JSDF Grant on Social Inclusion and Alternative

Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development

Proposed Coop Operations Manual for the Recycling Cooperatives
(for internal discussion and modification by the coop)

Prepared by: Carlos O. Tulali

1. RESPONSIBILITIES FOR OPERATIONS

1.1. General Membership
Every member shall have the following duties:

1.1.1. Pay the installment of his share capital subscription as it falls due and to participate in
the capital build-up and savings mobilization activities of the Cooperative;
1.1.2. Patronize the Cooperatives businesses and services;
1.1.3. Participate in the membership education programs;
1.1.4. attend and participate in the deliberation of all matters taken during general assembly
meetings;
1.1.5. Observe and obey all lawful orders, decisions, rules and regulations adopted by the
Board of Directors and the general assembly; and
1.1.6. Promote the purposes and goals of the Cooperative, the success of its business, the
welfare of its members and the cooperative movement in general.

1.2. General Assembly

The General Assembly has the following powers and responsibilities:

1.2.1. Determine and approve amendments to the cooperative articles of cooperation and by-
laws;
1.2.2. Elect or appoint the members of the board of directors, and to remove them for cause;
1.2.3. Approve developmental plans of the cooperative; and
1.2.4. Delegate some of its power to a smaller body of the cooperative as authorized by the
Philippine Cooperative Code of 2008.

1.3. Board of Directors

1.3.1. Provide general policy direction;
1.3.2. Formulate the strategic development plan;
1.3.3. Determine and prescribe the organizational and operational structure;
1.3.4. Review the annual plan and budget and recommend for the approval of the general
assembly;
1.3.5. Establish policies and procedures for the effective operation and ensure proper
implementation of such;
1.3.6. Evaluate the capability and qualification and recommend to the general assembly the
engagement of the services of the external auditor;
1.3.7. Appoint the members of the mediation/ conciliation and ethics committees and other
officers as specified in the Philippine Cooperative Code of 2008 and cooperative by-laws;
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
1.3.8. Declare the members entitled to vote;
1.3.9. Decide election related cases involving the election committee and its members;
1.3.10. Act on the recommendation of the ethics committee on cases involving violations of
code of governance and ethical standards; and
1.3.11. Perform such other functions as may be prescribed in the by-laws or authorized by the
general assembly.

1.4. Audit Committee

The audit committee shall be directly accountable and responsible to the general assembly. It
shall have the power and duty to continuously monitor the adequacy and effectiveness of the
cooperative's management control system and audit the performance of the cooperative and its
various responsibility centers.

1.4.1. Monitor the adequacy and effectiveness of the cooperatives management and control
system;
1.4.2. Audit the performance of the cooperative and its various responsibility centers;
1.4.3. Review continuously and periodically the books of account and other financial records to
ensure that these are in accordance with the cooperative principles & generally accepted
accounting procedures;
1.4.4. Submit reports on the results of the internal audit and recommend necessary changes on
policies and other related matters on operation to the board of directors and general
assembly;
1.4.5. Recommend or petition to the board of directors conduct of special general assembly
when necessary; and
1.4.6. Perform such other functions as may be prescribed in the by-laws or authorize by the
general assembly.

1.5. Election Committee

The election committee shall:

1.5.1. Formulate election rules and guidelines and recommend to the general assembly for
approval;
1.5.2. Implement election rules and guidelines duly approved by the general assembly;
1.5.3. Recommend necessary amendments to the election rules and guidelines, in consultation
with the board of directors, for approval of the general assembly;
1.5.4. Supervise the conduct, manner and procedure of election and other election related
activities and act on the changes thereto;
1.5.5. Canvass and certify the results of the election;
1.5.6. Proclaim the winning candidates;
1.5.7. Decide election and other related cases except those involving the election committee or
its members, and
1.5.8. Perform such other functions as prescribed in the by-laws or authorized by the general
assembly.





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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development

1.6. Education and Training Committee

The committee shall be responsible for the planning and implementation of the information,
educational and human resource development programs of the cooperative for its members,
officers and the communities within its area of operation.

