CDA-ReD-FR-029

Revision No. 1
March 5, 2021

Annex A PERFORMANCE AUDIT REPORT - GOVERNANCE AND MANAGEMENT REPORT

Registration Number 9520-

Name of Cooperative ABC

Address
No. of Bldg,/Block/Lot No. 123abc
Street Name abc
Barangay abc
City/Municipality abc
Province abc
Region 123abc
Main Business Activity abc
Other Services, Please Specify abc

GOVERNANCE AND MANAGEMENT REPORT

Instruction: "Tick or put "/" in the circle besides Yes if the following are present/available in your cooperative, Standard
RATING
No, if none and NA, if not applicable." Points

A. Governance Report
A.1 General Assembly

1. Presence of approved development plan/strategic plan / Yes No 2 2

2. Presence of approved annual plans and budget Yes / No 2 0
3.
Acceptance/approval/confirmation/ratification of the following
reports of the Board (including BR) and Committees

3.1 Board Report Yes No 2 0

3.2 Committee Reports Yes No 2 0
3.3 Management Report Yes No 2 0
4.
Documents showing the Engagement of the external auditors Yes No 1 0
5. Conduct of Election of officers Yes No 2 0
6. Presentation and Acceptance of Required Reports to be
Yes No 3 0
prepared and/or submitted/to be submitted to CDA
For Primary Cooperatives Yes No
a. Copy of electronically encoded CAPR Yes No
b. Audited Financial Statements Yes No
c. List of Officers and Mandatory Trainings
Yes No
Undertaken/Completed
d. Performance Audit Report Yes No
Semi-annual Report on Mediation and
e. Conciliation Yes No
f. Social Audit Report Yes No
For Secondary and Tertiary Cooperatives
a. Copy of electronically encoded CAPR Yes No
b. Audited Financial Statement (with encoded
Yes No
CAFSIS)
c. List of Officers and Mandatory Trainings
Yes No
Undertaken/Completed
d. Performance Audit Report, including copies of the
semi annual Report on mediation and conciliation Yes No

e. Social Audit Report Yes No

f. List of affiliates and cooperatives which have
Yes No
remitted their CETF
 g. Business Consultancy Assistance including the
Yes No
nature, cost and the use of CETF
h.
Other training activities undertaken specifying
therein the nature, participants and cost of each Yes No
activity.
7. Writtten policies/rules and procedures in conducting the
Yes No 1 0
General Assembly meeting
8. Other Resolutions/Policies requiring approval of the GA,
Yes No NA 1 0
including amendments of ACBL, if any

A.2 Board of Directors (BODs)

1. Duly signed Oath of Office Yes No 1 0
2.
Compilation of the minutes of the Board of Director's Meeting Yes No 1 0
3. Copies of the followings documents submitted at least 5 days
before the meeting or as provided in the policy Yes No 2 0

3.1 Management Report Yes No

3.2 Committee Reports Yes No
3.3 Chairperson's Report Yes No
3.4 Treasurer's Report Yes No
3.5 Proposals Yes No
3.6 Reference materials or attachments Yes No
3.7 CDA Assessment/Examination/Investigation Reports
Yes No

3.8 Risk Review or Assessment Report Yes No

4. Copies of minutes of meeting with discussions on the
Yes No 2 0
following:
4.1 Management Reports including the periodic financial
Yes No
statement
4.2 Budget Yes No
4.3 Policy formulation Yes No
4.4 Policy review and monitoring Yes No
4.5 Product/Service Review Yes No
4.6 Discussion of audit findings or recommendations
Yes No
(internal and external)
4.7 All unresolved issues identified in the
examination/audit/assessment/ investigation reports
are resolved by the Board of Directors within the Yes No
prescribed period.

5. Copies of Board Resolutions embodying all major decisions

Yes No 2 0
of the BOD
6. BR specifying the regular schedule of meetings of the Board
Yes No 1 0
and the Committees
7.
Presence of an independent advisors or resource persons to
assist in its deliberations, when deemed appropriate. (This
would be dependent on the profile, knowledge, skills or Yes No NA 1 0
expertise of existing BOD. For example, if no BOD has
expertise on IT, then invite an IT expert.)
8. Written Policies/ Rules and Procedures on the following:
8.1 Conduct of meeting Yes No 1 0
8.2 BOD attendance including sanctions for absences,
Yes No 1 0
tardiness and proper decorum
8.3 Membership acceptance, termination, determination
Yes No 1 0
of members entitled to vote
8.4
Orientation of New Board Members and Other Yes No 1 0
Officers
 8.5 Commmunication Protocols Yes No 1 0
8.6 Submission and Handling of Audit/ Inspection/ Risk
Review/ Examination Reports to the BOD Yes No 1 0

8.7 Investments Yes No 1 0

8.8 Borrowings
Product/Service Review, Evaluation and Yes No 1 0
8.9 Assessment Yes No 1 0
8.10 Performance Assessment of the BOD, Officers,
Yes No 1 0
Management and Staff
8.11 Promotions, Incentives and Rewards Yes No 1 0
8.12 Survey, Feedback Mechanisms Yes No 1 0
9. Succession Program of Officers and Management Yes No 2 0
10. The Disciplinary Actions on Late/Absences of the BOD and
proper decorum are implemented Yes No 1 0

11. The board does not interfere in the day-to-day operations of

Yes No 2 0
the cooperative
12. The new BOD members and other officers have undergone
Orientation on ACBL and other regulations, coop policies and Yes No 1 0
programs.

13. The board has acted on the result of feedbacks which require
Yes No 2 0
prompt action.
14. The Board implements and imposes sanctions in violation of
the Confidentiality Agreement Policy. Yes No 1 0

15. The election related protest or complaint filed with the

cooperative are appropriately acted upon. (Rule 7 Revised
Yes No NA 1 0
IRR of 9520)

16. Awareness through policies and training/orientation of the

members of the Board of Director’s are aware of their duties
& responsibilities under the following:

16.1 RA9520 Yes No 2 0

16.2 Truth in Lending Act (for cooperatives with credit
operations only) Yes No NA 1 0

16.3 Philippine Competition Law Yes No NA 1 0

16.4 Taxation Yes No 1 0
16.5 Trade Practices Act Yes No 1 0
16.6 Environmental Protection Yes No 1 0
16.7 Workplace Health and Safety Act Yes No 1 0
16.8 Labor Law - Minimum Wage Yes No 1 0
16.9 Banking laws (for cooperative banks only) Yes No NA 1 0
16.10 AMLA Yes No 1 0
16.11 Credit Information System Act (for cooperatives with
credit operations only) Yes No NA 1 0

16.12 Data Privacy Act Yes No 1 0

16.13 Magna Carta on Women, Solo Parent Act, Magna
Carta for Senior Citizens, Magna Carta for PWD Yes No 1 0

A.3 Election Committee

1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Duly signed Oath of Office Yes No 1 0
3. Duly approved election rules and guidelines Yes No 2 0
4. Certified List of Members entitled to vote as determined by
Yes No 1 0
the BOD
5. Results of Election Yes No 1 0
A.4 Audit Committee
1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Duly signed Oath of Office Yes No 1 0
3. Audit Manual Yes No 1 0
4. Audit Program Yes No 1 0
5.
Internal Audit Report/Audit Committee Report Yes No 2 0
6. Monitoring report on the compliance of internal and audit
Yes No 1 0
recommendations

