TO : ALL CONCERNED
SUBJECT : PHASED IMPLEMENTATION OF MC 2025-12
RE: FINANCIAL PERFORMANCE STANDARDS FOR COOPERATIVES ENGAGED IN LENDING THRU ENHANCED PESOS
In view of the issuance of MC 2025-12 and the ongoing development and full deployment of the new Cooperative System, please be advised of the following:
1. Phased Implementation
The implementation of MC 2025-12 shall be undertaken on a phased basis pending the full operationalization of the E-CoopHub System.
2. Submission of Reports
For reportorial compliance during the transition period, submission using the actual enhanced PESOS Tool is not yet required.
However, cooperatives engaged in lending may use the prescribed Excel-based Enhanced PESOS Tool (see attached link) in computing their PESOS rating as a management tool for operation FY 2025. This is encouraged to facilitate internal monitoring, assessment of financial performance, and early alignment with the enhanced framework.
Excel-Based Enhanced PESOS Tool:
https://docs.google.com/spreadsheets/d/1BtlS8-M0ZlRJAkxuw58BaAiFfZdChE-cc1OjJNAtqQ0/edit?usp=sharing
3. Enforceability of Section 7
Notwithstanding the foregoing, Section 7 of MC 2025-12 remains enforceable and must be strictly complied with:
“Section 7. The Enhanced PESOS rating shall be incorporated in the Audited Financial Statement as part of the Notes to the Financial Statement.”
Example:
Enhanced PESOS Rating : 65
djectival Rating: Fair
The cooperative’s performance is flawed to some degree and is a supervisory concern. Results of key performance measures indicate that safe and sound operations may be adversely affected. Cooperatives in this group are only nominally resistant to adverse business conditions and may deteriorate if identifiable areas of weakness are not corrected immediately
Accordingly, cooperatives shall ensure that the computed Enhanced PESOS rating is properly disclosed in the Notes to the Financial Statements.
4. Adoption of Enhanced PESOS
The full adoption of the Enhanced PESOS under MC 2025-12 shall be applied in cooperative operations beginning Calendar Year (CY) 2026.
All concerned cooperatives are enjoined to review their internal policies, systems, and procedures to ensure alignment with the said standards in preparation for full implementation.
This Advisory is issued for the information and guidance of all concerned.
Approved pursuant to CDA Board Resolution No. 51, S-2026, dated February 9, 2026.
Issued this 26th day of February 2026.
(SGD)
USEC. ALEXANDER B. RAQUEPO
Chairperson
Signed Advisory Click Here
