R.S. Bernaldo & Associates

Memorandum Circular No. 2016-04: Supplementing CDA Memorandum Circular No. 2012-03 Dated December 9, 2011 Relative to the Procedural Rules Governing the Conduct of Voluntary Arbitration before the CDA

The guidelines relative to the Voluntary Arbitration Program are supplemented as follows:

 Condition for Exercise of Jurisdiction

For the Sole Arbitrator/Arbitral Tribunal to acquire jurisdiction, the parties to a dispute must be bound by an arbitration agreement in their Articles of Cooperation and/or By-laws, contracts or subsequently agree to submit the same to voluntary arbitration. Copies of such communication or other form shall be attached to the Complaint.

If the Complaint filed has no attached arbitration agreement, the Voluntary Arbitration Secretariat shall notify the Respondent, within three (3) days from filing, that the agreement must be clearly expressed in the Answer if he is willing to resolve the dispute by arbitration.

Respondent’s refusal to Answer the Complaint or the filing of a Motion to Dismiss for lack of jurisdiction shall be deemed a refusal to submit to arbitration.  In either case, the Voluntary Arbitration Secretariat shall dismiss the Complaint without prejudice to its refiling upon a subsequent submission.

 

Submission of Certificate of Non-Settlement

Any party, before filing a complaint for voluntary arbitration to the Authority, must first secure a certification from its conciliation and mediation committee and from its cooperative union or federation that the issue had not been settled despite all the efforts exerted. This Certificate of Non-Settlement shall be valid for one hundred twenty (120) days after the date of issuance.

 

Composition and Functions of Voluntary Arbitration Secretariat

This shall be composed of designated lawyer, stenographer and clerk, all of whom shall be under the supervision of the Legal Division Chief.

The Voluntary Arbitration Secretariat shall:

1. Receive complaint either directly from the complainant or from the extension office (EO);

2. Determine the sufficiency in form of the complaint:

2.1. If complaint is sufficient in form, the voluntary arbitration secretariat shall docket the complaint;

2.2. If complaint is not sufficient in form, it dismisses the same without prejudice to its refiling upon compliance with the prescribed form.

 

3. Assess filing fee/deposit;

4. Issue summons and required notices;

5. Facilitate appointment of Voluntary Arbitrator/s;

5.1. Require the parties to submit the name/s of their respective nominee arbitrator/s;

5.2. Notify the parties of the acceptance of the nomination by the arbitrator/s.

6. Schedule hearing;

7. Act as depositary of awards/decisions;

8. Monitor voluntary arbitration funds;

 

Voluntary Arbitration Deposits

Whenever the complaint for voluntary arbitration is given due course, parties to the voluntary arbitration case shall be required to deposit an amount equivalent to 10% of the expected Arbitrator/s’ fees or P 5,000.00, whichever is higher.

Parties shall be required to make additional deposit in case the amount earlier deposited is insufficient to defray the expenses incurred during the proceedings. However, any excess amount of deposit shall be returned to the parties in the manner adjudicated by the Arbitrator/s after having charged all the fees and expenses of arbitration.

A separate single account for and in the name of the CDA-Arbitration Program shall be opened, maintained and kept to accommodate and hold all deposits. No withdrawal shall be made unless there is a written approval from both the CDA Executive Director and the Cashier.

 

This shall be effective upon the approval of the Board of Administrators and fifteen (15) days after submission with the Office of National Administrative Register (ONAR).

Approved by the CDA Board of Administrators pursuant to Resolution No. 257, s-2016 dated August 16, 2016.

 

Memorandum Circular No. 2016-05: Amended Guidelines on the Establishment of Cooperative Satellite Offices

This Circular amends Memorandum Circular No. 2012-17 which is directed to all cooperatives intending to establish satellite offices and those with existing satellite offices already, except cooperative banks.

 

Jurisdiction

Within the area of the principal office:

ü  Approval and issuance of Letter of Authority by the EO exercising jurisdiction over the place.

ü  For cooperatives registered with the Central Office, applications for Letter of Authority shall be approved and issued by the Executive Director.

Outside the jurisdiction of the Registering EO:

ü  Application shall still be filed to the Registering EO.

ü  Registering EO shall determine compliance of documentary requirements then forward the application to the Issuing EO, the one exercising jurisdiction over the proposed place outside the principal office.

ü  There must be cooperative members residing and in need of the cooperative’s services at the proposed place of the satellite office.

ü  Upon issuance of the Letter of Authority, the EO shall then notify and furnish the Registering EO a copy of said Letter of Authority.

ü  The registering EO and the applicant cooperative shall be notified in case of denial of the application.

 

Documentary Requirements

a.    Certificate of Compliance for the preceding year

b. Oath of Undertaking signed by the Chairperson of the cooperative for the specific services/activities to be undertaken by the proposed satellite office

c.     Certification as to available space and manpower to manage the office

d.    Official Receipt showing payment of the processing fee.

