Beruflich Dokumente
Kultur Dokumente
Form of Ownership
association of persons, with a common bond of interest, who have voluntarily joined
together to achieve their social, economic, and cultural needs and aspirations by making
equitable contributions to the capital required, patronizing their products and services
and accepting a fair share of the risks and benefits of the undertaking in accordance with
Article 23 (1)(e) defined service cooperatives as one of those which provide any
type of service to its members, including but not limited to, transport, information and
Vision
a partner of choice in the rice industry and be a sustainable cooperative that brings each
committed individual together to uplift the quality of life of the members and the
community.
Mission
Core Values
Every cooperative shall conduct its affairs in accordance with Filipino culture,
good values and experience and the universally accepted principles of cooperation.
organization, open to all persons able to use their services and willing to accept the
religious discrimination.
that are controlled by their members who actively participate in setting their policies and
equal voting rights of one-member, one-vote. Cooperatives at other levels are organized
democratically control, the capital of their cooperative. At least part of that capital is the
common property of the cooperative. They shall receive limited compensation or limited
allocate surpluses for any or all of the following purposes: developing the cooperative by
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proportion to their patronage of the cooperative's business; and, supporting other
organization controlled by their members. If they enter into agreements with other
organizations, including government, or raise capital from external sources, they shall do
so on terms that ensure democratic control of their members and maintain their
cooperative autonomy.
(5) Education, Training and Information – the cooperative shall provide education
and training for their members, elected and appointed representatives, managers, and
employees, so that they can contribute effectively and efficiently to the development of
their cooperatives.
most effectively and strengthen the cooperative movement by working together through
(7) Concern for Community – the cooperative works for the sustainable
Capitalization
“Philippine Cooperative Code of the Philippines”, and also mentioned in its Implementing
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Chapter VIII Capital, Property, and Funds
"ART. 71. Capital. - The capitalization of cooperatives and the accounting procedures
shall be governed by the provisions of this Code and the regulations which shall be
issued.
"ART. 72. Capital Sources.- Cooperatives registered under this Code may derive their
"(3) Revolving capital which consists of the deferred payment of patronage refunds, or
"(4) Subsidies, donations, legacies, grants, aids and such other assistance from any
local or foreign institution whether public or private: Provided, That capital coming from
such subsides, donations, legacies, grants, aids and other assistance shall not be
divided into individual share capital holdings at any time but shall instead form part of the
other than cooperative itself shall own or hold more than ten per centum (10%) of the
"Where a member of cooperative dies, his heir shall be entitled to the shares of the
decedent: Provided, That the total share-holding of the heir does not exceed ten per
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centum (10%) of the share capital of the cooperative; Provided, further, That the heir
qualify and is admitted as members of the cooperative: Provided finally , That where the
heir fails to qualify as a member or where his total share-holding exceeds ten per
centum (10%) of the share capital , the share or shares excess will revert to the
provisions of this Code, no member shall transfer his shares or interest in the
"(1) He has held such share capital contribution or interest for not less than one (1) year.
a person who falls within the field of the membership of the cooperative; and
"ART.75. Capital Build-Up.- The bylaws of every cooperative shall be provided for a
reasonable and realistic member capital build-up program to allow the continuing growth
improve.
"ART.76. Shares.- The term "share" refers to a unit of capital in a primary cooperative
the par value of which may be fixed to any figure not more than One thousand pesos
paid for the operations of the cooperative. The method for the issuance of share
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"ART.77. Fines. - The bylaws of a cooperative may prescribe a fine on unpaid
subscribed share capital. Provided, that such fine is fair and reasonable under the
circumstances.
"ART.78. Investment of Capital. - A cooperative may invest its capital in any of the
following:
"(d) In real state primarily for the use of the cooperative or its members; or
Section 1. Legal Basis. The legal basis for this Rule is Art. 71 of the Code, quoted as
follows:
procedures shall be governed by the provisions of this Code and the regulations which
shall be issued."
