Aeco136_Final Term Report (Manatal Multipurpose Cooperatives)

MANATAL Multi-purpose Cooperative (MMPC) Term Report

Gumatay, Joy DianneLapiz, JeramieOdsey, Vanayan

November 19, 2014

GENERAL INFORMATION

A. Name: Manatal Multi-Purpose Cooperative (MMPC)

B. Type of Cooperative: Multi- Purpose

C. Address of Cooperative: Bunsuran 2nd, 3014 Pandi, Bulacan

D. Contact Information

a. Tel No.: (044) 896-7207

b. Cell No.: 0917-803-6800

c. Email Address: [email protected]

d. Web-site: manatalcoop.com.ph

E. Associate Members

a. Male: 976

b. Female: 1,265

F. Regular Members

a. Male: 2,847

b. Female: 3,113

G. Year Cooperative was established: 1991

H. Year Cooperative was registered: August 22, 1991

I. CDA Registration no.: 9520-03000697

J. Initial Capitalization: approx. 12,000PhP

K. Present Capitalization: 309, 774, 953.72PhP

L. Classification according to capital (Php): Small

M. No. of Regular Employees: 79 (as of 2013)

N. Affiliation/ membership to other organization

1. Association of Asian Confederation of Credit Union (ACCU)

2. Cooperative Development Authority (CDA)

3. Philippine Federation of Credit-Cooperatives (PFCCO)

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Manatal Multi-purpose Cooperative (MMPC), established in 1991, is located in

Bunsuran 2nd, 3014 Pandi, Bulacan. With 5,960 members, 2,241 of which are associate

members, MMPC has been one of the most dynamic and strongest financial institutions

in Central Luzon.

MMPC is currently affiliated with the Association of Asian Confederation of Credit

Union (ACCU), Cooperative Development Authority (CDA) and Philippine Federation of

Credit-Cooperatives Central Luzon (PFCCO), which paved the way for more

opportunities for cooperative growth and development.

As of 2014, MMPC has been known to be the 3rd most competitive cooperative

movement in the provincial level and ranked 34th in the national level.

HISTORY OF THE COOPERATIVES

It was year 1988 when the Rural Bank of Pandi in Bulacan decided to delegate eighteen

(18) residents of Manatal in Pandi, Bulacan to take part in the Integrated Rural Financing (IRF)

project of the Central Bank of the Philippines.

IRF has been able to bring about skills development to individuals when it unexpectedly

ended on 1991 due to unknown reasons. Realizing the developmental changes that IRF project

can actualize, it was then adapted by cooperative movement initially called Manatal Farmers

Irrigators Association or MAFIA.

With the enthusiasm of fifteen (15) IRF-trained farmers, MAFIA was established on

August 22, 1991 with CDA registration number MLA-1232. In 2000, the members decided to

change the name of the association to Manatal Multi-purpose Cooperative or MMPC.

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The accumulation of the share capital contributions of the 15 incorporators of MMPC

amounting to P 21, 700 served as the cooperative’s starting capital, allowing the initial operation

of the cooperative to occur.

.

VISION, MISSION, PURPOSE AND OBJECTIVES OF THE COOPERATIVE

MMPC envisions to provide “a viable and sustainable financial institution responsive to

the changing needs of members and community.” It aims to deliver essential products and

services to the people in order to contribute to the overall improvement of the socio-economic

condition of its members and of the community where it belongs.

Furthermore, main purpose of MMPC is to offer financial or lending services. It also

intends to make in-demand products and services available and affordable to its members and

its consumers through a law-abiding business enterprise.

In the past 23 years, MMPC has been working towards meeting its developmental

objectives in order to assure the cooperative is continuously progressing through time. The

following are the general objectives of MMPC:

1. To develop a steadfast cooperative’s financial structure;

2. To provide the best services possible for its members;

3. To have a guided management system that can make possible

cooperative development;

4. To train dedicated and faithful cooperative leaders; and

5. To motivate its employees to become fully functioning members of the

cooperative

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ORGANIZATIONAL STRUCTURE

The Board of Directors (BOD) of MMPC is composed of one chairperson, one vice-

chairperson, a treasurer and a secretary, and three member directors. The primary

responsibility of the BOD is to develop and preserve the good image/ character of the

cooperatives since 1991. They are also expected to protect the investment of the cooperatives

by making sound financial decisions, as well as hire necessary employees that will manage the

flow of financial resources within the cooperatives (audit committee).