1.6.1. Keep members, officers, staff well-informed regarding cooperatives goals/objectives,
policies & procedures, services, etc.;
1.6.2. Plan and implement educational program for cooperative members, officers and staff;
1.6.3. Develop promotional and training materials for the cooperative; and
1.6.4. Conduct/coordinate training activities.

1.7. Mediation and Conciliation Committee

The mediation and conciliation committee shall:

1.7.1. Formulate and develop the conciliation-mediation program and ensure that it is properly
implemented;
1.7.2. Monitor conciliation-mediation program and processes;
1.7.3. Submit semi-annual reports of cooperative cases to the Authority within fifteen (15) days
after the end of every semester;
1.7.4. Accept and file evaluation reports;
1.7.5. Submit recommendations for improvements to the board of directors;
1.7.6. Recommend to the board of directors any member of the cooperative for conciliation-
mediation training as cooperative mediator-conciliator;
1.7.7. Issue the certificate of non-settlement; and
1.7.8. Perform such other functions as may be prescribed in the by-laws or authorized by the
general assembly.

1.8. Ethics Committee

The ethics committee shall:

1.8.1. Develop code of governance and ethical standard to be observed by the members, officers
and employees of the cooperative subject to the approval of the board of directors and
ratification of the general assembly;
1.8.2. Disseminate, promote and implement the approved code of governance and ethical
standards;
1.8.3. Monitor compliance with the code of governance and ethical standards and recommend
to the board of directors measures to address the gap, if any;
1.8.4. Conduct initial investigation or inquiry upon receipt of a complaint involving code of
governance and ethical standards and submit report to the board of directors together
with the appropriate sanctions;
1.8.5. Recommend ethical rules and policy to the board of directors; and
1.8.6. Perform such other functions as may be prescribed in the by-laws or authorized by the
general assembly.



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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development

1.9. Credit Committee

The credit committee shall:

1.9.1. Responsible for the credit management of the cooperative;
1.9.2. Process, evaluate and act upon loan application and withdrawal of deposits, except when
the applicant is a member of the committee, in which case, the application shall be acted
upon by the Board of Directors; and
1.9.3. Exercise general supervision including collection over all loans to members.

1.10. Other Committees

By a majority vote of all its members, the board of directors may form such other committees as
may be deemed necessary for the operation of the cooperative.

1.11. Chairperson

The chairperson shall:

1.11.1. Set the agenda for board meetings in coordination with the other members of the board
of directors;
1.11.2. Preside over all meetings of the board of directors and of the general assembly;
1.11.3. Sign contracts, agreements, certificates and other documents on behalf of the
cooperative as authorized by the board of directors or by the general assembly;
1.11.4. Issue certificate of non-affiliation with the federation or union; and
1.11.5. Perform such other functions as may be authorized by the BOD or by the general
assembly.

1.12. Vice-Chairperson

1.12.1. The vice-chairperson shall:
1.12.2. Perform all the duties and responsibilities of the chairperson in the absence of the
latter;
1.12.3. Act as ex-officio chairperson of the education and training committee; and
1.12.4. Perform such other duties as may be delegated by the board of directors.

1.13. Treasurer

The treasurer shall:

1.13.1. Ensure that all cash collections are deposited in accordance with the policies set by the
board of directors;
1.13.2. Have custody of all funds, securities, and documentations relating to all assets,
liabilities, income and expenditures;
1.13.3. Monitor and review the financial management operations of the cooperative, subject to
such limitations and control as may be prescribed by board of directors;
1.13.4. Maintain full and complete records of cash transactions;
1.13.5. Maintain a petty cash fund and daily cash position report; and
1.13.6. Perform such other functions as may be prescribed in this by-laws
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
1.14.

1.15. Secretary

The secretary shall:

1.15.1. Keep an updated and complete registry of all members record, prepare and maintain
records of all minutes of all meetings of the board of directors and the general assembly;
1.15.2. Ensure that necessary board if directors actions and decisions are transmitted to the
management for compliance and implementation;
1.15.3. Issue and certify the list of members who are in good standing and entitled to vote as
determined by the board of directors;
1.15.4. Prepare and issue share certificates;
1.15.5. Serve notice of all meetings called and certify the presence of quorum of all meetings of
the board of directors and general assembly;
1.15.6. Keep copy of the treasurers report and other reports;
1.15.7. Keep and maintain the share and transfer book;
1.15.8. Serve as custodian of the cooperative seal; and
1.15.9. Perform such other functions as may be prescribed in the by-laws or authorized by the
general assembly.