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2. Loans and Borrowing Including Deposits;
4. Subsidies, donations, legacies, grants, aids and such other assistance from
any local or foreign institution whether public or private; Provided, That capital coming
from such subsidies, donations, legacies, grants, aids and other assistance shall not be
divided into individual share capital holdings at any time but shall instead form part of the
Section 3. Share Capital. The Share Capital of a cooperative, the per value of which
may be fixed at any figure not more than One Thousand Pesos (P1,000.00), may consist
of common share capital and preferred share capital if the latter is provided for under the
cooperative's Articles of Cooperation and By-laws. The share capital contribution of the
members shall be considered as equity. Provided, that it shall not be withdrawn and
should not be used in offsetting obligations whether past due or current while the
membership subsists.
(a) Common Share Capital shall be issued only to regular members. Its holders shall be
entitled to vote and be voted under the principle of one-man, one vote principle, and
shall receive interest, the rate which should not exceeded the normal rate on investment.
(b) Preferred Share Capital may be issued to regular and associate members. However,
associate Members shall not be eligible to vote nor be voted on account of such
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1. Preference in the payment of interest as provided for in the Bylaws of the
cooperative; and,
Section 4. Preferred Shares. Issuance and limitation on Preferred Share Capital shall be
Section 5. Capital Build-Up. The By-laws of every cooperative shall provide for a
reasonable and realistic member capital build-up program to allow the continuing growth
continue to improve.
other that a cooperative itself shall own or hold more than ten percent (10%) of the share
capital of the cooperative. In the case of Secondary and Tertiary Cooperatives, members
should own not more than ten percent (10%) of the share capital of the cooperative.
shall prescribe a fine on unpaid subscribed share capital. Provided, that such fine is fair
of R.A. 9520, no member shall transfer his/her shares or interest in the cooperative or
1. He/She has held such share capital contribution or interest for not less than
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2. The assignment is made to the cooperative or to a person who falls within the
Section 9. Interest on Share Capital. Interest on Share Capital shall not exceed the Rate
of Return on Investment.
Unless otherwise provided for in the By-laws of the cooperative, share capital
Where: X shall be a percentage to be determined by the Board of Directors allocated for interest
on share capital.
Payment of interest, unless otherwise provided for in the By-laws, must be made
Directors, may defer the payment of such interest including Patronage Refund to raise
Revolving Capital.
No cumulative interest shall be allowed for any kind or class of share issued by
the cooperative.
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Section 10. Withdrawal of Share Capital. A member of a cooperative may, for any valid
reason, withdraw his/her membership from the cooperative by giving a sixty (60) days
notice to the Board of Directors. Subject to the By-laws of the cooperative, the
withdrawing member shall be entitled to a refund of his/her share capital contribution and
all other interests in the cooperative. Provided, That such refund shall not be made if
upon such payment the value of the assets of the cooperative would be less than the
aggregate amount of its debts and liabilities exclusive of his/her share capital
contribution.
equitably share in the benefits accruing is established. Under the principle, the Net
Surplus shall not be construed as profit, but as excess payments made by them from the
cooperative and which shall be deemed to have been returned to them if the same is
distributed as prescribed by the Code and by this Rule. Provided, however, That the
amount allocated for patronage refund shall not be less than thirty percent (30%) of the
net surplus after deducting the statutory reserves based on the principle of equity.
Provided, further, that in no case shall the rate of patronage refund be more than twice
the cooperative shall be in accordance with the generally accepted accounting principles
and practices, taking into consideration cooperative principles and practices. The
cooperative shall use the Standard Chart of Accounts and its accompanying Accounting
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Organization Chart
General Assembly
General Manager
Secretary
Treasurer
Employees
Figure 27
Organizational Structure of the SMP Cooperative
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Manpower Requirements
Top-Level Management
The board of directors, president, vice-president, and CEO are all examples of
top-level managers. Top-level managers are not only responsible for controlling and
overseeing the entire organization but also play a significant role in the mobilization of
outside resources. They develop goals, strategic goals, strategic plans, company
policies, and make decisions on the direction of the business. They are accountable to
Middle-Level Management
examples of middle-level managers. They are accountable to the management for their
lower management;
performance;
information systems;
Diagnosing and resolving problems within and among work groups; and
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Designing and implementing reward systems supporting cooperative
behavior.