Furthermore, it is the responsibility of the BOD to hire suitable cooperative general

manager by comprehensively evaluating the skills and abilities of their potential members

through their loyalty and overall performance in the cooperatives.

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The approval and review of the cooperative policies with regards to how the

cooperatives will function as a business organization are also the responsibilities of the

members of the Board. They are expected to check on the feasibility and effectiveness of the

current policies and action plans of the cooperatives and make necessary amendments when

needed in order to maximize the capacity of the cooperatives in providing products and services

to its members and patrons. That said, BOD are also expected to come up with future action

plans based on their evaluation of the existing organizational climate, the current challenges the

cooperatives is facing, and the progress of the cooperatives in all aspects of their operations.

Finally, the decision with regards to the distribution of benefits to the members

(patronage refund) lies with the members of the Board. They are the ones who are expected to

equitably allocate the overall cash distribution to each and every member, actualizing “equity” as

one of the existing cooperative values.

COMMITTEES OF THE COOPERATIVES

The Audit Committee is the

committee responsible for the internal

audit services of the cooperatives. They

are expected to review the cooperatives’

book of accounts to check on the current

condition of the cooperatives in terms of

its financial performance.

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The Election Committee is

responsible in formulating election rules and

regulations; however, these will not actualize

without the approval of the BOD. It is also

expected to supervise the election process,

up to the canvassing of results and the

announcing of the elected cooperative

officials.

The Ethics Committee is responsible

for monitoring the compliance of the

members on the cooperative rules on

Ethics. Moreover, the members of this

committee are also expected to conduct

investigation on ethical issues involving

the cooperatives and/or its members.

The Mediation and Conciliation

Committee is expected to plan, implement, and

monitor the mediation and conciliation

programs and process of the cooperatives.

The members of this committee are also

responsible in developing training materials

and conducting training services for the

cooperative members.

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COOPERATIVE MEMBERS

In order for an individual to become part of MMPC, aside from being of legal age, he/she

should first and foremost complete the cooperative application form as a proof of one’s

intention to become a member the association. He/ She must also provide a 2x2 ID photo

and one’s Tax Identification Number (TIN).

Afterwards, the individual must also pay the minimum required share capital contribution

depending on classification. If the person wants to become a regular member, he/ she will

have to pay a “common share.” If he/ she wants to become one of the associate members of

the cooperative, then he/ she must the “preferred share.”

Aside from the share capital contribution, the individual must also pay for the

membership fee, as well as open a minimum savings account deposit. The financial

contribution of the members will be utilized for further development of the cooperative’s

management and business endeavours. MMPC members are expected to fulfill the following

duties and responsibilities:

1. Participate in the capital build-up and savings mobilization;

2. Patronize the cooperative businesses and services;

3. Participate in the membership education programs;

4. Attend and participate in the deliberation of all matters during general

assembly meeting;

5. Observe and obey all lawful orders, decisions, rules, and regulations adopted

by the BOD and GA; and

6. Promote the goals and objectives of the cooperatives, the success of its

business, the welfare of its members and the coop movement in general.

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MMPC members enjoys cooperative privileges such as, but not limited to dividend and

patronage refunds, loan insurance, life insurance, care for members program, member loyalty

program, livelihood seminars and trainings, free medical and optical consultations (at the central

office), scholarship offerings, vegetable farming opportunities, gifts and souvenirs during general

assembly meetings, and free coffee and candy at the central office.

In return, the cooperative members are expected to comply with the member-get-

member expansion strategy of the association in order to widen the reach of the cooperatives.

GENERAL ASSSEMBLY MEETING

A quorum necessary for the transaction of business at any meeting of the members shall

be at least fifty (50) members. In determining a quorum on a question submitted to a vote by

mail, members present in person or represented by mail votes shall be counted. The quorum

shall be established by a registration of the members present at such meeting. The registration

shall be verified by the President and Secretary and shall be reported in the minutes of the

meeting.

General assembly meetings with the regular and associate members of the cooperatives

are held once a year. However, the Board of Directors (BOD) have the power to call on special

meetings when needed. The members will be informed about these meetings through

newspaper publications.

The common agenda of MMPC include electing directors, report discussions on the

financial and management progress of the cooperatives, and other necessary concerns of the

members.

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The general assembly had the power to vote and have access to all the legal documents

and other properties of the cooperative, with prior consent of the officer-in-charge and with valid

reasons.

