Cooperative Operations Manual

JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

Proposed Coop Operations Manual for the Recycling Cooperatives (for internal discussion and modification by the coop) Prepared by: Carlos O. Tulali 1. RESPONSIBILITIES FOR OPERATIONS 1.1. General Membership Every member shall have the following duties: 1.1.1. Pay the installment of his share capital subscription as it falls due and to participate in the capital build-up and savings mobilization activities of the Cooperative; 1.1.2. Patronize the Cooperative’s businesses and services; 1.1.3. Participate in the membership education programs; 1.1.4. attend and participate in the deliberation of all matters taken during general assembly meetings; 1.1.5. Observe and obey all lawful orders, decisions, rules and regulations adopted by the Board of Directors and the general assembly; and 1.1.6. Promote the purposes and goals of the Cooperative, the success of its business, the welfare of its members and the cooperative movement in general. 1.2. General Assembly The General Assembly has the following powers and responsibilities: 1.2.1.Determine and approve amendments to the cooperative articles of cooperation and bylaws; 1.2.2.Elect or appoint the members of the board of directors, and to remove them for cause; 1.2.3.Approve developmental plans of the cooperative; and 1.2.4.Delegate some of its power to a smaller body of the cooperative as authorized by the Philippine Cooperative Code of 2008. 1.3. Board of Directors 1.3.1.Provide general policy direction; 1.3.2.Formulate the strategic development plan; 1.3.3.Determine and prescribe the organizational and operational structure; 1.3.4.Review the annual plan and budget and recommend for the approval of the general assembly; 1.3.5.Establish policies and procedures for the effective operation and ensure proper implementation of such; 1.3.6.Evaluate the capability and qualification and recommend to the general assembly the engagement of the services of the external auditor; 1.3.7.Appoint the members of the mediation/ conciliation and ethics committees and other officers as specified in the Philippine Cooperative Code of 2008 and cooperative by-laws;

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

1.3.8.Declare the members entitled to vote; 1.3.9.Decide election related cases involving the election committee and its members; 1.3.10. Act on the recommendation of the ethics committee on cases involving violations of code of governance and ethical standards; and 1.3.11. Perform such other functions as may be prescribed in the by-laws or authorized by the general assembly.

1.4. Audit Committee The audit committee shall be directly accountable and responsible to the general assembly. It shall have the power and duty to continuously monitor the adequacy and effectiveness of the cooperative's management control system and audit the performance of the cooperative and its various responsibility centers. 1.4.1.Monitor the adequacy and effectiveness of the cooperative’s management and control system; 1.4.2.Audit the performance of the cooperative and its various responsibility centers; 1.4.3.Review continuously and periodically the books of account and other financial records to ensure that these are in accordance with the cooperative principles & generally accepted accounting procedures; 1.4.4.Submit reports on the results of the internal audit and recommend necessary changes on policies and other related matters on operation to the board of directors and general assembly; 1.4.5.Recommend or petition to the board of directors conduct of special general assembly when necessary; and 1.4.6.Perform such other functions as may be prescribed in the by-laws or authorize by the general assembly. 1.5. Election Committee The election committee shall: 1.5.1.Formulate election rules and guidelines and recommend to the general assembly for approval; 1.5.2.Implement election rules and guidelines duly approved by the general assembly; 1.5.3.Recommend necessary amendments to the election rules and guidelines, in consultation with the board of directors, for approval of the general assembly; 1.5.4.Supervise the conduct, manner and procedure of election and other election related activities and act on the changes thereto; 1.5.5.Canvass and certify the results of the election; 1.5.6.Proclaim the winning candidates; 1.5.7.Decide election and other related cases except those involving the election committee or its members, and 1.5.8.Perform such other functions as prescribed in the by-laws or authorized by the general assembly.

