PRE-MEMBERSHIP EDUCATION SEMINAR (PMES)

July 25, 2014 * Iloilo Provincial Capitol

COOPERATIVE PLEDGE

As a Filipino, I am and I believe in the cooperative.

Alone I am weak but with others I am strong.

So I commit myself to work, to cooperate

for all to be prosperous.

Harmony, industry I will value.

Cooperative affairs I will attend.

Responsibilities I will assume.

The cooperative philosophy

I will live.

One vision, one belief, one feeling

In cooperativism, my life I pledge

So help me God.

WELCOME REMARKS

EDCOM Chairperson Everette R. Mamon

MESSAGEBOD Chairperson Modesto S. Margarico, Jr.

THE

IPEMPC

IPEMPC History

• Organized in 1991 and operating a canteen called KADIWA.

• Duly registered with the (CDA ) Cooperative Development Authority on April 19, 1993 with 63 incorporators and a Paid-Up Capital of P11,225.

23 years

ABOUT IPEMPC

A trusted and competitive cooperative in the Province of Iloilo with empowered membership and a dynamic partner in development.

VISION

MISSIONTo deliver efficient and effective financial products and allied services to the members and communities to improve their quality of life.

CORE VALUES

Integrity – possessing of principles adhering to high morale principle or morale standard

Patronage – patronizing the products and services of IPEMPC

Excellence – the quality or state of being outstanding

Mutual Help – involving the same feelings for others

Professionalism – skill competence or character expected of a highly educated member

Commitment – dedication to responsibilities

THE COOPERATIVEAn Introduction

COOPS are special because government wants to foster them as practical vehicles in promoting self-reliance and harnessing people towards attainment of economic development and justice.

WHY ARE COOPS SPECIAL?

C – Capitalized / Controlled

O – Owned

O – Operated

P – Patronized

By the members themselves

WHAT IS A COOP?

• Is autonomous and duly registered • With common bond of interest• Have voluntarily joined together to achieve their needs

and aspirations • By making equitable contributions• By patronizing their products and services• By accepting a fair share of the risks and benefits.

In accordance with the universally accepted cooperative principles.

COOPERATIVE

PURPOSE OF THE COOP To encourage thrift and savings. To create funds and grant loans to members. To provide primary necessities of the members

and non-members. To promote the cooperative as a new way of

life for improving well-being. To work with the cooperative movement in the

promotion and development of cooperatives. To undertake activities for the effective and

efficient implementation of the Cooperative Code.

GOAL / OBJECTIVE OF THE COOP

To help improve quality of life of its members

THE 7 COOP PRINCIPLES

Cooperatives are voluntary organizations

open to all persons able to use their services

willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination.

1Voluntary and Open Membership

2Democratic Member Control

- Controlled by their members who actively participate in setting their policies and making decisions.

- Men and women serving as elected representatives, directors or officers accountable to the membership.

- Equal voting rights of one-member, one vote.

3Member Economic Participation

Members contribute equitable to, and democratically control, the capital of their cooperative. At least part of that capital is the common property of the cooperative.

Members allocate surpluses for :1. Coop Development2. Members Benefits accdg. to patronage3. Supporting other activities

approved by the membership.

4Autonomy & Independence

Cooperatives are autonomous self-help organizations controlled by their members.

5Education, Training & Information

Cooperatives shall provide education and training for their members, elected and appointed representatives, managers and employees, so that they can contribute effectively and efficiently to the development of their cooperatives.

6Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

7Concern for Community

Cooperatives work for the sustainable development of their communities through policies approved by their members.

THE

IPEMPCOrganizational Structure

IPEMPC ORGANIZATIONAL STRUCTURE

General AssemblyGA (MIGS)

Election Committee(3 members)

Board of DirectorsBOD (9 members)

Audit Committee(5 members)

Manager

Credit Committee

(3 members)

Mediation & Conciliation

Committee (3 mem)

Ethics Committee

(3 members)

Education & Training Committee

(4 members)

SecretaryTreasurer

Loan Officer

CashierBookkeeper StorekeeperCanteen Manager

ELECTED

APPOINTED

Directional Management

Operational Management

Line of Authority

Line of Responsibility

Line of Coordination

Authority of the General Assembly

The GA shall be the highest policy making body of the cooperative and shall exercise such powers as are stated in RA 9520, in the Articles of Cooperation and by-laws of the cooperative (Art. 33, RA 9520).

o To determine and approve amendments to the articles of cooperation and by laws.

o To elect or appoint the members of the BOD, & to remove them for cause; Decide on election related cases involving the Election Committee or its members

o To approve development plans of the cooperative.o The GA may, by a three-fourths (3/4) vote of all its

members with voting rights, present and constituting a quorum, delegate some of its powers to a smaller body of the cooperative. These powers shall be enumerated under the bylaws of the cooperative.

o Perform such other functions as may be prescribed in the By-laws and/or authorized by the General Assembly.