A.5 Education Committee

1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Board Resolution appointing the members of the Education
Yes No 1 0
Committee
3. Duly signed Oath of Office Yes No 1 0
4. Capacity Building Program/Training Plan/Program with
Yes No 1 0
budget
5. Training Report Yes No 1 0
6. Training modules conducted by the coop e.g. PMES,
Yes No 2 0
Ownership Serminar, Audio visual presentations
7. Compilation of Training materials/ paraphernalia Yes No 1 0
8. List of pool of trainers Yes No 1 0
9. Feedback/evaluation tool Yes No 1 0

A.6 GAD Committee

1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Written duties and responsibilities Yes No 1 0
3. Board Resolution appointing the members of the GAD
Yes No 1 0
Committee
4. Duly signed Oath of Office Yes No 1 0
5. GAD Plan with Budget Yes No 2 0
6. Sex disaggregated data of members, officers and staff Yes No 2 0
7. GAD Assessment Report Yes No 1 0

A.7 Mediation and Conciliation Committee (Medcon)

1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Written duties and responsibilities Yes No 1 0
3. Board Resolution appointing the members of the Mediation
Yes No 1 0
and Conciliation Committee
4. Duly signed Oath of Office Yes No 1 0
5. Conflict resolution policies and procedures Yes No 2 0
6. Medcon Plan/program Yes No 1 0
7. Pool of Mediators/Conciliators, if any Yes No NA 1 0
8. Medcon Semi-annual Report submitted to CDA Yes No 2 0

A.8 Ethics Committee

1. Compilation of the Minutes and Committee Reports and
Yes No 2 0
Recommendations
2. Board Resolution appointing the members of the Ethics
Yes No 1 0
Committee
 3. Duly signed Oath of Office Yes No 1 0
4. Code of Governance and Ethical Standards (CGES) Yes No 2 0
5. Policies and Procedures in the conduct of
Yes No 2 0
investigation/inquiry involving violations of CGES
6. Ethics Committee Plans and Programs Yes No 1 0

A.9 Other Committees, specify: __________________________ Yes No NA 2 bonus point 0

1. Compilation of the Minutes and Committee Reports and
Yes No NA
Recommendations
2. Written duties and responsibilities Yes No NA
3. Board Resolution creating the committee/s as prescribed in
Yes No NA
its by-laws
4. Board Resolution appointing the members of the other
Yes No NA
committees
5. Duly signed Oath of Office Yes No NA
6. Program of Work Yes No NA
7. Accomplishment Report Yes No NA

A.10 Secretary
1. Book of Minutes of meetings of GA and the BOD Yes No 1 0
2. Appointment Paper/Renewal of Appointment supported by
Yes No 1 0
Board Resolution
3. Duly signed Oath of Office Yes No 1 0
4. Registry of Members Yes No 2 0
5. Share and transfer book Yes No 2 0
6. Cooperative copy of Certificate of Registration, Articles of
Yes No 1 0
Cooperation and By-Laws, Certificate of Compliance
7. Compilation of Board Resolutions Yes No 2 0
8. Treasurer's and Other Periodic Report Yes No 1 0
9. Certified List of Members entitled to vote as determined by
Yes No 1 0
the BOD
10. Cooperative Seal Yes No 1 0
11. The BOD's decisions are disseminated in written form within
7 days or as stated in the policy. Yes No 1 0

12. Contracts, MOA, other docs (specify) ______ Yes No 1 0

A.11 Treasurer
1. Appointment Paper/Renewal of Appointment supported by
Yes No 1 0
Board Resolution
2. Duly signed Oath of Office Yes No 1 0
3. Cash Book Yes No 2 0
4. Bank Books Yes No 1 0
5. Cooperative securities (investment, titles, and other
Yes No 1 0
negotiable instruments)
6. Cash Position Report Yes No 2 0
7. Petty Cash Book Yes No 1 0

A.12 General Manager / C.E.O. / or its equivalent

1. Appointment paper Yes No 1 0
2. Policy Implementation Files Yes No 1 0
3. Monthly and Annual Management report Yes No 2 0
4. Implementation of the following:
a. Board's Decisions Yes No 1 0
b. Risk Management Plan Yes No 1 0
c. Communication Protocol Yes No 1 0
B. Management Reports/Record
B.1 Organizational/Operational Structure
1. Organizational Chart Yes No 1 0
2. Management Structure Yes No 1 0
3. Functional Statement of each unit/ departments/sections Yes No 1 0

B.2 Systems and Procedures

1.
Complete BIR registered books of accounts or loose leaf or
computerized accounting system and Copy of Certificate of
Yes No 2 0
Registration from BIR, if using Computerized Recording
System

2. Internal Control Systems

2.1 Codified Approving and Signing Authority (CASA) Yes No 1 0
2.2 Imprest System Yes No 1 0
2.3 Bond of accountable officers Yes No 1 0
2.4 Record preservation (maintenance and
Yes No 1 0
disposal/archiving plan
2.5 Risk Assessment System Yes No 1 0
3. Manual of Operation and Policies, which included among
others, the following:
3.1 Business Operation Manual Yes No 2 0
3.2 Accounting Manual Yes No 2 0
3.3 Human Resource Policy Manual Yes No 2 0
3.4 Access of documents/books/records as required
Yes No 1 0
under Art. 52 and 83 of RA9520 by the members
3.5 Business Continuity/Contingency Manual Yes No 1 0
4. Copies of Guidelines implementing the approved policies Yes No 1 0
5. Business Continuity/contingency Plan Yes No 1 0
6. Communication and Feedback Mechanism Yes No 1 0

B.3 Human Resource Records

1. Contract/Certificate of employment Yes No 1 0
2. Job Description Yes No 1 0
3. Qualification Standards Yes No 1 0
4. Personnel File Yes No 1 0

B.4 Performance Evaluation

1. Standards of measurement Yes No 1 0
2. Rating of all officers and management staff Yes No 1 0

B.5 Compensation and Benefits

1. Salary scaling program Yes No 1 0
2. Incentive and Reward Program Yes No 1 0
3. Leave Incentives Program Yes No 1 0
4. Retirement Plan/Program/Package Yes No 1 0

B.6 Compliance to Government Requirements

1. Certificate of Compliance (CDA) Yes No 2 0

2. Certificate of Tax Exemption (BIR) Yes No 2 0

3. Annual Registration with BIR Yes No 1 0
4. Registration (SSS) Yes No 1 0
5. Registration (PHILHEALTH) Yes No 1 0
 6. Registration (PAG-IBIG) Yes No 1 0
7. Business Permit (LGU) Yes No 1 0
8. Annual Tax Incentive Report (CDA) Yes No NA 1 0
Other agencies, specify the document, if applicable
9. Yes No NA 0
_________

C. Partnership, Networking and Linkaging

1. The cooperative is a member of the following:
a. Cooperative federation/union Yes No 2 0
b. Local special bodies (Not applicable if there are no
Local Special Bodies in the locality) Yes No NA 1 0
c. Cooperative Development Councils Yes No 1 0
2. The board participates and supports the activities of the
cooperative federation/union/local special bodies (LGU) and
Yes No 1 0
Civic Organizations or Peoples Organizations

D. Membership Participation
1. Presence of at least 10% in new set of officers yearly. Yes No 1 0
2. At least 50% of the total membership attended/participated in
at least one activity of the cooperative, such as seminars/
trainings, community programs and activities, etc. except GA Yes No 2 0
Meetings.

