Manual Of Operation_to Print_cda.pdf

OPERATIONAL POLICY MANUAL OF QPSTECC  I. THE ORGANIZATION  1. GOVERNING RULES and REGULATIONS  1.1  The  Cooperative  shall  be  governed  by  R.A.  9520,  an  act  amending  the Cooperative Code of  the  Philippines  to  be  known  as  “Philippine  Cooperative  Code  of  2008”,  all  issuances  of  CDA  with  regard  to  primary  cooperatives  and  its  articles  of  cooperation  and  by-laws  duly  amended  and adopted by its General Assembly and approved by the CDA.  1.2 Nothing included in this policy manual is to be in conflict with the rules and  regulations as identified in (1.1) above.  1.3  The  policy  of  Cooperative  shall  be  to  emphasized  it  as  a  membership  organization  and,  as  such,  it  is  the  policy  of  the  cooperative  to  provide  constant  communications  to  members  and  openness within the constraints of the law. 

2. BOARD OF DIRECTORS, OFFICERS, MANAGEMENT  2.1 Provisions of the Cooperative’s by-laws relating to the Board of Directors,  officers, and management are supplemented as follows:  a) Article 42 of the Philippine Cooperative Code of 2008 provides: 

Officers  of  the  Cooperative.  The  board  of  directors  shall  elect  among  themselves  the  chairperson  and'  vice-chairperson,  and  elect  or  appoint  other  officers  of  the  cooperative  from  outside of the board in accordance with their by-laws. All officers shall serve during  good  behavior  and  shall  not  be  removed  except  for  cause  after  due  hearing.  Loss  of  confidence  shall  not  be  a  valid  ground  for  removal  unless  evidenced  by  acts or omission  causing  loss  of  confidence  in  the  honesty  and  integrity  of  such  officer.  No  two  (2)  or  more persons with relationship up to the third civil degree of consanguinity or affinity nor  shall  any  person  engaged  in  a  business  similar  to  that  of  the  cooperative  nor  who  in  any  other  manner  has  interests  in  conflict  with  the  cooperative  shall  serve  as  an  appointive  officer."  CDA  MEMORANDUM  CIRCULAR  NO.  2011-04  [APPROVED  ON  FEBRUARY  22,  2011]  –  LEGAL  INTERPRETATION  OF  ARTICLE  42  OF  THE  PHILIPPINE  COOPERATIVE CODE OF 2008 (R.A. 9520)  Page | 1   

A. Officers of the Cooperative as provided under Art. 5 (11) of RA  9520:  1) Members of the Board of Directors; 2) Members of the different committee created by  the  general assembly; 3) General Manager or the Chief Executive Officer; 4) Secretary;  5) Treasurer; and 6) Members holding other positions as may be provided for  the by-laws of the cooperative. B. Officers elected by the General Assembly:  1) Members of the Board of Directors; and 2) Members of the Audit and Election  Committee. C. Officers appointed by the Board of Directors:  1) Treasurer; 2) Secretary; 3) Members of the Mediation and Conciliation Committee; 4)  Members of the Ethics Committee; 5) Members of Other Committees unless otherwise  provided  in the by-laws; and 6) Members of the Board of Directors appointed by the remaining  directors for vacancy other than expiration of term (Article 41 of RA 9520)  Under  Article  42,  there  is  no  prohibition  for  elected  officers  with  relationship  up  to  the  third  civil degree of consanguinity or affinity to hold the aforesaid elected positions in the  same  cooperative  provided  they  have  been  elected  by  the  General  Assembly.  These  are  the officers referred to in paragraph B hereof.  The prohibition applies to the officers referred to in paragraph C hereof. There shall be no  two  (2)  persons  or  more  with  relationship  up  to  the third civil degree of consanguinity or  affinity  to  hold  any  of  the  abovementioned  appointed  positions  in  the  same  cooperative.  However,  an  elected  officer  can  have  one  (1)  appointed  relative  within  the  third  civil  degree  of  consanguinity  or  affinity  provided  that  under  no  circumstance  shall  there  be  relationship  up  to  the  third  civil  degree  of  consanguinity  or  affinity among the appointed  officers.  With  respect  to  husband  and  wife  since they are considered as "one person with the same  interest"  (Report  of  the  Commission  of  the  Family  Code,  page  25),  the  prohibition  on  appointive officers shall apply to them likewise.  For reference, hereunder are the degrees of relationship covered by said prohibition:  1. Relationship by Consanguinity  Page | 2   

First Degree - Parent to Child Second Degree - Grandparent to Grandchild, Brother to Sister  Third Degree – Uncle to Child, Aunt to Child, Great-Grandparent to Great Grandchild  2. Relationship by Affinity  First Degree – Parent-in-law to Daughter/Son-in-law Second degree – Brother-in-law to  Sister-in-law Third Degree - Great-Grandparent-in-law to Great Granddaughter/Great  Grandson-in-law, Uncle/Aunt in-law to Niece/Nephew in-law.  b) The Management Staff shall not be considered as an officer of the  cooperative in accordance with CDA Memorandum Circular No. 2011-04.  c) The Cooperative Secretary and Cooperative Treasurer must not be an  employee of the cooperative. 

3. ORGANIZATIONAL STRUCTURE  3.1 The organizational structure of this Cooperative is shown in Appendix A.  3.2 Each year immediately after the elections, all newly elected officers shall assume  their post exactly ten (10) days after they have been elected.  3.3  Outgoing  officers  must  turn  over  all  documents,  cash  and  any  related  financial  matters,  and  properties belonging to the cooperative to the Cooperative Secretary for clearance within ten (10)  days after a successor has been elected or appointed to replace them.  3.4  The  regular  or  standing  committees  of  this  Cooperative  are:  the  Audit  Committee,  Election  Committee,  Education  and  Training  Committee,  Mediation  and  Conciliation  Committee,  Ethics  Committee and the Oversight Committee.  3.6 The Vice-Chairman of the Board shall always be the Chairman of the Education  and Training Committee.  3.7 The Board can form or create other committees or special committees as the  business and operations of the Cooperative so requires.  3.8.  The  Chairman  and  members  for  each  special  committee  may  be  any  member,  officer  or  employee  of  the  Cooperative.  Special  Committee  shall  exist  less  than  nine  months  and  after  services should be terminated.  3.9 The Chairman of the Board shall also be the chairman of the Executive Committee.  Page | 3   

3.10 The treasurer and one member of the Board of Director shall be the chairman  of the budget and finance.  3.11 The Executive Committee shall be notified of all committee meetings. 

4. RELATIONS WITH THE LOCAL GOVERNMENT UNITS  4.1  The  Cooperative  will  inform  the  local  government  unit/s  (LGUs)  within  its  area  of  its  operations  so  as  to  keep  key  local  officials  informed  of  the  cooperative’s  services,  policy issues  and decisions.  4.2 The autonomous nature and the principle of subsidiarity are to be respected by  both the cooperative and the LGUs. 

5. RELATIONS TO OTHER COMMUNITY / OTHER COOPERATIVES  5.1 It is the policy of Cooperative to provide the best service possible to all  individuals in its field of membership.  5.2  Cooperative  does  not  consider  it  necessary  to  merge  with  other  cooperatives  but  will  cooperate  with  other  existing  cooperatives  engage  in  similar  activities  to  assist  all  people  considered part of the common bond. 

6. RELATIONS TO COOPERATIVE ORGANIZATIONS WITH CREDIT  ACTIVITIES  6.1  It  is  the  policy  of  this  Cooperative  to  take  advantage  of  all  possible  assistance  from  organization  with  credit  services.  Participation  in  federations,  unions,  chapter,  league,  and other  association affairs is anticipated.  6.2 The Boards’ prime responsibility is to its members, and not to any other group.  6.3 Dues and other payments to organizations shall be approved by the Board as  part of the annual budget function. 

7. COMPENSATION – JOB CLASSIFICATIONS, etc.  7.1  The  General  Manager  shall  assist  the  Board  of  Directors  in  identifying  the  management  staff  and  it  is  the  Board  of  Directors  that  shall  approved  the  creation  of  such  position and shall provide the required funding. 

8. AUTHORIZATION  The  authorizations  included  in  this  section  are  to  be  adopted  each  year  by  the  Board  at  the  annual  organization  meeting  as  part  of  the  total  policy  manual  in  accordance  with  the  foreword  of  the  policy  manual.  Specific  authorizations prescribed below plus the annual salary schedule is  to be reproduced in the minutes of the organization meeting. 

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8.1 Bank  The Chairman of the Board, Manager and Treasurer will coordinate with the  bank. All deposits and withdrawals require the signature of the Treasurer. 

8.2 Attorney  The  Chairman  shall  deal  directly  with  Attorneys  for  their  services  in  behalf  of  the  cooperative  subject  to  the  approval  of  the  General  Assembly  for  appropriate  funding  and  specific  services  required. 

8.3 Cooperative Borrowing  The  cooperative  through  the  Board  of  Directors with the approval of the General Assembly may  borrow  money  from  any  source  at  the  best  term  and condition available and in such amount that  may be needed. 

8.4 Bond  The  Board  of  Directors  shall  identify  members,  officers  and  or  management  staff  for  adequate  bonding  in  order  to  ensure  the  faithful  performance  of  their  duties  and  for  the  protection  of  the  cooperative  financial  properties.  The  Board  of  Directors shall determine the amount of bond and  shall order the Treasurer to pay such bond chargeable to the cooperative fund. 

8.5 Safety Deposit Box  The  Board  of  Directors  shall  give  full  authority  to  the  General  Manager  in  using  the  Safety  Deposit  Box  and  shall  consist  of  all  cash  collected  that  does  not  immediately  deposited  to  the  bank, Blank Checks Bonds, Share Certificate, Original Documents and other Legal Documents. 

8.6 Legal Papers – Signatures  The  Chairman  of  the  Board  shall  sign  all  Share  Certificates  and  such  other  instrument  and  documents  requiring  his/her  signature  unless  other  signatory  are  authorized  by  the  Board  of  Director. 

8.7 Representatives  The  Board  of  Directors  shall  issue  resolution  designating  any  member  of  the  cooperative  to  represent their organization for transacting business and other affairs. 

8.8 Notices  The  Secretary  shall  issue  notice  of  meeting  of  the  Board  of  Directors  and  General  Assembly.  Notice  of  any  Regular  or  Special  General  Assembly  Meeting  shall  be  posted  at  the office of the  cooperative and sent to member addresses.  Written  notices  for  Regular  or  Special  Board  of  Directors  Meeting  unless  dispense  with,  shall  be  served  personally  through  an  agent  or  by  mail,  upon  each  Director  at  his/her  address  at  least 

five (5) days before the said meeting. 

8.9 Receipts  The Cashier is hereby authorized to issue official receipt of the cooperative.  Page | 5   

8.10 Correspondent  The Chairman of the Board is hereby authorized to sign all outgoing communication or  correspondent using the letter head of the cooperative.  The Vice Chairman upon order of the majority of the Board of Directors is given the same  authority. 

8.11 Fund System  All funds of the cooperative can only be utilized by the majority of the Board of Directors based  on  specific  provisions  in  the  By-  Laws  of  the  cooperative  and  or  CDA  Memoranda  /  issuances  and as provided for in RA 9520. 

8.12 Membership Fee  The Cashier is hereby authorized to receive membership fee. 

8.13 Equipment Purchases  The General Manager is hereby authorized to procure equipment for the use of cooperative  subject to the approval of said items in the budget. 

8.14 External Auditor  The  Board  of  Director  is  hereby  authorized  to  choose  who  shall  provide  External  Auditing  Services  to  the  cooperative  subject  to  the  CDA  guidelines  for  external  auditing  of  the  cooperative. 

9. REGULAR and SPECIAL MEETINGS OF THE BOARD  9.1 Preparation and Distribution of Agenda  a)  It  shall  be  the  joint  responsibility  of  the  Chairman  of  the  Board,  and  the  Secretary  of  the  cooperative to prepare the agenda for distribution in advance of all meetings.  b) The Chairman of each committee shall submit monthly reports to the  Secretary before each regular Board meeting.  c)  The  Manager  and  staff  of  the  cooperative  shall  consolidate  all  reports  and  prepare  the  necessary exhibits, and supporting documents for each meeting for distribution with the agenda. 

9.2 Notification of Board and Committee Members  a)  It  shall  be  the  responsibility  of  the  Secretary  of  the  cooperative  to  provide  written  notice  at  least five (5) days in advance of any regular Board meeting.  b)  The  Chairman  or  in  his  absence the Vice-chairman or a majority of the directors can call for a  special  meeting.  Special  meetings  will  normally  be  preceded  by written or verbal notice or SMS  at  least  five  (5)  days)  in  advance.  Where  notice  of  five  (5)  days  is  given,  the  majority  of  a 

quorum of the Board shall be adequate to take action.  Page | 6   

c)  In  the  event  of emergency, the Chairman or in his absence the Vice- chairman or a majority of  the  directors  can  call  for  an  emergency  meeting.  A  written  notice  at  least  three  (3)  days  in  advance  shall  be  given  to  each  Board  member.  The  vote  of  at  least fifty (50) percent of the total  number of the Board shall be necessary to take action at such an emergency meeting. 

9.3 Schedule  a) Regular Board meetings shall be held every 3rd Friday of each month,  unless announced to the contrary in advance. 

9.4 Duration  a) Regular and Special Board meetings must not be more than six (6) hours. 

10.5 Venue  a) Venue of the Board meeting shall be at the principal office of Cooperative,  unless announced to the contrary. 