BUSINESS OPERATIONS

MMPC has various products and services available to its members, and even to people

outside of the cooperative. First of all, they have a great expanse of loans, available to almost

all types of needs. These loans were established for their productive, educational and

providential purposes. These are the agri-business loan, the agricultural loan, the back-to-back

loan, the balance transfer loan, the barangay official assistance loan, the business loan, the

chattel loan, the check rediscounting, the flexi loan, the land acquisition loan, the multi-purpose

loan, the OFW assistance loan, the quick loan, the salary loan, and finally the SME business

loan.

For the loans, the cooperative maintains the delinquency rate at an acceptable level, and

the protection of the loans and the liquidity rate have been ranked at above standard. For the

year 2013, the cooperative accumulated a loans receivable of PHP 383,861,324.80.

The cooperative also has a Savings Deposits. These are the Kiddie Savers Club, the

Smart Teens, the Education Savings, the Holiday Savings, Health Savings, Regular Savings,

Special Savings, Equity Savings, and the Solidarity Savings. In the year 2013, there was a total

savings deposits of PHP 105,086,227.78.

Aside from these, they also have other services, like the Piglets Production, Feed

Milling, Veterinary Supply, Motor Trade, Micro Finance, Hardware and General Merchandise,

Feeds and Agri Supply, Bus Seater, TSM Swine Dispersal, and Artificial Insemination. Many of

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these services go hand in hand and are often connected. For example, the feeds produced by

their feed milling industry are used for the hog and swine farms, and these are in turn often the

subjects for the TSM Swine Dispersal and the Artificial Insemination.

In order to properly sell their products to non-members, the cooperative has various

marketing strategies. This is done mainly through promotion and advertising.

FINANCIAL ASPECTS

Aside from the income it gets from its various business operations, the cooperative also

obtains its operating capital from other sources. The first and primary source of income is

through the share capital of the members, in 2013, this amounted to a value of PHP

239,166,900 (77%).

Along with this is the preferred capital of PHP 11,552,880.00 (4%). They also receive

donations and grants from other private and public institutions. They were able to receive an

amount of PHP 2,164,301.23 (1%) in 2013. Lastly, they also receive income from the statutory

funds of PHP 56,890,872.50 (18%).

The Net Surplus is allocated to the dividends and the other cooperative operations. Seventy five

percent of the surplus goes back to the members as dividends. This percentage is further

divided into the interest for capital (70%) and the patronage refund (30%). Meanwhile, the other

twenty five percent is for the cooperative operations. It is also further divided into money given

to community services (4%), CETF (4%), reserve fund (10%), and optional fund (7%). Figure

1.0 illustrates the division of the cooperative’s net surplus for the year 2013.

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Figure 1.0 Division of the cooperative’s net surplus for the year 2013.

Figure 1.0 summarized Manatal Multi-Purpose Cooperative’s division of net surplus for

the entire fiscal year of 2013. Evident on the pie graph is the 75% allocation on the cooperative

dividend or the cash distribution for the members of the cooperatives. The remaining quarter of

the cooperative surplus is then allocated for community development fund, CETF, reserve fund,

and cooperative optional fund.

EDUCATION, TRAINING, AND INFORMATION

MMPC believes that education is very important, especially for people to be able to

achieve financial freedom. Aside from hosting their very own seminars, the cooperative also

sends delegates to various seminars around the country.

In the year 2013, they were able to send three members to the Evaluating Business

Cooperative Perfomance and Sustainability in Nueva Ecija, four members to the Cooperative

Standard in Malolos, five members to the Parliamentary Procedure in Manatal, two members to

the Financial Management in Baliwag, one member to the Online Business and Financial

Solutions in Baguio City, four members to the Tax Updates in Malolos, and one member to The

Economic Outlook for 2014 and Its Impact on COOPs and NGOs in Quezon City. In the

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Cooperative Legal Issues and Reminders, their very own seminar, there were twenty six

members in attendance.

CONTRIBUTION TO THE COMMUNITY

MMPC adheres to its social responsibilities. It has plenty of program and projects that

aim to benefit the community. These are the Barangay Peace and Order Program, the

Environmental Awareness Program, the Scholarships Program, giving to solicitations, school

education support program, road improvements, livelihood trainings, nutritional support, medical

support, advocacy support, calamity support, funeral assistance support, hospitalization

assistance, institutional development programs, and other related community programs.