TOTAL POINTS 100 1

 CDA-ReD-FR-029
Revision No. 1
March 5, 2021

ANNEX B - FINANCIAL PERFORMANCE STANDARDS FOR PRIMARY AND

OTHER SPECIAL TYPE COOPERATIVES

Summary of fields to be supplied by coop

Formula Account Amount
1.2 Quick Asset Legal Policy Reserves
1.3 Solvency Impaired Assets
Unbooked Allowance for Impairment of
1.5 Capital Adequacy Rate Assets
2.1 Asset turn over,
3.1 Administrative
Efficiency,
4.1 Return on Assets Total Assets, previous year
2.2.1 Accounts Receivable
turn-over Accounts Receivable, previous year
2.2.2 Loan Receivable Turn
Over Loans Receivable previous year
2.2.3 Service Receivable
Turn Over Service Receivable previous year
3.2 Cost of External
Borrowing Rate Loans Payable, previous year
3.3 Cost of Borrowings Other Financing Charges-Interest on
from Members Revolving Capital Payable
3.3 Cost of Borrowings
from Members Deposit Liabilities, previous year
3.3 Cost of Borrowings Revolving Capital Payable, previous
from Members year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Paid up Capital-Common, previous
share year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Paid up Capital- Preferred, previous
share year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Deposit for Share Capital Subcription,
share previous year
4.2 Return on Member's Treasury Shares - Common, previous
share year
4.2 Return on Member's Treasury Shares - Preferred, previous
share year
5.1 Percentage of non-
earning asset over total
assets Other Non-Earning Assets

Page 8 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
1STABILITY
1.1 Liquidity Current Assets Above 500% 0 4 Total Current Assets 8,000,000 Measures the
Current Liabilities Above 400% to 500% 1 cooperative's ability
Above 300% to 400% 2 Total Current Liabilities 10,000,000 to meet its short term
obligations as it falls
Above 150% to 300% 3 due
100% to 150% 4
Below 100% to 95% 3 Liquidity Rate 80% 0
Below 95% to 90% 2
Below 90% to 85% 1
Below 85% 0

1.2 Quick Asset Liquid assets 200% and above 3 3 Liquid Assets: Measures the
Current Liabilities - Legal Policy 150% to below 200% 2 Cash and Cash Equivalents 500,000 cooperative's ability
Reserves 100% to below 150% 1 Financial Assets 10,500,000 to pay its current
0 liabilities using its
Below 100% Total Liquid Assets 11,000,000
quick assets.
Current Liabilities 11,000,000
Less: Legal Policy Reserves -
Net 11,000,000
Quick Ratio 100% 1

1.3 Solvency 5 Measures the degree

110 and above 5 Total Assets of protection that the
(Assets + Allowances for probable cooperative has for
losses+Allowance for Impaired Assets) members savings
- [ (Total liabilities - Deposit liabilities)+ Allowance for Probable Losses on and share capital
(Past due receivables+restructured 100 to below 110 3 Accounts Receivable contribution in the
receivables + receivables under Allowance for Probable Losses on event of liquidation of
litigation+ Impaired Assets) ] Below 100 1 Loans Receivable the cooperative's
Deposit liabilities + Share capital + assets and liabilities
Deposit for SC Subscription Allowance for Impaired Assets
Sub-total -
Total Liabilities
Less: Deposit Liabilities
Add: Past Due Accounts
Receivable
Past Due Loans Receivable
Accounts Receivable
Restructured
Loans Receivable
Restructured
Accounts Receivable under
litigation
Loans Receivable under
litigation
Impaired Assets -
Sub-total -
Total -

Page 9 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

Deposit Liabilites
Paid up Capital- Preferred
Paid up Capital-Common
Total Paid up Capital -
Deposit for Share Capital
Subscription
Total -
Solvency Rate #DIV/0! 0
1.4 Net Institutional Capital Reserve Fund + [(Allowance for Measures the level of
Probable Losses on Receivables) - institutional capital to
(Past Due Receivables + Receivables absorb potential
in Litigation)] 10% and above 3 3 General Reserve Fund losses
Allowance for Probable Losses on
Total Assets 7% to below 10% 2.5 Receivable
5% to below 7% 2
Less: Past Due Accounts
3% to below 5% 1.5 Receivable

1% to below 3% 1 Past Due Loans Receivable

Accounts Receivable in
Below 1% 0 litigation

Loans Receivable in litigation

Total -
Total Assets
Net institutional Capital #DIV/0! 0

8% and above 4 4 Net Worth:

1.5 Capital Adequacy Rate Net Worth (Equity - unbooked 6% to less than 8% 3 Paid up Capital- Preferred
allowance for probable loss-unbooked 4% to less than 6% 2 Paid up Capital-Common
Measures the
allowance for impairment of Assets)
sufficiency of the
Deposit for Share Capital capital to cover the
Risk Assets 2% to less than 4% 1 Subscription risk assets
below 2% 0 Total Paid up Capital -
Donations and Grants
Reserve Fund
Revaluation Surplus
Less: Unbooked Allowances -
Total Net Worth -

Sufficient Allowance for Probable Loss Risk Assets:

35% and 100% of past due Total Assets
receivables based on PAR Less: Cash on Hand
Petty Cash Fund
Revolving Fund
Change Fund
Property, Plant and
Equipment (net of depreciation)

Total Risk Assets -

Capital Adequacy Rate #DIV/0! 4

Page 10 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

**Unbooked Allowance for Unbooked Allowance

probable losses on loans - insufficient
provisioning of
allowance for
probable losses
Past Due Loans Receivable - 12 based on PAR
months past due
Past Due Accounts Receivable -12
months past due
Total Past Due Loans - 12
months -
Required Allowance - 12 months -
(35%)

Past Due Loans Receivable - over

12 months past due
Past Due Accounts Receivable -
over 12 months past due
Total Past Due Loans - over 12 -
months
Required Allowance - over 12 -
months (100%)
Total Required Allowance -
Allowance for Probable Losses on
Loans Receivable
Allowance for Probable Losses on
Accounts Receivable
Total Allowance for Probable -
Losses
Unbooked Allowance -

Unbooked Allowance for -

Impairment of Assets
Total unbooked allowance -
SUB-TOTAL, STABILITY 19 5

Page 11 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

2TURN-OVER RATIO
Gross Revenue Above 10.5 2 2 Gross Revenue Measures how
2.1 Asset turn over Average Total Assets 10.5 and below 1 Average Total Assets efficiently the
Zero or negative 0 Total Assets, previous year - cooperative uses its
Total Assets, current year asset to generate
(based on revenue
Average Total Asset (divided
csimarket.com/screening/index.php?
s=at&pageS=1&fis=) by 2) -
Asset Turn Over #DIV/0! 0

2.2 Receivable turn-over 4 0

2.2.1 Accounts Receivable Net Credit Sales 8 times and more 4 4 Net Credit Sales Measures the
turn-over Average Accounts Receivables 6 to below 8 3 Average Accounts Receivable - number of times
2 0.00 accounts receivables
(For Consumer, Marketing) 3 to below 6 Receivable turn-over #DIV/0! are collected within
0.1 to Below 3 1 the reporting period
0
Zero or negative Average Accounts Receivable:
Accounts Receivable, previous
year -