10.6 Absent in Regular and Special Board Meeting  a)  Except  while  on  official  travel  to  represent  the  Cooperative,  those  who  failed  to  attend  the  meeting  shall  be  considered  absent.  Accumulating  three  (3)  absences  consecutively  or  a  total of  five  (5)  absences  within  a  year  without  justifiable  cause  are  grounds  for  termination  of  directorship.  Page | 7   

II. BOARD and MANAGEMENT RELATIONS  1. THE BOARD OF DIRECTORS  The  Board  of  Directors  is  ultimately  and  unescapably  responsible  for  all  the  strategic  planning  direction  setting  and  policy  formulation  of  the  Cooperative.  To  carry  out  this  responsibility they must:  a) Develop a manual of operational policies and procedures; b) Select competent management;  and c) Conduct periodic performance review of the operation of the cooperative,  existing policies and caused for the audit of the cooperative.  1.1 A director of a cooperative is, by definition, one who directs.  1.2 Among the detailed responsibilities of directors is as follows:  a) Meet every month; b) Approve membership applications; c) Establish an annual budget and  work plan, have it approved by the General Assembly; d) Establish interest rates and have the  General Assembly approved of the expenditures; e) Authorize necessary bond coverage and  depositories for funds; f) Determine the percentage of the net surplus less statutory funds that  will go  for interest on share capital and patronage refund; g) Declare dividends and establish  reserves; h) If the Board has a quorum, fill vacancies on the Board and for committees whose  members are appointed by the Board of Directors between annual meetings; i) Elect annually the  Chairman and Vice-Chairman of the Board, Education, Training & Membership, Mediation and  Conciliation, Ethics and remove them for cause; j) Maintain working relationship with the  cooperative’s management staff,  committees and membership; l) Approve members’ application for withdrawal of share  capital or  termination of membership within sixty (60) days; m) Review progress of Cooperative in  serving the needs of the members; n) Plan for long-term development needs of the cooperative;  o) Identify investment opportunities for the cooperative and have it approved  by the General assembly; 

1.3 Conflict Of Interest  a)  When  matters  pertaining  to the specific personal interest of a board member are discussed, the  affected  board  member  or  members  shall  not  engage  in  the  discussion  nor  shall  he/she/they  participate  in  the  vote,  and the minutes shall so state. If more than one board member is involved  in matters involving a conflict of interest and a vote is called, the number of voting  Page | 8   

must exceed the quorum requirements for the meeting or unanimous action is required of the  voting board members.  b)  Examples  of  conflict  of  interest  situations would be action to reduce interest on the obligation  of  a  relative,  lease  or purchase land for the purpose of erecting an office where the land is owned  by a director, etc.  c) No Director should compete with the business and /or services of the  cooperative for patronage within the membership. 

1.4 No Relatives Within Officers  It  is  the  policy  of  this  Cooperative  and  in  accordance  with  RA  9520,  no  officer  of  the  cooperative  (refers  to  the  Board, all appointed committees, the secretary and treasurer) should be  related to each other up to the third degree of consanguinity or affinity.  In  the  event  that  there  are  officers  related  to  each  other within the 3rd degree, only one must  remain as an officer while the rest must resign their position. 

2. THE MANAGER  a)  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;  b)  Formulate  and  recommend  in  coordination  with  the  operating  departments  under  his/her  supervision,  the  Cooperative’s  Annual  and  Medium  Term  Development  Plan,  programs  and  projects, for approval of the Board of Directors and ratification of the General Assembly;  c) Implement the duly approved plans and programs of the cooperative and any  other directive or instruction of the Board of Directors;  d)  Provide  and  submit  to  the  Board  of  Directors  monthly  reports  on  the  status  of  the  cooperative’s  operation  vis-a-vis  its  targets  and  recommend  appropriate  policy  or  operational  changes, if necessary;  e) Represent the cooperative in any agreement, contract, business dealing, and in any  other official business transaction as may be authorized by the Board of Directors;  f) Ensure compliance with all administrative and other requirements of regulatory  bodies; and  g) Perform such other functions as may be prescribed in the By-laws or authorized by  the General Assembly. 

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3. THE BOARD and THE MANAGER  3.1  The  board  and  the  manager  can  carry  out  their  functions  properly  only  by  effective  coordination  and  cooperation  with  each  other.  They  must  achieve  and  maintain  a  full  understanding  on  issues  of  central  importance  to  the  cooperative  and  its  members.  The  regular  monthly  meeting  and  the  discussions  which  take  place  on  that  occasion  can  be  one  of  the  principal means for achieving the necessary coordination.  3.2  It  is  the  decision  of  the  board  of  directors  that  the  board  meetings  are  closed  to  member  participation  for  the  protection  of  the  members’  interests  due  to  the  confidentiality  of  the  deliberations.  3.3 At least once a year, a special planning and coordination meeting will be held. This meeting  is not to consider the usual business, but is to be devoted exclusively to planning and  coordination, and will be conducted according to the following agenda: a) Statement on “State of  the Cooperative” by the manager, and b) Discussion of key issues as they relate to the coming  year(s). 

4. MANAGEMENT STAFF  The management staff of the cooperative shall include the following:  1) Manager 2) Accountant/Bookkeeper 3) Cashier 4) Loan Officer 5) Account Analyst/Records  Clerk 6) Member Service Representative 7) Utility Man/Messenger 

5. ABSENCE OF THE MANAGER  Order of acting authority. a) Accountant/Bookkeeper b) The board of directors will take turn on a  daily basis 

6. CODE OF ETHICS  A  code  of  ethics  shall  be  adopted  in  principle  noting  that  the  priority  of  concern  is  for  the  members and the cooperative in advance of cooperative movement. These notes shall accompany  any publishing or release of the Code to the members.  Page | 10   

III. PATAKARAN PANGKAWANIHAN AT MGA  GAWAING PAMPANGASIWAAAN  I. PANIMULA  Ang  patakarang  ito  ay  sumasaklaw sa mga transaksyon kaugnay sa paghirang, bilang ng oras  ng  trabaho  at  “overtime”,  pagpapaunlad  ng  kakayahan  ng  kawani,  promosyon  o  “movement”,  pagsubaybay  sa  pagganap  ng  kawani  sa  kanilang  responsibilidad,  pagdisiplina sa mga kawaning  hindi  gumaganap  ng  maayos,  suweldo,  allowance,  honorarium  at  iba  pang  kompensasyon  at  regulasyon para sa mga benipisyo at pribelihiyo. 

II. PAGHIRANG  1. Ang paghirang ng Manager at mga Kawani ay nasa kapangyarihan at pagpapatibay ng Lupon  ng Patnugot alinsunod sa mga katangiang kanilang itinakda o katangiang hinihingi ng pinaiiral  na Saligang Batas ng Kooperatiba at CASA. 2. Ang Manager ay binibigyan din ng karapatan na  pumili at mag-rekomenda ng karapat-dapat at naaangkop na kawani/mga kawani sa mga  posisyong kinakailangan sa kooperatiba para pagtibayin ng BOD. 3. Ang may prioridad para sa  mga bakanteng posisyon sa kooperatiba ay ang  mga sumusunod:  Unang priyoridad – mga kasapi Ikalawang priyoridad – anak ng kasapi Ikatlong priyoridad –  kamag-anak ng kasapi Ika-apat na priyoridad – naninirahan sa “area of operation” ng  kooperatiba at payag maging kasapi. Kung wala sa mga priyoridad ang isang aplikante subalit  nagtataglay ng mga katangiang hinahanap sa posisyon, ang desisyon ay ipinauubaya sa BOD. 4.  Ang mga hinirang na kawani ay dadaan sa anim na buwang “probationary period” kung saan ang  kanyang “appointment” ay saka pa lamang pagtitibayin ng BOD kung naging maganda ang  resulta ng BI at naging pagganap sa responsibilidad at tungkuling iniatang sa kanya. 5. Habang  ang kawani ay nasa “probationary period”, siya ay:  • tatanggap ng sahod tulad ng mga arawan;  • lahat ng liban niya ay walang kaukulang bayad;  •  lahat  ng  liban  gayundin  ang  “tardiness”  niya  ay  idadagdag  sa  bilang  ng  araw  ng  trabaho  niya  upang mabuo ang anim na buwang ”probationary period”;  6.  Matapos  ang  anim  (6)  na  buwang  “probationary  period”,  at  pinagtibay  ng  BOD  ang  kanyang  “appointment” ang kawani ay tatanggap na ng regular na sahod base sa pinagtibay na “pay scale”  gayundin ang “leave benefits”.  Page | 11   

7.  Ang  kawani  ay  maaaring  tanggalin  sa  kooperatiba  bago  pa  man  matapos  ang  “probationary  period” o kontrata kung hindi maganda ang ipinakikita nito. 

III. PROMOSYON O ‘MOVEMENT’  1.  Ang  promosyon  ay  bukas  sa  lahat ng kawani ng kooperatiba subalit ang lahat ng kandidato ay  dadaan sa pagtutuos ng BOD ayon sa kanilang pinagtibay na mga pamantayan.  2.  Ang  “movement”  o  paglilipat  ng  kawani  sa  ibang  puwesto  ay  maaaring  gawin  ng  Manager  ayon sa pangangailangan o kanyang desisyon upang ilagay sa kaayusan ang takbo ng operasyon. 

IV. ORAS NG TRABAHO  1.  Ang  lahat  ng  empleyado  ng  kooperatiba  ay  kinakailangang  gampanan  ang  kanyang  tungkulin/responsibilidad  sa  kooperatiba  alinsunod  sa  umiiral  na  batas  ng  bansa  ng  walong  (8)  oras bawat araw.  2.  Ang  takdang oras ng trabaho sa kooperatiba ay simula 8:00am – 12:00 nn at 1:00pm – 5:00pm  simula  Lunes  hanggang  Biyernes  o  limang  araw  sa  loob  ng  isang  lingo  ayon  sa  isinaayos  ng  Manager upang magkaroon ng transaksyon tuwing araw ng Sabado. 

3.  May  pasok  ang  Holiday  (maliban  sa  Pasko,  Kuwaresma,  Hundras  at  Bagong  taon)  upang  magkaroon  ng  pagkakataon  ang  mga  kasaping  mga  naka-empleyo  sa  ibang  kompanya  na maki-pagtransaksyon sa kooperatiba. Exempted din dito ang mga kawaning  nabanggit  sa  seksyon  3  ng  artikulong  ito  kung  saan  kailangan  ang  serbisyo  nila  kahit  “holiday’.  Ang  ibang  mga  kawaning  papasok  ay  bibigyan  ng  “overtime  pay”  katumbas  ng 125% ng kanyang regular na sahod.  4.  Ang  pagpasok  ng  araw  ng  Linggo  o  oras  na  lampas  sa  itinakdang  oras  ng  pasok  ay maaaring  ipatupad  ng  Manager  sa  mga  mahihigpit  na  pagkakataon.  Ang  mga  papasok  ay  bibigyan  ng  125% na sahod.  5.  Ang  “overtime”  ay  pagganap  sa  mga  tungkulin  ng  lampas  sa  itinakdang  oras  at  araw  ng  trabaho  ay  maaari  ding  hilingin  batay  sa  pangangailangan.  Ang  mga  kawani  na  kailangang  mag-“overtime”  ay  nararapat  na  may  pinagtibay  na  Kahilingan  sa  Pag-“Overtime”  na  nakasaad  doon  kung  ano  ang  tanging  gawain  na  kanyang  gagawin  sa  rekomendasyon  ng  kanyang  “Supervisor”. Sila ay pagkakalooban ng 125% ng kanilang suweldo.  6.  Ang  mga  kawaning  nasa  “Official  Travel”  ay  hindi  na  “entitled”  sa  “overtime  pay”  subalit  maaari silang pagkalooban ng “per diem” ayon sa pinagtibay na patakaran sa “travelling”.  Page | 12   

7.  Ang  mga  gawain  tulad  ng  “rescue  operation”  o  pagliligtas  ng  mga  kagamitan  ng  kooperatiba  sa  panahon  ng  kalamidad  tulad  ng  bagyo,  baha,  sunog,  pagputok  ng  bulkan  at  iba  ay  hindi  ituturing na “overtime”. 

