARMO Reps. (Organizational Support)

Loan and Marketing Officers

Bookkeeper

Warehouse In-Charge

Treasurer

PRODUCTION CLUSTER A CORN

PRODUCTION CLUSTER B CORN

PRODUCTION CLUSTER C CORN

The Board of Directors will act as the governing body of the project. The project manager will oversee the daily operations. Administration and finance will be handled by the bookkeeper and treasurer. Operations will be spearheaded by the loan officers and warehouse in-charge. Production clusters are corn growers who are grouped by location and proximity to the office.

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5. Financial Aspects 5.1 Financial Performance of TCISMPC Income Statement TCISMPC net surplus increase by more than 200%, from P28,000 to P73,000, for the year 2010 and 2011.
STATEMENT OF OPERATIONS For the year ended December 31, 2011 (with Comparative Figures from CY 2010) Current Year 2011 REVENUE Income from credit operation Income from consumer operation Other Income TOTAL REVENUE Less: Operating Expenses Honorarium Profesional Fee Office Supplies Freight GA/Meeting Expense Travel and Transportation Taxes and Licenses Registration Expense Rent Expense Utilities Training and Seminar Expense Communication Expense Miscellaneous Expense Bad Debts Expesnse TOTAL OPERATING EXPENSES NET SURPLUS Less: STATUTORY RESERVE FUND Reserve Fund Optional Fund Ed & Training Fund Community Dev't Fund Interest on Share Capital NET SURPLUS AS DISTRIBUTED P 29,444.41 82,427.20 9,269.00 121,140.61 7,300.00 2,000.00 8,416.00 7,000.00 4,450.00 2,464.00 810.00 1,475.00 656.00 6,096.00 6,710.00 47,377.00 73,763.61 7,376.36 5,163.45 7,376.36 2,212.91 51,634.53 73,763.61 P 1,448.65 40,377.65 29,900.00 71,726.30 16,300.00 2,000.00 5,162.00 1,380.00 8,250.00 2,200.00 1,500.00 224.00 6,670.00 43,686.00 28,040.30 2,804.03 2,804.03 2,804.03 19,628.21 28,040.30 # Previous Year 2010

Cash Flow A 28% increase in cash position of TCISMPC was posted, from P 108,000 to P 139,000, for the period 2010 to 2011. The cooperative is liquid.
STATEMENT OF CASH FLOWS For the year ended December 31, 2011 (with Comparative Figures from CY 2010) Current Year 2011 Cash flows from operating activities: Distributable Surplus Decrease (Increase) in accounts receivable Increase in loan receivable Decrease in loan receivable - others Increase in merchandise inventory Net cash flow from operating: Cash flows from investing activities: Net addition to investments Increase in fixed assets Decrease (Increase) in other assets Net cash flow from investing: Cash flows from financing activities: Proceeds from loans payable Proceeds from payment of ISC Proceeds from savings deposits Proceeds from donations Proceeds from issuing common stocks Allocation for statutory reserve Net cash flow from financing: Net increase (decrease) in cash and cash equivalent Cash and cash equivalent at the beginning of the year Cash and cash equivalent at the end of the year P 51,634.53 14,141.00 (80,124.37) 33,739.00 (32,244.37) P Previous Year 2010 19,628.21 (14,141.00) (82,957.01) 81,692.01 (33,739.00) (49,145.00)

(111,500.00) (111,500.00)

(3,056.00) (3,056.00)

(37,500.00) 17,561.82 4,389.72 111,500.00 62,464.43 16,635.57 175,051.54 31,307.17 108,550.45 139,857.62

75,000.00 19,628.21 1,899.80 4,500.00 24,115.35 8,412.09 133,555.45 81,354.45 27,196.00 108,550.45

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Balance Sheet Total assets of TCISMPC increased by 160%, from P 260,000 to 436,000, for the period 2010 to 2011. This increase was due to increase on loan exposure, donation of farm animals and implements and increase in inventory of store.
STATEMENT OF FINANCIAL CONDITION As of December 31, 2011 (with comparative figures from CY 2010) Current Year 2011 ASSETS Current Assets Cash on hand Accounts Receivable Loans Receivable Merchandise Inventory Current Assets LESS: Allowance for Bad Debts TOTAL CURRENT ASSETS Fixed Assets Equipment: Weighing scales Farm Equipment and Tools Farm Animals Total Equipment Less Accum. Dep. Net Fixed Assets Other Assets TOTAL ASSETS LIABILITIES, MEMBERS EQUITY & RESERVES LIABILITIES Loan Payable ISC Payable Savings Deposits Total Liabilities SHARE CAPITAL DONATED CAPITAL STATUTORY RESERVES Reserve Fund Optional Fund Education & Training Fund Community Dev't Fund Total Statutory Reserves TOTAL LIABILITIES, MEMBERS EQUITY & RESERVES P 37,500.00 51,634.53 6,289.52 95,424.05 99,929.78 211,000.00 10,180.39 7,967.48 10,180.39 2,212.91 30,541.17 436,895.00 P 75,000.00 34,072.71 1,899.80 110,972.51 37,465.35 99,500.00 4,635.20 4,635.20 4,635.20 13,905.60 261,843.46 Previous Year 2010