Low-Level Management
titles. These managers focus on controlling and directing. Low-level managers usually
General Assembly
members who are entitled to vote under the articles of cooperation and by-laws of the
Job Description:
All board members should adhere to, no matter their particular position on the
board:
programs.
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Keep up to date with issues and trends that affect the organization.
committee work.
requirements.
The Board of Directors shall have the following duties and responsibilities:
Review the Annual Plan and Budget and recommend for the approval of the
General/Representative Assembly.
Establish policies and procedures for the effective operation and ensure
External Auditor.
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Appoint the members of the Mediation/Conciliation and Ethics Committees
members;
Job Description:
The job of the general manager is to model the behaviors and attitudes expected
of all staff, and ensure the achievement of the ends policies within the boundaries as
create policies, and authorize all engagements, and is responsible for demonstrating
control over all the operating departments subject to such limitations as may
Assembly.
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Formulate and recommend in coordination with the operating departments
Implement the duly approved plans and programs of the Cooperative and any
Provide and submit to the Board of Directors monthly reports on the status of
of Directors.
regulatory bodies.
Job Specifications:
Ethics.
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Ability to listen.
Job Description:
determine when, how, and by whom the board's business was conducted. In order to
fulfill these responsibilities, and subject to the organization's bylaws, the Secretary
records minutes of meetings, ensures their accuracy, and availability, proposes policies
and practices, submits various reports to the board, maintains membership records,
fulfills any other requirements of a Director and Officer, and performs other duties as the
Record, prepare and maintain records of all minutes of meetings of the Board
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Ensure that necessary Board of Directors actions and decisions are
Issue and certify the list of members who are in good standing entitled to vote
Serve notice of all meetings called and certify the presence of quorum of all
Assembly.
Job Specifications:
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IV. Job Title: Treasurer
Job Description:
The treasurer is responsible for the timely and accurate collection and
disbursement of all funds for the cooperative. Additionally, the Treasurer is responsible
for the timely preparation and maintenance of the financial records. This includes budget
reviews, bank statements and returned checks, invoices, records and any all other
arrangements.
Ensure that all cash collections are deposited in accordance with the policies
Directors.
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Job Specification:
school district finances; ability to follow oral and written instructions; ability to
keep financial records and prepare reports thereon; integrity; good judgment;
Either (a) graduation from high school and three years of financial record
financial record keeping and one year of experience as described under (a);
experience.
Job Description:
The audit is a key aspect of the board’s fiduciary responsibility and part of the
cooperative’s internal controls. The audit does not shift the responsibility for the financial
statements of the cooperative onto the auditor. The board retains the responsibility for
the accounting system regardless of the method used to perform the audit. Because of
the on-going responsibilities surrounding the audit, many cooperatives form audit
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Duties and Responsibilities:
centers;
Review continuously and periodically the books of account and other financial
records to ensure that these are in accordance with the cooperative principles
Submit reports on the result of the internal audit and recommend necessary
Job Specifications:
Program.
Job Description:
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The Election Committee shall supervise the election of the Board of Directors
and committee members of the cooperative and each Representative or Delegates shall
be entitled to one (1) vote. The votes of the sector, chapter, or district Representative or
Delegates shall be considered the votes of all the members of the sector, chapter, or
General/Representative Assembly.
Assembly’s approval.
Supervise the conduct, manner and procedure of election and other election
Decide election and other election related case except those involving the
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Job Specification:
management; rules formulation; leadership and value re-orientation and basic computer
program.
Job Description:
The Ethics Committee meets at least once a month. Its decisions are made
unanimously. Reporting directly to the Chairman and CEO, its seven members are well
versed in our businesses and business lines. They include a chairman, a person
responsible for ethics policies and five employees, each delegated by a Total business
segment. The members have reached a point in their careers that allows them to
exercise the independent judgment and thinking vital to carrying out the Ethics
Committee's mission.
To fulfill its responsibilities effectively, the Committee works closely with the
departments and divisions concerned at the corporate level and in our business
segments. The departments and divisions in question include Legal Affairs, Compliance
& Corporate Social Responsibility, Internal Control & Audit, Sustainable Development &
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The committee shall:
Assembly.
Ethical standards.