V. AKSYON PANG-DISIPLINA  1.  Ang  mga  sumusunod  na  aksyon  pang-disiplina  ang  paiiralin  matapos  dumaan  sa  masusing  imbestigasyon  ang  isang  kawani  o  opisyal  na  pinagsuspetsahang  sa  anumang  di  kanais-nais  na  ginawa sa kooperatiba. 

a) GRAVE OFFENSES  MGA KASO Unang Paggawa Ika-2 Paggawa a) Dishonesty Dismissal b)Gross  neglect of duty Dismissal c) Grave Misconduct Dismissal d) Being notoriousl undesirable  Dismissal e) Conviction of crime involving moral turpitude  Dismissal  f)Falsification of official documents  Dismissal  g) Physical or mental incapacity or disability due to vicious habits  Dismissal  h) Engaging direct or indirectly in coop political affairs  Dismissal  i)  Receiving  for personal use of a fee, gift, or other valuable thing in the course of official  duties  or  in  connection  therewith  when  such  fees,  gift  or  other valuable thing is given by  any  person  in  the  hope  of  expectation  of  receiving  a  favor  or  better  treatment  than  that  accorded to other persons or committing act punishable under anti-graft laws.  Dismissal  j)  Contracting loans of money or other property from persons with whom the office of the  employee has business relations.  Dismissal  k)Soliciting  or  accepting  directly  or  indirectly,  any  gift,  gratuity,  in favor, entertainment,  loan  or  anything  of  monetary  value  which  in  the  course  of  his  official  duties  or  in  connection with any  Dismissal  Page | 13 

 

operations being regulated by, or any transactions which may be affected by the functions  of his office. The propriety or impropriety of the foregoing shall be determined by its  value, kinship, or relationship between the giver and receiver and the motivation. A thing  of monetary value is one which is evidently or manifestly excessive by its very nature. l)  Disloyalty to the cooperative Dismissal m) Nepotism Dismissal n) Oppression 6 mos.  Suspension Dismissal o) Disgraceful and immoral conduct  6 mos. suspension Dismissal  p) Inefficiency and incompetence in the performance of official duties  6 mos. suspension Dismissal  q)  Frequent  unauthorized  absences,  loafing  or  frequent  unauthorized  absences  from  duty  during regular office hours. 1/  6 mos. suspension Dismissal  r) Refusal to perform official duty.  6 mos. suspension Dismissal  s) Gross insubordination 6 mos. suspension Dismissal t) Conduct grossly prejudicial to  the best interest of the service.  6 mos. suspension Dismissal  u)  Directly  or  indirectly  having  financial  interest  in  any  transactions  requiring  the  approval of his office.  6 mos. suspension Dismissal  v)  Engaging  in the private practice of his profession unless authorized by the cooperative,  provided that such practice will not be in conflict with his official functions.  6 mos. suspension Dismissal  w)  Disclosing  or  misusing  confidential  or  classified  information  officially  known  to  him  by  reason  of  his  office  and  not  made available to the public, to further his private interest  or give undue advantage to anyone or to prejudice the public interest.  6 mos. suspension Dismissal  Page | 14   

1/  Ang  isang  kawani  ng  coop  ay  ay  iko-konsiderarang  habitually absent kung siya ay nakagamit  ng  di-pinahintulutang  liban  ng  higit  sa  tatlong  liban  sa  nilolooban  ng  tatlong  (3) buwan sa isang  (1) semestre ng taon.  Kung  ang  pagliban  ay  kaugnay  sa  pagkakasakit,  ang  Manager  ay  binibigyan  ng  laya  na  mag-verify,  at  kung  siya  ay  hindi  nasisiyahan,  maaari  niyang  di  pagtibayin  ang  liban/leave.  Ano’t  anuman,  ang  isang  Empleyado  ay  lumiban  bago  pa  pagtibayin ang kanyang pagliban, ang  kanyang kahilingan sa pagliban ay hindi pagtitibayin. 

b) LESS GRAVE OFFENSES  MGA KASO Unang Paggawa Ika-2 paggawa a) Simple neglect of duty 6 mo.  suspension Dismissal b) Simple misconduct 6 mos. Suspension Dismissal c) Gross  discourtesy in the course of official duty.  6 mos. Suspension Dismissal  d) Insubordination 1-6 mos.  suspension  Dismissal  e) Habitual Drunkenness 1-6 mos  suspension  Dismissal  g) Unfair discrimination in rendering public service  1-6 mos suspension  Dismissal  c) LIGHT OFFENSES  MGA KASO Unang  paggawa  Ika 2 paggawa  Ika 3 paggawa a) Discourtesy in the course of official duties  Reprimand 1-30 days  suspension  Dismissal 

b) Improper or unauthorized solicitations of contributions from subordinates.  Reprimand 1-30 days  suspension  Dismissal  c) Violation of reasonable office rules and regulations including habitual tardiness.  Reprimand 1-30 days  suspension  Dismissal  d) Gambling prohibited by law  Reprimand 1-30 days  suspension  Dismissal  e) Refusal to render overtime service.  Reprimand 1-30 days  suspension  Dismissal  f) Borrowing money by Reprimand 1-30 days Dismissal  Page | 15   

suspension superior officers from subordinates. g) Lending money at usurious rates of  interests  Reprimand 1-30 days  suspension  Dismissal  h) Willful failure to pay just debts  Reprimand 1-30 days  suspension  Dismissal  i)  Promoting  the  sale  of  tickets  in  behalf  of  private  enterprises  that  are  not  intended  for  charitable  or  public  welfare  purposes  and  even  in  the  latters  case,  if  there  is  no  prior  authority.  Reprimand 1-30 days  suspension  Dismissal  J) Failure to act promptly on letters and requests within 15 days from receipt.  Reprimand 1-30 days  suspension  Dismissal  k)  Failure  to  process  documents  and  complete  action  on  documents  and  papers  within  a  reasonable time from preparation thereof.  Reprimand 1-30 days  suspension  Dismissal  l)  Failure  to  attend  to  anyone  who  wants  to  avail  himself  of  the  services  of  the office, or  act promptly and expeditiously on public transactions.  Reprimand 1-30 days  suspension  Dismissal 

2.  Upang  mabigyan  ng  agaran  at  makabuluhang imbestigasyon sa kasong isinampa sa BOD, ang  lupon  ay  maaaring  lumikha  ng  isang  espesyal  na  Komite  na  ang  bilang  ay  hindi  bababa  sa  tatlo  (3)  na  partikular  na  magsasaliksik  kaugnay  sa  kaso.  Ang  bumubuo  nito  ay  hindi  kinabibilangan  ng  kamag-anak  o  kaibigan  ng  sinampahan  ng  kaso..  Ito  ay  kinakailangang  aksyonan  sa  loob  ng  isang  linggo  matapos  isampa  ang  kaso  at  isulit  sa  BOD  ang  resulta ng imbestigasyon sa loob ng  isang buwan kasama ang lahat ng ebidensya para sa kanilang desisyon.  3.  Ang sinumang kawani o opisyal ay sasailalim sa “preventive suspension” at naka-“freeze” ang  lahat  ng  kanyang  prebilihiyo  sa  kooperatiba  habang  naka-binbin  ang  kaso.  Siya  rin  ay  hindi  pinahihintulutan  na pumasok sa lugar na kanyang pinagtatatrabahuhan at galawin ang mga bagay  o ebidensya na malaki ang “bearing” sa kaso.  Page | 16   

4.  Anumang  desisyon  ng  BOD  kaugnay  sa  kaso  ay kinakailangang maipaabot sa sinampahan ng  kaso sa loob ng isang buwan matapos gawan ng desisyon.  5. Kung ang kaso ay malaki at mangangailangan ng paglilipat sa mas mataas  na korte, ang pagpapatibay nito ay nakaatang sa BOD.  6.  Lahat  ng mga benepisyo ng isang kawani o opisyal ng kooperatiba habang dininig ang kaso ay  naka-“freeze”.  Makukuha  lamang  niya  ito kung siya maabsuwelto. Kung mapapatunayan na siya  ay “guilty” sa kasong isinampa laban sa kanya, lahat ng ito ay hindi niya makukuha. 

VI. KARAMDAMAN BILANG BASEHAN NG PAGKAKATANGGAL  1.  Maaari  ding  tanggalin  ng  kooperatiba  ang  isang  Empleyado  matapos  mapatunayan  na  nagtataglay  ng  karamdamang  nakakahawa  o karamdamang lalong lumala kung ipagpapatuloy pa  ang pagtatrabaho. Siya ay makakatanggap ng “separation pay” alinsunod sa itatakda ng BOD. 

• Computation of “separation pay” Equivalent to least one (1) month salary or to one half  (1/2) month salary for every year of service whichever is greater, a fraction of at least six  (6) months being considered as one (1) whole year  VII. IBA PANG BASEHAN NG PAGTATANGGAL  Ang kooperatiba ay maaari ding magtanggal ng Empleyado alinsunod sa sumusunod:  1. Pagbabawas ng tao dahil sa paglalagay ng makinarya. 2. Pagbabawas ng tao dahil sa  magkakatulad na gawain (redundancy). 3. Pagbabawas upang maiwasan ang pagkalugi. 4.  Pagsasara o pagtigil ng operasyon.  Ang  mga  naapektuhang  Empleyado  kaugnay  sa  mga  nabanggit  na  pamantayan  sa  itaas  nito  ay pagkakalooban ng karampatang “separation pay” na itatakda ng BOD. 

VIII. MGA URI NG PAGLIBAN (LEAVE OF ABSENCE)  1. Ang mga kawani ay maaaring gumamit ng mga sumusunod na uri ng  pagliban:  Page | 17   

Pagbabakasyon (vacation leave) – ito ay pagliban na maaring gamitin ng kawani kaugnay sa  pansariling dahilan. Liban sa pagkakasakit (sick leave) – ito ay pagliban na ang gamit ay sa  pagkakasakit. Panganganak (Maternity leave) – Ito ay pagliban na para sa mga kababaihan na  nanganak o naagasan. Pagpapa-anak (Paternity Leave) – Ito ay pagliban para sa mga ama na ang  asawa ay nanganak.  2. Bilang ng araw na maaring gamitin ng kawani na hindi mababawasan ang  suweldo bawat taon:  Pagbabakasyon - labinlimang (15) araw Liban sa pagkakasakit - labinlimang (15) araw  Panganganak - isang buwan Pagpapa-anak - limang (5) araw  3. Lahat ng pagliban ng kawani ay kinakailangang pagtibayin ng Tagapangasiwa subalit kung  ang Tagapangasiwa ang liliban, ito ay pagtitibayin ng Tagapangulo ng Lupon. 4. Lahat ng  pagliban sa pagbabakasyon o pagkakasakit na hindi nagamit ay maaring malikom at matumbasan  ng halaga batay sa regular na sahod ng Empleyado. 

IX. PAGRERETIRO NG MANAGER/KAWANI  1. Ang Manager/Kawani ay maaaring magretiro sa edad na mula sa 60 taong gulang  pataas at ito ay ituturing na “normal retirement” at pagsapit ng ika-65 taong gulang ay  ituturing na “compulsory retirement”. 2. Ang Manager/Kawani ay maaring magretiro sa  edad na mababa sa 60  taong gulang at ito ay ituturing na “early retirement”. 3. Ang Manager/Kawani ay  maaaring magretiro ng mas maaga sa o  aumang edad kung siya ay wala ng kakayahang gumawa dahilan sa karamdaman at ito ay  ituturing na “disability retirement” na nangangailangan ng pagpapatibay ng patnugutan  batay sa maingat na pagsusuri, pagpapatunay at rekomendasyon ng manggagamot na  itinakda ng patnugutan. 4. Ang benepisyong tatanggapin ng sinumang Manager/Kawani  na  magreretiro ay nababatay sa itinakdang “retirement benefits” na pinagtibay at nasasaad sa  pinagtibay na budget. 5. Ang kaukulang budget sa pagreretiro ng mga kawani ay  kailangang  paglaanan  bawat  buwan/taon  at  ilagak  sa  isang  itatakdang  Bangko  ng  BOD  at  ito  ay  makukuha lamang o mawiwithdraw para sa kaukulang gastusin.  Page | 18   

X. PAGTATASA NG MGA KAWANI  Lahat ng kawani, maging regular, kontraktwal o nasa “probationary period” ay tatasahin  ayon sa kanyang naging “performance” sa loob ng anim (6) na buwan o dalawang (2) beses sa  isang taon. Ang kanyang mga nagawa ay tatasahin ayon sa sumusunod na pamantayan: 

PART I. Pagganap sa tanging gawain sa kooperatiba.  Ang bawat kawani ay bibigyan ng nota ayon sa kanyang naging mga nagawa sa  nilolooban ng panahon ng pagbibigay ng nota.  10 Nakamit ng Empleyado ang 100% ng kanyang target na  may magandang kalidad. 8 Nakamit ng Empleyado ang higit sa 50% ng kanyang  target na may magandang kalidad. 6 Nakamit ng Empleyado ang higit sa 25% ng kanyang  target na may magandang kalidad. 4 Nakamit ng Empleyado ang mababa sa 100% ng kanyang  target ngunit di lalong mababa sa 51% na may potensyal na mapaganda pa ang “performance”. 2  Nakamtan ng empleyado ang mababa sa 50% ng kanyang  target.  Ang mga nagawa ng kawani ay nonotahan ayon sa quantity, quality at time. Kung hindi  maaari ang sukatan ng quantity, time at quality ang gagamitin.  Kunin ang weighted score sa sa pamamagitan ng pag-multiply ng nota sa weighted score  sa bawat KRA(Key Result Areas).  Kunin ang suma total para makuha ang TPS(Total Point Score).  Kunin ang EPS(Equivalent Point Score) sa 70% ng Total Point Score. 