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

1.6. Education and Training Committee The committee shall be responsible for the planning and implementation of the information, educational and human resource development programs of the cooperative for its members, officers and the communities within its area of operation. 1.6.1.Keep members, officers, staff well-informed regarding cooperative’s goals/objectives, policies & procedures, services, etc.; 1.6.2.Plan and implement educational program for cooperative members, officers and staff; 1.6.3.Develop promotional and training materials for the cooperative; and 1.6.4.Conduct/coordinate training activities. 1.7. Mediation and Conciliation Committee The mediation and conciliation committee shall: 1.7.1.Formulate and develop the conciliation-mediation program and ensure that it is properly implemented; 1.7.2.Monitor conciliation-mediation program and processes; 1.7.3.Submit semi-annual reports of cooperative cases to the Authority within fifteen (15) days after the end of every semester; 1.7.4.Accept and file evaluation reports; 1.7.5.Submit recommendations for improvements to the board of directors; 1.7.6.Recommend to the board of directors any member of the cooperative for conciliationmediation training as cooperative mediator-conciliator; 1.7.7.Issue the certificate of non-settlement; and 1.7.8.Perform such other functions as may be prescribed in the by-laws or authorized by the general assembly. 1.8. Ethics Committee The ethics committee shall: 1.8.1.Develop code of governance and ethical standard to be observed by the members, officers and employees of the cooperative subject to the approval of the board of directors and ratification of the general assembly; 1.8.2.Disseminate, promote and implement the approved code of governance and ethical standards; 1.8.3.Monitor compliance with the code of governance and ethical standards and recommend to the board of directors measures to address the gap, if any; 1.8.4.Conduct initial investigation or inquiry upon receipt of a complaint involving code of governance and ethical standards and submit report to the board of directors together with the appropriate sanctions; 1.8.5.Recommend ethical rules and policy to the board of directors; and 1.8.6.Perform such other functions as may be prescribed in the by-laws or authorized by the general assembly.

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

1.9. Credit Committee The credit committee shall: 1.9.1.Responsible for the credit management of the cooperative; 1.9.2.Process, evaluate and act upon loan application and withdrawal of deposits, except when the applicant is a member of the committee, in which case, the application shall be acted upon by the Board of Directors; and 1.9.3.Exercise general supervision including collection over all loans to members. 1.10. Other Committees By a majority vote of all its members, the board of directors may form such other committees as may be deemed necessary for the operation of the cooperative. 1.11. Chairperson The chairperson shall: 1.11.1. Set the agenda for board meetings in coordination with the other members of the board of directors; 1.11.2. Preside over all meetings of the board of directors and of the general assembly; 1.11.3. Sign contracts, agreements, certificates and other documents on behalf of the cooperative as authorized by the board of directors or by the general assembly; 1.11.4. Issue certificate of non-affiliation with the federation or union; and 1.11.5. Perform such other functions as may be authorized by the BOD or by the general assembly. 1.12. Vice-Chairperson 1.12.1. The vice-chairperson shall: 1.12.2. Perform all the duties and responsibilities of the chairperson in the absence of the latter; 1.12.3. Act as ex-officio chairperson of the education and training committee; and 1.12.4. Perform such other duties as may be delegated by the board of directors. 1.13. Treasurer The treasurer shall: 1.13.1. Ensure that all cash collections are deposited in accordance with the policies set by the board of directors; 1.13.2. Have custody of all funds, securities, and documentations relating to all assets, liabilities, income and expenditures; 1.13.3. Monitor and review the financial management operations of the cooperative, subject to such limitations and control as may be prescribed by board of directors; 1.13.4. Maintain full and complete records of cash transactions; 1.13.5. Maintain a petty cash fund and daily cash position report; and 1.13.6. Perform such other functions as may be prescribed in this by-laws

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

1.14.