Accounts Receivable, current year

Average Accounts Receivable -

Loan Releases (from CAPR - Measures the

2.2.2 Loan Receivable Turn Loan Releases 4 times and more 4 4 volume of business) number of times
(for Credit, Agriculture & ARB Average Loans Receivable 3 to below 4 3 Average Loans Receivable - loans receivables are
2 to below 3 2 Loans Receivable turn-over #DIV/0! 0.00 collected within the
1 reporting period
above 0 to Below 2
Zero or negative 0 Average Loans Receivable:
Loans Receivable previous year -
Loan Releases - principal amount of Loans Receivable current year
loans granted to members within the Average Loans Receivable: -
reporting period

2.2.3 Service Receivable Tu

(For Service & Labor Servic Gross Receipts 9 and above 4 4 Gross Receipts
Average Service Receivable 8 to below 9 3 Average Service Receivable -
7 to below 8 2 Service Receivable Turn-over #DIV/0! 0.00
Below 7 1
Gross Receipts - refers to the Zero or negative 0 Average Service Receivable:
amount for the year taken from CAPRIS Service Receivable previous year -
Service Receivable current year
Average Service Receivable: -
SUB-TOTAL, TURN-OVER RATIO 6 0

Page 12 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

3EFFICIENCY
Administrative cost - (members benefit 4 Measures the cost of
Below 10% 4
expense+ social service expense) Total Administrative Cost efficiently managing
the cooperative's
10% to below 15% 3 assets
3.1 Administrative Efficiency Average total assets* Less Members Benefit Expense
15% to below 20% 2 Social Service Expense
*Average total assets = (Beginning 20% to below 25% 1
Total Asset + Ending Total Asset)/2 Total -
Above 25% 0
Average Total Assets
Total Assets, previous year -
Total Assets, current year
Average Total Asset (divided
by 2) -
Administrative Efficiency #DIV/0! 0

3.2 Cost of External Interest on Borrowings+ Other Measures the

Borrowing Rate Borrowing Costs Below inflation rate 3 3 Interest Expense on Borrowings efficiency of
Average Total Loans Payable Within inflation rate 2 Other Financing Charges borrowings in
- financing its
operation
Above inflation rate 1 Total

Inflation rate as of _____ 3.3%

(to be updated annually) Loans Payable, previous year -
Loans Payable, current year
Average Loans Payable -

3.3 Cost of Borrowings Interest on Deposits+Interest on
from Members Revolving Capital Payable
Average Total Deposit Liabilities +
Average Revolving Capital Payable
3
Cost of External Borrowing Rate #DIV/0!
3 Interest Expense on Deposit Measures the
Below inflation rate 3 Liabilities efficiency of
borrowings from
Other Financing Charges-Interest members in financing
Within inflation rate 2 on Revolving Capital Payable - its operation
Above inflation rate 1 Total -

Deposit Liabilities, previous year -

Inflation rate as of _____ 3.3%
(to be updated annually) Deposit Liabilities, current year
Average Deposit Liabilities -

Revolving Capital Payable,

previous year -
Revolving Capital Payable, current
year
Average Revolving Capital
Payable -
Total Averages -
Cost of Borrowing from 0
Members Rate #DIV/0!

Page 13 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

3.4 Cost per volume of 3 Measures the

Business Total Cost - Members' Benefit 25 cents and below 3 Financing Cost efficiency in
Expenses-Social Service Expenses 26 to 32 cents 2 Selling/Administrative Cost managing the
Total Volume of Business 33 to 39 cents 1 Administrative Cost cooperative's
business
40 to 46 cents 0.5 Total Cost -

47 cents and above 0 Less: Members' Benefit Expense

Less: Social Benefit Expense
Net -

Loan Releases

Net Sales
Gross Service Revenue
Total Volume of Business -

Cost per Volume of Business #DIV/0! 0

3.5 Extent of Volume of Total volume of business 100% and above 5 5 Loan Releases Measures the ability
Business Average Total assets 75% to below 100% 4 Net Sales of the cooperative to
50% to below 75% 3 Gross Service Revenue use the assets to
25% to below 50% 2 Total Volume of Business - generate business
5%to below 25% 1 Average Total Asset -
below 5% 0 Extent of Volume of Business #DIV/0! 0

3.6 Growth in Members' Paid up Capital End - Paid-up Capital, above 12% Paid up Capital-Common, current Measures the ability
5 5
Contribution Beg. year of the cooperative to
Paid up Capital Beg. Paid up Capital- Preferred, current encourage members
above 10% to 12% 4 year to increase their
Deposit for Share Capital capital contribution
avove 8% to 10% 3 Subcription, current year
above 6% to 8% 2
Total Paid-up Capital, current year -
above 4% to 6% 1
Paid up Capital-Common, previous
4% and below 0
year -
Paid up Capital- Preferred,
previous year -
Deposit for Share Capital -
Subcription, previous year
Total Paid-up Capital, previous
year -
Net -

Total Paid-up Capital, previous

year -
Growth in Membership #DIV/0! 0

Page 14 of 34

INDICATORS
3.7 Delinquency Rate
3.8 Adequacy of
Provisioning of APLL (over
12 months past due)
3.9 Adequacy of (Total amount of allowance* - Required
Provisioning of 1 to 12
months past due
SUB-TOTAL, EFFICIENCY
FORMULA/RATIO
Balance of Loans/Accounts
Receivables with one day Missed
Payment
Total Loans/Accounts Receivable
Outstanding
Total amount of allowance
Total outstanding balance of
loans/accounts receivable over 12
months past due using PAR
amount of allowance for loans over 12 35%
months past due using PAR)
Total outstanding balance of
loans/accounts receivable 1 to 12
months past due using PAR
Total Coop's
STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
Measures the riks of
default in the portfolio
5% and below 5 5 Past Due Accounts Receivable or the rate of
above 5% to 10% 4 Past Due Loans Receivable uncollectible
3 accounts
above 10% to 15% Accounts Receivable in Litigation
above 15% to 20% 2 Loans Receivable in Litigation
above 20% to 25% 1 Total -
above 25% 0
Total Accounts Receivable
Total Loans Receivable
Total Receivables -
Delinquency Rate #DIV/0! 5
Allowance for Probable Losses on Measures the
Accounts Receivable adequacy of the
100% 5 5
Allowance for Probable Losses on allowance for
80% to less than 100% 4 Loans Receivable expected losses on
Total Amount of Allowance - loans for over
60% to less than 80% 3
12months past due
35% to less than 60% 2
Past Due Accounts Receivable -
10% to less than 35% 1 over 12 months
Past Due Loans Receivable - over
less than 10% 0 12 months
Total Past Due Receivable over
12 months -
Adequacy of provisioning of 0
APLL over 12 months #DIV/0!
Allowance for Probable Losses on
5 5 Accounts Receivable
Allowance for Probable Losses on
25% to less than 35% 4 Loans Receivable
17% to less than 25% 3 Total Amount of Allowance -
Less Total Past Due Receivable -
9% to less than 17% 2 over 12 months
Amount of Allowance available -
1% to less than 9% 1 for 1-12 months past due
less than 1% 0
Past Due Accounts Receivable -30
to 360 days
Past Due Loans Receivable - 30 to
360 days
Total Past Due Loans Receivable
- 1 to 12 months past due
-
Adequacy of provisioning of 0
APLL for 1 to 12 months #DIV/0!
38 8
Page 15 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

