A RESEARCH STUDY ON THE FINANCIAL STATEMENTS OF

MUNTINLUPA NATIONAL HIGH SCHOOL MULTI-PURPOSE COOPERATIVE

A Final Research Presented to Prof. Erwin P. Vibora

Graduate Studies, Pamantasan ng Lungsod ng Muntinlupa

NBP Reservation, Poblacion Muntinlupa City

In partial fulfillment of the requirements for Financial Management of

Masters in Business Administration

A.Y. 2018 - 2019

By:

LINIS, Sheena C.

PALACOL, Benedicto Mario C.

UMALI, Arvin B.
 ABSTRACT

This paper or research is aimed to assess the management of internal control system of
Muntinlupa National High School Multi-purpose Cooperatives and enhanced or maintain the proper
operation on Muntinlupa National High School Multi-Purpose Cooperative for its long survival, growth
especially its development. Specifically, its primary purpose is to assess its business operation and
propose an effective action plan.

The researchers adopted to use the descriptive correlation design with graphs in the study to
better obtain information’s regarding the current status of Muntinlupa National High School. We have
decided to describe/ differentiate the last 3 years financial (2015,2016, 2017) statement conditions in
their respective situation.

Based on result, the findings of the study states that the Muntinlupa National High School Multi-
purpose Cooperatives is performing well in terms of decreasing its own expenses as year pass by, in
addition to increase its other source of revenue for added income.
 TABLE OF CONTENTS

Introduction .................................................. 4

Background of the Research Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6

Statement of the Objectives of the Research . . . . . . . . . . . . . . . . . . . . . . . . . 7

Scopes and Limitations .......................................... 8

Presentation, Analysis, and Discussion of the Data . . . . . . . . . . . . . . . . . . 9-24

Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
 INTRODUCTION

Business organizations comes in different forms of ownership; Sole Proprietorship,

Partnership, Corporation and Cooperative. A cooperative owned by a group of individuals and is
operated for their mutual benefit. Cooperatives may be incorporated or unincorporated. Multi-
purpose cooperatives perform more than one function. Multi- purpose cooperatives improve the
living standard of the member, minimum cost but maximizes profit and risk- sharing of members.
One classic example of a successful cooperative is Muntinlupa National High School Multi-Purpose
Cooperative. Firstly, it aims have been proven as it gained income through different schemes,
namely: credit operation, canteen or consumer operation and other sources of income. Secondly, it
a way to improve the quality of life, socio-economic of its member.

The researcher deemed to explore whether this cooperative has the capacity to survive in the
long run. By examining the past 3 years data, the results can be determined whether the
cooperative, particularly, Muntinlupa National High School Multi-purpose cooperative can survive
and will continue growing.

This research study is important to the member of cooperative to identify significant factors
contributing success to cooperative by providing them significant information. It is also considered
to the researcher and future research for them to have basis on future researcher. They can use this
study as reference, guide, and lead them to come up to better results.
 BACKGROUND OF THE RESEARCH

MANAGEMENT AND ADMINISTRATION OF MNHS MULTI-PURPOSE COOP

The MNHS Employee’s Multi-Purpose Cooperative was conceived in 1992 thru Values Education
Program of PNU. The organizer, a graduate student at that time opted to initiate the project. Its main
objective is to provide social interdependence, unity and economic efficiency as well as prosperity
among MNHS employees thru cooperative. After consultation and research about the principles and
practices of cooperative, the project finally put in place.

In September 18, 1992 the organizer of the project with the full support and cooperation of
MNHS Principal Mr. Felix A. Balbaguio, Faculty officers thru its president the organizer himself
marked the kick-off operation of the Cooperative. The potential members expressed their
commitment to establish a cooperative operated by its members having a common bond of interest
to promote the value of Bayanihan among themselves.

Considering the fact that more MNHS employees will benefit from the project some 42 faculty
members signified in writing their willingness to join the cooperative. They pledged to subscribe
shares of the cooperative to be pooled and saved as the cooperative fund. After a series of meetings
the group decided to form a credit cooperative.