RESPONSIBILITIES OF THE GA

Accountable to oneself, other members and ultimately to the community

ACCOUNTABILITY OF THE GA

Art. 38. The board of directors shall be responsible for the Strategic Planning, Direction Setting and Policy Formulation Activities of the Cooperative.

BOARD OF DIRECTORS

Art. 39, par (3). The members of the Board of Directors shall not hold any other position directly involved in the day to day operation and management of the Coop. Art 39, par (4). Any person engaged in a business similar to that of the Coop or who in any way has a conflict of interest with it, is disqualified from election as a Director if said Coop.

BOD LIMITATIONS

AUDIT COMMITTEE (AICOM)

Responsibilities include: Monitor the adequacy and effectiveness of the

cooperative’s management control system and Audit the performance of the cooperatives and

various responsibility centers. Review continuously and periodically the books

and records of account to ensure that these are in accordance with the cooperative principles and generally accepted accounting practices

Members are elected by the GA

ELECTION COMMITTEE (ELECOM)

Responsibilities include: Formulate and recommend election rules and

guidelines and recommended to the General Assembly for approval;

Implement election rules and guidelines duly approved by the GA;

Supervise the conduct, manner and procedure of election and other election related activities and act on the changes thereto;

Members are elected by the GA

MEDIATION & CONCILIATION COMMITTEE (MEDCOM)

Responsibilities include: Formulate and develop the Conciliation -

Mediation Program and ensure that it is properly implemented;

Monitor Conciliation-Mediation operations (entry of new cases, status of pending cases, performance of Conciliator-Mediators);

Submit semi-annual reports to the CDA within fifteen (15) days after the end of every semester;

Appointed by the BOD

ETHICS COMMITTEEResponsibilities include: Develop ethical Norms and Code of Conduct

to be observed by the members, officers and employees of the cooperative subject to the approval of the BOD’s and ratification of the GA;

Disseminate, promote and implement the approved Code of Conduct and Ethical Norms;

Monitor compliance with Universally Accepted Principles of Cooperation, Good Governance and Good Values and recommend to the BOD measures to address the gap

Recommend ethical rules and policy to the BODs;

Appointed by the BOD

OTHER COMMITTEES

CREDIT COMMITTEE EDUCATION & TRAINING COMMITTEE

All appointed by the BOD

THE

IPEMPCMembership & General Credit

Policies

MEMBERSHIP POLICY

Regular Membership of this cooperative is open to the following:

1. Permanent employees2. Retirees3. Permanent employees of the

IPEMPC. (Article II, Section 1 of the amended By-Laws of

IPEMPC).

Associate Membership shall be open to the following:

1. Plantilla casual personnel of the IPG2. Elective Officials3. Co-terminus Personnel of the Iloilo Provincial

Government4. Permanent and Plantilla Casual Personnel of

Provincial and District Hospital5. Small farmers/fishermen and entrepreneurs

* Associate Members can become Regular Members after two years and if they had paid up the P4,000 Capital Share.

MEMBERSHIP REQUIREMENTS

1. Membership Application Form

2. Attendance to PMES (Pre-Membership Education Seminar)

3. Paid the Membership Fee of P200.00

4. Subscribed a minimum of Four Thousand Pesos (P4,000.00) Share Capital of which at least 25% of the Subscribed Share or P1,000 shall be paid upon submission of the application for membership

5. BOD Approval

RIGHTS OF A MEMBER

1. Participate and vote in membership meetings (Only Regular members can vote)

2. Avail of the services of the Coop

3. Seek an elective position

4. Receive interest on investment in the Capital Stock

5. Inspect and examine Books of Accounts, the Minutes Book, the Share Register and the other records of the Cooperative during regular office hours

DUTIES OF A MEMBER

1. Pay the installment on subscription and other obligations as they fall due

2. Participate in the capital build-up

3. Patronize its business regularly

4. Participate in its parliamentary affairs

5. Obey the rules and regulations

6. Promote the aims and purposes of the Cooperative, the success of its business, the welfare of its members and the cooperative movement as a whole.