1.15.10. General Manager

The general manager shall:

1.15.10.1. Oversee the overall day to day business operations of the cooperative by
providing general direction, supervision, management and administrative control
over all the operating departments subject to such limitations as may be set forth
by the board of directors or the general assembly;
1.15.10.2. Formulate and recommend in coordination with the operating departments
under his/her supervision, the coops annual and medium term development
plan, programs and projects, for approval of the board of directors, and
ratification of general assembly;
1.15.10.3. Implement the duly approved plans and programs of the cooperative and any
other directive or instruction of the board of directors;
1.15.10.4. Provide and submit to the board of directors monthly reports on the status of the
coops operation vis-a-vis its target and recommend appropriate policy or
operational changes, if necessary;
1.15.10.5. Represent the cooperative in any agreement, contract, business dealings, and in
any other official business transaction as may be authorized by the board of
directors;
1.15.10.6. Ensure compliance with all administrative and other requirements of regulatory
bodies; and
1.15.10.7. Perform such other functions as may be prescribed in the by-laws or authorized
by the general assembly.

1.15.11. Accountant/Cashier

The accountant/cashier of the cooperative, who shall be under supervision and control of
the general manager shall:
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development

1.15.11.1. Install an adequate and effective accounting system within the cooperative;
1.15.11.2. Render reports on the financial condition and operations of the cooperative
monthly, annually or as may be required by the board of directors and/or the
general assembly;
1.15.11.3. Provide assistance to the board of directors in the preparation of annual budget;
1.15.11.4. Keep, maintain and preserve all books of accounts, documents, vouchers,
contracts and other records concerning the business of the cooperative and
make them available for auditing purposes to the chairperson of the audit
committee; and
1.15.11.5. Perform such other duties as the board of directors may require.

1.15.12. Bookkeeper

The bookkeeper of the cooperative who is under supervision and control of the accountant
shall:

1.15.12.1. Records and update books of accounts;
1.15.12.2. Provide assistance in the preparation of reports on the financial condition and
operations of the cooperative monthly, annually or as may be required by the
board of directors and/or the general assembly;
1.15.12.3. Keep, maintain and preserve all books of accounts, documents, vouchers,
contracts and other records concerning the business of the Cooperative and
make them available for auditing purposes to the chairperson of the audit
committee; and
1.15.12.4. Perform such other duties as the board of directors may require.

2. RESPONSIBILITIES FOR ADMINISTRATION AND FINANCE UNIT


TITLE DUTIES AND RESPONSIBILITIES
ADMIN AND
FINANCE
OFFICER
Ensure that all administrative policies are observed and followed by all
personnel in the organization.
Works closely with the General Manager (GM) on the personnel matter such as
employment, compensation, benefits, staff trainings and development, etc
Recommends administrative policies to the GM in support to the changing
needs of office staff and field personnel.
Recommends investment strategies to GM and handles implementation of all
investment transactions or plans of the institution
Recommends workable over-all financial framework
Coordinates with the Audit Committee for the improvement of accounting
system to ensure financial controls
Coordinates with internal and external users of reports.
Informs GM of any financial policy change in the environment that may affect
the coop.
Provides GM with timely, accurate and up to date financial statements.
Provides all other financial statements that may be required by the Board of
Directors (BOD), partners and other concerned parties with approval from the
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
GM.
Interprets financial performance of the coop by submitting accomplished
financial performance indicators and ratio analysis monthly

ADMIN AND
FINANCE
ASSISTANT
Maintains office filing system
- General Files
- SSS/Philhealth
- Pag-IBIG
- BIR
- Various contracts
- Property and Equipment acquired
Keep and maintains supplies acquisition and consumption at the office
Monthly preparation of payroll summary
Transact with the bank
Compliance to regulatory agencies to ensure that the coop conforms to the
institutional rules and regulations as required by preparing monthly summary of
the following:
- Schedule of remittance to BIR
- Schedule of remittance to SSS/Philhealth/Pag-IBIG and in-house
remittances
- Processing of maternity reimbursement, sickness benefits and related
documents for all staff
- Computation of annual income tax on compensation, bi-annual checking
and preparation.