1.15. Secretary The secretary shall: 1.15.1. Keep an updated and complete registry of all members record, prepare and maintain records of all minutes of all meetings of the board of directors and the general assembly; 1.15.2. Ensure that necessary board if directors’ actions and decisions are transmitted to the management for compliance and implementation; 1.15.3. Issue and certify the list of members who are in good standing and entitled to vote as determined by the board of directors; 1.15.4. Prepare and issue share certificates; 1.15.5. Serve notice of all meetings called and certify the presence of quorum of all meetings of the board of directors and general assembly; 1.15.6. Keep copy of the treasurer’s report and other reports; 1.15.7. Keep and maintain the share and transfer book; 1.15.8. Serve as custodian of the cooperative seal; and 1.15.9. Perform such other functions as may be prescribed in the by-laws or authorized by the general assembly. 1.15.10. General Manager The general manager shall: 1.15.10.1. Oversee the overall day to day business operations of the cooperative by providing general direction, supervision, management and administrative control over all the operating departments subject to such limitations as may be set forth by the board of directors or the general assembly; 1.15.10.2. Formulate and recommend in coordination with the operating departments under his/her supervision, the coops annual and medium term development plan, programs and projects, for approval of the board of directors, and ratification of general assembly; 1.15.10.3. Implement the duly approved plans and programs of the cooperative and any other directive or instruction of the board of directors; 1.15.10.4. Provide and submit to the board of directors monthly reports on the status of the coop’s operation vis-a-vis its target and recommend appropriate policy or operational changes, if necessary; 1.15.10.5. Represent the cooperative in any agreement, contract, business dealings, and in any other official business transaction as may be authorized by the board of directors; 1.15.10.6. Ensure compliance with all administrative and other requirements of regulatory bodies; and 1.15.10.7. Perform such other functions as may be prescribed in the by-laws or authorized by the general assembly. 1.15.11. Accountant/Cashier The accountant/cashier of the cooperative, who shall be under supervision and control of the general manager shall:

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

1.15.11.1. Install an adequate and effective accounting system within the cooperative; 1.15.11.2. Render reports on the financial condition and operations of the cooperative monthly, annually or as may be required by the board of directors and/or the general assembly; 1.15.11.3. Provide assistance to the board of directors in the preparation of annual budget; 1.15.11.4. Keep, maintain and preserve all books of accounts, documents, vouchers, contracts and other records concerning the business of the cooperative and make them available for auditing purposes to the chairperson of the audit committee; and 1.15.11.5. Perform such other duties as the board of directors may require. 1.15.12. Bookkeeper The bookkeeper of the cooperative who is under supervision and control of the accountant shall: 1.15.12.1. Records and update books of accounts; 1.15.12.2. Provide assistance in the preparation of reports on the financial condition and operations of the cooperative monthly, annually or as may be required by the board of directors and/or the general assembly; 1.15.12.3. Keep, maintain and preserve all books of accounts, documents, vouchers, contracts and other records concerning the business of the Cooperative and make them available for auditing purposes to the chairperson of the audit committee; and 1.15.12.4. Perform such other duties as the board of directors may require.

2. RESPONSIBILITIES FOR ADMINISTRATION AND FINANCE UNIT TITLE ADMIN AND FINANCE OFFICER

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DUTIES AND RESPONSIBILITIES Ensure that all administrative policies are observed and followed by all personnel in the organization. Works closely with the General Manager (GM) on the personnel matter such as employment, compensation, benefits, staff trainings and development, etc Recommends administrative policies to the GM in support to the changing needs of office staff and field personnel. Recommends investment strategies to GM and handles implementation of all investment transactions or plans of the institution Recommends workable over-all financial framework Coordinates with the Audit Committee for the improvement of accounting system to ensure financial controls Coordinates with internal and external users of reports. Informs GM of any financial policy change in the environment that may affect the coop. Provides GM with timely, accurate and up to date financial statements. Provides all other financial statements that may be required by the Board of Directors (BOD), partners and other concerned parties with approval from the

