MEMORANDUM CIRCULAR NO. 2020-09
Series of 2020
TO : ALL CONCERNED
SUBJECT : GUIDELINES FOR ACCREDITATION OF COOPERATIVE BENEFICIARIES OF CDA-ADMINISTERED GRANTS AND DONATIONS INVOLVING PUBLIC FUNDS AND PROPERTIES
Section 1. Title
This Memorandum Circular shall be known as the “Guidelines for Accreditation of Cooperative Beneficiaries of CDA-Administered Grants and Donations involving Public Funds and Properties”
Section 2. Legal Bases
The legal bases are the following:
1. Article II, Section 9 of the 1987 Philippine Constitution, states that:
“The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living and an improved quality of life for all.”
2. Section 2 of the Republic Act 11364, otherwise known as An Act Reorganizing and Strengthening the Cooperative Development Authority, Repealing for the Purpose Republic Act 6939, creating the Cooperative Development Authority, states that:
“It is hereby the declared policy of the State to promote the viability and growth of cooperatives, as instruments of equity, social justice and economic development xxx”.
3. Section 4 (m) of Republic Act No. 11364, states that the Authority shall have the following powers and functions:
“(m) Administer all grants and donations exclusively intended for cooperatives coursed through the Authority for cooperative development, xxx”.
4. Section 71 (c) of Republic Act 11260, General Appropriations Act of 2019 states that:
“The government agency has accredited the CSO [Civil Society Organization] in accordance with its guidelines. The guidelines shall include, as minimum, the following requirements”
“In case of a cooperative who wishes to become a CSO partner, the submission of certificate of registration and certificate of compliance as issued by the Cooperative Development Authority specifically for that purpose including meeting the minimum requirements as stated herein be sufficient for it to qualify as a CSO partner.”
5. Section 2 of Presidential Decree No. 1445, Ordaining and Instituting a Government Auditing Code of the Philippines, states that:
“It is the declared policy of the State that all resources of the government shall be managed, expended or utilized in accordance with law and regulations, and safeguard against loss or wastage through illegal or improper disposition with a view to ensuring efficiency, economy, and effectiveness in the operations of government, xxx”
6. Section 4.5.2 of the Commission on Audit (COA) Memorandum Circular (MC) No. 2007-01, states that:
“For each project proposal, the GO [Government Organization] shall accredit the [Non-Government Organization/Peoples’ Organization] NGO/PO project partners through the Bids and Awards Committee, or a committee created for the purpose, xxx”
7. Section 2.1 Release of Funds. “Documentary Requirements” of COA MC No. 2012-01 states as one of the requirements:
“Accreditation of the NGO/PO by the Bids and Awards Committee (BAC) of the grantee agency”
8. Article VI Section 11 of Republic Act No. 11054, otherwise known as An Act Providing for the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, states that:
“Section 11. Bangsamoro Participation in National Government. As far as practicable, the Bangsamoro Government shall be represented in the departments, offices, commissions, agencies and bureaus of the National Government that implement and enforce policies, programs, and projects of the National Government in the Bangsamoro Autonomous Region.”
Section 3. Scope
This Guidelines shall cover all types and categories of CDA-registered cooperatives and registered cooperatives in the BARMM area applying, as beneficiaries, for all CDA-Administered grants and donations, involving public funds and properties, subject to applicable provisions of Republic Act No. 11364 and its Implementing Rules and Regulations (IRR) and other laws, rules and regulations.
Section 4. Purposes
This Guidelines shall serve as guidance for all types and categories of cooperatives to apply as CDA-accredited cooperative beneficiary for CDA-Administered grants and donations, involving public funds and properties.
