(NAR) VOL. 29 NO. 2/ APRIL - JUNE 18
Adopted: 26 March 2018
Date Filed: 03 April 2018
As
a tool to measure effectiveness of the cooperative’s social development
services, the Social Audit of cooperatives consists of two (2) phases,
namely: Social Performance Assessment, and Social Impact Assessment.
This Guidelines, however, covers only the first phase of the Social
Audit process. A separate Guidelines for Social Impact
Assessment shall be set forth in a separate memorandum circular
which has yet to be issued.
Section 1. Legal Basis.The legal bases for this Guidelines is anchored on the following:
“Art.
80. Annual Audit. – Cooperatives registered under this Code shall be
subject to an annual financial, performance and social audit.”[1]
“The social audit shall be conducted by an independent social auditor accredited by the Authority.”
“The
Authority, in consultation with the cooperative sector, shall
promulgate the rules and standards for the social audit of cooperatives.
“Art.
53. Reports. (1) Every cooperative shall draw up regular reports of its
program of activities, including those in pursuance of their
socio-civic undertakings, showing their progress and achievements at the
end of every fiscal year.”[2]
Section 2. Coverage.All registered cooperatives regardless of type or category shall be subject to social audit as herein contemplated.
Section 3. Definition of Terms
Auditor – refers to either the cooperative’s internal auditor, audit committee or social auditor designated by it.
Management Social Performance Report – refers to the report on the accomplishment of the cooperative’s social development plan.
Social
Audit – refers to the procedure where the cooperative assesses its
social impact and ethical performance vis-à-vis its stated vision, goals
and social missions.
Social Audit Report – refers to the certified report prepared by the auditor as a result of the social audit conducted.
Social Audit Working Document – refers to the instrument used by the auditor in the conduct of social audit.
Social
Development Plan and Budget – refers to the annual programs, projects
and activities with corresponding resources approved by both the Board
of Directors and the General Assembly.
Social Development
Programs – refer to the set of activities and projects that the
cooperative implements to achieve its social goals.
Social Goals –
refer to the clear statement of acceptable and desirable future social
conditions that provide direction for the things that the cooperative
wants to achieve.
Social Impact Assessment – refers to the
process of monitoring, analyzing, and evaluating the intended and
unintended social outcome/result, both positive and negative as well as
the planned interventions and social change processes involved in said
interventions.
Social Performance – refers to the effective
translation of a cooperative’s mission into practice in line with
accepted social values or simply making a cooperative’s social mission a
reality.
Social Performance Assessment - refers to the review of
the performance of the cooperative vis-à-vis its social development
plans and budget.
Section 4. Objectives- To guide the cooperative in the assessment of its social performance;
- To require the cooperative to use the prescribed tools and
format in the preparation and submission of social audit report; and
- To provide the manner and period of submitting social audit report to the CDA.
Section 5. Key Areas in Social Performance AssessmentIn the conduct of audit, the following key areas shall be looked into:
- Vision, Mission, Core Values and Social Goals;
- Policies and Guidelines on Social Development;
- Social Development Program for the Cooperative and the Community; and
- Utilization of Community Development Fund.
The
Auditor shall use the Social Audit Working Document (Annex
A*) to determine the cooperative’s social performance and to serve as
basis for writing a report.
Section 6. Social Audit Report.The
Social Audit Report shall consist of narrative report (Annex B*) on the
comments/observations, including recommendations, and the accomplished
Social Audit Working Document (Annex A) which shall be attached to the
Cooperative Annual Progress Report (CAPR).
The Report shall be
typewritten or printed in a form prescribed by the Authority and
prepared by cooperative’s internal auditor, audit committee or social
auditor designated by the cooperative. The Chairperson and the General
Manager shall conform to the audit report.
Section 7. Management Social Performance Report.At
the end of year, the management shall prepare a Management Social
Performance Report (Annex C*) which presents the accomplishments of the
cooperative’s social development plan. This could be used as reference
by the auditor in the conduct of audit but shall only be kept or
retained at the level of the cooperative.
Section 8. Repealing ClauseThis Circular repeals Memorandum Circular No. 2013-16.
Section 9. EffectivityThis
Circular shall take effect upon approval of the CDA Board of
Administrators and fifteen (15) days after publication with the Office
of the National Administrative Registry (ONAR).
The Cooperative
shall adopt the revised forms and format in the submission of their
social performance of the year 2018 which will be submitted to the
Authority in 2019 and every year thereafter.
Approved per CDA Board Resolution No. 049-2018 dated February 20, 2018.
(SGD) ORLANDO R. RAVANERA
Chairperson
[1] Philippine Cooperative Code of 2008
[2] Philippine Cooperative Code of 2008