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

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ADMIN AND FINANCE ASSISTANT

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CASHIER

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LOAN OFFICERS

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GM. Interprets financial performance of the coop by submitting accomplished financial performance indicators and ratio analysis monthly Maintains office filing system - General Files - SSS/Philhealth - Pag-IBIG - BIR - Various contracts - Property and Equipment acquired Keep and maintains supplies acquisition and consumption at the office Monthly preparation of payroll summary Transact with the bank Compliance to regulatory agencies to ensure that the coop conforms to the institutional rules and regulations as required by preparing monthly summary of the following: - Schedule of remittance to BIR - Schedule of remittance to SSS/Philhealth/Pag-IBIG and in-house remittances - Processing of maternity reimbursement, sickness benefits and related documents for all staff - Computation of annual income tax on compensation, bi-annual checking and preparation. Handles all the cash transactions Receives payments to the coop by cash and cheques Checks daily cash accounts Guides and solves queries of customer Maintains monthly, weekly and daily report of transactions Receives loan payments (in cash or checks) Issues official receipts (ORs) for every payments received by the coop Keeps and maintain ORs and borrowers’ booklets (for microcredit operations) Makes sure that all cash/checks received are deposited to the bank within the day of payment (or on the next banking day if payment is received after banking hours) Acts as petty cash custodian Prepares and submits petty cash replenishment in an imprest petty cash system Issues checks and releases for payments, duly approved by GM Keeps petty cash vouchers (PCV) and other documents Prepares summary report for petty cash replenishment below 1,000.00 Maintains all issued blank checks and official receipts Issues ORs for all cash received by the Office Maintains an updated Cash Book Facilitates payment for all cash/check disbursements Shall stamp “PAID” all checks/cash vouchers and supporting documents every after transaction that has been paid. Keeps and maintains individual folder of per borrower

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

(for coops with microcredit services)

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• BOOKKEEPER

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Assesses and reviews loan application Checks requirements for loan application of borrowers Accepts and consolidates loan application documents submitted by loan applicants for validation Schedules and assists in the conduct of PMES conducted and certified by the GM Ensures compliance in membership requirements of new applicants - membership fee: PhP_____ - CBU (not less than 10% of the total loan amount) Assesses field validation reports by field loan officers Processes loan application requirements: - Promissory Notes - Loan application forms - Loan agreements Submits monthly reports on loan releases & status of borrowers. Keeps and maintains BIR Registered books of accounts - cash disbursement book ( CDB) - Cash receipt book (CRB) - Journal book (JVB) - General ledger ( GL) Prepares and submits consolidated financial reports - statement of assets liabilities, fund balance & net equity - statement of income & expenses and net income - balance sheet - trial balance - Schedule of Accrued Expenses - schedule or annexes of accounts ( if necessary) Submits monthly reports to GM Keeps all financial documents (CV JV OR ) Maintains pre-numbered vouchers Posting of accounts to manual book of accounts and quick books software Assists auditor during audit period. Prepares vouchers Prepares daily transactions summary Daily posting of transactions to the general ledger Prepares program reports to Partners/funders Prepares monthly bank reconciliation report Prepares consolidated Monthly Financial Statements

Payroll a. Schedule of Pay-out: b. Every 15th of the month for the 1st kinsena c. Every 30th of the month for the 2nd kinsena d. If the schedule date falls on a weekend, pay-out will be on Friday before the schedule date.

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

e. Billing statement for all deductions must be received by the admin officer 2 days before payday. f.

Loans availed after the payroll preparation, deduction will be included in the next month schedule. There should be no deferment in deductions.

g. Staff who availed loans from SSS, Pag-IBIG, etc. shall furnish the office a copy of disbursement vouchers to effect the deductions in salary. It should be submitted within a week after the release. h. Staff Net-Take-Home-Pay should not be below 1,000 per pay-day, thus he/she will not be qualified to avail any additional loan, except in emergency cases. i.

Salary advances for emergency cases involving the staff’s extended family should be allowed provided the amount should not exceed his/her 1 month net-take-home-pay. The whole amount is payable /deducted from his/her salary for the following month.