CASHIER Handles all the cash transactions
Receives payments to the coop by cash and cheques
Checks daily cash accounts
Guides and solves queries of customer
Maintains monthly, weekly and daily report of transactions
Receives loan payments (in cash or checks)
Issues official receipts (ORs) for every payments received by the coop
Keeps and maintain ORs and borrowers booklets (for microcredit operations)
Makes sure that all cash/checks received are deposited to the bank within the day
of payment (or on the next banking day if payment is received after banking hours)
Acts as petty cash custodian
Prepares and submits petty cash replenishment in an imprest petty cash system
Issues checks and releases for payments, duly approved by GM
Keeps petty cash vouchers (PCV) and other documents
Prepares summary report for petty cash replenishment below 1,000.00
Maintains all issued blank checks and official receipts
Issues ORs for all cash received by the Office
Maintains an updated Cash Book
Facilitates payment for all cash/check disbursements
Shall stamp PAID all checks/cash vouchers and supporting documents every
after transaction that has been paid.

LOAN
OFFICERS
Keeps and maintains individual folder of per borrower
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
(for coops
with
microcredit
services)
Assesses and reviews loan application
Checks requirements for loan application of borrowers
Accepts and consolidates loan application documents submitted by loan applicants
for validation
Schedules and assists in the conduct of PMES conducted and certified by the GM
Ensures compliance in membership requirements of new applicants
- membership fee: PhP_____
- CBU (not less than 10% of the total loan amount)
Assesses field validation reports by field loan officers
Processes loan application requirements:
- Promissory Notes
- Loan application forms
- Loan agreements
Submits monthly reports on loan releases & status of borrowers.

BOOKKEEPER Keeps and maintains BIR Registered books of accounts
- cash disbursement book ( CDB)
- Cash receipt book (CRB)
- Journal book (JVB)
- General ledger ( GL)
Prepares and submits consolidated financial reports
- statement of assets liabilities, fund balance & net equity
- statement of income & expenses and net income
- balance sheet
- trial balance
- Schedule of Accrued Expenses
- schedule or annexes of accounts ( if necessary)
Submits monthly reports to GM
Keeps all financial documents (CV JV OR )
Maintains pre-numbered vouchers
Posting of accounts to manual book of accounts and quick books software
Assists auditor during audit period.
Prepares vouchers
Prepares daily transactions summary
Daily posting of transactions to the general ledger
Prepares program reports to Partners/funders
Prepares monthly bank reconciliation report
Prepares consolidated Monthly Financial Statements


Payroll
a. Schedule of Pay-out:
b. Every 15
th
of the month for the 1
st
kinsena
c. Every 30
th
of the month for the 2
nd
kinsena
d. If the schedule date falls on a weekend, pay-out will be on Friday before the schedule date.
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
e. Billing statement for all deductions must be received by the admin officer 2 days before payday.
f. Loans availed after the payroll preparation, deduction will be included in the next month schedule.
There should be no deferment in deductions.
g. Staff who availed loans from SSS, Pag-IBIG, etc. shall furnish the office a copy of disbursement
vouchers to effect the deductions in salary. It should be submitted within a week after the release.
h. Staff Net-Take-Home-Pay should not be below 1,000 per pay-day, thus he/she will not be qualified
to avail any additional loan, except in emergency cases.
i. Salary advances for emergency cases involving the staffs extended family should be allowed
provided the amount should not exceed his/her 1 month net-take-home-pay. The whole amount is
payable /deducted from his/her salary for the following month.