The potential members elected the interim officers and Board of Directors pending its adoption
of By Laws and Article of Cooperation. The organizer was elected Chairman of the Interim Board of
Directors. The board became the highest body and responsible in promulgating policies and
conditions for a smooth interaction, management and supervision of the cooperative.
 In January 1993, an initial fund of Twenty Thousand Pesos (P20,000.00) derived from the Capital
Stocks Subscription was available for Loan to the members. The program “Low Interest Credit
Scheme” administered by the credit committee catered a regular loan for members. An amount of
One Thousand Pesos (P1,000.00) was allotted for a member who availed the loan. It obtained an
interest rate of 30% per annum and payable for three months. The program served at least one
hundred members a year for two years with an average income of P8,250.00 for the cooperative.

The first cooperative pre-membership training seminar was held on November 19 to 20, 1994 in
Muntinlupa. At least 35 interested members completed the seminar conducted by Dept. of
Agriculture, Muntinlupa thru Mrs. Lilibeth Deloso. The training culminated with the adoption of the
name MNHS Employees Multi-Purpose Cooperative as its name. It shall be registered with the
Cooperative Development Authority.

At present the total members of the cooperative have increased to fifty who enjoyed the
business of the movement. As of December 1995 the authorized share capital which has been
actually subscribed is Twenty Nine Thousand One hundred Pesos (P29,100.00) while the total income
as of that data is Sixteen Thousand Five Hundred Pesos (16,500.00) derived from the credit program
initiated by the Board of Directors.

The Board had adopted 10 Board Resolutions in the regular meetings. They also approved the
appropriation of the net surplus to be released as interest for individual share if the members and
patronage refund for them. Likewise, the application for legal personality of MNHS Employees Multi-
Purpose Cooperative is filed with the Cooperative Development Authority. Meanwhile, as the Board
of Directors and Officers expect for its approval, they continue to serve the needs of members. They
are now planning to open a consumer store in 1997.
 STATEMENT OF THE OBJECTIVES OF THE RESEARCH

The goals of this cooperative are to help improve the quality of life of its member and
its furtherance thereto shall aim;

• To attain increased income, savings, investments, productivity, and purchasing power, and
promote among themselves equitable distribution of net surplus through maximum
utilization of economies of scale, cost- sharing and risk-sharing.
• To provide optimum social and economic benefits to its member
• To teach members efficient ways of doing things in a cooperative manner
• To propagate cooperative practices and new ideas in business and management
• To allow the lower income and less privileged groups to increase their ownerships in the
wealth of the nation
• To actively support the government, other cooperatives and people-oriented organizations,
both local and foreign in promoting cooperatives as a practical means towards sustainable
socio-economic development under a truly just and democratic society
• To institutionalize a dynamic savings mobilization and capital build-up schemes to sustain its
developmental activities and long- term investments, thereby ensuring optimum economic
benefits to the members, their families and the general public.
• To implement policy guidelines that will ensure transparency, equitable access to its
resources and services, and promote the interests of the member and
• To adopt such other plans as may help foster the welfare of the members, their families and
the community.
 SCOPES AND LIMITATIONS

This study is delimited to determining the latest financial statements of Muntinlupa

National High School Multi- purpose cooperative which includes the financial statement
fiscal year of 2017, 2016 and 2015 as a basis for comparison and to determine on how the
company itself in the form of records or data.

To get proper understanding of this concepts. The researchers have done the study of
the balance sheet, income statement in vertical and horizontal analysis, by which it will
sufficed with the usage data such as computations, graphs and explanations. This study is
supposed to be related to the period of last three years.
 PRESENTATION, ANALYSIS, AND DISCUSSION OF THE DATA

MUNTINLUPA NATIONAL HIGH SCHOOL INC.