PART II. Kritikal na pamantayan sa pagganap sa gawain sa kooperatiba.  Ang sumusunod ay ang mga nota para sa mga kritikal na pamantayan na  nakaka-apekto sa pagganap ng kawani sa kanyang gawain:  10 - palagiang pagpapakita ng kawani ng mga katangiang kinakailangan, ang kalamangan ay mas  higit kaysa sa kanyang mga kasamahan sa kanyang level o ang gawain ay magkatulad. 8 -  palagiang pagpapakita ng kawani ng katangiang kinakailangan na konti lang ang kahigitan kaysa  sa kanyang mga kasamahan sa kanyang level o ang gawain ay magkatulad. 6 - pagpapakita ng  kawani ng katangiang tama lamang katulad  lamang ng iba sa kanyang level o ang gawain ay magkatulad.  Page | 19   

4 - ang kawani ay hindi nagpakita ng katangaing hinihingi sa kanyang pagganap sa gawain  subalit may potensyal na ito ay mabago. 5 - ang kawani ay hindi nagpakita ng katangaing  hinihingi sa kanyang pagganap sa gawain subalit mangangailangan ng panahon at pagsisikap na  ito ay mabago.  Kunin ang average rating at 30% upang makuha ang EPS (Equivalent Point Score) 

PART III. PANGKALAHATANG NOTA, PUNA AT REKOMENDASYON.  Pagsamahin ang Part I at Part II upang makuha ang Total Equivalent Point Score (TEPS).  Kunin ang TEPS katumbas na uring nota na nasa ibaba nito:  Nota Katumbas n Uring Nota 9.503 - 10.000 8.752 - 9.502 7.501 - 8.751 5.000 - 7.500  2.401 - 4.999 2.000 - 2.400  Outstanding Highly Commendable Commendable Acceptable Marginal Poor  Isulat  ang  puna  sa  kaugnay  sa  kalakasan  at  kahinaan  ng  kawani  at  Ilagay  ang  rekomendasyon  tulad  ng  promosyon,  job  rotation,  etc  gayundin  ang  mga  pagsasanay  na  kailangan at istratehiya upang mapaunlad ang kanyang kakayahan.  Ito  ay  magkakaharap  na  pag-uusapan  ng  kawani  at  kanyang  supervisor/manager  at  isusulit  sa  BOD  para  sa  kanilang  kompirmasyon.  Ito rin ang magiging batayang ng BOD para sa  lahat ng pangkawanihang aksyon.  Sa pagtatasa ng mga kawani sa kanyang pagganap sa kanyang tungkulin, ang sumusunod ay  ang mga pamantayan:  1. Costumer Service – pagganap sa gawain ng maayos at magalang na  serbisyo sa mga kasapi at kliyente. 2. Initiative and dependability – pagganap sa tungkulin ng  maayos na  hindi na kailangang utusan pa. 3. Interpersonal Relations – pagganap sa tungkulin na may  maayos na  pakikitungo sa kapwa kawani at mga nakatataas sa kanya. 4. Honesty and Integrity –  pagpapakita ng kaya-ayang reputasyon at pag-  uugali gayundin ang pagiging propesyonal sa lahat ng pagkakataon.  Page | 20   

5. Cost Sensitivity – maayos at masinop na paggamit ng mga  pinakikinabangang pag-aari o ari-arian ng kooperatiba. 6. Attendance and Punctuality – ito  ay ang pagpasok ng regular at tama sa oras at paggamit ng oras sa kapaki-pakinabang na gawain.  Ito ay nahahati sa dalawang aspeto:  ATTENDANCE 10 - hindi higit sa 4 na liban 8 - 5 hanggang 8 liban 6 - 9 hanggang 12  liban 4 - 13 hanggang 16 na liban 2 - liban ng higit sa 16  PUNCTUALITY 10 - hindi higit sa 10 huli o undertime 8 - 11 – 20x huli o undertime 6 -  21 - 30x huli o undertime 4 - 31 – 40 x na huli o undertime 2 - higit sa 40x huli o undertime  7. Innovativeness and Creativity – may mga mungkahing pagbabago, praktikal at maaaring  gamiting ideya at pamamaraan na makapagpaganda ng operasyon. 8. Self- Learning and  Development – pagkukusang paunlarin ang sariling kakayahan at kaalaman sa pagdalo sa mga  pagsasanay at iba pang pagsasaliksik ng kaalaman tungo sa pansariling pagpapataas ng antas ng  kaalaman. 9. Planning and Organization – kakayahang pag-aralan ang ang pangangailangan at  tingnan ang posibleng mangyari, magtakda ng mainam na mga priyoridad, layunin at maayos na  pagpaplano ng kanyang mga gagawin. 10. Judgement and Decision- Making – malawak na  pag-unawa sa mga impormasyon at paggawa ng nararapat na desisyon kahit sa mga  komplikadong sitwasyon. 11. Stability and Composure – kalmado at madaling itugma ang sarili  sa  pagbabago.  Iba pang pamantayan para sa mga Pinuno 12. Leadership – epektibong nakatutulong sa mga  tauhan sa tamang layunin, nakakahikayat at tumutulong na maabot ang mga layuning ito, isang  epektibong lider na pinagaganap ang grupo ng maayos, pantay- pantay ang trato sa mga kawani  at palagiang mataas ang morale ng mga ito. 13. Coaching and Staff Development – tinutulungan  ang mga kawaning makamit ang tamang kaalaman ng kanyang mga kawani at pagyamanin  Page | 21   

ang kanilang kakayahan; at tumutulong makamtan ng mga kawani ang propesyonal na kaalaman. 

XI. PAGTATAKDA NG BACK-UP  Upang  maging  tuloy-tuloy  ang  transaksyon  kahit  wala  ang  pangunahing  mga  opisyal  at  tagapamahala  ng  kooperatiba,  ang  pagtatakda  ng  back-up  ay  lubhang  kinakailangan.  Ang  sumusunod ay ang mga Class A at Class B Signatories:  CLASS A SIGNATORIES:  1. Chairman 2. Manager 3. Treasurer  CLASS B SIGNATORIES  1. Vice Chairman o isang Direktor. 2. Accountant 3. Cashier  Sa pagkakataong wala ang alinman sa Class A signatories, isang bonded na kawani ang  kailangan lalo’t kung ito ay isang transaksyon pinansyal.  Ang  pagtatakda  ng  back-up  ay  mangangailangan  ng  isang  resolusyon  na  tuwirang  tinutukoy  kung sino ang kanilang itatakdang Class A at Class B signatories.  Gayundin, sa mga accounts ng kooperatiba sa mga bangko, kailangan din ang pagtatakda ng  mga taong lalagda sa kanilang mga transaksyon. 

XII. SUWELDO, ALLOWANCE, HONORARIUM AT IBA PANG  KOMPENSASYON  Anumang  kompensasyon  na  maaaring  tanggapin  ng  kawani,  Tagapamahala,  at  mga  halal  at  di-halal  na  opisyales  ng  kooperatiba  ay  ibabatay  sa  pinagtibay  na  Plantilla  at  kasama  sa  pinagtibay na budget. 

XIII. IBA PANG PATAKARAN  1. Ang Pangkalahatang Re-organisasyon ng mga kawani ay kinakailangan ng  pagpapatibay ng BOD.  Page | 22   

XIV. PAGPAPATUPAD  Ang patakarang ito ay agad ipapatupad matapos pagtibayin ng Lupon ng Mga Patnugot sa  kanilang karaniwang pulong. 

XV. PAGPAPATIBAY  Pinagtibay  ngayong  ika-23  ng  Pebrero,  taong  2013  sa  ginanap  na  karaniwang  pagpupulong  ng  Lupon  ng  Patnugot  sa QUEZON PUBLIC SCHOOL TEACHERS AND  EMPLOYEES CREDIT COOPERATIVE, Lucena City.  Pinatunayang wasto:  (SGD.)ORLANDO V. ORNEDO  Kalihim 

PINAGTIBAY:  (SGD.)REYNALDO S. LUNA Chairman  (SGD.)RONALDO V. GARCIA Vice-Chairman  (SGD.)IRENE D. PANDY Director  (SGD.)EDNA L. CABRERA Director  (SGD.)CONSORCIA E. OLIVERA Director  BOD RESOLUTION NO. 11-2013  Page | 23   

IV. MEMBERSHIP  That  membership  of  this  cooperative  shall  be  open  to  all  persons  who are of legal  age,  with  capacity  to  contract  or  heads  of  the  families  and  members  of  Region  IV-A  Quezon  Province  Public  School  Teachers  and  Employees  Association  Inc.  (QPSTA)  residing  and/  or  working  in  the  area  of operation as provided in Article IV of the Articles  of Cooperation of the QPSTECC.  The prospective members should:  1. Pledge to undertake the responsibilities of members; 2. Complete the prescribed  pre-membership cooperative education program;  and 3. Use or anticipate to use the services of cooperative more particularly the  savings and loaning services and other allied services relative thereto. 

Application for Membership  a). The application for membership shall be in writing on a form provides for the  purpose and shall be presented to the Board of Directors for action.  The application shall be accompanied by a membership fee of fifty (P50.00) pesos  which amount shall be returned to the applicant in case of rejection.  b.)  The  applicant  shall  subscribed  for  at  least  ONE  HUNDRED  FIFTY  (150)  shares  with  a  total  value  of  FIFTEEN  THOUSAND  PESOS  (P15,000.00)  of  which  at  least  THREE  THOUSAND  SEVEN  HUNDRED  FIFTY  PESOS  (P3,750.00)  corresponding  to  THIRTY  SEVEN  POINT  FIVE  (37.5)  shares  shall  be  paid  upon  submission  of  the  application  for  membership.  The  membership  and  subscription  agreement shall provide terms of payment on the unpaid subscription.  However,  no  member  shall  own  or  hold  more  than  ten  percent (10%) of the total  subscribed  share  capital  of  the  cooperative.  The  Board  of  Directors  shall  issue  membership  certificate  and  subscription  agreement  with  such  terms  and  conditions  as  may be deemed equitable.  c).  Appeal-  an  applicant  rejected  by  the  Board  of  Directors,  may  appeal  his  case  to  the  next  general  assembly  by  giving  notice  to  Secretary  of  the  Cooperative  thirty (30)  days before the said General Assembly, whose decision on the matter shall be final.  Page | 24   

Duties of a Member  Every member shall have the following duties:  a. Pay the installment on capital stock subscription as it falls due and to  participate on a capital build-up of the cooperative; b. Patronize regularly its business;  c. Participate in its parliamentary affairs; d. Attend the membership meeting, regular or  special; e. Obey the rules and regulations provided by R.A. 9520, these by-laws, the  decisions of the general assembly and the Board of Directors, and policies and decisions  that may be promulgated by the Cooperative Development Authority (CDA); and f.  Promote the aims and purposes of the cooperative, the success of its business, the welfare  of its members and the cooperative movement as a whole. 

Rights of a Member  Every member who is entitled to vote has the following rights;  a). Participate in the deliberation during membership meeting; b). Vote on all matters  brought before such meetings; c). Seek any elective position, subject to the provisions of  Section 12, Article  III of its by-laws; d). Avail himself of the services of the cooperative without any  discrimination whatever upon compliance with the conditions and requirements thereof;  and e). Inspect and examine the books of accounts, the minutes books, the share register  and other records of the cooperative during office hours and exercise other rights and  privileges of membership.  A member is entitled to vote when he:  a. Has paid the required membership fee of fifty pesos (P50.00) and the value of at least  THREE THOUSAND SEVEN HUNDRED FIFTY PESOS (P3,750.00) corresponding to  THIRTY SEVEN POINT FIVE (37.5) shares as provided in Section 2 of the QPSTECC  By-Laws; b. Is not delinquent in the payment of this capital contribution and  accounts; c. Has not violated any provision of the by-laws, rules and regulations,  circulars, memoranda and other issuances of the CDA, membership and subscription  agreement and other instruments required of him to  Page | 25   

execute as provided in the by-laws or as prescribed by the Board of Directors; d. Has  attended and completed the prescribed cooperative seminars; e. Patronizes regularly the  business of the cooperative and participates  in its parliamentary affairs; and f). Complies with all obligations, duties and  undertakings of membership. 

Liability of Members  The Liability of a member shall be limited. No member shall be liable for any  indebtedness of the cooperative beyond his subscribed shares. 

Termination of Membership  Membership in the cooperative may be terminated either by voluntary, involuntary  or automatic termination.  Voluntary  Termination  -  Any  member  desiring  to  terminate  his  membership  by  giving  a  sixty  (60)  day  notice  to  the  Board  of  Directors.  However,  no  member  shall  be  allowed  to  withdraw  or  terminate  his  membership  during  any period in which he has any  pending obligation with the cooperative.  Involuntary Termination - A member may be terminated by a vote of the majority  of all members of the Board of Directors for any of the following causes:  a). When a member has not patronized the service of the cooperative for an  unreasonable period of time as may be fixed by the Board of Directors;  b).When a member has continuously failed to comply with his obligations;  c). When a member has acted in violation of the By-Laws and the rules of the  cooperative; and  d). For any act or omission injurious or prejudicial to the interest or the welfare of  the cooperative.  A  member  whose  membership  the  Board  of  Directors  may  visit  to terminate shall  be  enforced  of  such  intended  action  in  writing  and  shall  be  given  an  opportunity  to  be  heard  before  the  said  board  makes  it  decisions.  The  decision  of  the  board  shall  be  in  writing  and  shall  be  communicated  in  person  or  by  registered  mail  to  the  member  and  shall  be  appealable,  within  thirty  (30)  days  after  then  decision  is  promulgated,  to  the  general  assembly  whose  decision therein, whether in a general or special session, shall be  final. Pending a decision by the general assembly, the membership remains in force.  Page | 26 

 

Automatic Termination - The death, insanity, permanent incapacity or judicial declaration  by  a  competent  court  or  the  insolvency  of  a  member  shall  be  considered  an  automatic  termination of his/her membership in the Cooperative. 