Php 500.00          Primary
Php 1,000.00      Secondary
Php 2,000.00      Tertiary

 

Services Allowed in the Cooperative Satellite Offices

1.    Recruitment of members

2.    Acceptance of applications for membership

3.    Acceptance of loan applications

4.    Collection and acceptance of payments for share capital contributions, loans, and/or utility bills in the case of electric and water service cooperatives

5.    Release of loans, patronage refund, and interest on capital

All applications accepted shall be endorsed to the principal office for appropriate action.

 

Conditions for Satellite Office Operations

Below are additions made to the conditions presented in the Circular 2012-17:

• Presence of a minimum number of personnel as determined by the principal/main office to effectively discharge the functions of the satellite office
• Turn-over or deposit of all collections within the day to the    account of the principal/main office or imprest system of handling cash

 

Satellite Office Inspection

The conditions in operating a satellite office are being inspected annually to ensure its compliance. Inspections shall be conducted by authorized personnel of the Registering EO or the Issuing EO in case the satellite office is located outside the area of principal office. A copy of inspection report shall be furnished to the Registering EO.

 

Sanctions

Any violation to these guidelines shall be subject to the cancellation of the Letter of Authority and non-issuance of the Certificate of Compliance.

 

There were no other significant changes made on the superseded Circular.

This shall take effect fifteen (15) days following the approval of the Board of Administrators and the filing of copy hereof to the Office of Administrative Register (ONAR).

Approved by the CDA Board of Administrators pursuant to Resolution No. 359, s-2016 dated October 18, 2016.

 

 

Memorandum Circular No. 2016-06: Revised Standard Chart of Accounts for Cooperatives

 This Circular revised Memorandum Circular No. 2009-04.

 

Complete set of financial statements

1. Statement of Financial Condition (Balance Sheet)
2. Statement of Operations (Income Statement)
3. Statement of Changes in Equity
4. Cash Flows Statement
5. Notes to Financial Statements

 

Revised Standard Chart of Accounts

Please see annex A for the Revised Standard Chart of Accounts.

 

Financial Reports

Please download the proforma financial reports:

• Statement of Financial Condition
• Statement of Operations
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes to Financial Statement

 

This Circular shall be published in the Office of the National Administration Registry (ONAR) and shall take effect fifteen (15) days after its publication. 

Approved per CDA Board Resolution No. 364, S-2016 dated October 18, 2016. 

 

 

Memorandum Circular No. 2016-07: Amended Guidelines Governing the Issuance of Certificate of Compliance (COC)

A Certificate of Compliance (COC) is a certificate issued in lieu of the Certificate of Good Standing to all types of cooperatives after compliance with the rules of the Authority. These guidelines amend MC 2015-08.

 

COC shall be issued once a year for any of the following purposes:

1. To affirm the cooperative’s compliance with the Cooperative Annual Progress Report and its attachments as prescribed by RA 9520, its Revised IRR, and other related issuances;
2. To secure a Certificate of Tax Exemption (CTE) and other incentives and privileges set forth in the CDA-BIR Joint Rules and Regulation Implementing Articles 60 and 61 of RA 9520 in relation to RA 8424 (National Internal Revenue Code);
3. To avail of local tax exemption privileges and secure permits and licenses prescribed under the provisions of the RA7160 (Local Government Code of 1991);
4. To comply with the documentary requirements for accreditation as CDA training provider; and
5. Such other legitimate purposes it may serve.

 

Requirements for Issuance of COC

For Micro Cooperatives

A.    Cooperative Annual Progress Report (CAPR) which shall have the following attachments:

1. Financial Statements audited by any of the following:

a)      External auditor accredited by the Board of Accountancy (BOA);

b)      Audit Committee of the cooperative;

c)       Audit committee of the federation or union where the cooperative is affiliated,

1. List of Officers and Mandatory Trainings Undertaken/ Completed

B.    Certification fee of P100.00

Micro cooperatives, however, are required to encode their CAPR through the web based system within six (6) months from the issuance of the COC.

 

For Small, Medium and Large Cooperatives

A.    Copy of the electronically encoded Cooperative Annual Progress Report (CAPR) with the following attachment:

1. Social Audit Report including its program of activities pursuant to its socio-civic goals;
2. Performance Audit Report, including copies of the semi-annual Report on mediation and conciliation as received by the Authority pursuant to Rule 7 of the Revised IRR;
3. Financial Statements audited by an External Auditor accredited by the CDA; and
4. List of Officers and Mandatory Trainings Undertaken / Completed.

B.    Certification fee of P100.00

 

For For Secondary and Tertiary Cooperatives (Federations and Unions)

A.    Copy of the electronically encoded Cooperative Annual Progress Report (CAPR) with the following attachment:

1. Social Audit Report including its program of activities pursuant to its socio-civic goals;
2. Performance Audit Report, including copies of the semi-annual Report on mediation and conciliation as received by the Authority pursuant to Rule 7 of the Revised IRR;
3. Financial Statements audited by an External Auditor accredited by the CDA;
4. List of Officers and Mandatory Trainings Undertaken / Completed;
5. List of affiliates and cooperatives which have remitted their respective Cooperative Education and Training Funds (CETF);
6. Business consultancy assistance including the nature, cost, and the use of CETF; and
7. Other training activities undertaken specifying therein the nature, participants, and cost of each activity.