FUTURE PLANS OF THE COOPERATIVES

On 2013, the future plans of the cooperative where hinged on ten goals.

1. Financial structure will be unshakeable- continue to strengthening of Cooperative’s

overall institutional capital, setting up provision for Fortuitous Events, offer Solidarity

deposit, pursuance of membership to CODIS, commencement of the Build-A-Home

Program, opening of new branch to expand membership convenience, engagement in

Palay Trading for farmer-members and native hog production/dispersal.

2. Members will be provided with the most superior service possible - continuous work

towards attainment of an autopilot system. Full migration to the MMPCian Computer

Solution (My Koop Plus), integration of the Social Performance Management in our

computer system, opening of Coordinators Program, issuance of membership card,

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activation of Internet Banking/Bills Payment Facility, implementation of Gender and

Development Programs (such as Youth-Member Day, Women-Member Day, Senior-

Member Day, Men-Member Day, etc.), promotion of CAFI to farmer-members,

pursuance of the RPC I project. To better serve our members, construction of

Norzagaray Branch office is already on the way. Hospitalization benefits are also in our

pipeline to provide health care support. Relative this program is our engagement to be a

Cooperative Assurance Center, wherein bundles of insurance products both for life and

non-life may be availed.

3. Management System will operate in an Auto-Pilot Environment – Continuous

documentation of processes, crafting of Disaster Management Policy, Anti-Corruption

Policy, Gender and Development (GAD) / Gender Equality (GE) Policy, and

appointment of GAD Committee and GAD Focal Person.

4. Leaders will serve as dedicated and faithful steward – Conduct of Monthly Officers’

Orientation and Fellowship Meeting, continuous attendance to mandatory and

discretionary trainings.

5. Management personnel will be empowered and be highly motivated– Grant

providential leave, craft and implement training and mentoring program.

6. Cooperative Members, Leaders and Personnel will adhere to the CHARACTER Core

Values – Schedule livelihood trainings, Ownership Seminars and Member Exposure

Program.

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7. Cooperative will adhere to its social responsibility – Do environmental programs/Solid

Waste management through donation of trash bins, continuity of support to Alternative

Learning System, Scholarship Program, Balik-Eskwela/Brigada Eskwela Program,

Feeding Program, Health Care and Wellness Programs, Disaster Preparedness

Program, support Peace and Order, Bio Digester Promotion.

8. MMPC shall pursue receiving recognition for safe & sound operation – Achieve Silver

ACCESS Brand by 2015, achieve Gawad Platinum and Gawad Parangal- CDA.

9. MMPC will support LGU, NGO & Other Agency Linkage – continuous support to

MCDC, ACCU, PFCCO-CLRL, BCHFLU, coop month celebration.

10. Annual Assessment and Planning – Conduct Year-end assessment and planning,

pre-planning, and finalize the 2015 Business Plan.

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AWARDS RECEIVED

The local government unit of Pandi, Bulacan has awarded MMPC as the Outstanding

Cooperative under municipal category in 2007. MMPC also received the Most Progressive

Agrarian Reform Beneficiaries from the Department of Agrarian Reform (DAR) in 2008.

The provincial government of Bulacan has also awarded MMPC with the Gawad

Parangal sa Natatanging Kooperatiba for three consecutive years (1999-2001). In 2005, it then

received the Gawad Ginintuang Huwaran sa Pagtatangkilikan award from the same

cooperatives award-giving institution.

Furthermore, the Municipal Social Welfare and Development Office (MSWD) of Pandi,

Bulacan and Paaralang Elementarya ng Manatal (PEM) in Pandi, Bulacan have given MMPC a

Plaque of Appreciation in 2000 and 2001 due to its progressive cooperative endeavors and

continuous efforts to bring about social change in the community.

Finally, MMPC has received the following awards from the Land Bank of the Philippines

(LBP): Ginintuang Gawad Pitak Awardee (2008), Hall of Fame Awardee (2007), 1st Place

National Level (2006), Best in Financial Performance (2006), Best in Coop Citizenship (2006),

Best Cooperative in Savings Mobilization (2006), Best Cooperative in Capital Build-up (2006),

3rd Place National Level (2005), Best Cooperative in Savings Mobilization (2005), Best

Cooperative in Capital Build-up (2005), Best Cooperative in Savings Mobilization (2004), Gawad

Pitak Region III Winner (2004), Best Cooperative in Savings Mobilization (2003), Gawad Pitak

Region III Winner (2002), Gawad Pitak Region III Winner (2001), CAC Highest Pointer Award

(2000), Award of Merit (2000), and Gawad Pitak Pangrehiyong Gantimpala (2000).