Muntinlupa National High School, NBP Reservation, Muntinlupa City

STATEMENT OF FINANCIAL POSITION

For the Years Ended December 31

Notes 2017 2016 2015

Assets
Current Assets
Cash and Cash Equivalent 2,5
973,213.55 890,869.90 950,051.53
Loans and Receivable 2,4,5,6
2,376,102.76 2,000,321.03 1,788,016.79
Inventories 2
214,875.35 251,145.40 257,612.26
Investment
80,506.24
Other Assets
62,330.00
Total Current Assets
3,564,191.66 3,142,336.33 3,138,516.82

Non Current Assets

Property Plant and Equipment 2,7
1,188,526.58 1,148,176.14 979,898.29
Total Non Current Assets
1,188,526.58 1,148,176.14 979,898.29
TOTAL ASSETS
4,752,718.24 4,290,512.47 4,118,415.11

2016
LIABILITIES 2 Amount Amount Amount
Current Liabilities
Accounts and Other Payables 2,8
34,191.90 5,789.00 112,273.29
- -
Accrued Expenses 2,9
4,488.24 38.16 481.40
Other Current Liabilities 2,10
429,627.04 304,687.56 467,452.84
Total Current Liabilities
459,330.70 310,514.72 579,244.73
Total Liabilities
 459,330.70 310,514.72 579,244.73

EQUITY
Members Equity:
Authorized Capital - 100,000 shares at
P100 at P100.00 par value =
Php10,000,000.00
Paid up Share Capital
3,910,648.00 465,000.00 465,000.00
Deposit for Share Capital Subscription
- 3,193,470.69 2,748,816.89
Total Paid-Up Capital
3,910,648.00 3,658,470.69 3,213,816.89
Donations/Grants
Donations/Grants
70,000.00 70,000.00 70,000.00
Statutory Funds 2
Reserve Fund
244,356.73 193,129.53 152,951.74
Education and TRAINING Fund - Local
16,419.97 17,628.44 32,171.69
Optional Fund
35,859.04 28,124.45 42,909.76
Community Development Fund
16,103.80 12,644.64 27,320.30
Total Statutory Fund
312,739.54 251,527.06 255,353.49
Total Liability and Equity
4,752,718.24 4,290,512.47 4,118,415.11
 MUNTINLUPA NATIONAL HIGH SCHOOL INC.
Muntinlupa National High School, NBP Reservation, Muntinlupa City

STATEMENT OF FINANCIAL POSITION

For the Years Ended December 31
Vertical Analysis
2017 2016 2015
Assets Amount Percent Amount Percent Amount Percent
Current Assets
Cash and Cash Equivalent 973,213.55 20.48 890,869.90 20.76 950,051.53 23.07
Loans and Receivable 2,376,102.76 49.99 2,000,321.03 46.62 1,788,016.79 43.42
Inventories 214,875.35 4.52 251,145.40 5.85 257,612.26 6.26
Investment 80,506.24
Other Assets 62,330.00
Total Current Assets 3,564,191.66 74.99 3,142,336.33 73.24 3,138,516.82 72.74

Non Current Assets

Property Plant and Equipment 1,188,526.58 25.01 1,148,176.14 26.76 979,898.29 23.79
Total Non Current Assets 1,188,526.58 25.01 1,148,176.14 26.76 979,898.29 23.79
TOTAL ASSETS 4,752,718.24 100.00 4,290,512.47 100.00 4,118,415.11 96.53
Liabilities and Members Equity
Current Liabilities
Accounts and Other Payables 34,191.90 0.72 5,789.00 0.13 112,273.29 2.73
- - - -
Accrued Expenses 38.16
4,488.24 0.09 0.00 481.40 0.01
Other Current Liabilities 429,627.04 9.04 304,687.56 7.10 467,452.84 11.35
Total Current Liabilities 459,330.70 9.66 310,514.72 7.24 579,244.73 14.06
Total Liabilities 59,330.70 9.66 310,514.72 7.24 579,244.73 14.06

