CDA conducts Compliance Forum for CSF Cooperatives

The Cooperative Development Authority (CDA) through the Inspection and Examination Division (IED) conducted a two-day compliance forum for Credit Surety Fund (CSF) Cooperatives nationwide on March 20-21, 2024 via Zoom platform.

In its second year, the forum aimed to provide appropriate guidance to CSF Cooperatives’ officers and personnel in the preparation and submission of reports and ensure uniformity and common understanding of Memorandum Circular No. 2023-15 or the “Guidelines for Credit Surety Fund (CSF) Cooperatives’ Submission of Required Reports and Sanctions for Late Filing”, Memorandum Circular No. 2022-31 or the “Accounting Guidelines for CSF Cooperative Organized by Bangko Sentral ng Pilipinas (BSP) Prior to the Effectivity of Republic Act 10744 Otherwise Known as the “Credit Surety Fund Act of 2015” and other pertinent CDA issuances.

In her welcome message, Atty. Ma. Lourdes P. Pacao, Deputy Administrator of the CSF Service, articulated that “this compliance forum would allow participants to discuss freely and comprehensively on the issues concerning the legal requirements on reports. Compliance to requirements would ensure legality, stability, and accountability of CSF operations and ensure adherence to requirements. It promotes good governance within the cooperatives by fostering transparency, accountability, and ethical behavior and strengthen the governance structure, improve compliance standards and propel CSF cooperatives towards sustainable success.”

While, in his presentation of the activity overview, Mr. Joselito O. Hallazgo, Acting Director of the CSF Service encouraged the CSF Cooperatives’ officers to “look at the reports as a tool and guide of the management to strengthen the CSF cooperatives both in administration and financial condition.”

The forum was attended by 96 representatives from the 39 registered CSF Cooperatives and CSF personnel from the 16 Regional Extension Offices. On the first day of the forum, participants were oriented/re-oriented on the accomplishment of Cooperative Annual Progress Report (CAPR), Social Audit Report for CSF Cooperatives, Performance Audit Report for CSF Cooperatives, Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) and preparation of Report on Mediation and Conciliation, Financial Statements and List of Officers and Trainings Undertaken/Completed. They were also reminded on the frequency, deadline and manner of submission of report as well as the imposition of penalty in case of delay in the said submission. Observations in the previous
reporting period was likewise presented so as the incurrence of errors, inconsistencies and non-compliances shall not be repeated in the current year.

On the second day, a detailed presentation of Accounting for CSF Cooperatives was done to ensure that the CSF Cooperatives comply with the Philippine Financial Reporting Framework and use the CDA-prescribed account and account titles in the preparation of financial statements. A newly created and simple excel-based accounting system was likewise presented which aims to improve the efficiency and accuracy of recording, summarizing and reporting of the financial transactions of the CSF Cooperatives. This is a form of technical assistance to CSF Cooperatives in their submission of Interim Financial Statements. Also, the CSF Cooperatives with issued Certificate of Tax Exemption by Bureau of Internal Revenue were guided on the accomplishment of Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR).

This endeavor is a clear manifestation of the Authority’s sincere commitment to provide a conducive regulatory environment for CSF Cooperatives. Given the importance of timely, complete and accurate reporting, the CSF Cooperatives were assured of the continuous guidance and assistance of the Authority in this undertaking.