Monitor compliance with the Code of Governance and Ethical Standards and
Code of Governance and Ethical Standards and submit report to the Board of
Job Specification:
Conflict management.
Record management.
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VIII. Job Title: Mediation and Conciliation Committee
Job Description:
of three (3) members to be appointed by the Board of Directors. Within ten (10) day after
and a Secretary who shall serve for term of one year or until successors shall have been
elected and qualified. No member of the committee shall hold any other position in the
it is properly implemented.
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Job Specification:
The following persons shall be treated as qualified and eligible for being
empanelled as mediator/conciliators:
Retired Judges of the Supreme Court; Retired Judges of the High Courts;
Legal practitioners with at least five years standing at the Bar in the Supreme
Job Description:
In general:
employment.
Serve faithfully.
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Account for all money or property received.
Job Specification:
ongoing relationships.
efficient support.
skills.
MEMBERS
Job Description: A cooperative has two kinds of members: regular members and
associate members.
A regular member is a one who has complied with all the membership
requirements and entitled to all the rights and privileges and membership as stated in
An associate member has no right to vote and be voted upon and is entitled only
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Duties and Responsibilities:
Pay the installment on capital stock subscription as it falls due and to participate
Obey all rules and regulations provided by R.A. 9520 (An act Amending the
Cooperative Code of the Philippines), these Bylaws, the decisions of the general
assembly and the Board of Directors, and policies and decisions that may be
Promote the aims and purposes of the cooperative, the success of its business,
the welfare of its members and the cooperative movement as a whole. The
Board may determine additional duties that may qualify members of good
standing.
Job Specifications:
Citizens, of legal age, with capacity to contract and, within the common bond and field of
3. Must be a farmer.
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6. Subscribed and paid the required minimum share capital membership fee of
P1,500.00 annually
PERSONNELS
Application Requirements
All applicants shall complete and file an employment application form prior to
personal interview.
at the beginning of the work day. If an employee must be absent, he/she must notify the
supervisor as far in advance as possible but no later than one-half (½) hour after normal
starting time. Work will continue until quitting time, or if on a shift assignment, until
supervisor.
Conduct
when not at work, his/her conduct and reputation “off the job” affects the public image of
the cooperative. To this extent, employees’ conduct will be taken into consideration.
Every effort shall be made to create a good public image of the cooperative through the
media of clean work clothes, clean facilities and equipment, and “off-work” behavior of
or on the telephone, will go a long way in creating a good public image of the
cooperative plus a good public image of oneself. The employee should at all times be
supportive of the cooperative goals and strategies as well as fellow employees. The
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employee should offer constructive suggestions to his/her supervisor to improve the
cooperative’s goals, strategies, and other employees to better serve the cooperative’s
patrons.
Discrimination
The association will not discriminate against hiring of any applicant or the
employment of any person because of race, color, national origin, sex, age, handicap, or
religion.
Employee Meetings
cooperative information and training, and will provide the employee an opportunity to
Employee Orientation
handbook and will the personnel handbook. The personnel handbook shall contain a
copy of the employee’s job description, organizational chart for the cooperative, and
Employee Training
selected must be obtained from the supervisor. Cost of courses that are particularly
beneficial to both the cooperative and the employee will be paid by the cooperative.
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Where sufficient interest is shown, classes in job training will be held available for
interested employees.
Holidays
The following holidays will be observed: New Year’s Day, Maundy Thursday,
Good Friday, The Day of Valor, Labor Day, Independence Day, National Heroes Day,
Bonifacio Holiday, Christmas Day, and Rizal Day. Employees shall be paid their normal
salaries.
Sick Leave
from performing duties by reason of sickness, off the job injury or for medical, surgical,
dental, eye examination or treatment, or where the employee’s presence at their post of
duty might jeopardize the health of others. Employees accrue sick leave benefits. A
maximum of () working days may be accumulated. The employee shall be paid at the
normal rate of pay for the actual time absent from work up to the extent of the sick leave
Work Breaks
Where practicable, employees will be granted one (1) hour break during lunch.
resuming work. Breaks will be staggered so work areas are attended at all times. At no
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Work Clothing
All employees are required to come to work in proper attire, clean and neat in
appearance.