SSS Contributions a. All coop staff will be subjected to SSS, Philhealth, Pag-IBIG and EC contributions. For appropriate contribution of employee/employer (refer to SSS table). Contribution is based on basic salary. b. Contribution shall be reflected in the payroll every month. c. Submission of schedule will be on or before 15th day of the month. Forms to be used are as follows: E-4 change of the following: Form • Civil Status • Correction of name & date of birth • Additional dependents

Requirements  Photocopy of marriage contract (latest original copy)  Birth or Baptismal certificate  Birth Certificate of dependent  Accomplished form written in black ink with 2 valid ID’s

SSS Loans An employee who has at least 36 monthly contributions may qualify to apply for SSS loan with the following procedures as follows: a. Applicant must accomplish form ISL- 101 b. Computation of staff monthly net pay shall not be less than at 30% on take home pay c. Photocopy of SSS ID d. Approval by the institution’s authorized signatory SSS Maternity a. Accomplish SSS maternity notification form (MAT -1) in 3 copies. b. Accomplished form will be submitted to SSS Office within 3 months from the date of inception attached the ultra sound result & photocopy of digitized ID. c. Upon stamp received by the SSS, the complete documents will be forwarded to the Administrative Unit. d. The employee shall file a leave form covering the maternity period either 60 or 78 days. e. After delivery the following documents has to be submitted to the Branch Manager:

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

f.

A normal delivery has to submit the certified thru copy of child birth certificate duly registered with the local civil registrar while g. Caesarean delivery has to submit the operating room record or surgical memorandum duly certified by the hospital where the staff was confined and a certified thru copy of a child birth certificate duly registered with local civil registrar. h. The admin & finance officer will then forward the complete documents to the cashier for proper computation of maternity benefits. i. All reimbursements shall only be disbursed upon the completion of documents. This is to ensure that the reimbursement will process the required documents. PAG-IBIG Contribution a. Employee shall contribute a minimum of P100 and maximum of 200. b. Employer’s counterpart on contribution shall be equal to the employee contribution. c. Contribution shall reflect in the payroll every month. d. Pag-ibig fund receipts shall be filed with the schedule of remittance. e. Remittance shall be on or before 10th day of the month. PAG-IBIG Loan Pag-IBIG member is entitled to avail loan depending on the number of contributions made based on the following schedule: No. of Contribution 24-59 months 60-119 months At least 120 months

Loan Amount Up to 60% of Accumulated Cont. Up to 80% of Accumulated Cont. Up to 70% of Accumulated Cont.

a. Loan will be amortized over a period of 24 month with a grace period of 2 months for local accounts & 5 months for centralize account. b. Loan payments will be remitted on or before the 15th day of each month beginning the 3rd month following the date as indicated in the disbursement voucher or check for local accounts. c. Loan (i.e. MPL) can be renewed upon payment of at least six (6) months amortization. The outstanding balance together with the accrued interest, penalties will be deducted from the proceeds of the new loans.

BIR Registration a. BIR Annual Registration on or before January 31. b. Remittance of tax withheld is on or before 10th day of the following month.

c. December tax withheld can be remitted up to the 25th day of January. d. Deadline for filing of information of tax withheld on compensation and final withholding tax together with the alphabetical list of employees/payees for calendar year is on 31st day of January. e. December 29th is the last day for the registration of books of account.

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JSDF Grant on Social Inclusion and Alternative Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative Management and Enterprise Development

Monthly Reports Operations Update a. Monthly accomplishment report b. Validation/Monitoring Summary c. Cash Book d. Ageing Report e. CBU/Loan Report Financial Statement a. Balance Sheet; income Statement b. Journal Summary c. Schedule of CBU and Loans d. Schedule of Expenses e. Acknowledgement receipts & fund transfers f. Attachment of TFM/muscovado mill charges (photocopy of OR, acknowledgement, etc.) Administrative a. Application for leave for the month b. Recommendation of staff reassignment c. Memos/suspension Office Supplies/Forms a. Office administrative assistant will ensure the availability of forms needed by the office b. Duly approved request will be submitted to the office for reservation and release. c. Office supplies will be charged to the cashier.

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