4PROFITABILITY
4.1 Return on Assets
Net surplus before Other Items 20% and above 5 5 Net Surplus before Other Items Measures the
Average Total Assets 15% to below 20% 4 Average Total Assets - capacity of assets to
10% to below 15% 3 Return on Assets #DIV/0! 0 generate income
5% to below 10% 2
Below 5% 1
Average Total Assets
Total Assets, previous year -
Total Assets, current year
Average Total Asset -

4.2 Return on Member's Amount Allocated for Interest on Amount Allocated for Interest on
share Higher than the inflation rate 5 5 Measures the
Share Capital Share Capital
earning capacity of
Average Paid up Share Capital +
member's share
Deposit for Share Capital Subscription Within the inflation rate 4 capital
- Treasury Shares
Paid up Capital- Preferred, -
2 points below the inflation rate 3 previous year
3 points or more below the inflation Paid up Capital-Common, previous
2
rate year -
Deposit for Share Capital
Net Loss 0 Subcription, previous year -
Less: Treasury Shares - Common,
previous year -
3.3% Treasury Shares - Preferred,
Inflation rate as of _____ (to be updated annually) previous year -
Total, Previous Year -

Paid up Capital- Preferred, current

year
Paid up Capital-Common, current
year
Deposit for Share Capital
Subcription, current year
Less Treasury Shares - Common,
current year
Treasury Shares - Preferred,
current year
Total, Current Year -
Average Paid up Share Capital -
Return on Member's Share #DIV/0! 0

Measures the
Net Surplus 30% and above 5 5 Net Surplus capacity of the
4.3 Rate of Net Surplus Gross Revenue 25% to below 30% 4 Gross Revenue/Margin cooperative to
10% to below 25% 3 Rate of net surplus #DIV/0! 0 generate surplus
5% to below 10% 2
below 5% 1
In case of break-even or net loss 0

SUB-TOTAL, PROFITABILITY 15 0

Page 16 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
5STRUCTURE OF ASSETS

5.1 Percentage of non- Non-Earning Assets
earning asset over total
assets
5% and below 5 5 Non Earning Assets Measures the
Total Assets above 5% to 8% 4 Cash on Hand percentage of total
above 8% to 10% 3 Petty Cash Fund assets that are not
above 10% to 12% 2 Revolving Fund producing income
above 12% to 14% 1 Change Fund
above 14% 0 Supplies
Prepaid Expenses
Property, Plant and Equipment
(net)
Other Non-Earning Assets -
Total Non-Earning Assets -
Total Assets
% of Non-Earning Asset over 0
total Assets #DIV/0!

5.2 Percentage of 4 4 Investments in equity and debt Measures the

Investment instruments (current and long term) degree of assets
Total Investments 0% to 5% devoted to
Net Worth above 5% to 10% 3 Investments Property less ROPA investments
2 Investments in Subsidiary,
above 10% to 15% Associates and Joint Ventures
above 15% to 20% 1 Total Investments -
above 20% 0
Net Worth:
Paid up Capital- Preferred
Paid up Capital-Common
Deposit for Share Capital
Subscription
Total Paid up Capital -
Donations and Grants
Reserve Fund
Revaluation Surplus
Less: Unbooked Allowance for
probable losses on Loans -
Total Net Worth -

Percentage of Investment #DIV/0! 0

5.3 Extent of Assets Total Deposit Liabilities 50% and above 5 5 Saving Deposits Measures the extent
financed by Deposit Total Assets 40% to below 50% 4 Time Deposits of assets financed by
Liabilities 30% to below 40% 3 Total Deposit Liabilities - deposit liabilities
20% to below 30% 2 Total Asset
Extent of Assets financed by 0
10% to below 20% 1 Deposit Liabilities #DIV/0!
Below 10% 0

Page 17 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

5.4 Extent of Total Assets
to External Borrowings and
Statutory Reserves
External Borrowings + Statutory 3 Loans Payable - current Measures the extent
Reserves No borrowings 3 of assets financed by
Total Assets 15% and below 2 Loans Payable - non-current external borrowings
above 15% to 40% 1 Finance Lease - current and statutory reserve
above 40% 0 Finance Lease - Long term
Total External Borrowings -

Reserve Fund
Cooperative Education Training
Fund
Community Development Fund
Optional Fund
Total Statutory Reserves -

Total Assets
Extent of Borrowings #DIV/0! 0

5.5 Extent of Assets Paid-up share capital + Deposits for 5 Paid up Capital- Preferred, current
financed by Members' capital subscription-Treasury Shares 50% and above 5 year
Share Capital 4 Paid up Capital-Common, current Measures the degree
Total Assets 40% to below 50% year of participation of
3 Deposit for Share Capital members' share to
30% to below 40% Subscription, current year total assets
20% to below 30% 2 Total -
10 % to below 20% 1 Less Treasury shares
below 10% 0 Net -
Total Assets
Extent of Assets financed by #DIV/0! 0
Members' Share Capital
22 0
SUB-TOTAL,
STRUCTURE OF ASSETS
TOTAL POINTS 100 13

Page 18 of 34
 CDA-ReD-FR-029
Revision No. 1
March 5, 2021

Annex C PERFORMANCE AUDIT REPORT - SUMMARY REPORT FOR PRIMARY

AND OTHER SPECIAL TYPE COOPERATIVES

ABC Cooperative is a duly registered cooperative with the Cooperative Development Authority (CDA)
under Registration No. _________ with official postal address at
__________________________________________ _________________ engaging in the provision of
________________________.

The audit was conducted by the _____________ last _____ of _______ 20____to ascertain the
documents required by MC No. 2021-04 Series of 2021 issued by the CDA, a government agency in-
charge in the regulation and development of cooperatives. Methodologies employed include
verification of the presence of the documents, whether the document is updated, and whether it is
duly approved by the CDA. Prior the conduct of the audit, a memorandum was issued to the
concerned units/person at least two (2) weeks before the conduct of the audit.

A. Governance and Management

Summary of observations and findings are found below:

STRONG AREAS

Add more lines, if necessary

AREAS TO BE IMPROVED/FOR COMPLIANCE NEEDED ACTION TIMELINE

Add more lines, if necessary

B. Result of Financial Performance

STEPS STANDARD RATING COOP'S RATING

STABILITY 19 5
TURN-OVER RATIO 6 0
EFFICIENCY 38 8
PROFITABILITY 15 0
STRUCTURE OF ASSETS 22 0
TOTAL RATING - STEPS 100 13

C. Total Points
Total Points
Governance and Management x 40% 0.4
STEPS x 60% 7.8
Grand Total 100% 8.20

ADJECTIVAL RATING
Your cooperative obtained a total rating of ____ with adjectival rating of ___________ (please refer to
our M.C. 2021-__ for the matrix of adjectival rating), which means that_______.