Refund of Share Capital Contribution  A  member  whose  membership  is  terminated shall be entitled to a refund of his/her  share capital contribution and all other interests in the Cooperative. However, such refund  shall  not  be  made  if  upon  payment  the  value  of  the  assets  of  the  cooperative  would  be  less than the aggregate amount of its debts and liabilities exclusive of his/her share capital  contribution.  In  which  case,  the  terminated  member  shall  continue  to  be  entitled  to  the  interest  of  his/her share capital contributions, patronage refund and the use of the services  of  the  co-  operative  until  such  time  that all his/her interests in the co-operative shall have  been  duly  paid.  Upon  the  acceptance  of  his/her  withdrawal  or  approval  of  his/her  termination,  however,  he/she  losses  his/her  right  to  attend,  participate  and  vote  in  any  meeting of the Board of Directors or the general assembly.  Page | 27   

V. CREDIT/LOANS  SOURCES OF FUNDS  Six percent (6%) of the loan proceeds.  QUALIFICATION OF MEMBER - BORROWER  Patronizes regularly the business of the cooperative;  TYPES OF LOAN  The cooperative shall extend providential loans to the members.  A.  REGULAR  LOAN  -  any  loan  which  will  give  the  member  and/or  his/her  dependents  relief  from  financial  difficulties  or  savings  through  the  use  of  credit,  such as but not limited to:  1. Payment of hospital, medical and dental bills  2. Payment of funeral services  Share Capital contribution  At least 50% of annual interest on capital & patronage refund  Has  paid the required membership fee of Fifty pesos (P50.00) and the value of 37.5  shares amounting to Three Thousand Seven Hundred Fifty Pesos (P3,750.00);  Not delinquent in the payment of his capital contribution and loan amortizations;  Has  not  violated  any  provisions  of  the  by-laws  of  the  cooperative,  rules  and  regulations  issued  by  CDA,  membership  and  subscription  agreements  and  other  instruments  required  of  him  to  execute  as  provided  in  the  by-laws  or as prescribed  by the Board of Directors;  Has attended and completed the prescribed seminars;  Page | 28   

3. Payment of tuition fees, matriculation and/or other school needs  4. Payment of taxes and other obligations of the borrower  5. Full payment of debts to usurers  6. Construction or repairs of residential houses occupied or owned  by the member  7. Purchase of household appliances  8. Purchase of basic commodities  B.  EMERGENCY  LOAN/BONUS  LOAN  -  any  providential  loan  that  needs  immediate attention and release for an unexpected urgent financial necessity.  1. Payment of medical, hospital and dental expenses 2. Payment of expenses  resulting from accident or calamities.  AMOUNT OF LOAN, INTEREST SERVICE FEES AND FINES  Regular  members  as  well  as  new  members  who have fully paid the minimum  number  of  subscribed  shares in the cooperative are qualified to borrow or apply for  regular loan under the following terms and schedule:  PAYABLE WITHIN ONE (1) YEAR WITH 6% SERVICE FEE DEDUCTED UPFRONT. NET PAY  REQUIREMENT (WITH 2 CO- MAKERS )  LOAN AMOUNT (PRINCIPAL)  MONTHLY 

FILING  INTEREST  PENALTY/ AMORTIZATION 

FEE  (per annum)  FINES  5,800.00 25,000.00 2,239.58  20.00  7.5%  6,200.00 30,000.00 2.687.50  20.00  7.5% 

6,700.00 35,000.00 3,135.42  20.00  7.5%  7,100.00 40,000.00 3,583.33  20.00  7.5%  1% for each 7,600.00 45,000.00 4,031.25  20.00  7.5%  delayed monthly 8,000.00 50,000.00 4,479.17  20.00  7.5%  amortization  8,900.00 60,000.00 5,375.00  20.00  7.5%  10,300.00 75,000.00 6,718.75  20.00  7.5%  12,500.00 100,000.00 8,958.33  20.00  7.5%  Page | 29   

PAYABLE WITHIN TWO (2) YEARS WITH 8% SERVICE FEE DEDUCTED UPFRONT  NET PAY REQUIREMENT (WITH 4 CO- MAKERS )  LOAN AMOUNT (PRINCIPAL)  MONTHLY AMORTIZATION  FILING FEE  INTEREST (per annum)  PENALTY/ FINES  4,700.00 25,000.00 1,197.92  20.00  7.5%  5,000.00 30,000.00 1,437.50  20.00  7.5%  5,200.00 35,000.00 1,677.08  20.00  7.5%  5,500.00 40,000.00 1,916.67  20.00  7.5%  5,700.00 45,000.00 2,156.25  20.00  7.5%  1% for each  5,900.00 50,000.00 2,395.83  20.00  7.5%  delayed monthly  6,400.00 60,000.00 2,875.00  20.00  7.5%  amortization  7,100.00 75,000.00 3,593.75  20.00  7.5% 

8,300.00 100,000.00 4,791.67  20.00  7.5%  PAYABLE WITHIN THREE (3) YEARS WITH 8% SERVICE FEE DEDUCTED UPFRONT  NET PAY REQUIREMENT (WITH 4 CO- MAKERS )  LOAN AMOUNT (PRINCIPAL)  MONTHLY AMORTIZATION  FILING FEE  INTEREST (per annum)  PENALTY/ FINES  5,300.00 50,000.00 1,701.39  20.00  7.5%  5,600.00 60,000.00 2,041.67  20.00  7.5%  5,900.00 70,000.00 2,381.94  20.00  7.5%  6,300.00 80,000.00 2,722.22  20.00  7.5%  6,600.00 90,000.00 3,062.50  20.00  7.5%  1% for each  7,000.00 100,000.00 3,402.78  20.00  7.5%  delayed monthly  7,300.00 110,000.00 3,743.06  20.00  7.5%  amortization 

7,600.00 120,000.00 4,083.33  20.00  7.5%  8,000.00 130,000.00 4,423.61  20.00  7.5%  8,300.00 140,000.00 4,763.89  20.00  7.5%  8,700.00 150,000.00 5,104.17  20.00  7.5%  Page | 30   

LIMITATIONS  The  paying  capacity  of  the  borrowing  member  shall  be  taken  into  consideration  before  he  may  be  granted  the  above  loans.  The  net  pay  requirement  should  be  followed  strictly  for  those  who  opted  to  pay  through  Automatic  Payroll  Deduction System (APDS) and must surrender their latest original payslip.  To  those  members  who  will  apply  for  a  loan  and  voluntarily  surrender  their  Salary ATM, they may avail the maximum loan of P50,000.00 payable in one year.  MANNER OF PAYMENT  1. Through Automatic Salary Deduction System (APDS); 2. Loan amortization  shall be paid by the borrowing member directly to the cooperative office within  two (2) days after the pay day whenever the pay was credited to the ATM. Any  change in the amount credited to the salary ATM can be claimed by the member. 3.  Remittance from:  a.) the independent secondary schools with the corresponding  abstract of payment; and b.) the office of the district supervisors with the  corresponding  abstract of payment.  RENEWAL OF LOAN  A member may renew loan upon payment of at least fifty percent (50%) of  the loan.  FILING AND APPROVAL OF LOAN  All loan application must be fully filled up and to be filed with the loan officer who  shall  determine  if  all  the  information  in  the  application  for  loan  has  been  completely filled up.  Page | 31   

The  Manager  approves  the  loan  and  signs  the  check  after verifying the correctness  of  the  entries  in  the voucher and ensures that the remaining balance reflected in the  member’s individual ledger has been deducted in the loan.  RELEASE OF LOAN  Loan proceeds shall be released to member borrower on first come first serve basis.  PROHIBITION  The  board  of  directors,  management  staff  and  committee  members  are  prohibited  from  becoming  co-makers.  A  member  can  become  a  co-  maker  up  to  two times only. However, in case the first loan where he/she is a co maker has been  fully paid, he/she may again be a co- maker for another loan.  All loan releases must be through vouchers and paid in check.  The loan officer shall compute the loanable amount.  The loan officer shall then process, evaluate the loan application after screening the  completeness of the application form and the corresponding requirements.  Page | 32   

VI. BUDGETARY and FINANCIAL CONTROL  1. RESPONSIBILITY  1.1  The  Budget  and  Finance  Committee  of  this  Cooperative  shall  have  responsibility  for  bringing  the  appropriate  budget  and  financial  recommendations  to the board in accordance with this policy. 

2. OPERATING BUDGET POLICY  2.1 The cooperative shall utilize a budget as the structure for planning  and, to a lesser extent, control.  2.2 The board is committed fully to formulate policy, make decisions, and do the  planning necessary for the success of the budget.  2.3  The  budget represents a proposed plan of operations and not a straight jacket. It  facilitates  the  means  of  selecting  among  alternatives  when  resources  are  limited,  but  should  not  be  so  flexible  as  to  preclude  the  implementation  of  new  ideas  arrived at subsequent to budget approval.  2.4  All  individuals  or  groups  responsible  for  performance  under  the  budget  are  to  be  involved  in  its  preparation.  The  budget  should  reflect  goals  and  objectives  and  determine  the  programs  and  workloads  for  the  coming  period.  Emphasis  in  the  budget preparation should be on the work program and plan, not the pesos to which  such plans must be reduced.  2.5  The  budget  is  a  plan,  and  as  such,  can  be  of  great  benefit  in  determining  whether  actual  programs  were  successful  and  how  to  improve  future  plans.  The  budget is to be used for control purposes only in a secondary manner.  2.6  The  budget  must  be  presented  to  the  annual  general  assembly  for  approval.  If  the  general  assembly  disapproves  the  budget,  then  the previous year’s budget shall  be used.  2.7 The approved budget is authority for the manager to place the plan  into operation or spend within the structure of the budget.  Page | 33   

3. OPERATING BUDGET PROCEDURE  3.1 Planning Meeting.  Each  year in October there will be a special board meeting to consider problems  requiring  solution  and  to  plan  goals,  objectives,  and  direction  the  cooperative  should  move  during  the  year.  The  meeting  is  not  to  be  the  regular  board  meeting  and  current  operating  problems  should  not be discussed except as they relate to the  future. 

3.2 Budget Request.  In  mid-September  the  manager  shall,  in  writing,  request  proposed  workloads  and  programs  from  responsible  committee  chairmen,  officers,  management  and  staff  members.  The  manager  or  his  staff  will  provide  resource  data  and  will  assist  in the pricing of programs when it is desired. Responses are also to be written. 

3.3 Preliminary Decisions.  At  the  November  and  December  board  meetings,  the  wage  and  salary  recommendations  will  be  considered.  Key  issues  and  decisions  relating  to  other  activities will also be considered. 

3.4 Budget Document.  The  manager  shall  bring  together  all  plans  into  a  budget  document. The budget  document  shall  be  reviewed  by  the  Budget  and  Financial  Committee  with  the  proposed  workloads  and  projects  being  studied  to  make  certain  that  an  acceptable  and  internally  consistent  plan  is  produced.  When  there  are  inconsistencies,  the  Budget  and  Finance  Committee  shall  discuss  the  matter  with  the  recommending  individual or group to attempt to clarify the matter.  The  Budget  and  Finance  Committee  shall  recommend  the  final  budget  to  the  Board  for  action  at  the  November  meeting.  Changes  from  the  original  requests  shall  be  disclosed  and explained to the board, with the original recommender being  given the privilege of supporting the request to the board.  Page | 34   

3.5 Budget Evaluation.  Progress  toward  accomplishment  of  the  plan  shall  be  presented  to  the  board  quarterly,  and  oftener  if  in  the  opinion  of  the  manager  or  treasurer,  any  aspect  of  the  budget  is  out  of  control. Only significant rather than minor wants and items are  important. 

3.6 Approval For Change.  Board  action  is  necessary  to  change  salaries.  The  manager  is  authorized  to  overspend  individual  budget  items  by  small  amount,  but  not  the  budget  total.  Interest  expense  over  budget  requires  no  authorization  other  than  for  the  borrowing. The budget must change to fit circumstances. 

3.7 Responsibility for Budget Recommendations.  a)  Share  goals  -  Board  at  planning  meeting  b)  Loan  goals  -  Board  at  planning  meeting  c)  Dividend  and  reserve  policy  -  Board  at  planning  meeting  d)  Revenue  estimates -Treasurer with the assistance of the  Manager (based on balance sheet 

projections) e) Salaries and related  costs - Personnel Committee and Manager f) Loan department - Loans & Credits  Officer g) Collection - Cashier h) Audit examination and protection - Audit  Committee i) Marketing and Member Education - Education and Training  Committee j) Depreciation and  Amortization - Accountant and Manager k) Dues to Federations, Chapters, etc.-  Chairman and Manager 

3.8 Cautions.  a) Budgets are only tools for use by individuals, they do not  manage. b) All efforts are needed to follow a plan and to accomplish goals.  The accomplishment of budget goals is not automatic. c) Judgment is needed to  interpret budgets as they are only  estimates. 

4. CASH BUDGETING 

It  is  predicting  cash  inflows  and  allocating  cash  outflows  of  the  cooperative  for  a  specific  time  period.  For  this  reason,  cash  budgeting  of the cooperative relies  heavily on accurate cash flow forecasts. The goal is to  Page | 35   

strike a cash reserve balance that is neither too much nor too little but still allows  the business to pay its daily operating expenses.  The  management  should  provide  a  detailed  plan  of  future  cash  flows  which  is  composed  of  cash  receipts,  cash  disbursements,  net  change  in  cash  for  the  period,  and  new  financing  needed  that  will  sustain  the  lending  operation  of  the  cooperative and to be approved by the Board. 

5. CAPITAL BUDGET  A  capital  budget  shall  be  considered  each  year  with  the  operating  budget.  Capital budget requests can originate with the manager, an officer or a committee. 

6. TRAVEL  Travel  expenses  incurred  by  officers  and  employees  of  this  Cooperative  in  the  performance  of  their  official  duties  will  be  reimbursed  in  accordance  with  the  following policy: 

a) General  The  board  of  directors  has  full  and  final  authority  to  determine  when  travel  may  be  conducted  at  the  expense  of  the  cooperative,  and  to  approve  (or  disallow)  claims for reimbursement.  The guiding principle is that travelers will be reimbursed for actual expenses  while in authorized travel status.  In  general,  authorizations  for  travel  (and  reimbursement  of expense) may be  granted at the discretion of the board in the following cases:  a1)  Travel  necessary  for  the  conduct  of  ordinary  business  affairs  of  the  cooperative,  including  travel  required  for  organizing  and  conducting  business  in  remote areas;  a2) Travel required to represent the cooperative or present testimony  at official hearings upon request by government agencies;  a3) Travel incidental to participation in meetings of federations,  unions or associations in which the Cooperative is a member; and  Page | 36 

 

a4)  Travel  required  to  attend  or  conduct  training  schools,  seminars,  symposiums,  and  meetings  of  a  professional  or  semi-professional  nature  intended  to  improve  technical  knowledge  and  competence  in  handling  cooperative  and  savings  and  loans affairs.  b)  The  Cooperative  will  not  pay  travel  or  other  expenses  incurred  outside  of  business  or the travel expenses for the spouse of any director, officer, management,  member  of  the  staff,  or  other  person  associated  with  the  Cooperative  unless  voted  specifically by the board after a showing of benefit to members or the Cooperative. 

c) Authorization for Travel.  Authorization  for  travel  will  ordinarily  be  requested  in  advance  and  granted  by board action, through budget approval, with the following exceptions:  c1) Travel in which reimbursable expenses will not exceed the actual as  reflected in the tickets/receipts.  c2)  The  manager  is  deemed  to  have  a  prior  authorization  for  travel  within  the  province  when  such  travel  is  necessary  for  ordinary  business  affairs,  as defined by  items a1) and a2);  c3) Travel expenses of the manager shall be approved by the chairman  of the board or treasurer before incurring such expenses; and  c4)  A  detailed  expense  account  incurred  under this authorization shall be reviewed  by  the  treasurer  and  included  as  part  of  the  expense  report  to  be  approved  by  the  directors at their next meeting. 

d) Records and Reports.  The record of travel expenses claimed and reimbursed will be documented in  the files of the Cooperative with vouchers, receipts, and authorizations.  Travel  expenses  will  be  treated  as  operating  expenses  to  be  reported  to  and  reviewed by the directors as part of the regular financial reports of the treasurer and  manager.  d1) For purposes of this review, travel expenses will be clearly  designated as items separate from other operating expenses. 