Section 5. Definition of Terms
For purposes of this Guidelines, the following terms, shall mean:
a. Accreditation–refers to the process of recognizing duly-registered cooperatives as qualified beneficiaries of CDA-Administered grants and donations involving public funds and properties.
b. Accrediting Body –refers to the CDA Bids and Awards Committee (BAC) of Central, or Extension Offices, as the case may be, who has the authority to accredit cooperatives applying as beneficiaries of CDA-Administered grants and donations involving public funds and properties.
c. Authority –refers to the Cooperative Development Authority (CDA).
d. Certificate of Accreditation (as Cooperative Beneficiary Applicant)– refers to a certificate issued by the Cooperative Development Authority (CDA) through the Accrediting Body created for the purposes of this Guidelines.
e. Cooperative –refers to an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
f. Cooperative Beneficiary Applicant –refers to a CDA-registered cooperative of any type and category, who in written communication, has signified and explicitly expressed its willingness to undergo accreditation as, or may be, an additional requirement in his another application as a potential beneficiary of a CDA-administered grants and donations involving public funds and properties.
Section 6. Certificate of Accreditation
The Certificate of Accreditation (as a cooperative beneficiary applicant) is issued to duly-registered cooperatives as one of the documentary requirements for the grant of CDA-administered grants and donations involving public funds and properties. This is not intended for any individual member’s use as a potential beneficiary.
Section 7. Requirements for Accreditation Application
All duly registered cooperatives, which have signified in writing and explicitly expressed its willingness to apply for accreditation as beneficiary applicants of a CDA-administered grants and donations involving public funds and properties must comply with the following requirements:
1. Certificate of Registration
2. Valid Certificate of Compliance
3. Audited Financial Statement for the past three years preceding the date of project implementation. For cooperatives which has been in operation for less than three (3) years, report of accomplishment or any equivalent proof certified by its President/Chairman and Secretary that it had previously implemented similar projects shall be required, in addition to the financial reports for the years it has been in operation.
4. Duly accomplished and duly sworn Cooperative Beneficiary Accreditation Application Form
5. Proof of organization, namely:
a. Organizational Chart or Governance Structure; and
b. Date of cooperative registration, list of officers and members with their complete names, date of birth (if known and registered), complete address, and contact numbers, if available
6. Certificate of Good Standing (Form No. 03-A in this memorandum circular) or in the absence thereof, any other proof coming from other government agencies that such cooperative has liquidated, in accordance with government accounting and auditing rules and regulations, all funds transfer due for liquidation. If the cooperative Applicant has received public funds prior to its application, a certificate of good standing from the government agency or agencies from which it has received such public funds, specifically stating that the cooperative has liquidated, in accordance with COA regulations, all fund transfers due for liquidation;
7. A sworn affidavit of the Secretary of the cooperative that none of its cooperators, organizers, directors, or officials is an agent of or related by consanguinity or affinity up to the fourth civil degree to the officials of the Authority authorized to process and/or approve the accreditation, the MOA and the release of funds. Relationship of these nature shall automatically disqualify the cooperative applicant from being accredited;
8. Proof of having undergone Social Preparation from the Authority;
9. Other accomplished forms as attached in this Guidelines, as applicable to cooperative-applicants; and
10. Pertinent documents as may be later on deemed necessary by the Accrediting Body.
Section 8. Social Preparation
For every program or project to be implemented by the Authority, a social preparation shall be conducted. Needs Assessment and Evaluation of the proposed programs and projects should be made in consultation with the partner and/or cooperative beneficiary. The Authority will also be visiting the cooperative applicant using tools for verification/validation which shall cover, as minimum, the cooperative’s area of operation, organization & membership, documents submitted, among others.
Section 9. Procedure for Accreditation
a. Prospective beneficiary applicant shall apply for accreditation in the CDA Central, or concerned Extension Offices having jurisdiction over the cooperative.
b. The CPDAD of CDA Central Office, or CPDAS of concerned Extension Office, shall process/evaluate the application in accordance with the approved Guidelines.
c. The CDA Bids and Awards Committee (BAC) of Central Office, or concerned Extension Offices, shall approve or disapprove the application for accreditation.
d. Once approved by the CDA BAC, CPDAD/CPDAS shall prepare the Certificate of Accreditation for signature by the BAC Chairman.