MIGS and Non-MIGS

MIGS- No delinquency for more

than 90 days- Has attended the previous

General Assembly- Has completed payment

of CBU within a year

Non-MIGS- Delinquent payments for

more than 90 days- Has NOT attended the

previous General Assembly- Has NOT completed payment

of CBU within a year

Consequence:-Cannot vote or speak during the General Assembly

GENERAL CREDIT POLICY

Eligibility to borrow1. Must be a regular employee for at 6 months2. Must be a permanent government employee of the IPG

for more than 6 months3. Paid at least P4,000 CBU4. Minimum net take home pay of P3,000 after deducting

all monthly amortizations, excluding ACA/PERA5. A Member in Good Standing (MIGs)6. Not retiring within the payment period7. Must have a minimum leave credits of 15 days

(sick/vacation or both) except for IPEMPC employees.8. For plantilla casual turned permanent with leave credits

of more than 15 days, no waiting period required

GENERAL CREDIT POLICYLoanable Amount

Maximun amount of all outstanding loan shall be 6X times the Capital Build-up (P6,000 for every P1,000 CBU)

Special rules applies for Associate members

GENERAL CREDIT POLICY

Terms of Payment

1. All loans will be adjusted based on capacity to pay until it can be paid in a period of 1 year

2. All loans renewable after 50% of the amount is paid or after paying 6 monthly amortization

3. Not retiring within the period of loan4. Shall have minimum of 15 days Sick/Vacation

leave for IPG employees; 5 days for IPEMPC staff

GENERAL CREDIT POLICY

Interest and Other Charges1. CBU retention – 2% of the amount granted shall be

deducted from the loan proceeds to be credited as additional share capital of the member.

2. Mutual Fund – shall be deducted from the loan based on the policy of the insurance company.

3. Service Fee – 1% of the amount Granted shall be deducted from the loan proceeds

4. Notarial Fee – P200 per document or any applicable amount

5. Surcharge – 3% of unpaid principal due every month based on the amortization schedule

6. MSO – 0.5% of the amount shall be deducted from the loan proceeds and updated upon presentation of savings passbook.

GENERAL CREDIT POLICY

Loan SecurityThe amount of loan shall be fully secured by pledges of co-maker(s), real estate mortgage, chattel mortgage, deposits, or a combination of the aforementioned whichever is applicable and acceptable to the cooperative

Co-Makership1. Co-Maker should guarantee by assigning all or a portion of

his/her net pay, other deposits and/or real, chattel property and willing to provide information needed in the evaluation.

2. Only MIGS can act as co-maker.3. Spouse is disqualified to become co-maker of his/her

spouse.4. Co-makership maybe availed twice.

GENERAL CREDIT POLICY

Approval of Loan1.The Credit Committee en banc shall process, evaluate and

recommend approval of loan application except when the applicant is a member of the committee, in which case, the application shall be acted upon by the Board of Directors (BODs) (Art. 111, Sec. 21 (b) of the By-Laws).

2. The Loan Officer/Credit Committee shall determine the amount based on the 5 Cs and the credit worthiness of the borrower.

1. Character 2. Capacity to Pay3. Capital 4. Conditions 5. Collateral / Co-Maker

CO-TERMINUS, JOB HIRES, THOSE UNDER CONTRACT OF SERVICE

Qualifications• Those who are co-terminus, under contract of

service and job hire employees of the Iloilo Provincial Government;

• Should have attended pre-membership education seminars ofthe cooperative;

• Should have paid the membership fee of P200.

Benefits• Incentive of P200, free T-shirt for attending the

General Assembly• Can avail loan on all loan windows

CO-TERMINUS, JOB HIRES, THOSE UNDER CONTRACT OF SERVICE

Eligibility To Borrow• Have reached a total CBU of P10,000;• CBU monthly contribution should be in

accordance with the General Credit Policy

Loanable Amount• 80% of the CBU and capacity to pay of the

member;• Refer to the General Credit Policy

Terms and Conditions• Payable within one year for co-terminus, contract

of service and job hire employees.