Page | 37   

d2)  Supplementing  the  financial  report,  persons  conducting  travel  at  the  Cooperative’s  expense  will  be  prepared  to  report  on  the  purpose  and  the  results  of  their  travels.  At  the  discretion  of  the  Chairman  or  manager,  these  reports  may  be  put on the agenda. 

8. CHARGED-OFF LOAN RECORD  Loans  charged  to  the  regular  reserve  as  uncollectible  will  be  documented  (loan  folder,  correspondence, etc.) controlled, and a formal ledger indicating the status of  each  shall  be  maintained.  Statements  shall  be  maintained,  Statements  shall  be sent  at  least  annually  unless  the  address  is  unknown,  the  account  is  settled  by  agreement,  or  is  in  the  hands  of  a  collecting  agency  or  is  otherwise  legally  uncollectible. 

9. GIFTS TO CHARITIES, FUNDS, or FOUNDATIONS  It  shall  be  the  policy  of  this  Cooperative  not  to  contribute  to  charities,  funds or  foundations  which  solicit  from  individuals,  because  individual  members  of  the  cooperative  have  already  made  a  personal  decision  on  such  giving.  As  the  Cooperative  is  a non-profit entity composed of individual members, giving on their  behalf would be inappropriate.  Contributions or gifts not covered by the policy shall require special action of  the board of directors. 

10. POLITICAL CONTRIBUTIONS  It shall be the policy of this Cooperative not to contribute to political  campaigns.  Page | 38   

VII. INTERNAL CONTROL  PURPOSE: To safeguard the cooperative assets and promote operational  efficiency.  CASH RECEIPTS  All payments must be covered by the official Receipts (O.R.) of the  cooperative.  The Official Receipt must be duly acknowledged by the Cashier.  All payments must be recorded in the Cash Receipts Journal by the  Bookkeeper on the day of the transaction.  The bookkeeper shall stamp the word “posted” for all official  receipts duly recorded including the date of posting.  Official Receipts must not contain any alteration or erasure. Any  correction made must be initialed by the Cashier and made to all  copies of the receipts.  The Cashier is given the discretion to determine if there is a need to  cancel the altered receipts and to issue a new official receipts.  The word cancelled must be stamped in the face of the Official  Receipt and the date of canceling with the initial of the Cashier.  All checks including postdated checks issued by the members in  payments to cooperative, a provisionary receipt shall be issued until  Page | 39   

In accepting payment by check from the member, it is required that  the member is the maker/ drawee of the check and the date of the  check shall be on the date of transaction.  CASH DISBURSEMENT  such time that the check become good and cleared by the  depository bank. A ledger for each member shall be maintained.  Payments by second endorsed checks are not allowed.  All disbursement of fund shall be covered by cash vouchers.  The voucher must contain the approval by the manager, released  by the Disbursing Officer and posted by the Bookkeeper.  All disbursement must be recorded in Cash Disbursement Journal by  the bookkeeper on the day of the transaction.  The voucher must not contain any alteration or erasure. Any  correction must be made to all copies of the voucher.  All payments must be paid in check except minimal disbursements  to be paid out of Petty Cash Fund.  Vouchers shall be serially numbered.  The Bookkeeper shall review and check the correctness and  completion of all the required supporting documents.  Page | 40   

Vouchers representing the released of loans, the approved  application loan shall be attached to the voucher.  Voucher representing the payments of obligations must be  supported by approved Purchase Order.  Voucher representing the payments of traveling expenses, the duly  approved itinerary of travel and travel order must be attached to  the voucher.  Payment must be reviewed by the Payee named in the vouchers.  Payment through authorized representative may be allowed  provided that there is a prior arrangement with the cooperative.  Vouchers representing claim for payment of traveling expenses shall  be supported by a duly approved Itinerary of Travel and Travel  Order.  Upon released of check, the Disbursing Officer or his duly  authorized representative shall stamped “PAID” to all copies of  voucher and its supporting documents and indicate therein the date  of payment.  Vouchers shall be signed by the payee or his duly authorized  representative to acknowledge receipts of payments.  Page | 41   

For every transaction that will entail disbursement of funds, the  Disbursing Officer shall certify as to the availability of funds.  CASH ADVANCE  If applicable, the Disbursing Officer or his duly authorized  representative shall demand an Official Receipt (O.R.) or other  similar documents from the payee.  All disbursement of funds must have a prior authority from the  Board of Directors except when duly authorized under the  approved annual budget of the cooperative, hence, only for  payments shall secure approval from the Board of Directors.  All duly authorized staff and officers can make cash advances in  connection with the performance of their official functions as such.  In no case shall Cash Advances be allowed for personal purposes.  The officers and staff shall accomplish a Request for Cash Advance  Form and shall indicate therein the purpose and amount of Cash  Advance.  The request shall be approved by the Chairman of the Board of  Directors and shall be released by the Cashier.  The Cash Advance shall be liquidated within five (5) days from the  release of cash advance. The official receipt for every expenses  incurred must be in the name and/or care of the cooperative, the  Page | 42   

same must be submitted to support the liquidation of cash  advance.  The Bookkeeper shall review and check the validity of the  supporting documents. When authorized by the Board of  Directors, the Bookkeeper may verify the authenticity of the  documents submitted for liquidation from its source.  Employees and officers with unliquidated cash advances shall not  be allowed for another cash advances.  The Cashier shall submit to the Board of Directors a monthly  report of unliquidated cash advances including cases of delayed  liquidations.  Page | 43   

VIII. FUNDS AND ASSET MANAGEMENT  1. STATEMENT OF PURPOSE  To  safeguard  the  assets,  verify  the  correctness  of  accounting  data,  promote  operational  efficiency  and  control,  and  prevent  fraud  and  losses  on  the  part  of  the  cooperative.  2. STATEMENT OF PROCEDURES/GUIDELINES  2.1 Safeguard and Control of Assets  a)  Dual  control  requires  the  joint  effort,  reciprocal  witnessing,  proofing,  or  authentication  by  two  or  more designated staff/officers, whether together or singly,  one after the other, to successfully and properly complete the operation;  b)  Dual  control  of  the  vault,  safes,  chests,  receptacles  shall  be  established  by  the  use  of  two  locks  or  combination  with  one  or  more  staff/officers  assigned  to  each  half of the control;  c)  Safe  combination  numbers  should  be  written  or  typed  on  paper  placed  in  one  envelop  sealed  with  wax  with  signatures  of  the  officer-holders  and  their  witness  and  seal  the  flop  to  expose  any  tampering  thereof.  The  envelop  shall  be  deposited  to the manager;  d) The same procedures apply to the duplicate keys to the inner  door of the vault, safes, chest and drawers; and  e)  Cashiers  and  other  officer  assigned  to  the  dual  control should avoid observation  by one another while operating safe or vault combination.  2.2 Segregation of Duties and Responsibilities  The physical handling of a transaction shall be separated from its  supervision as follows:  Page | 44   

a)  A  person  handling  cash  shall  not  be  permitted  to  have  access  to  the  four  books  of  accounts  (  cash  receipt  book,  cash  disbursement  book,  general  journal  and  general ledger) and the subsidiary ledgers;  b) A person posting to the subsidiary ledger should not be  allowed to record to the books of accounts;  c)  A  loan/account  officer  shall  not  be  allowed  to  receive  and  disburse  loan  proceeds,  for  and  in  behalf  of  the  borrowers,  and  accept  loan payments nor post to  the subsidiary loan ledgers;  d)  A  loan  officer/account  officer/collector  shall  not  be  allowed  to  use  the  collections of any type in accommodating savings withdrawal;  e) The functions of recording and signing of checks shall be  separated;  f)  Check  and  other  cash  items  shall  be  in  the  custody  of  an employee not handling  cash  and  that  adequate  controls  are  properly  maintained  as  to  the  custody  and  disposition of funds;  g) The receipt of statements from depository bank shall be assigned to an employee  other  than  the  one  connected  with  the  preparation,  recording  and  signing  of  bank  drafts;  h) Custodian of securities should not handle security transaction;  i) Appraisal of collateral shall be done by an employee/officer  who does not approve loans;  j)  Incoming  checks  and  other  cash  items  shall  be  recorded  chronologically  in  a  register  by  an  employee  other  than  the  bookkeeper  before  they  are  forwarded  for  posting purposes;  k) Credit report shall be prepared by a personnel other than loan  officer, and  Page | 45   

l)  Mailing  of  customer’s  statements  and  delinquent  notices  shall  be  done  by  an  employee other than the one who granted the loan or the one handling the records.  2.3 Official Receipts/Cash Acknowledgment Receipt  a) The Cashier shall be responsible to the cooperative for all cash  received and subsequent deposits thereof to the bank;  b)  All  cash  receipts  are  acknowledge  with  pre-numbered  official  receipts  (OR)  duly  registered  with  the  Bureau  of Internal Revenue, signed by the treasurer or any  employee  authorize  to  receive  cash  collections  from  the  field  may  be  issued  with  Cash  Acknowledgment  Receipt  (CAR)  that  may  take  place  of  a  Provisional  Receipt;  c) ORs/CARs must be issued in a triplicate copy:  ▪ original to the payor  ▪ duplicate to the accounting  ▪ triplicate to the file-stub  d)  The  numerical  sequence  of  the  Ors/CARs  issued  by  the  treasurer/cashier  is  checked by accounting staff before recording in the Cash Receipt Book;  e) The accounting personnel compares the total amount of cash  receipts against the validated bank deposit slips;  f)  The  manager  shall  have  the  custody  of  the  unused  ORs/CARs  and  in  no  case  shall  the  treasurer/cashier  handles  the  unused  ORs/CARs  except  those  correspondingly issued to them for day to day operation;  g) The manager shall keep track/check the unused OR/CAR; and  h) All copies of cancelled ORs/CARs are stapled, preserved and  retained in the booklet/stub and marked “CANCELLED”.  Page | 46   

2.4 Cash Receipts and Deposits  a) Cash received by the treasurer/cashier during the day shall be  deposited in that day not later than the next banking day; and  b) The Deposit Slip (DS) is prepared in three (3) copies and  distributed, after validation by the bank, as follows:  • original – to the bank  • duplicate – to the accounting unit  • triplicate – to the treasurer/cashier  2.5 Recording of Receipts and Disbursement  The  bookkeeper  shall  record  daily  the  receipt  of  cash  in  the  Cash  Receipt  Book  (CRB) and vouchers paid to the Cash Disbursement Book (CDB).  2.6 Bond of Accountable Officers  a)  The  Manager,  Treasurer/Cashier  and  other  officers/employees  authorized  to  handle cash must be covered by adequate bond;  b)  The  Board  of  Directors  shall  determine  the  adequacy  of  bond  to  cover  the  amount of possible losses or shortages that may arise in the handling of cash;  c) The bond shall be retrieved and updated periodically by the  Manager; and  d) Copy of the bond to be furnished to CDA.  2.7 Accounting Standards  a)  The  officers and employees responsible for handling cash must be provided with  a safety box or drawer to which he alone shall have access;  b) Separate bank accounts should be maintained for grant funds,  reserved funds and other special funds;  Page | 47   

c)  The  bank  reconciliation  shall  be  prepared  by  the  bookkeeper.  In  no  case,  shall  the  Treasurer/Cashier  be  allowed  to  prepare  bank  reconciliation.  Any  adjustment  shall  be  taken  up  immediately  through  a  journal  voucher  duly  approved  by  the  Chairman of the Board;  d) All books of accounts and other financial records shall be filed  in systematic and orderly manner by the bookkeeper;  e) All due to or cash advances shall be reconciled regularly and  liquidated within thirty (30) days;  f)  Disbursement  of  Cooperative  funds  and  other  payments  must  be  within  the  approved  budget  and  must  have  prior  authorization  from  the  Board  of  Directors  and/or the General Assembly and always subject to availability of funds;  g)  The financial statements must be prepared by the bookkeeper in conformity with  the  generally  accepted  accounting and auditing procedures and the Standard Charts  of  Accounts  adopted  by  the  CDA,  and  audited  by  an  independent  Certified  Public  Accountant preferably accredited by the CDA;  h)  The  Board  of  Directors  must  be  directly  responsible  in  the  management  of  the  funds  and  assets  of  the  cooperative.  It  shall  prescribed  policies  to  ensure  its  safety  from losses and fraud; and  i) Access and use of cooperative property and premises must  secure prior approval by the Board of Directors.  2.8 Internal Control Standards  a) Cash collection/disbursement and recording in the books of  accounts must not be entrusted to one person;  b) Use double entry system of bookkeeping;  c) Prompt recording of transaction and periodic balancing of  accounts;  Page | 48   

d) Maintained a carefully prepared charts of accounts;  e) Prepare monthly comparative financial statements for review  of the Board of Directors;  f) Deposits of all cash receipts intact daily, and making all  payments in checks;  g) Use of well-designed and serially numbered forms  chronologically and proper control of these forms;  h) The proper filing of used receipts invoices and cash vouchers  together with supporting papers; and  i) Compare accounting proofs and control such as:  a. Budgets b. Monthly reconciliation of bank balances c. Use of imprest system of  handling cash, revolving fund,  petty cash and loan funds d. Periodic audited by Certified Public Accountant  e. Use of Cash Register, adding machines, cash boxes and  other mechanical equipment and physical safeguards.  2.9 Audit Procedures  a) Management Audit  a.  Request  for  a  copy  of  the  By-Laws,  Articles  of  Cooperation  and  any  amendments  to  see  if  they  conform  substantially  with  the  provisions  of  RA  9520  and its implementing rules and the following must be looked into:  • The full and exact name of the cooperative;  • The date of incorporation/registration;  • Capital structure;  • Principal place of business;  • The time, place and manner of calling and conducting BOD and GA whether  regular or special meetings;  Page | 49   