73,148.42 181,981.38 68,399.20 323,529.00 6,710.00 316,819.00

108,550.45 14,141.00 101,857.01 33,739.00 258,287.46

5,520.00 76,500.00 35,000.00 117,020.00 117,020.00 3,056.00 436,895.00

500.00

500.00 500.00 3,056.00 261,843.46

5.2 Funds Sources and Uses Purpose Revolving capital Admin expense Freight Expense Total Project Cost Amount P 300,000 300,000 49,500 50,500 P 700,000 Source TCISMPC DA TCISMPC Agri Supply Store

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5.3 Financial and Economic Viability For the three cropping seasons, the project will earn a net surplus of P 22,000.
Revenue Interest Service Fee Gross Revenue Less: Expenses Honorarium Utilities & Supplies Total Expenses Net Surplus

53,730.00 18,000.00 71,730.00 45,000.00 4,500.00 49,500.00 22,230.00

For the initial 3 cropping seasons, P 600,000 capitalization will increase by 13% equivalent to additional assets of P 76,000.
Cash Loans Receivable TOTAL ASSETS Savings Deposits Share Capital Donation Undivided Net Surplus TOTAL LIAB & EQUITY 667,230.00 9,000.00 676,230.00 18,000.00 336,000.00 300,000.00 22,230.00 676,230.00

Ending cash after 3 cropping cycles is estimated at P 667,000. This cash position is sufficient for succeeding seasons, assuming that loan exposure per borrower is fixed at P 10,000 per season with total borrowers of 60 per season.
Cash Inflow Cash, beg. Share Capital Interest Service Fee Savings Loan payments Total Cash Inflow Cash Outflow Loan Releases Honoraria Utilities & Supplies Total Cash Outflow Cash, End.

644,820.00 12,000.00 17,910.00 6,000.00 6,000.00 597,000.00 1,283,730.00

600,000.00 15,000.00 1,500.00 616,500.00 667,230.00

6. Social and Economic Aspects The project will improve the agricultural market system through tie up with institutional supplier and buyer of agricultural inputs and produce. It will increase yield and profitability of corn production as a result of synchronized farming system, collective selling and use of production protocol among others. It will cultivate good agricultural practices. It will increase income for at least 60 farming households and spur wage employment for farm workers.

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Action Plan Below is the sequence of activities from preparatory phase until the completion of the first cropping season. Succeeding cropping seasons will commence after the review and planning session conducted after each cycle.
Activities 1.0 Preparatory Activities 1.1 consultation with project stakeholders 1.2 preparation of project proposal 1.3 presentation of proposal to the BOD 1.4 finalization of project concept 1.5 submission of project proposal 1.6 review/approval of proposal 1.7 cooperators & project staffs meeting 1.8 signing of MOA 1.9 PSP preparation/approval on corn production 1.10 Secure production protocol 1.11 Organize production clusters 1.12 Confer with local buyers 2.0 Production Phase 2.1 lecture-discussion on production protocol 2.3 synchronous planting/cropping cycle 2.4 record-keeping of crop development stages 2.6 workshop on supply chain management 2.7 preparation/submission of monthly report 3.0 Post Production Phase 3.1 collective selling through production clusters 3.2 production of localized production protocol 3.3 preparation/submission of end of phase report 3.4 project assessment and planning for next season 2012
O N D J F

2013
M A M J

ANNEX 1: Loan Portfolio for 3 years

Talaytay Communal Irrigation System Multi-Purpose Cooperative

PROPOSED LOAN PORTFOLIO 3 YEARS

YEAR 2 Month 16 180 60 600,000.00 Month 20 300 60 600,000.00 Month 24 360 60 600,000.00 Month 28

YEAR 1 Month 4 BORROWERS Cummulative borrowers New borrowers LOAN RELEASES COLLECTION Collection ( in Peso) month 4 month 8 month 12 month 16 month 20 month 24 month 28 month 32 month 36 Total Collection Outstanding Balance (.05% of gross) REVENUES Interest Income @ 3%/mo Service Fee @ 1 % of loan TOTAL REVENUES CBU retention @ 2 % Savings deposits @ 1 % Total Principal Collected LESS: HONORARIUM SUPPLIES & UTILITIES NET CASH Net cash Loan Portolio for next season 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00 597,000.00 597,000.00 3,000.00 597,000.00 597,000.00 3,000.00 597,000.00 597,000.00 3,000.00 597,000.00 597,000.00 3,000.00 60 600,000.00 120 60 600,000.00 180 60 600,000.00 Month 8 Month 12

YEAR 3 Month 32 480 60 600,000.00 Month 36 540 60 600,000.00 TOTAL DESCRIPTION Total No. of Borrowers Ave. No. of Borrowers/season Total Loan Portfolio

360 60 600,000.00

540 60 5,400,000.00

597,000.00 597,000.00 3,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00

597,000.00 597,000.00 3,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00

597,000.00 597,000.00 3,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00

597,000.00 597,000.00 3,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 22,410.00 600,000.00

597,000.00 597,000.00 3,000.00 17,910.00 6,000.00 23,910.00 12,000.00 6,000.00 597,000.00 15,000.00 1,500.00 622,410.00 -

5,373,000.00 27,000.00 161,190.00 54,000.00 215,190.00 108,000.00 54,000.00 5,373,000.00

Total Principal Collected Total Principal Uncollected Total Interest Income Total Service Fee Total Revenues Total CBU retention Total savings deposits Total Principal Collected Total Honoraria Total Utilities / Supplies

5,601,690.00 179,280.00

Net Cash Total Surplus of Cash