LOAN WINDOWSType of Loan

Max. Loanable Amount

Term Interest Requirements

Livelihood 4x of CBU 1 year 18% per annum

Gen. Credit Policy appliesWith Co-Maker

Consolidated 4x of CBU not to

exceed P120,000

2 years 12% / annum

Gen. Credit Policy appliesWith Co-Maker

Emergency / Express Loan

P30,000 .00 1 year 1% per month

Attach Med. Certificate/ Certificate of Confinement

Non-Emergency Express Loan

P15,000.00 6 months

1% per month

Min. Subscribed Capital P1,000Regular Member at least one month

ATM Loan P24,000.00 12 months

1.75% / month

Gen. Credit Policy appliesATM RequiredWith Co-maker

Benefit Loan Commensurate of

Member’s Benefits

Upon Release

of Benefits

1.5% per month

Gen. Credit Policy appliesFor Mid-Year/Year-End, Clothing Allowance and RATAATM Required

Details can be found at www.ipempc.com

THE

IPEMPCStatus

TOTAL ASSETS

Large Class A - Asset of P100 M up

Assets0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2009

2010

2011

2012

2013

Total Assets₱

174,065,117.00

TOTAL SHARED CAPITAL & NET SURPLUS

Shared Capital Net Surplus0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

20092010201120122013

Total Paid-Up Shared Capital

₱ 49,906,103

Net Surplus₱ 6,443,534

TOTAL NUMBER OF MEMBERS

2010 2011 2012 20130

200

400

600

800

1000

1200

1400Series3Associate

2011 2012 2013

Associate 81 59 68

Regular 1,096 1,141 1,269

Total 1,177 1,284 1,337

IPEMPC SERVICES

Lending

Cafeteria

MSO

Airline Ticketing

Scholarship Program10 scholars

Community Service

Health Insurance, Burial Assistance

Accident Insurance

MEMBERS SAVINGS OPERATIONS (MSO)

Total Savings Depositors: 1,190Total Amount: ₱ 3,429,495

Total Time Depositors:48Total Amount: ₱ 21,677,660

THE COOP PHILOSOPHY

UTANG ! •Decision Maker•Socially Superior•Culturally Biased

MONEY !NO MONEY

Huya-huyaKulba- kulbaDuwa – duwa

Self-pity

THE GOLDEN RULE : He who has the GOLD makes the rules

Pay•Principal•Interest•Penalties•Gratitude

COOPERATIVE MEMBERCAPITAL FORMATION

EDUCATION

GROUP ACTIONNON-COOP MEMBERNO MONEY

IGNORANCE

INDIVIDUALISM

CAPITAL

SERVICES

• Pooled Resources• Collective Decision-Making• Mutual Respect

• Economic Freedom

• Political Employment

• Social Equality

• Cultural Transformation

• Spiritual Enlightenment

• Human Dignity

COOP PHILOSOPHYTOTAL HUMAN DEVELOPMENTSpiritual

Economic

Income = P 350

Gastos = P 400

UTANG! = P 50

Income = P 350

Gastos = P 325

SAVINGS = P 25

Income = P 350

SAVINGS = P 25

Gastos = P 325

SOURCE OF INCOME (Employment, Livelihood,

Business, etc)

COOP

Salary / Harvests / Profits

= SAVINGS !CBU / Deposits

SPENDING HABITS OF FILIPINOS

COOP

LOAN

oBanksoFinancial InstitutionsoGovernment

CBU / Deposits

CREDIT

Officers StaffMember / Owners

IGPsIncome Generating Projects

Policies

SELF-HELP - we help people help themselvesSELF-RESPONSIBILITY- we take responsibility for

and answer to our actionsDEMOCRACY – we give our members a say in the

way we run our businessEQUALITY - no matter how much money a member

invest in their share account, they still have one vote

EQUITY - we carry our business in a way that is fair and unbiased

SOLIDARITY- we share interest and common purposes with our members and other cooperatives

COOPERATIVE VALUES

ETHICAL VALUES

OPENNESS - nobody’s perfect, and we wont hide it when were not

HONESTY - we are honest about what we do and the way we do it

SOCIAL RESPONSIBILITY - we encourage people to take responsibility for their own community and work together

CARING FOR OTHERS - we regularly fund charities and local community groups from the profits of our businesses

PRE-MEMBERSHIP EDUCATION SEMINAR (PMES)

Thank you for coming !!!