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These awards have symbolized the developmental change the cooperatives underwent

in the past 23 years and recognized the effective operations and management skills of all the

people behind MMPC from the General assembly up to the cooperative employees that made

possible the steadfast and progressing condition of the cooperatives in present time.

ANALYSIS OF THE COOPERATIVES

Figure 2.0 Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of MMPC

Figure 2.0 summarized the strengths, weaknesses, opportunities, and threats of MMPC

as a cooperative movement. Because of its values of gender equality, it can be observed that

the members are distributed among both genders, and therefore the abilities of all members are

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StrengthsPromotes gender equalityNumerous services and business operationsGood cooperative coordinationFamilial relationshipExperienced, hardworking, and committed management and staffGood reputation

WeaknessesLimited growth in the number of membersLimited participation in seminars and trainings

OpportunitiesGoal to provide better products and servicesMay engage in other agricultural businessesAmendments of policiesAffiliations Innovativeness

ThreatsLarge amount of loans may lead to delinquencyCompetition with nearby cooperatives in BulacanSome members are not doing their responsibilities well

utilized. The cooperatives is also financially competitive mainly because of its numerous

business operations. Not only do these businesses generate income from its sales, it also

caters to the needs of the various members. There is also strength in the membership of all

people involved in the cooperative. Also, there is also good coordination among all of them,

based on the report of the Membership Committee for 2013.

Furthermore, the familial relationship between and among the cooperative members,

staff, and management paved a way for a management that is open and accessible for the

members, as well as the community. Finally, the experienced, hardworking, and committed

management and staff of MMPC who are working towards improving the operational and

management condition of the cooperatives may be regarded as one of the reasons why and

how the cooperatives is able to gain the good reputation that it has nowadays.

However, the some of the challenges that is currently faced by the cooperatives are the

limited growth in the number of members, as it has seen a limited increase in the past year, and

the little participation in seminars and trainings. Only a limited number of people are being sent

to trainings outside of the cooperative, and therefore it limits the ability of the cooperative to

expand and learn lessons from other speakers and cooperatives.

When it comes to the threats to MMPC cooperative development, the growing amount

of loans that the cooperatives is currently shouldering may lead to financial delinquency in the

future if not managed well. There are also other competitive cooperatives in the province

Bulacan, posing less possibility for membership growth since community members have more

choices into which cooperative enterprise they are going to take part of. Most significantly, the

non-compliance of some cooperative members to their responsibilities leading to poor

patronage of cooperative products and services, as well as not encouraging other members of

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the community to become part of MMPC can bring about negative impacts if not addressed

immediately.

Nevertheless, the goal of MMPC to provide better products and services for the

members and to the community serves as a major cooperative opportunity for growth. The

possibility of engaging on other agricultural businesses, most specifically into providing more

innovative agricultural products and services, is also seen as one of the developmental

undertakings that the cooperatives may take into consideration. This engagement may actualize

with the amendments of the cooperative policies and action plans that will provide stronger

support to the cooperative business endeavors. The affiliations that the cooperatives currently

has may serve well in providing developmental assistance as the cooperative move towards

progressive change for sustainable development.

PHOTOS

Manatal Multi-purpose

Cooperatives (MMPC) is currently

maintaining a social networking

page to utilize the cyberspace as a

way of communicating with its

members concerning their general

assembly meetings, cooperative

programs, and other special

concerns among others.

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MMPC has been

conducting various community

programs to cater the needs of the

people of all ages. As a matter of

fact, last May 2014, MMPC

celebrated Youth Day to provide

basic health services and

entertainment opportunities for the

youths of Manatal, Pandi, Bulacan

It was followed by Women’s

Day that is being celebrated by the

cooperatives every month of July

wherein they provided free medical

and optical service livelihood

program, as well as wellness

services for the women members

of the community.

Finally, just recently, MMPC celebrated its Senior Members Day wherein the

cooperatives provided their senior citizen members with free uric acid test, medical, optical and

other wellness services as a way of fulfilling their promised privileges to their loyal members

performing their responsibilities to their fullest capacities.

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Aeco136_Final Term Report (Manatal Multipurpose Cooperatives)

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