EQUITY
Members Equity:
Authorized Capital - 100,000
shares at P100 at P100.00 par
value = Php10,000,000.00
Paid up Share Capital 3,910,648.00 82.28 465,000.00 10.84 465,000.00 11.29
Deposit for Share Capital
- 3,193,470.69 2,748,816.89
Subscription - 74.43 66.74
Total Paid-Up Capital 3,910,648.00 82.28 3,658,470.69 85.27 3,213,816.89 78.04
Donations/Grants
Donations/Grants 70,000.00 1.47 70,000.00 1.63 70,000.00 1.70
Statutory Funds - -
Reserve Fund 244,356.73 5.14 193,129.53 4.50 152,951.74 3.71
Education and TRAINING Fund -
16,419.97 17,628.44 32,171.69
Local 0.35 0.41 0.78
 Optional Fund 35,859.04 0.75 28,124.45 0.66 42,909.76 1.04
Community Development Fund 16,103.80 0.34 12,644.64 0.29 27,320.30 0.66
Total Statutory Fund 312,739.54 6.58 251,527.06 5.86 255,353.49 6.20
Total Liability and Equity 4,752,718.24 100.00 4,290,512.47 100.00 4,118,415.11 100.00

A vertical analysis is used to show the relative size of the different accounts on a financial
statement.
 MUNTINLUPA NATIONAL HIGH SCHOOL INC.
Muntinlupa National High School, NBP Reservation, Muntinlupa City

INCOME STATEMENT
For the Years Ended December 31

Notes 2017 2016 2015

REVENUES
Income from Credit Operation - Sch I 2 116,155.32 103,002.31 105,004.77
Income from Canteen/Consumer Operations -Sch
2 875,273.22 904,573.98 857,855.16
II
Other Income:
Membership Fees - 1,000.00 800.00
Income/Interest from Investment 1,694.26 1,505.88 968.65
Optional Fund Income - 29,140.26 -
Miscellaneous Income 127,845.57 104,898.86 113,549.25
TOTAL REVENUES 1,120,968.37 1,144,121.29 1,078,177.83
EXPENSES:
Selling and Administrative Cost 11 608,696.37 742,343.41 465,181.15
NET SURPLUS 512,272.00 401,777.88 612,996.68

Distribution of Net Surplus 2

Reserve Fund (10%) 51,227.20 40,177.79 61,299.67
Education and Training Fund due to CETF (Apex)
25,613.60 20,088.89 30,649.83
(5%)
Local (5%) 25,613.60 20,088.89 30,648.83
Optional Fund (7%) 35,859.04 28,124.45 42,909.76
Community Development Fund (3%) 15,368.16 12,053.34 18,389.90
Amount available for interest on share capital
358,590.40 281,244.52 429,098.69
(49%) and patronage refund (21%)
Net Surplus 512,272.00 401,777.88 612,996.68
 MUNTINLUPA NATIONAL HIGH SCHOOL INC.
Muntinlupa National High School, NBP Reservation, Muntinlupa City

INCOME STATEMENT
For the Years Ended December 31

Vertical Analysis

2017 2017 2016 2016 2015 2015

Amount Percent Amount Percent Amount Percent

REVENUES
Income from Credit
116,155.32 103,002.31 105,004.77
Operation - Sch I 10.36% 9.00% 9.74%
Income from
875,273.22 904,573.98 857,855.16
Canteen/Consumer 78.08% 79.06% 79.57%
Operations -Sch II

Other Income:

Membership Fees - 0.00% 1,000.00 0.09% 800.00 0.07%

Income/Interest from
1,694.26 1,505.88 968.65
Investment 0.15% 0.13% 0.09%
Optional Fund Income - 0.00% 29,140.26 2.55% 0.00%
Miscellaneous Income 127,845.57 11.40% 104,898.86 9.17% 113,549.25 10.53%
TOTAL REVENUES 1,120,968.37 100.00% 1,144,121.29 100.00% 1,078,177.83 100.00%
EXPENSES:
Selling and Administrative
608,696.37 742,343.41 465,181.15
Cost 54.30% 64.88% 43.15%
NET SURPLUS 512,272.00 45.70% 401,777.88 35.12% 612,996.68 56.85%