II. Product
1. ESTABLISHMENT
1.1 Location
measures against pollution. The establishment shall not be located in an area that may
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1.2.2 Areas Assigned for Padding Cleaning, Dehusking, Polishing Grading and
contamination from pests and disease carrier animals. Check the layout
materials that do not cause contamination harmful to the consumer and shed any
particulate matter to rice products. Check equipment, machinery and utensils and
utensils shall be regularly cleaned and maintained. Check the work plan and
accuracy before use. Check the test records of equipment, machinery and
utensils.
1.4 Facilities
quality control areas where the quality is visually inspected. Check the light
intensity. Water used in the rice polishing process shall be sufficient and meet
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quality used in rice polishing process. Adequate number of cleaning facilities
shall be provided and ready for use. Check availability and sufficiency of cleaning
facilities. Adequate systems and facilities for drainage and waste disposal shall
be provided. Check systems or facilities for drainage and waste disposal and
records of waste disposal. Adequate facilities for personal hygiene and toilets
2. Control of Operation
can be traced. Check records of paddy receiving and operation and/ or interview.
Clear criteria for purchasing paddy shall be established and implemented. Check
interview. The accuracy of equipment used for paddy quality inspection shall be
used for paddy quality inspection. Weighing equipment, and paddy moisture
Paddy shall be stored according to the duration for safe storage and
moisture content. Check the stored paddy and randomly check the moisture
content. Adequate ventilation shall be provided. Check the paddy storage area
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Specific systems or preventive measures shall be provided for the control
and elimination of dust generated during the production processes. Check the
environment both inside and outside the production area as well as the
color sorter, stone and metal debris separators shall be calibrated at least once a
year. Check the record of equipment calibration. Supervisors shall pass specific
against contamination. Clean rice containers shall be provided, ready for use and
non-defective. Do not use the containers that have been used for hazardous
substances. Check rice containers and check the record of rice container quality
their categories and clearly indicated. Check storing practices and storage area.
Rice products shall not be stored with pesticides, fertilizers or other chemicals
harmful for consumption. Check storing practices and storage area. Rice
products shall not be directly placed or piled up on the floor. Check storing
practices.
2.6 Transportation
Vehicles used for transporting rice products shall be clean, tightly closed
or able to prevent the products from rain, and should not be used for loading soil,
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animals and waste, fertilizers, chemicals or pesticides except that the effective
Paddy receiving
Review records.
machinery and utensils shall be regularly practiced. Check the cleaning and
shall be provided to prevent the contamination to rice products. Check the control
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programs and records, particularly for paddy drying ground and storage of paddy
the mix-ups to the qualified rice products. Check the storage areas, record of
from production area and disposed hygienically. Check the storage areas, record
Personnel and visitors who are allowed to enter production area shall
adhere strictly to the personal hygienic practices. Check the personal hygiene
3.5 Training
safety. Check the training program and the record of training and/or interview.
responsibility. Check the training program and the historical records of personnel
and/or interview.
III. Collections
All sales are on cash. The cash from sales are received as the transaction occurs.
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IV. Finances
Notes Payable
The board instructs the manager to ensure that all moneys owed are paid on a
timely basis to avoid service charges, interest penalties, and or delinquent notices.
Where applicable, bills are to be paid, if cash flow and credit limits allow, in time to
Accountant/Public Accountant/ for the purpose of auditing the financial records and
accounts of the cooperative at the end of each calendar year. The engaged accountant
financial records. The final prepared audit shall include, but not be limited to: a balance
sheet, statement of operations, source and use of funds, and the necessary
supplementary schedules. Upon completion of the audit, a full report shall be presented
to a majority of the board in an official directors’ meeting. The accountant’s reports must
be approved or rejected by official board action, and made a part of the board’s minutes.
for board consideration. The preliminary budget should be presented to the board not
later than the month prior to the beginning of the next calendar year. The final budget
shall be approved by the board of directors by days after completion of the past calendar
year’ audit. Management shall operate the cooperative as far as practical within the
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review and approval by the board, which will provide for orderly growth, maintain
financial stability, and meet the needs of members served by the cooperative. It is an
advantage to have the final budget projections and pro forma statements based on the
The general manager shall obtain approval from the board for purchases or
replacement of an asset is needed before a general board meeting can be held, the
manager may obtain approval by contacting the board committee by phone and having
individuals indicate approval. In this situation, the committee shall have the approval
ratified at the next board meeting and included in the minutes of the meeting.