Prepared by:

Audit Committee
 CDA-ReD-FR-029
Revision No. 1
March 5, 2021

ANNEX B - FINANCIAL PERFORMANCE STANDARDS FOR COOPERATIVE FEDERATION

Summary of fields to be supplied by coop

Formula Account Amount
1.3 Solvency Impaired Assets
Unbooked Allowance for Impairment of
1.5 Capital Adequacy Rate Assets
2.1 Asset turn over,
3.1 Administrative
Efficiency,
4.1 Return on Assets Total Assets, previous year
2.2.1 Accounts Receivable
turn-over Accounts Receivable, previous year
2.2.2 Loan Receivable Turn
Over Loans Receivable previous year
2.2.3 Service Receivable
Turn Over Service Receivable previous year
3.2 Cost of External
Borrowing Rate Loans Payable, previous year
3.3 Cost of Borrowings Other Financing Charges-Interest on
from Members Revolving Capital Payable
3.3 Cost of Borrowings
from Members Deposit Liabilities, previous year
3.3 Cost of Borrowings Revolving Capital Payable, previous
from Members year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Paid up Capital-Common, previous
share year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Paid up Capital- Preferred, previous
share year
3.6 Growth in Members'
Contribution,
4.2 Return on Member's Deposit for Share Capital Subcription,
share previous year
3.10 Cooperative Education
and Training Fund Amount of CETF Utilized for the year
Utilization Rate for the benefit of members
3.10 Cooperative Education
and Training Fund Total Amount of CETF Collected for
Utilization Rate the year
4.2 Return on Member's Treasury Shares - Common, previous
share year
4.2 Return on Member's Treasury Shares - Preferred, previous
share year
5.1 Percentage of non-
earning asset over total
assets Other Non-Earning Assets

Page 21 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
1STABILITY
1.1 Liquidity Current Assets Above 500% 0 4 Total Current Assets Measures the
Current Liabilities Above 400% to 500% 1 cooperative's ability
Above 300% to 400% 2 Total Current Liabilities to meet its short term
obligations as it falls
Above 150% to 300% 3 due
100% to 150% 4
Below 100% to 95% 3 Liquidity Rate #DIV/0! 4
Below 95% to 90% 2
Below 90% to 85% 1
Below 85% 0

1.2 Quick Asset Liquid assets 200% and above
Current Liabilities 150% to below 200%
100% to below 150%
Below 100%
3 3 Liquid Assets: Measures the
2 Cash and Cash Equivalents cooperative's ability
1 Financial Assets to pay its current
0 liabilities using its
Total Liquid Assets -
quick assets.
Current Liabilities

Quick Ratio #DIV/0! 3

1.3 Solvency 5 Measures the degree

110 and above 5 Total Assets of protection that the
(Assets + Allowances for probable cooperative has for
losses+Allowance for Impaired Assets) members savings
- [ (Total liabilities - Deposit liabilities)+ Allowance for Probable Losses on and share capital
(Past due receivables+restructured 100 to below 110 3 Accounts Receivable contribution in the
receivables + receivables under Allowance for Probable Losses on event of liquidation of
litigation+ Impaired Assets)] Below 100 1 Loans Receivable the cooperative's
Deposit liabilities + Share capital + assets and liabilities
Deposit for SC Subscription Allowance for Impaired Assets
Sub-total -
Total Liabilities
Less: Deposit Liabilities
Add: Past Due Accounts
Receivable

Past Due Loans Receivable

Accounts Receivable
Restrutured
Loans Receivable
Restructured
Accounts Receivable under
litigation
Loans Receivable under
litigation
Impaired Assets -
Sub-total -
Total -

Page 22 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

Deposit Liabilites
Paid up Capital- Preferred
Paid up Capital-Common
Total Paid up Capital -
Deposit for Share Capital
Subscription
Total -
Solvency Rate #DIV/0! 0
1.4 Net Institutional Capital Reserve Fund + [(Allowance for Measures the level of
Probable Losses on Receivables) - institutional capital to
(Past Due Receivables + Receivables absorb potential
in Litigation)] 10% and above 3 3 General Reserve Fund losses
Allowance for Probable Losses on
Total Assets 7% to below 10% 2.5 Receivable
5% to below 7% 2
Less: Past Due Accounts
3% to below 5% 1.5 Receivable
1
1% to below 3% Past Due Loans Receivable
0 Accounts Receivable in
Below 1% litigation

Loans Receivable in litigation

Total -
Total Assets
Net institutional Capital #DIV/0! 0

8% and above 4 4 Net Worth:

1.5 Capital Adequacy Rate Net Worth (Equity - unbooked 6% to less than 8% 3 Paid up Capital- Preferred
allowance for probable loss-unbooked 4% to less than 6% 2 Paid up Capital-Common
Measures the
allowance for impairment of Assets)
sufficiency of the
Deposit for Share Capital capital to cover the
Risk Assets 2% to less than 4% 1 Subscription risk assets
below 2% 0 Total Paid up Capital -
Donations and Grants
Reserve Fund
Revaluation Surplus
Less: Unbooked Allowances -
Total Net Worth -

Sufficient Allowance for Probable Loss Risk Assets:

35% and 100% of past due Total Assets
receivables based on PAR Less: Cash on Hand
Petty Cash Fund
Revolving Fund
Change Fund
Property, Plant and
Equipment (net of depreciation)

Total Risk Assets -

Capital Adequacy Rate #DIV/0! 4

Page 23 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

**Unbooked Allowance for Unbooked Allowance

probable losses on loans - insufficient
provisioning of
allowance for
probable losses
Past Due Loans Receivable - 12 based on PAR
months past due
Past Due Accounts Receivable -12
months past due
Total Past Due Loans - 12
months -
Required Allowance - 12 months -
(35%)

Past Due Loans Receivable - over

12 months past due
Past Due Accounts Receivable -
over 12 months past due
Total Past Due Loans - over 12 -
months
Required Allowance - over 12 -
months (100%)
Total Required Allowance -
Allowance for Probable Losses on
Loans Receivable
Allowance for Probable Losses on
Accounts Receivable
Total Allowance for Probable -
Losses
Unbooked Allowance -

Unbooked Allowance for -

Impairment of Assets
Total unbooked allowance -
SUB-TOTAL, STABILITY 19 11

Page 24 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

2TURN-OVER RATIO
Gross Revenue Above 10.5 2 2 Gross Revenue Measures how
2.1 Asset turn over Average Total Assets 10.5 and below 1 Average Total Assets efficiently the
Zero or negative 0 Total Assets, previous year - cooperative uses its
Total Assets, current year asset to generate
(based on revenue
Average Total Asset (divided
csimarket.com/screening/index.php?
s=at&pageS=1&fis=) by 2) -
Asset Turn Over #DIV/0! 0

2.2 Receivable turn-over 4 0

2.2.1 Accounts Receivable Net Credit Sales 8 times and more 4 4 Net Credit Sales Measures the
turn-over Average Accounts Receivables 6 to below 8 3 Average Accounts Receivable - number of times
2 accounts receivables
(For Consumer, Marketing) 3 to below 6 Receivable turn-over #DIV/0! - are collected within
0.1 to Below 3 1 the reporting period
0
Zero or negative Average Accounts Receivable:
Accounts Receivable, previous
year -