A vertical analysis is used to show the relative sizes of the different accounts on a financial
statement. The researcher reviews the income statement as presented in given data.
Muntinlupa National High School sales have grown over this time period, but net income is
down in the year 2016. Selling and administrative cost expenses have risen for the year 2016,
which is logical, given the loss of sales. To further explain it, we create a common size analysis
and perform a vertical analysis. The researcher divide the given number by the company's sales
for that year. By doing this, we build a comparative income statement that shows each account
as a percentage of the sales for that year. We saw that sales are came from their canteen /
consumer.
 MUNTINLUPA NATIONAL HIGH SCHOOL INC.
Muntinlupa National High School, NBP Reservation, Muntinlupa City
For the Years Ended December 31
 STATEMENT OF CHANGES IN EQUITY
For the Years Ended December 31
Notes 2017 2016 2015
MEMBERS' EQUITY
Authorized Capital - 100,000 shares at
P100 at P100.00 par value =
Php10,000,000.00
Paid-up, January 01 3,658,470.69 465,000.00 465,000.00
Deposit for Capital Subscription 0 3,193,470.69 2,748,816.89
Addition 252177.31
Balance December 31 3,910,648.00 3,658,470.69 3,213,816.89

STATUTORY FUNDS 2
Reserve Fund
Balance January 01
Provisions 193,129.53 152,951.74 191,652.07
Deductions 51,227.20 40,177.79 61,299.67
Balance December 31 100,000.00
Balance, December 31 244,356.73 193,129.53 152,951.74
Coop Education and Training Fund
Balance January 01 17,628.44 32,171.69 55,793.86
Provision 25,613.60 20,088.89 30,648.83
-
Deductions -26,822.07 -34,632.14
54,271.00
Balance, December 31 16,419.97 17,628.44 32,171.69
Optional Fund
Balance January 01 28,124.45 42,909.76 74,676.27
Provision 35,859.04 28,124.45 42,909.76
-
Deductions -28,124.45 -42,909.76
74,676.27
Balance, December 31 35,859.04 28,124.45 42,909.76
Community Development Fund
Balance January 01 12,644.64 27,320.30 67,064.40
Provision 15,368.16 12,053.34 18,389.90
-
Deductions -11,909.00 -26,729.00
58,134.00
Balance, December 31 16,103.80 12,644.64 27,320.30
TOTAL STATUTORY FUND 312,739.54 251,527.06 255,353.49
Donations/Grants 70,000.00 70,000.00 70,000.00
TOTAL EQUITY 4,293,387.54 3,979,997.75 3,539,170.38
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS

As of and for the years ended December 31, 2017 ,2016 and 2015
1. ORGANIZATION

The MUNTINLUPA NATIONAL HIGH SCHOOL MULTI-PURPOSE COOPERATIVE is a primary multi-

purpose cooperative with the purpose of encouraging thrift and savings among its members, to
create funds in order to grant loans to members for productive and providential purposes, to provide
goods and services, to engage in market management and finance services and to promote the
cooperative as a way of life for improving social, economic well-being of the people.The cooperative
was created under Republic Act (R.A.) 6938. It was registered with Cooperative Development
Authority on November 5, 1996 under certificate of registration No. H62-1308 under the new law,
R.A. 9520, more popularly known as the Philippine Cooperative Code of 2008, all cooperatives were
required to re-register. Thus, the new registration No. is 9520-16003318 and CIN No. 0105160341
dated December 1, 2009.

The principal place business of the cooperative is located at Muntinlupa National High School,
NBP Reservation, Poblacion, Muntinlupa City.

The common bond of membership of the cooperative is institutional and field of membership
shall be open to all persons who are of legal age, with capacity to contract or heads of the families
and are employees of Muntinlupa National High School.

The membership of the cooperative as of December 31, 2017 and 2016 are 189 and 186
respectively.

The accompanying financial statements was approved and authorized for issuance by the board
of directors on February 15, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES

To facilitate the understanding of the financial statements, the more significant accounting
policies and practices of the Cooperative are summarized as follows:

Basis of preparation/Revised Philippine Accounting Standards

The Financial Statements have been prepared in conformity with financial Reporting Standards
applicable to Philippine Cooperatives.