The board must approve expenditures for operational supplies and services.
Code of Ethics
1. Each member of the cooperative shall perform his duties and responsibilities with
2. Each member shall, by all means, uphold and protect the interest and welfare of
the cooperative.
3. He shall avoid any activity that will create a conflict with the objective, vision, or
4. The board of directors shall protect the funds against overspending, or any
unauthorized disbursements.
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5. The board of directors shall timely report to its members the true financial
6. Each member shall actively participate in all dealings and transactions of the
cooperative.
7. Each member shall practice courtesy at all times in dealing with his co-members,
8. Each member shall respect and support the judgment of the cooperative as it is
9. Each member shall use the utmost of professional judgment and discretion in
general public.
10. Each member shall recognize, at all times that he projects an image as a
Project Schedule
Table 39
Project Schedule
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Internal Controls
10. Only the authorized personnel should have access to the storage room.
13. The treasurer/cashier or any other employees who handle cash should not be
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Labor Laws for Employees
1.) Minimum Wage - Republic Act No. 6727 (also known as the “Wage
the daily minimum basic wage rates per industry per locality within the region, in
enterprises. The Wage Orders likewise provide the basis and procedure for
wage increase.
2.) Holiday Pay (Art. 94) - refers to the payment of the regular daily wage for any
unworked regular holiday. Every employee covered by the Holiday Pay Rule is
entitled to his/her daily basic wage and ECOLA. This means that the employee is
leave of absence with pay on the work. Provided he/she is present or is on leave
of absence with pay on the work day immediately preceding the holiday. When a
Regular Holiday falls on a Sunday, the following Monday shall not be a holiday,
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3.) Premium Pay (Art. 91-93) - refers to the additional compensation for work
performed within eight (8) hours on non-work days, such as rest days and special
holidays.
4.) Overtime Pay (Art. 87) - refers to the additional compensation for work performed
Taxes
Income taxes for cooperative is provided in Republic Act 9520 entitled “Philippine
ART 61. Tax and Other Exemptions. Cooperatives transacting business with both
members and non-members shall not be subjected to tax on their transactions with
members. In relation to this, the transactions of members with the cooperative shall
not be subject to any taxes and fees, including not limited to final taxes on members'
regulation to the contrary, such cooperatives dealing with nonmembers shall enjoy
“(1) Cooperatives with accumulated reserves and undivided net savings of not more
than Ten million pesos (P10,000,000.00) shall be exempt from all national, city,
taxes on their importation of machineries, equipment and spare parts used by them
and which are not available locally a certified by the department of trade and industry
(DTI). All tax free importations shall not be sold nor the beneficial ownership thereof
be transferred to any person until after five (5) years, otherwise, the cooperative and
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the transferee or assignee shall be solidarily liable to pay twice the amount of the
(2) Cooperatives with accumulated reserves and divided net savings of more than
Ten million pesos (P10,000,000.00) shall fee the following taxes at the full rate:
(a) Income Tax - On the amount allocated for interest on capitals: Provided, That
exempt income tax from the date of registration with the Authority;
That cooperatives duly registered with the Authority; are exempt from the
Republic Act No. 9337, the National Internal Revenue Code, as amended:
Provided, That the exempt transaction under Sec. 109 (L) shall include sales
made by cooperatives duly registered with the Authority organized and operated
goods produced by its members into finished or process products for sale by the
processed product or its derivative arising from the raw materials produced by its
members, sold in the name and for the account of the cooperative: Provided ,
finally, That at least twenty-five per centum (25%) of the net income of the
refunds;
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reinvestment to socioeconomic projects within the area of operation of the
undivided net savings shall be exempt from payment of local taxes and taxes on
transactions with banks and insurance companies: Provided, That all sales or
That nothing in this article shall preclude the examination of the books of accounts or
officers for internal revenue tax purposes only, after previous authorization by the
Authority.”
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