Accounts Receivable, current year

Average Receivable: -

Loan Releases (from CAPR - Measures the

2.2.2 Loan Receivable Turn Loan Releases 4 times and more 4 4 volume of business) number of times
(for Credit, Agriculture & AR Average Loans Receivable 3 to below 4 3 Average Loans Receivable - loans receivables are
2 to below 3 2 Loans Receivable turn-over #DIV/0! - collected within the
reporting period
above 0 to Below 2 1
Zero or negative 0 Average Loans Receivable:
Loans Receivable previous year -
Loan Releases - principal amount of Loans Receivable current year
loans granted to members within the Average Loans Receivable: -
reporting period

2.2.3 Service Receivable Tu

(For Service & Labor Servi Gross Receipts 9 and above 4 4 Gross Receipts
Average Service Receivable 8 to below 9 3 Average Service Receivable -
7 to below 8 2 Service Receivable Turn-over #DIV/0! 0.00
Below 7 1
Gross Receipts - refers to the Zero or negative 0 Average Service Receivable:

amount for the year taken from CAPRIS Service Receivable previous year -
Service Receivable current year
Average Service Receivable: -
SUB-TOTAL, TURN-OVER RATIO 6 0

Page 25 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

3EFFICIENCY
Administrative cost - (members benefit 4 Measures the cost of
Below 10% 4
expense+ social service expense) Total Administrative Cost efficiently managing
3.1 Administrative the cooperative's
10% to below 15% 3 assets
Efficiency Average total assets* Less Members Benefit Expense
15% to below 20% 2 Social Service Expense

*Average total assets = (Beginning 20% to below 25% 1

Total Asset + Ending Total Asset)/2 Total -
Above 25% 0
Average Total Assets
Total Assets, previous year -
Total Assets, current year
Average Total Asset (divided
by 2) -
Administrative Efficiency #DIV/0! 0

3.2 Cost of External Interest on Borrowings+ Other Measures the

Borrowing Rate Borrowing Costs Below inflation rate 3 3 Interest Expense on Borrowings efficiency of
Average Total Loans Payable Within inflation rate 2 Other Financing Charges borrowings in
- financing its
operation
Above inflation rate 1 Total

3.3% Loans Payable, previous year -

Inflation rate as of _____ (to be updated
annually) Loans Payable, current year
Average Loans Payable -

Cost of External Borrowing Rate #DIV/0! 3

3.3 Cost of Borrowings Interest on Deposits+Interest on
from Members Revolving Capital Payable
Average Total Deposit Liabilities +
Average Revolving Capital Payable
3 Interest Expense on Deposit Measures the
Below inflation rate 3 Liabilities efficiency of
borrowings from
Other Financing Charges-Interest members in financing
Within inflation rate 2 on Revolving Capital Payable - its operation
Above inflation rate 1 Total -

Deposit Liabilities, previous year -

3.3%
Inflation rate as of _____ (to be updated annually) Deposit Liabilities, current year
Average Deposit Liabilities -

Revolving Capital Payable,

previous year -
Revolving Capital Payable, current
year
Average Revolving Capital
Payable -
Total Averages -
Cost of Borrowing from
Members Rate #DIV/0! 0

Page 26 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

3.4 Cost per volume of 3 Measure the

Business Total Cost - Members' Benefit 25 cents and below 3 Financing Cost efficiency in
Expenses-Social Service Expenses 26 to 32 cents 2 Selling/Administrative Cost managing the
Total Volume of Business 33 to 39 cents 1 Administrative Cost cooperative's
business
40 to 46 cents 0.5 Total Cost -

47 cents and above 0 Less: Members' Benefit Expense

Less: Social Benefit Expense
Net -

Loan Releases

Net Sales
Gross Service Revenue
Total Volume of Business -
Cost per Volume of Business #DIV/0! 0
3.5 Extent of Volume of Total volume of business 100% and above 5 5 Loan Releases Measures the ability
Business Average Total assets 75% to below 100% 4 Net Sales of the cooperative to
50% to below 75% 3 Gross Service Revenue use the assets to
25% to below 50% 2 Total Volume of Business - generate business
5%to below 25% 1 Average Total Asset -
below 5% 0 Extent of Volume of Business #DIV/0! 0

3.6 Growth in Members' Paid up Capital End - Paid-up Capital, Paid up Capital-Common, current Measures the ability
Contribution above 12% 5 5 year of the cooperative to
Beg.
Paid up Capital Beg. Paid up Capital- Preferred, current encourage members
above 10% to 12% 4 year to increase their
Deposit for Share Capital capital contribution
avove 8% to 10% 3 Subcription, current year
above 6% to 8% 2
Total Paid-up Capital, current year -
above 4% to 6% 1
Paid up Capital-Common, previous
4% and below 0 year -
Paid up Capital- Preferred,
previous year -
Deposit for Share Capital
Subcription, previous year -
Total Paid-up Capital, previous
year -
Net -

Total Paid-up Capital, previous

year -
Growth in Membership #DIV/0! 0

Page 27 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

3.7 Delinquency Rate Measures the riks of

Balance of Loans/Accounts default in the portfolio
Receivables with one day Missed 5% and below 5 5 Past Due Accounts Receivable or the rate of
Payment above 5% to 10% 4 Past Due Loans Receivable uncollectible
accounts
3
Total Loans/Accounts Receivable above 10% to 15% Accounts Receivable in Litigation
Outstanding above 15% to 20% 2 Loans Receivable in Litigation
above 20% to 25% 1 Total -
above 25% 0
Total Accounts Receivable
Total Loans Receivable
Total Receivables -
Delinquency Rate #DIV/0! 5

3.8 Adequacy of Allowance for Probable Losses on Measures the

Provisioning of APLL (over
12 months past due)
loans/accounts receivable over 12
Total amount of allowance
100%
Total outstanding balance of
months past due using PAR
Accounts Receivable adequacy of the
5 5
Allowance for Probable Losses on allowance for
80% to less than 100% 4 Loans Receivable expected losses on
60% to less than 80% 3 Total Amount of Allowance loans for over
12months past due
35% to less than 60% 2
Past Due Accounts Receivable -
10% to less than 35% 1 over 12 months
Past Due Loans Receivable - over
less than 10% 0 12 months
Total Past Due Receivable over 12
months -
Adequacy of provisioning of
APLL over 12 months #DIV/0! 0

3.9 Adequacy of (Total amount of allowance* - Required
Provisioning of 1 to 12
months past due
Allowance for Probable Losses on
amount of allowance for loans over 12 35% 5 5 Accounts Receivable
months past due using PAR) Allowance for Probable Losses on
25% to less than 35% 4 Loans Receivable
Total outstanding balance of 17% to less than 25% 3 Total Amount of Allowance -
loans/accounts receivable 1 to 12 Less Total Past Due Receivable -
months past due using PAR 9% to less than 17% 2 over 12 months
Amount of Allowance available -
for 1-12 months past due
1% to less than 9% 1
less than 1% 0
Past Due Accounts Receivable -30
to 360 days
Past Due Loans Receivable - 30 to
360 days
Total Past Due Loans Receivable
- 1 to 12 months past due
-
Adequacy of provisioning of
APLL for 1 to 12 months #DIV/0! 0