B. Certification fee of P100.00

 

For CDA Registered Electric Cooperatives

A.    Copy of the electronically encoded Cooperative Annual Progress Report (CAPR) with the following attachment:

1. Social Audit Report including its program of activities pursuant to its socio-civic goals;
2. Performance Audit Report, including copies of the semi-annual Report on mediation and conciliation as received by the Authority pursuant to Rule 7 of the Revised IRR;
3. Financial Statements audited by an External Auditor accredited by the CDA; and
4. List of Officers and Mandatory Trainings Undertaken / Completed.

B.    List of Members issued with Share Capital Certificate

C.    Certification fee of P100.00

 

For Newly Registered Cooperatives

Upon registration, the COC shall be issued after payment of a Certification Fee of One Hundred Pesos (P100.00). Said COC shall be valid until April 30 of the immediately succeeding year.

Cooperatives with less than one (1) year of business operation from the date of registration shall be required to submit only the following:

a)      Copy of the electronically encoded Cooperative Annual Progress Report (CAPR)

b)      Financial Status Reports signed by the Audit Committee and the Chairman of the Cooperative:

• Statement of Financial Condition
• Statement of Operation

c)       Certification fee of P100.00

 

Grounds for Suspension or Non-Release of COC

Any of the following can be a ground for suspension or non-release of COC:

1. The cooperative has two or more sets of Board of Directors claiming to be the legitimate officers of the cooperative and the dispute becomes the subject of a verified complaint filed with the Authority.
2. The cooperative is complained of illegal activities and is subjected to an examination and/or investigation.
3. The cooperative is issued with cease and desist order to refrain from business operation and/or undertaking business activities.
4. The cooperative is found to have violated any of the provisions of MC No. 2015-11 and MC No. 2016-05 relating to the operation of Cooperative Branch and Satellite respectively.

 

Issuance and Release of COC

The Authority shall forthwith issue the COC within thirty (30) days from receipt of the required reports. The Authority shall issue a claim stub to the applicant cooperative indicating the date of release of the Certificate of Compliance applied for.

 

This Memorandum Circular shall take effect after fifteen (15) days following its publication in the Office of the National Administrative Register (ONAR) or Official Gazette.

Approved pursuant to Board Resolution No. 357, Series of 2016 dated October 18, 2016.

 

Memorandum Circular No. 2016-08: Revised Standard Chart of Accounts for Cooperatives

This memorandum circular prescribes the amended schedule of registration fees.

 

Schedule of Fees:

 

PROCESS	REQUIRED FEES
A. Name Reservation (pre-registration)
30days	Php 100
60days	Php 200
90days	Php 300
B. Initial Registration	The initial registration fee to be imposed shall be 1/10 of 1% of the paid-up capital or the basic fee below whichever is higher.
Primary Co-ops	Php 500
Secondary Co-ops	Php 2,000
Tertiary Co-ops	Php 3,000
Laboratory Co-ops	Php 50
C. Amendment
On specific provision/s	Php 300
By substitution	Php 300
On increase of capital	1/10 of 1% of the increased paid-up capital
D. Merger	Php 400 and, apply “C. on increase of capital” above in case of increase in capital
E. Consolidation	apply “B” above, if applicable
F. Division	apply “B” above, if applicable

 

Legal and Research fee (LRF)

An additional LRF fee in an amount equivalent to one percent (1%) of the fee imposed but in no case lower than ten (10) pesos shall be collected on every fee for all applications for registration and amendment, petitions and complaints imposed by the Authority in the exercise and discharge of its regulatory functions.

 

This Circular shall take effect immediately upon approval hereof by the Board of Administrators and filing with the Office of National Administrative Register (ONAR).

Approved pursuant to BOA Resolution No. 361, S-2016 dated October 18, 2016.

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QAU Memo is the official publication of R.S. Bernaldo & Associates to keep the Firm’s professional staff informed of the issues affecting the practice.  The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.  Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.  No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.   The Firm cannot be held liable for any losses suffered as a result of reliance upon information contained in this memo.  This is a property of R.S. Bernaldo & Associates.  Reproduction of any material included in the alert should be subject to the approval of the Editorial Board. R.S. Bernaldo & Associates is a correspondent firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. Comments and suggestions are welcome.

Editorial Board  Rosario S. Bernaldo Managing Partner/ Technical Partner cherry [dot] bernaldo [at] rsbernaldo [dot] com   Anthony D. Paño Assist. Quality Assurance Manager/ Quality Assurance Leader anthony [dot] pano [at] rsbernaldo [dot] com   Joanna Marie S. Carbonel Quality Assurance Associate/ Quality Control Review Leader qau [at] rsbernaldo [dot] com   Jianne Paula V. Fernandez Quality Assurance Associate/ Consultation Leader qau [at] rsbernaldo [dot] com   Jonalyn C. Salo Quality Assurance Associate/ Ethics Leader qau [at] rsbernaldo [dot] com   Jofet G. Alejandro Quality Assurance Associate/ Learning and Training Leader qau [at] rsbernaldo [dot] com