(NAR) VOL. 22 NO. 3, JULY - SEPTEMBER 2011
a. The 1987 Philippine Constitution, Article II, Section 9 declares the policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living and an improved quality of life for all;
b. Article 2 of the Philippine Cooperative Code of 2008 (RA 9520), declares the policy of the state to foster the creation and growth of cooperatives as practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development, equity and social justice;
c. Executive Order No. 95 dated June 8, 1993 designating the Cooperative Development Authority (CDA) as the Lead Agency on cooperative promotion, development, regulation and to coordinate with agencies with cooperative programs and Executive Order No. 96 which provide among others the implementing rules and regulations on cooperative promotion, organization, development and supervision by local government units;
d. Republic Act No. 7160, otherwise known as the Local Government Code, envisions the transformation of the local government units into self-reliant communities and active partners in the attainment of national goals.
e. DBM National Budget Circular No. 529 dated February 21,2011 prescribing the guidelines for the release of funds chargeable against the Priority Development Assistance Fund (PDAF).
a. Cooperative — refers to an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations 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 universally accepted cooperative principles.
b. Fund Assistance — refers to the financial assistance given by the government coursed through the CDA by the sponsoring official / legislator and entrusted to cooperatives for the implementation of cooperative project in the form of grants, aids, subsidies and donation.
c. Livelihood programs and projects — refers to the approved project activity which aim to create employment opportunities through the provision of a package of integrated services, i.e., technical and other assistsance that promote establishment of income-generating activities for cooperatives and/or its members;
f. Liquidation report — refers to a document showing the summary of disbursements/expenses incurred in connection with the implementation of the project for a given period of time.
1. duly registered under RA 9520;
2. certified to be in good standing;
3. with no unliquidated financial assistance with the Authority;
4. operating for the last three (3) consecutive years.
a. Livelihood/Enterprise development related projects — for the purpose of promoting and developing the entrepreneurship capabilities of individual members.
b. Credit/relending — relending for the purpose of providing additional capital for livelihood projects of the cooperative and members.
c. Capacity-building — trainings / seminars related to cooperative management and livelihood project undertaking.
d. Operational Support System Improvement-installation and implementation of improvement in the existing operational systems of the cooperative that include acquisition of necessary facilities.
1. Endorsement letter of the sponsoring legislator
2. Resolution by the Cooperative's Board of Directors requesting for financial assistance from the legislator containing the following information:a. Purpose of the financial assistance
b. Designation of officer to transact business with CDA
3. Project proposal detailing the type of projects and the components that needs funding assistance and the equity of the concerned cooperatives. Information on the project proposal should include:a. Project name /title
b. Brief description of the project
c. Project site / location
d. Intended beneficiaries
e. Benefits to be delivered
f. Systems and procedures to implement the project
g. Project cost estimates
h. Financial projections for three (3) years.
i. Work and Financial Plan
4. Certificate of Good Standing issued by the CDA for this purpose with authenticated copies of:a. Certificate of Registration and;
b. Latest Articles of Cooperation and By Laws;
5. Certificate of the list of incumbent Officers issued by the Cooperative's Secretary attested by the Chairman;
6. Copy of Audited Financial Statement for the past three (3) years preceding the date of project implementation. For cooperatives which has been in operation for less than three (3) years, report of accomplishment or certification by its Chairman or Secretary that it had previously implemented similar projects;
7. Memorandum of Agreement (MOA) between CDA and cooperative beneficiary duly signed and notarized;
8. Cooperative's certification that cooperative has equity equivalent to least 20% of the total project cost, which shall be in the form of labor land for project site, facilities, equipment and the like, to be used in the project;
9. Proof of similar projects undertaken, if any, indicating the source of funds for their implementationList of projects undertaken
Projects reports
Photographs as evidence of projects undertaken
Certification issued by the funding government organizations / institutions for previous project undertaking that the project has been completed and liquidated;
10. Sworn affidavit of the Cooperative's Secretary that none of its cooperators, organizers, directors or officials is an agent of or related up to the fourth civil degree consiguinity or affinity to the officials of the Authority authorized to process and / or approve the proposal, MOA and the release of funds.
11. Disclosure by the Cooperative of other related business, if any, and extent of ownership therein (if applicable).
1. duly approved schedule of fund release to cooperatives beneficiary.
2. Interim Fund Utilization Report on the previous release certified by the cooperative's accountant, approved by its Chairman and verified by the internal auditor or equivalent official of the CDA showing a summary of expenses and a status report of accomplishment evidence by pictures.
3. List of beneficiaries of previous releases with their signatures signifying their acceptance/acknowledgment of the project/goods/services.
1. Fund utilization report, indicating the summary of expenses and the status report of accomplishment, certified by the accountant approved by the Chairman of the cooperative and verified by the internal auditor or equivalent official of the cooperative
2. Pictures of implemented projects
3. List of equipment procured by the cooperative out of the fund assistance indicating its brief description, date acquired, acquisition cost and final disposition.
4. Warranty for procurement of equipment
5. In case of dissolution of the cooperative beneficiary in addition to the Official Receipt (OR) acknowledging return of unutilized amount, copy of the vouchers paid by the cooperative
6. Liquidation report
a. Upon receipt of Special Allotment Release Order (SARO), the CDA Central Office/Regional Office verifies whether the cooperative is eligible as beneficiary of the fund assistance. If the identified cooperative beneficiary is eligible, the cooperative should be informed to submit the required documentations. Otherwise, the Central Office/ Regional Office will inform the sponsoring legislator to consider changing the beneficiary.
b. The Central Office/Regional Office may conduct validation of the applicant cooperative relative to verification of the information indicated in the project proposal. The report together with the details of the findings and recommendations shall be submitted to the Executive Director/Regional Director.
c. Upon receipt of the application and complete supporting documents from the cooperative beneficiary, the Central Office/ Regional Office shall request the corresponding Notice of Cash Allocation from the Department of Budget and Management (DBM).
d. The CDA shall conduct briefing to the beneficiary prior to the release of the funds to explain:1. the contents of the MOA in order for the cooperative to be fully aware of their duties and responsibilities relative to the funds including the sanctions for non-compliance on the provisions of the MOA.
2. how to fill up the liquidation and monitoring reports to be submitted to CDA
e. Preparation and execution of Memorandum of Agreement (MOA) between the CDA and the cooperative beneficiary for this purpose
f. Execute Certificate of Undertaking
g. Release of check to the cooperative beneficiary.
a. Money market placement, time deposit or other forms of investment;
b. Cash advance of any official of the cooperative unless related to the implementation of the project;
c. Payment of salaries, honoraria or any form of allowances of the personnel of the cooperative who are not connected with the project;
d. Purchase of supplies, materials equipment and motor vehicles of the government;
e. Acquisition of assets of the cooperatives, unless necessary for the prosecution of the project and specifically stipulated in the MOA.
f. Other than the original purpose stated in the MOA.
1. Demand the refund of unused funds or savings after project completion as well as disallowed amounts after financial audits;
2. Initiate appropriate actions against the cooperative for material violations of the provisions of the MOA;
3. Reserves the right to initiate civil/criminal actions against any Director, Officer, or employee of the cooperative for any violation of any provision of the MOA.