Page 28 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
3.10 Cooperative Education 100% 3 3
and Training Fund Amount of CETF Utilized for the
Utilization Rate Total CETF Utilized year for the benefit of members 0
Total CETF Collected 85% to less than 100% 2
1 Total Amount of CETF Collected
70% to less than 85% for the year 0
below 70% 0
CETF Utilization Rate #DIV/0! 0
SUB-TOTAL, EFFICIENCY 41 8

4PROFITABILITY
4.1 Return on Assets
Net surplus before Other Items 20% and above 3 3 Net Surplus before Other Items Measures the
Average Total Assets 15% to below 20% 2.5 Average Total Assets - capacity of assets to
10% to below 15% 2 Return on Assets #DIV/0! 0 generate income
5% to below 10% 1
Below 5% 0
Average Total Assets
Total Assets, previous year -
Total Assets, current year
Average Total Asset -

4.2 Return on Member's Amount Allocated for Interest on Amount Allocated for Interest on
share Higher than the inflation rate 5 5 Measures the
Share Capital Share Capital
earning capacity of
Average Paid up Share Capital +
member's share
Deposit for Share Capital Subscription- Within the inflation rate 4 capital
Treasury Shares
Paid up Capital- Preferred, -
2 points below the inflation rate 3 previous year
3 points or more below the inflation Paid up Capital-Common, previous
2 year
rate -
Deposit for Share Capital
Net Loss 0 Subcription, previous year -
Less Treasury Shares - Common,
previous year -
3.3% Treasury Shares - Preferred,
Inflation rate as of _____ (to be updated annually) previous year -
Total, Previous Year -

Paid up Capital- Preferred, current

year
Paid up Capital-Common, current
year
Deposit for Share Capital
Subcription, current year
Less Treasury Shares - Common,
current year
Treasury Shares - Preferred,
current year
Total, Current Year -

Average Paid up Share Capital -

Return on Member's Share #DIV/0! 0

Measures the
Net Surplus 30% and above 4 4 Net Surplus capacity of the
4.3 Rate of Net Surplus Gross Revenue 25% to below 30% 3 Gross Revenue/Margin cooperative to
10% to below 25% 2 Rate of net surplus #DIV/0! 0 generate surplus
5% to below 10% 1.5
below 5% 1
0
In case of break-even or net loss
Page 29 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

SUB-TOTAL, PROFITABILITY 12 0

Page 30 of 34

INDICATORS FORMULA/RATIO
5STRUCTURE OF ASSETS
5.1 Percentage of non- Non-Earning Assets
earning asset over total
assets
5.2 Percentage of
Investment
Total Investments
5.3 Extent of Assets Total Deposit Liabilities
financed by Deposit
Liabilities
Total Coop's
STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point
5% and below 5 5 Non Earning Assets: Measures the
Total Assets above 5% to 8% 4 Cash on Hand percentage of total
above 8% to 10% 3 Petty Cash Fund assets that are not
above 10% to 12% 2 Revolving Fund producing income
above 12% to 14% 1 Change Fund
above 14% 0 Supplies
Prepaid Expenses
Property, Plant and Equipment
(net)
Other Non-Earning Assets -
Total Non-Earning Assets -
Total Assets
% of Non-Earning Asset over
total Assets #DIV/0! 0
4 Investments in equity and debt Measures the
instruments (current and long term) degree of assets
0% to 5% 4 devoted to
Investments Property less ROPA investments
Net Worth above 5% to 10% 3
Investments in Subsidiary,
above 10% to 15% 2 Associates and Joint Ventures
above 15% to 20% 1 Total Investments -
above 20% 0
Net Worth:
Paid up Capital- Preferred
Paid up Capital-Common
Deposit for Share Capital
Subscription
Total Paid up Capital -
Donations and Grants
Reserve Fund
Revaluation Surplus
Less: Unbooked Allowance for
probable losses on Loans -
Total Net Worth -
Percentage of Investment #DIV/0! 0
50% and above 5 5 Saving Deposits Measures the extent
Total Assets 40% to below 50% 4 Time Deposits of assets financed by
30% to below 40% 3 Total Deposit Liabilities - deposit liabilities
20% to below 30% 2 Total Asset
Extent of Assets financed by
10% to below 20% 1 Deposit Liabilities #DIV/0! 0
Below 10% 0
Page 31 of 34
 Total Coop's
INDICATORS FORMULA/RATIO STANDARD POINT Accounts under CAFSIS Amount PURPOSE
Pts. Point

5.4 Extent of Total Assets
to External Borrowings and
Statutory Reserves
External Borrowings + Statutory 3 Loans Payable - current Measures the extent
Reserves No borrowings 3 of assets financed by
Total Assets 15% and below 2 Loans Payable - non-current external borrowings
above 15% to 40% 1 Finance Lease - current and statutory reserve
above 40% 0 Finance Lease - Long term
Total External Borrowings -

Reserve Fund
Cooperative Education Training
Fund
Community Development Fund
Optional Fund
Total Statutory Reserves -

Total Assets
Extent of Borrowings #DIV/0! 0

5.5 Extent of Assets Paid-up share capital + Deposits for 5 Paid up Capital- Preferred, current
financed by Members' capital subscription-Treasury Shares 50% and above 5 year
Share Capital 4 Paid up Capital-Common, current Measures the degree
Total Assets 40% to below 50% year of participation of
3 Deposit for Share Capital members' share to
30% to below 40% Subscription, current year total assets
20% to below 30% 2 Total -
10 % to below 20% 1 Less Treasury shares
below 10% 0 Net -
Total Assets
Extent of Assets financed by
Members' Share Capital #DIV/0! 0
SUB-TOTAL,
22 0
STRUCTURE OF ASSETS

TOTAL POINTS 100 19

Page 32 of 34
 CDA-ReD-FR-029
Revision No. 1
March 5, 2021

Annex C PERFORMANCE AUDIT REPORT - SUMMARY REPORT FOR COOPERATIVE FEDERATION

ABC Cooperative is a duly registered cooperative with the Cooperative Development Authority
(CDA) under Registration No. _________ with official postal address at
__________________________________________ _________________ engaging in the provision
of ________________________.

The audit was conducted by the _____________ last _____ of _______ 20____to ascertain the
documents required by MC No. 2021-04 Series of 2021 issued by the CDA, a government agency in-
charge in the regulation and development of cooperatives. Methodologies employed include
verification of the presence of the documents, whether the document is updated, and whether it is
duly approved by the CDA. Prior the conduct of the audit, a memorandum was issued to the
concerned units/person at least two (2) weeks before the conduct of the audit.

A. Governance and Management

Summary of observations and findings are found below:

STRONG AREAS

Add more lines, if necessary

AREAS TO BE IMPROVED/FOR COMPLIANCE NEEDED ACTION TIMELINE

Add more lines, if necessary

B. Result of Financial Performance

STEPS STANDARD RATING COOP'S RATING

STABILITY 19 11
TURN-OVER RATIO 6 0
EFFICIENCY 41 8
PROFITABILITY 12 0
STRUCTURE OF ASSETS 22 0
TOTAL RATING - STEPS 100 19

C. Total Points
Total Points
Governance and Management x 40% 0.4
STEPS x 60% 11.4
Grand Total 100% 11.8

ADJECTIVAL RATING
Your cooperative obtained a total rating of ____ with adjectival rating of ___________ (please refer
to our M.C. 2021-04 for the matrix of adjectival rating), which means that_______.

Prepared by:

Audit Committee