• The number of members necessary constitute a quorum;  • The qualifications, duties and responsibilities of the BOD and management staff;  •  The  time  of  holding  annual  GA,  the  mode  and  manner  of  electing  the  Board  of  Directors and Committee Members;  • The manner of issuing stock certificates or shares of stocks; and  • The method of amending By-Laws.  b.  Request  for  a  copy  of  the  minutes  of  meetings  of  the  General  Assembly  and  of  the Board of Directors to examine the following:  • Proper dating and signing of minutes;  • Compensation of the Board of Directors, Committee Members and Management  Staff;  • Declaration of interest on share capital and patronize refund;  • Authorization for:  ➢ Purchase and sale and shares of stocks; ➢ Purchase and sale of investments;  and ➢ Construction, purchase or sale of property,  plant and equipment.  • Budget appropriations;  • Depreciation policies;  • Bond of Accountable officers; and  • All contracts, leases, agreements, plans and others.  b) Audit Procedure for Financial Audit  a. Audit of the General Ledger – The examination of the  general ledger is to check the accuracy of the:  • Trial balance as taken from the general ledger at the beginning and at the end of  the period;  Page | 50   

• Posting of the books of original entry to the book of the final entry which is the  general ledger; and  • Footings in the general ledger accounts.  b. Audit of the books of original Entry-In examining the  records of original entry, be certain that:  • All entries for the period under the examination are recorded; and  • All entries for the succeeding period are not recorded in the period under  examination.  c. Audit of the General Journal  •  Obtain  documents  supporting  the  entries  in  the  journal  such  as  vouchers,  contracts, board resolution and others;  • Trace amounts in all documents to the general journal;  • Determine the equality of debits and credits for each journal entry; and  • Check the posting accuracy of all general journal entries by tracing to the ledger  accounts involved.  d. Audit of Cash Receipt Book  • Check the accuracy of all:  ➢ Footings and cross footings; and ➢ Posting to the general ledger and subsidiary  ledger.  • Vouch all receipts to the Cash Receipt Book;  • Check if all official receipt are pre-numbered and used consecutively;  Page | 51   

•  Account  for  all  numbers  in  the  official  receipts  and  require  satisfactory  explanation for missing number or blank official receipt;  • If a receipt has been cancelled, the original copy should remain intact or attach to  the duplicate;  • Ascertain that all:  ➢ Items in the OR/bank deposit slips are properly posted to the respective account  title column in the book; and ➢ Cash received are supported by OR’s and  recorded. Verify accounts in figures and words. They should be the same. Note any  discrepancies.  • Trace entries in the official receipts to the individual deposit and loan ledger.  ➢ Verify computation of:  ▪ Interest when it is collected as installment falls due; and  ▪ Fines on delinquent loans.  e. Audit of the Cash Disbursement Book  •  Account  for  all  numbers  if  cash  vouchers  are  pre-  numbered.  Determine  if  cash  vouchers and the corresponding checks are used consecutively;  • Obtain the names and specimen signatures of all persons authorize to approve the  vouchers;  •  Check  cash  vouchers  if  supported  with  proper  document;  e.g.  board  resolutions  authoring the particular transaction, suppliers invoices and reports;  Page | 52   

• Vouch cash voucher to accounting entries in cash disbursement book;  • Compare paid checks to entries in cash disbursement voucher and tick off;  • Prove the accuracy of:  ➢ Footings; ➢ Cross footings; and ➢ Posting from CDB to the general ledger and  the  subsidiary ledger both for debt and credits.  f. Audit of Voucher and Invoices  •  Compare  the  suppliers’  name  and  amount of each invoice with the corresponding  name and amount appearing in the purchase book;  • Examine the following:  ➢ Date of suppliers’ invoice to avoid duplication in  recording; ➢ Correctness of quantity, unit prices, and  extensions; ➢ Approval of payments; ➢ The invoice, if issued in the name of  the  cooperative; ➢ Check the entries of the invoices to the proper  account titles; ➢ Ascertain that returns and allowances are charged  to proper accounts; ➢ Investigate “duplicate” of every invoices; ➢ Determine  the receipt of goods or services, preferably supported by receiving report; and, ➢  See to it that all supporting document are  stamped “PAID”.  Page | 53   

g. Paid Checks Examination  In examining cleared checks in connection with cash disbursement. Consider the  following points:  • Examine checks that are outstanding at the beginning of the period;  • Obtain all paid checks arranged in chronological order;  • Account for all checks;  • Watch for bank perforation dates to avoid submission of the checks;  • See to it that:  ➢ The date, amount and payee of the checks are the same as those recorded in the  Cash Disbursement Book; ➢ The check is signed by duly authorized persons;  and, ➢ Endorsements are proper. ➢ List outstanding checks to avoid any  attempt to  cover fraud; ➢ In the preparation of bank reconciliation, deduct outstanding  checks from the banks balance to arrive at the balance per book; and, ➢ Note any  check issued, that is pay to “CASH” and investigate to whom, when and for what  obligation.  h. Audit of the Sale Book  • Prove the accuracy of all:  ➢ Footings; ➢ Post to the general ledger and subsidiary ledgers:  and; ➢ Account distribution.  Page | 54   

• Compare:  ➢ Duplicate copies of sales invoices with the sales journal entry, all the invoices  must be recorded; and, ➢ Sales journal entries with delivery record and  order files.  • In vouching sales and sales returns, ascertain that:  ➢ Sales made at the end of the period are not  included in the inventory; ➢ This is determined by examination of shipping  or  delivery records; ➢ Sales returns and allowances are properly  recorded; ➢ Sales returns credit memoranda are properly  approved; ➢ Entries in the sales book must be supported by check sales  invoices or cash sales invoices as reflected in the duplicate copies; ➢ Customers  must be “genuine” to avoid inventory  misappropriation; ➢ The customers are charged with transportation cost when  it is agreed upon both parties; and ➢ Sales invoices are consecutively numbered  and  properly controlled.  i. Audit of Subsidiary Ledger  •  Obtain  and  check  subsidiary  ledger  schedule  and  compare  total  with  the  general  ledger controlling account;  • Verify:  ➢ Names and account balances in the schedule  against the subsidiary ledgers; ➢ The correctness of footing; and, ➢ Posting  from the original documents to related  accounts in the subsidiary ledgers.  Page | 55   

c) Audit Procedures In Various Account  a. Cash on Hand and Bank  • Obtain confirmation directly from the bank;  • Count and list all cash items on hand;  •  Compare  un-deposited  checks  on  hand  with  date  from  cash remittance slip/ daily  cash position report and entries in the cash receipt book;  • Trace all check and accuracy on hand to subsequent deposit slip and to bank  statement;  • Obtain all bank statement, duplicate deposit slip and paid checks;  •  Compare  paid  check  with  outstanding  checks  per  prior  bank  reconciliation  and  with the cash disbursement book;  • List all checks payable to cash/ bearer, payroll banks, officers and employee, etc.  • List and investigate checks that have been outstanding for a long period of time.  b. Audit Procedure for Petty Cash Fund and Other Funds  • Simultaneously control all cash, negotiable instrument and notes to be accounted;  • Count and list all items in each fund;  •  Reconcile  the  amount  of  each  fund  with  the  general  ledger  account  balances  at  the date of balance sheet or cash count date;  • Trace all checks in the funds to subsequent deposit slips and to the bank  statement;  Page | 56   

• Vouch the petty cash fund or other fund vouchers to the reimbursement/  replenishment voucher;  • Verify footings and cross footings of the reimbursement and replenishment  voucher;  • Trace reimbursement/replenishment vouchers to the voucher register and cash  disbursement book;  •  Obtain  the  signature  of  the  petty  cash  or  other fund custodian acknowledging the  return of the cash, vouchers and other fund items;  •  Obtain  approval  from  a  responsible official of all vouchers, promissory notes and  employees checks included in the fund;  • Obtain from a responsible official acceptance of and written confirmation of any  storage in the fund; and,  •  Obtain  confirmation  direct  from  persons  of  the  amount  of  cash  taken  from  the  fund held by them at the end of the year.  c. Audit Procedure of Account Receivable  •  Check  and  compare  the  total  of  the  schedule  of  accounts  receivable  with  the  balance of account receivable to the general ledgers;  • Age the account receivable;  • Confirm the accounts receivable;  • Determine the validity of account receivable;  • Identify the list account receivable whose balance exceed credit policies of the  cooperative;  • Determine proper cut-off of sales record;  • Verify collection on delivery accounts;  Page | 57   

• Test discount, returns and allowances;  • Reclassify consignment accounts;  • Segregate and identify account receivable from affiliated cooperatives;  • Determine pledge accounts and customer equity; and,  • Verify and determine the adequacy of the allowance for uncollectible accounts.  d. Audit Procedure of Loans Receivable  • Reconcile total of outstanding loans with controlling account in the general  ledger;  • Age of loans receivable;  • Confirm the loans receivable;  • Determine the adequacy of the allowance for doubtful accounts; and,  •  Test  check,  if  practicable,  at  least  25%  of  the  total  passbooks  issued  with  their  respective individual deposits and loan ledger.  e. Audit Procedure of Accounts Payable  • Request for schedule of account payable;  •  Compare  the  total  of  the  schedule  and  the  account  payable  balance  per  general  ledger and verify any difference;  • Vouch credits and debits;  • Confirm account payable;  • Examine:  Page | 58   

➢ Debit balance of account payable; ➢ Statement of creditors; ➢ Records of  subsequent period; ➢ Invoice distribution; ➢ Discounts; and, ➢ Liability for  purchase commitments.  • Analyze accounts payable by aging;  • Verify long outstanding obligations;  • Test invoices with receiving and store records;  • Ascertain liability for consigned materials; and,  • List separately amounts due to officers and employees.  f. Audit Procedure of Loans Payable  • Request for the schedule of loans payable;  • Determine membership authority to borrow;  • Vouch loans proceed and principal payments;  • Check the computation of interest, fines and surcharges;  • Confirm and verify loan principal and interest; and,  • Determine utilization of loan proceeds.  g. Audit Procedure of Share Capital  • Request for a schedule of subscribed and paid up share capital;  • Determine amount of authorized share capital from the Article of Cooperation;  • Verify and vouch entries in the share capital account;  Page | 59   

• Compare:  ➢  Schedule  of  subscribed  and  paid  up  share  capital  balances  with  the  controlling  accounts in the general ledger;  ➢ List of members with schedule of paid up share  capital;  ➢ Amount appearing in the stock and transfer book  with the stockholders/ members’ stock certificate;  ➢ Determine balance with subscribed share capital;  ➢ Identify members whose subscribed share capital  are not yet paid;  ➢ Account of all outstanding shares;  ➢ Check and ascertain:  - Computation of interest on share capital and  patronage refund; and,  - Whether the amount appearing in the book of  account are correspondingly valued and paid.  ➢ Confirm members share capital accounts.  h. Audit Procedure of Savings Deposit  • Request for schedule of savings deposit;  •  Compare  the  total  of  schedule  of  savings  deposit  balance  with  the  controlling  account in the general ledger;  • Vouch deposit and withdrawals in the savings deposit account;  • Ascertain whether:  Page | 60   

➢  The  amount  of  interest  on  savings  deposits  are  properly  computed  and  correspondingly credited to the members savings deposits account;  ➢  The  account  appearing  in  the  statement  of  financial  condition  are  actually  received and properly valued; and,  ➢ The requirements in the maintenance of savings  deposits are properly observed.  • Determine:  ➢ Movement of the account; and,  ➢ Compliance with the withdrawal policy of the  cooperative.  • Confirm balances of savings/time deposits directly from members;  i. Audit Procedure of Inventories;  • Compare original count tags or sheets with inventory summaries;  • Verify extensions, footings, and total summaries;  • Compare inventory summaries with subsidiary and controlling ledger accounts;  • Test quantities of inventories;  • Determine proper cut-off for purchases and sales;  • Ascertain the propriety of the treatment of goods in transit and goods consigned  in and out;  • Confirm merchandise in storage/warehouse;  • Examine purchase commitments;  Page | 61   

• Test the pricing of the inventory;  • Compare inventory prices and sales prices;  • Eliminate inventory profits;  • Segregate pledged inventories;  • Apply the gross profits test;  • Ascertain inventory turn-over;  • Examine scrap materials procedures;  • Determine the propriety and adequacy of insurance coverage; and,  • Audit the inventories by comparison.  j. Audit Procedures of Cash Advances to Officers and  Employees  • Request for schedule;  • Confirm, necessary; and;  • Determine if policy on advance is practiced, who approves; how much and when  liquidated.  k. Audit Procedure of Supplies Inventories  • Test:  ➢ Quantities; ➢ Prices; and, ➢ Mathematical computations.  l. Audit Procedure of Sales and Other Revenue  • Verify:  Page | 62   

➢ Sales and other revenues through the audit of sales invoices official receipt,  sales report, delivery receipts and cash and sales receipts books of accounts; ➢  Extensions, footing, crossfootings of source  documents and books of accounts; ➢ Sales returns and discounts; and, ➢  System of internal control.  • Compare prices on invoices with price lists;  • Trace:  ➢ Sales from invoices to the sale records; and, ➢ Sales records postings to the  individual subsidiary  ledgers.  • Check/examine:  ➢ Shipping/delivery records; ➢ The accounting for prepaid transportation  charges; ➢ Revenue accounts to establish the accuracy of the  related assets; and, ➢ Unrecorded income.  m. Audit Procedure of Expenses  • Review internal control system for expenses;  • Verify:  ➢ Authority to disburse; ➢ Availability or source of fund; and ➢ Compliance  with existing laws and regulations  relative to pertinent expenses of the cooperative.  • Compare and analyze current expenses with similar expenses of prior period;  • Determine the propriety of expense account classification;  • Analyze expense accounts to ascertain if they are necessary in the operation of  the cooperative;  Page | 63   

• Watch for items charged to expense which should be capitalized;  • Inspect expense vouchers for major items especially miscellaneous expense;  • Ascertain that all expenses recorded are legitimate expenses; and  • Compare each expense with the approved budget. 

