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Internal Control System Seminar for Micro Cooperatives

Posted on May 31, 2023

Many times, we have heard of cooperative members complaining of losing their hard-earned money because of fraud and malversation of funds within their cooperative.  These abuses cause much pain for the cooperative members knowing that they were victimized by their own officers or employees. There are several reasons that these things happen to cooperatives, one of which is the absence of an effective internal control system.  Also, this may be due to the lack of knowledge on how to do it and not understanding the importance of this system and procedure.

To address this concern, CDA NCREO conducted on May 18, 2023 an “Internal Control System Seminar”, aimed to equipped micro cooperatives in NCR on how to do it. Attended by thirty (30) participants from twenty-seven (27) cooperatives of which nine (9) males and twenty-one (21) females were present.

The activity started with an invocation, followed by the singing of the Philippine National Anthem and the Cooperative Pledge. Welcome remarks was given by Ms. Prima Sarah Parangue, Senior CDS for CPDAS on behalf of Director Pedro T. Defensor, Jr.

Ms. Rebecca Pasicaran, CDS II of Marikina City, started the seminar defining the Internal Control System, and the role and functions of the audit committee, She also explained the elements of an effective Internal Control System and the importance of providing internal control over individual accounts.

Ms. May Pacleb, CDS II of Quezon City, followed suit by explaining the steps in the Fraud Triangle, the situation that offers opportunity for fraud as well as how to identify a possible fraudster by looking into their profile. She also gave reminders on fraud and discussed the sixteen (16) Internal Control Standards. On the topic of Internal Control Over Individual Accounts she discussed the different things to be done for every individual account of the coop. Her final discussion was on the increased risk of having a weak internal control, the benefits of a strong internal control and the effect of having an Internal Control system. She finally wrapped up the discussion by answering questions raised which elicited positive response from the participants.