SSS Contributions
a. All coop staff will be subjected to SSS, Philhealth, Pag-IBIG and EC contributions. For appropriate
contribution of employee/employer (refer to SSS table). Contribution is based on basic salary.
b. Contribution shall be reflected in the payroll every month.
c. Submission of schedule will be on or before 15
th day
of the month.
Forms to be used are as follows: E-4 change of the following:


Form Requirements
Civil Status
Correction of name & date of
birth
Additional dependents
Photocopy of marriage contract (latest original copy)
Birth or Baptismal certificate
Birth Certificate of dependent
Accomplished form written in black ink with 2 valid IDs


SSS Loans
An employee who has at least 36 monthly contributions may qualify to apply for SSS loan with the
following procedures as follows:
a. Applicant must accomplish form ISL- 101
b. Computation of staff monthly net pay shall not be less than at 30% on take home pay
c. Photocopy of SSS ID
d. Approval by the institutions authorized signatory

SSS Maternity
a. Accomplish SSS maternity notification form (MAT -1) in 3 copies.
b. Accomplished form will be submitted to SSS Office within 3 months from the date of inception
attached the ultra sound result & photocopy of digitized ID.
c. Upon stamp received by the SSS, the complete documents will be forwarded to the Administrative
Unit.
d. The employee shall file a leave form covering the maternity period either 60 or 78 days.
e. After delivery the following documents has to be submitted to the Branch Manager:
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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development
f. A normal delivery has to submit the certified thru copy of child birth certificate duly registered with
the local civil registrar while
g. Caesarean delivery has to submit the operating room record or surgical memorandum duly certified
by the hospital where the staff was confined and a certified thru copy of a child birth certificate duly
registered with local civil registrar.
h. The admin & finance officer will then forward the complete documents to the cashier for proper
computation of maternity benefits.
i. All reimbursements shall only be disbursed upon the completion of documents. This is to ensure
that the reimbursement will process the required documents.


PAG-IBIG

Contribution
a. Employee shall contribute a minimum of P100 and maximum of 200.
b. Employers counterpart on contribution shall be equal to the employee contribution.
c. Contribution shall reflect in the payroll every month.
d. Pag-ibig fund receipts shall be filed with the schedule of remittance.
e. Remittance shall be on or before 10
th
day of the month.

PAG-IBIG Loan

Pag-IBIG member is entitled to avail loan depending on the number of contributions made based on the
following schedule:

No. of Contribution Loan Amount
24-59 months
60-119 months
At least 120 months
Up to 60% of Accumulated Cont.
Up to 80% of Accumulated Cont.
Up to 70% of Accumulated Cont.

a. Loan will be amortized over a period of 24 month with a grace period of 2 months for local accounts
& 5 months for centralize account.
b. Loan payments will be remitted on or before the 15
th
day of each month beginning the 3
rd
month
following the date as indicated in the disbursement voucher or check for local accounts.
c. Loan (i.e. MPL) can be renewed upon payment of at least six (6) months amortization. The
outstanding balance together with the accrued interest, penalties will be deducted from the
proceeds of the new loans.

BIR Registration

a. BIR Annual Registration on or before January 31.
b. Remittance of tax withheld is on or before 10
th
day of the following month.
c. December tax withheld can be remitted up to the 25
th day
of January.
d. Deadline for filing of information of tax withheld on compensation and final withholding tax together
with the alphabetical list of employees/payees for calendar year is on 31
st
day of January.
e. December 29
th
is the last day for the registration of books of account.


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JSDF Grant on Social Inclusion and Alternative
Livelihoods for the Informal Waste Sector: Trainor-Mentor for Recycling Cooperatives on Capacity-Building, Cooperative
Management and Enterprise Development


Monthly Reports

Operations Update
a. Monthly accomplishment report
b. Validation/Monitoring Summary
c. Cash Book
d. Ageing Report
e. CBU/Loan Report

Financial Statement
a. Balance Sheet; income Statement
b. Journal Summary
c. Schedule of CBU and Loans
d. Schedule of Expenses
e. Acknowledgement receipts & fund transfers
f. Attachment of TFM/muscovado mill charges (photocopy of OR, acknowledgement, etc.)

Administrative
a. Application for leave for the month
b. Recommendation of staff reassignment
c. Memos/suspension

Office Supplies/Forms
a. Office administrative assistant will ensure the availability of forms needed by the office
b. Duly approved request will be submitted to the office for reservation and release.
c. Office supplies will be charged to the cashier.
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