Cooperative Approving and Signing Authorities (CASA)  Transactions  Approving Person / Body  Signing Person  1. Approval of Membership  BOD Chairperson  2. Application and Withdrawal of  Membership  BOD Chairperson  3. Expulsion of Membership  BOD Chairperson  4. Declaration of Membership Status Whether in Good or Not in Good Standing  BOD Chairperson  5. Removal of Board of Directors, Audit  and Election Committee  GA Chairperson  6. Signing of Certificate of Share Secretary /  Chairperson 7.  Show Cause Order/Written Warning  BOD Chairperson  8. Issuance of BOD and GA Resolutions  BOD/GA SEC/Chairperson  9. Suspension of Rights, Benefits and 

Privileges of members and staff  BOD Chairperson  10. Signing of Notices to Implement  Approved Disciplinary Actions Against Officers, Members and Staff  BOD  SEC / Chairperson  11. Approval of Membership on Apex BOD Chairperson  Page | 64   

Approving Transactions  Person / Body  Signing Person  Organization and Cooperative Bank  12. Opening of Savings and Deposits and  Withdrawals of Members  MGR / Treasurer  13. Opening of Savings and Deposits to  other Banks  BOD  Chairperson / Treasurer  14. Approval of policies  BOD BOD  15. Approval of Loans  BOD  Credit Committee / BOD  CRECOM / BOD  16. Release of Loans  MGR Treasurer  17. Approval and Signing of Contracts /  Agreements  BOD Chairperson  18. Approval of Restructuring of Loan  BOD Chairperson  19. Signing of Collection Letters  MGR  20. Signing of Letter and Other 

Communication  Chairperson  21. Granting of Authority to Invest  GA BOD  22. Appointment of Staff, Consultant and  Special Committee Membership Including Termination Thereof  BOD Chairperson  23. Approval and Imposition of  Disciplinary Action on Officers, members and Staff  BOD Chairperson  24. Acceptance of Resignation of  Officers, Members and Staff  BOD Chairperson  25. Participation in Training,  Conferences, Seminars and Field Trips  BOD Chairperson  Page | 65   

Approving Transactions  Person / Body  Signing Person  26. Approval of Leave of Absence for a  Staff  Chairperson MGR  27. Approval of Procurement and  Purchase of Non-Expendable Items such as land, building and other Capital  Expenditures  GA BOD  28. Approval of Procurement and  Purchase of Expendable Items such as Supplies and Materials  BOD MGR  29. Approval of Establishment of Office  and Sub-Offices  BOD Chairperson  30. Approval of Travel  BOD Chairperson  31. Approval of Cash Advances,  Reimbursement of Representation and Travel Expense  BOD Chairperson  32. Approval of Advertising, Promotion  and Printing Matters  BOD Chairperson  33. Approval of Maintenance of  Operating Expense (MOE) and Recurring Expenses Necessary for Operations such  as Electricity, Water, Telephone and Rent 

BOD Chairperson  34. Approval of Payroll and Other  Related Personnel Expenses  Chairperson MGR  35. Approval and Setting Up of Petty  Cash Fund  Chairperson MGR  36. Approval of Opening of Credit Line  from any Source  BOD Chairperson  Page | 66   

QPSTECC OFFICERS FOR COOPERATIVE YEAR 2015-2016  CHAIRPERSON : MR. REYNALDO S. LUNA VICE-CHAIRPERSON : MR.  RONALDO V. GARCIA DIRECTORS : MS. EDNA L. CABRERA  MS. CONSORCIA E. OLIVERA MR. CELSO A. LICAS  SECRETARY : MR. ORLANDO V. ORNEDO TREASURER : MR. RODOLFO M.  DELA PEÑA  AUDIT COMMITTEE ELECTION COMMITTEE  MR. GERONIMO G. SANTOS MS. LEA A. COSICO MR. BRICCIO P. UMBAN MS.  ISABELITA C. CABANGON MS. SHIELA E. JAVEN MS. LUZ A. ABUSMAS  EDUCATION, TRAINING & MEDIATION & CONCILIATION ETHICS COMMITTEE  INFORMATION COMMITTEE COMMITTEE 

MR. RONALDO V. GARCIA MS. FLORIDA O. AGUILA MS. DIOSA C. MAYORES MR.  REYNALDO S. LUNA MR. YOLANDA C. AYUMA MS. ARSENIO A. CASIÑO MS. EDNA  L. CABRERA MS. MELVA M. RAMA MS. IRENE D. PANDY MS. CELSO A. LICAS MS.  CONSORCIA E. OLIVERA 

MANAGEMENT STAFF  MANAGER : MS. HENNIE R. AMBAS ACCOUNTANT : MS. SEGUNDINA DULCE F.  DEQUINA CASHIER : MS. ROSSLEE O. TAN LOAN OFFICER : MS. YOLANDA A.  MANGA RECORDS CLERK/ACCOUNT ANALYST : MS. LORY P. MONTES MEMBER  SERVICE PREPRESENTATIVE : MISS CRISTINA F. ALVAREZ UTILITY/MESSENGER :  MR. ALDREX F. GUINTO  Page | 67   

POSITION CLASSIFICATION AND SALARY SCHEME (PCSS)  OVERVIEW  The  rationale  of  the  creation  of  the  Position  Classification  and  Salary  Scheme  (PCSS)  is  to  have  a  methodical  and  orderly  basis  on  the  position/designation  and  compensation  of  the  QPSTECC  Personnel  that  will  guide  the  Board  of  Directors  in  the  appointment  of  its  employees  and  their  corresponding  salary.  This  is  also  to  uplift  the  economic  status  of  the  employees as well as to maintain qualified and competent staff.  PRINCIPLES GOVERNING PCSS  ➢ The QPSTECC Personnel shall be paid just and equitable wages in  accordance with the principle of equal pay for substantially equal work.  Differences in pay shall be based upon substantive differences in duties and  responsibilities and upon the qualification requirements of positions. ➢ Basic  compensation for all personnel must be in accordance  with prevailing laws on minimum wages. ➢ The total compensation  provided for the QPSTECC personnel must be maintained at a reasonable  level in proportion to the Cooperative’s Annual Budget. ➢ Step Increments  due to Length of Service shall be granted to qualified personnel for every  three (3) years of continuous satisfactory service in the present position. The  grant of step increment to an employee on leave of absence with or without  pay more than three (3) months shall be deferred corresponding to the period  of such absence/non-performance of actual duties and responsibilities of  his/her position to complete the service and performance rating requirements.  ➢ A review of personnel compensation rates taking into account possible  erosion in purchasing power due to inflation and other factors shall be  conducted periodically.  Page | 68   

Accordingly,  the  PCSS  will  form  part  of  the  QPSTECC  Operational  Manual  specifically  part  XII.  Suweldo,  Allowace,  at  iba  pang  Kompensasyon  of  Patakaran  Pangkawanihan  at  mga  Gawaing  Pampangasiwaan.  Through  the  conscientious  study  of  the  Personnel  Ad  Hoc  Committee  on  the  Organizing  and  Standardizing  the  Salary  of  Employees,  the  POSITION  CLASSIFICATION  TABLE,  BASIC  MONTHLY  SALARY  LEVELS  AND  THE  SALARY  OF  EMPLOYEES  EFFECTIVE  JANUARY  01, 2014 have been conceptualized and created as follows:  QUEZON PUBLIC SCHOOL TEACHERS AND EMPLOYEES CREDIT  COOPERATIVE LUCENA CITY 

BASIC MONTHLY SALARY LEVELS  APPROVED AS PER BOD RESOLUTION NO. 44-2013  SALARY GRADE  STEP 1 STEP 2 STEP 3 STEP 4 STEP 5  1 8000 8080 8160 8240 8320 2 8400 8484 8568 8652 8736 3 8820 8908 8996  9085 9173 4 9261 9354 9446 9539 9631 5 9724 9821 9919 10016 10113 6 10210  10312 10414 10517 10619 7 10721 10828 10935 11042 11150 8 11257 11369  11482 11595 11707 9 11820 11938 12056 12174 12292 10 12411 12535 12659  12783 12907 11 13031 13161 13292 13422 13552 12 13683 13820 13956 14093  14230 13 14367 14511 14654 14798 14942 14 15085 15236 15387 15538 15689  15 15839 15998 16156 16315 16473 16 16631 16798 16964 17130 17297 17  17463 17638 17812 17987 18162 18 18336 18520 18703 18886 19070  Page | 69   

19  19253  19445  19638  19831  20023  20  20216  20418  20620  20822  21024  21  21226  21439  21651  21863  22075  22  22288  22511  22733  22956  23179  23  23402  23636  23870  24104  24338  24  24572  24818  25064  25309  25555  25  25801  26059  26317  26575  26833  26  27091  27362  27633  27904  28174  27  28445  28730  29014  29299  29583  28  29868  30166  30465  30764  31062  29  31361  31675  31988  32302  32615  30  32929  33258  33588  33917  34246  31  34576  34921  35267  35613  35959  32  36304  36667  37030  37393  37756  33  38120  38501  38882  39263  39644  34  40026  40426  40826  41226  41627  35  42027  42447  42867  43288  43708  36  44128  44569  45011  45452  45893  37  46335  46798  47261  47725  48188  38  48651  49138  49624  50111  50597  39  51084  51595  52105  52616  53127  40  53638  54174  54711  55247  55784  41  56320  56883  57446  58010  58573  42  59136  59727  60319  60910  61501  43  62093  62714  63335  63955  64576  44  65197  65849  66501  67153  67805  45 68457 69142 69826 70511 71195  Page | 70   

BENEFITS OF EMPLOYEES  BENEFIT DESCRIPTION PERIOD OF ENTITLEMENT  1. VACATION LEAVE FIFTEEN (15) WORKING DAYS Upon regularization.  Note: Unconsumed Vacation Leave is cumulative and commutative.  2. SICK LEAVE FIFTEEN (15) WORKING DAYS Upon regularization  Note: Unconsumed Sick Leave is cumulative and commutative.  3. SALARY LOAN  BASIC PAY X 3 PAYABLE UP TO 2 YEARS; INTEREST SAME AS APDS APPROVED After one (1) year of  continuous  INT.; NO SERVICE FEE; SALARY DEDUCTION service at the cooperative.  4. ALLOWANCES  SIX (6) Months  (Probationary A. PROBATIONARY P1,000.00 ALLOWANCE  Period) Upon regularization, an B. COLA P 2,000.00  employee C. PERA P  2,000.00 shall received: D. ECONOMIC  1ST & 2ND YEAR IN  SERVICE - ALLOWANCE P 2,000.00  COLA 3RD & 4TH YEAR IN SERVICE - COLA &PERA 5TH & 6TH YEAR IN SERVICE - COLA, PERA &  EA *Services should not be interrupted with more than 6 months leave of absence  with or without pay.  5. PATERNITY AND/OR AS PROVIDED BY LAW AS PROVIDED BY LAW  MATERNITY LEAVE *on maternity leave shall be entitled to  monthly allowance and one (1) month salary. As per BOD Resolution #42-2014  6. 13th MONTH PAY AS PROVIDED BY LAW AS PROVIDED BY LAW 7. CLOTHING ALLOWANCE  P5,000.00 EVERY YEAR  Upon regularization; Every January  8. MEDICAL ALLOWANCE  Upon regularization:Presentment of Receipts for the medical expenses is necessary. 

9. MONETIZATION  P15,000.00; Medicines, Laboratory & other medical expenses REGULAR - refers to the use of vacation leave  credits only provided that At least One (1) year in service at least five (5) days vacation leave credits are retained  after the  after regularization (every January)  monetization. SPECIAL - refers to the use of accumulated vacation leave and sick leave credits provided that at least  fifteen (15) days vacation leave credits and fifteen (15) days sick leave credits or a total of thirty (30) days 

accumulated  Page | 71   

leave credits are retained after the monetization. Computation: Monthly Salary x 10 days X 0.0478087 (Constant  Factor)  = Money Value of Monetized Leave 10. LOYALTY CASH AWARD  Given to employees who have completed at least ten (10) years and five (5) as stated. years thereafter of continuous  and satisfactory service. A cash gift of Php1,000.00 for every year of service shall be given to qualified employees.  11. OTHER BONUSES AND  Depends on the income of the Cooperative and discretion of the Upon regularization  INCENTIVES Board of Directors.  Page | 72