If the accreditation will involve cooperatives registered by appropriate office in BARMM, the process of accreditation should be in partnership with the CDA Extension Office concerned and appropriate office in BARMM as co-partners in the accreditation procedure.
Additional documents may be required by the appropriate office in BARMM in applying for accreditation, such as Certificate of Registration and Certificate of Compliance. Once these are complied with, duly signed, and formally transmitted by the latter to the Authority, through its Extension Office, the application shall be processed by the latter.
Section 10. Validity of the Certificate of Accreditation
The Certificate of Accreditation, as a cooperative beneficiary applicant, shall be valid for a period of two (2) years, specific to the PPA which the cooperative is applying for as a beneficiary, from date of issuance unless revoked sooner by the Authority.
Section 11. Renewal of Accreditation
A CDA-accredited cooperative beneficiary applicant may apply for renewal of its Certificate of Accreditation with the Authority within sixty (60) working days prior to the expiration of its Certificate. Upon receipt of such application, the Authority shall proceed to process the application, applying Sections 7 and 9 of this Guidelines.
The Authority shall circularize the list of accredited cooperative beneficiary applicants periodically through its website. The Authority, however, shall not be held liable for any damage or loss that may arise from the accredited cooperative’s application status in the selection, identification, validation, qualification, verification, endorsement, registration, approval as beneficiary in another GO/NGO/PO/CSO-Administered grants, donations, assistance, programs, projects and activities (PPAs) involving public funds and properties.
Section 12. Revocation of Accreditation
The Certificate of Accreditation may be revoked any time, after due process, on any of the following grounds:
1. Misrepresentation in, or falsification of, any document pertaining to its accreditation, whether first time or renewal;
2. Failure by the beneficiary cooperative, during the validity period of the Certificate of Accreditation, to comply with the terms of reference/provisions/deliverables stated on an agreement with the Authority involving the transfer of CDA funds, including default or delay in liquidating of the said CDA-Administered grants, donations, assistance, programs, projects and activities (PPAs) involving public funds and properties;
3. Violation by the beneficiary cooperative, during the validity period of the Certificate of Accreditation, of any law, rule, or regulation involving the utilization of a CDA-Administered grants, donations, assistance, programs, projects and activities (PPAs) involving public funds and properties;
4. Any violation of this Guidelines; and
5. Other willful acts or circumstances analogous to the forgoing.
Section 13. Effects of Revocation
For the purpose of this Guidelines, the following are the sanctions imposable by the Authority to the applicant or accredited cooperative beneficiary:
1. A cooperative beneficiary whose Certificate of Accreditation is revoked for the first time shall not be eligible to apply for accreditation for a period of two (2) years from the date of revocation;
2. If the ground for revocation is misrepresentation, falsification, or violation of law, rules and regulations involving the utilization of CDA funds or any CDA-Administered grants, donations, assistance, programs, projects and activities (PPAs) involving public funds and properties, the cooperative beneficiary shall be disqualified from applying for accreditation;
3. A cooperative beneficiary whose Certificate of Accreditation is revoked for the second time, for grounds other than those enumerated under item No. 2 of this Section, shall be disqualified from applying for accreditation; and
4. Any other cases analogous to the foregoing.
The foregoing provisions shall be without prejudice to any other legal action that may be filed against the applicant or accredited cooperative beneficiary, and/or any or all of its organizers, officers, or members.
Section 14. Separability Clause
If, for any reason any part or provision of this Guidelines is declared null and void or unconstitutional, the other provisions not affected thereby shall continue to be in force and effect.
Section 15. Effectivity
This Guidelines shall take effect fifteen (15) days following the approval of the Board of Directors and the filing thereof to the Office of the National Administrative Registry (ONAR).
Approved by the CDA Board of Directors under Resolution No. 055, S-2020 dated February 25, 2020.
For the Board of Directors
(SGD) ORLANDO R. RAVANERA, CSEE, CEO VI