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Pursuant to the regulatory and development functions of the Cooperative Development Authority (CDA) the following policy guidelines shall apply to non-operating cooperatives requesting for rehabilitation.

SECTION I. Title - These guidelines shall be known as the Standard Policy of the Agency for the Rehabilitation of Non-Operating Cooperatives.

SECTION II. Definition of Terms -

1. Non-Operating Cooperative - a cooperative who has not performed its operational activity and failed to submit its annual report and audited financial statements for at least three consecutive years.

2. Rehabilitation - the process of reviving the cooperative operation which were previously classified by the agency as Non-Operating.

3. Rehabilitation Plan - a proposed cooperative plan containing developmental activities to be undertaken in order to re-operationalize its business.

4. Certificate of Completion - a paper that certified completion of the cooperative on the required rehabilitation program based on the submitted plan.

SECTION III. Qualification for Rehabilitation of Non-Operating Cooperatives -

1. The cooperative is willing to undergo audit by an accredited auditor to provide informations of its actual status;

2. At least 75% of the total number of members (but not less than 15) have signified their intention to undergo cooperative re-orientation seminar and rehabilitation process.

SECTION IV. Requirements - The applicant must submit the following in duplicate copies:

1. Application letter for rehabilitation stating the purpose/s;

2. Minutes of the General Assembly meeting approving the rehabilitation of the cooperative;

3. List of Interim Officers or newly elected set of Board of Directors (BOD's), Committee members and Management Staff;

4. Complete list of membership with their corresponding addresses and amount/number of shares paid;

5. Statement of Financial Status, Assets and Liabilities of the cooperative as a result of the actual audit conducted;

6. Three-year Rehabilitation Plan stating the program of activities, strategies, and budget which is duly approved by the general membership;

7. Original copy of Certificate of Registration, Articles of Cooperation and By-Laws;

8. Endorsement of the Cooperative Development Specialist (CDS II) who is assigned in the area where the cooperative is located;

9. Bond of New Accountable Officers.

SECTION V. Processing of Requirements and Approval to Undertake the Rehabilitation Program  - Upon submission of the Rehabilitation Program requirements to the CDA Regional Office, the Assistant Regional Director (ARD/Sernior CDS for registration shall facilitate the processing of documents, when found in order, the Regional Director (RD) shall send a notice informing the cooperative of its application's approval on rehabilitation process for a period of three (3) years. The concerned Cooperative Development Specialist (CDS II) shall advise the cooperative of the start of the rehabilitation program and shall supervise and assist them during the period of implementation

SECTION VI - Rehabilitation Fee - The amount of Five Thousand Pesos (P5,000.00) shall be paid by the Cooperative for this purpose at the CDA Cashier's Office which shall issue the corresponding receipt.

SECTION VII. CDA Regional Office Capability Building Program for Cooperatives  - The CDA Regional Office shall formulate and develop the Capability Building Program for the efficient and effective way of conducting the Rehabilitation Program. Under this, the following activities will be undertaken:

1. Orientation on the Rehabilitation Program;
2. Developing Networking skills through the adoption of the Big Brother to Small Brother scheme.
3. Training on Savings Mobilization and Capital Build-up Program

SECTION VIII. Monitoring of the Cooperative Under Rehabilitation  - The concerned Cooperative Development Specialist (CDS III) shall monitor the progress of the cooperative under the rehabilitation program. A progress report shall be submitted to the Central Office every quarter until such time that the cooperative has completed the program. A Certificate of Completion of the Rehabilitation Program duly signed by the Regional Director shall be issued to the cooperative upon the recommendation of the Cooperative Development Specialist (CDS II) supervising the rehabilitation.

SECTION IX. Change of Cooperative Status - After the issuance of the Certificate of Completion of the Rehabilitation Program, the concerned CDA Regional Office shall change its status and accordingly include the name of the cooperative in the List of Operating Cooperatives.

SECTION X. Effectivity - This Order takes effect on January 19, 2005 upon approval of the Board of Administrators.

Adopted: 19 Jan. 2005

For the Board of Administrators

(SGD.) RUBEN M. CONTI
Chairman