PAS 1 – Presentation of Financial Statements

PAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors

PAS 10 – Events after the reporting period

PAS 16 – Property Plant and Equipment

PAS 19 – Employees Benefits

PAS 7 – Cash Flow Statement

PAS 18 – Revenue

PAS 40 – Investment Property

PAS 1 – Presentation of Financial Statements

The standard provides framework of financial statements presentation. It requires more specific
balance sheet line items (tax liabilities, provision among others), financial statements must be
comparative and has a number of new disclosure requirements. The standard also requires
presentation of comparative information.

PAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors

The standard is applied in selecting and applying accounting policies and accounting for changes in
accounting estimates and correction of prior years errors.

PAS 10 – Events after the Reporting Period

The standard is applied in the accounting for, and disclosure of events after reporting date.

PAS 16 – Property, Plant and Equipment

The standard provides additional guidance and clarification on recognition and measurement of
property, plant and equipment; requires capitalization of the cost of assets dismantling, removal or
restorations; and requires measurement of an item of property and equipment acquired in exchange
for a non-monetary asset or a combination of monetary and non-monetary assets at fair value, unless
the exchange transaction lacks commercial substance. The standard also provides guidelines for
recognition (e.g. disposal).

PAS 19 – Employees Benefits

The standard prescribes the accounting and disclosure for employee benefits, including short-term
benefits (wages, annual leave, sick leave, annual profit sharing, bonuses, and non-monetary benefits);
pensions, post-employment life insurance and medical benefits, other long-term employee benefits
(long service leave, disability, deferred compensation, long-term profit sharing and bonuses and
equity compensation).

PAS 7 – Cash Flow Statements

The cooperative provides information about the historical changes in cash equivalents by means of
cash flow statement, which classifies cash flows during the period from operation, investing and
financing activities.

PAS 40 – Investment Property

The standard prescribes the accounting treatment and disclosure requirements for Investment
Property.

Management Use of Judgments and Estimates

The financial statements are prepared in conformity with the above-mentioned accounting
principles accepted in the Philippines which requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying notes.
Those estimates and assumptions used in the financial statements are based on management’s
evaluation of relevant facts and circumstances as of date of the financial statements. Actual results
could differ from such estimates.

The key estimates/assumptions concerning the future that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue Recognition

Revenue is recognized when it is probable that the economic benefits associated with the transaction
will flow to the Cooperative and the amount of revenue can be measured reliably. Revenue from
transactions of the Cooperative is recognized on accrual basis.

Allocation and Distribution of Net Surplus

The Cooperative follows the regulated percentage to provide reserves for anticipated losses and
expenses before distributing the net surplus to its members. These reserves are referred to in Art. 86
of the Philippine Cooperative Code of 2008 is termed as Statutory Funds for purposes of accounting
and financial statement presentation.

The following items in the financial statements and their equivalent percentage have been presented
as Statutory Funds:

a) Reserve Fund is equivalent to 10% of net surplus that is set aside for the stability of the
cooperative.

b) Cooperative Education and Training Fund is equivalent to 10% of net surplus 5% is set aside for the
cooperative own education and training activities and the remaining 5% is set aside to be remitted to
APEX organization which the cooperative is affiliated as mandated by the Cooperative Code of the
Philippines.

c) Optional Fund is equivalent 7% of net surplus that is set aside for the future development as the
cooperative expands its operations.

d) Community Development Fund is equivalent to 3% of net surplus set aside for the use of its
members and the community where the cooperative operates.

Interest on Share Capital and Patronage Refund is the portion of net surplus to be given back to
members of the cooperative equivalent to 70% of net surplus.

Cash and Cash Equivalents

This account consists of Cash on Hand and Cash in Bank.

Financial Assets
Loans Receivable

Loan Receivable are stated on its outstanding balances.

Accounts Receivable

Accounts Receivable are trade receivable and are valued at their original amounts.

Inventories

Inventories are valued at cost and net realizable value.

Property and Equipment

Property and Equipment are carried at cost less accumulated depreciation and amortization.

Depreciation and amortization are computed using the straight line method over the estimated
useful lives of the assets as follows:

Furniture, Fixtures & Equipment 5 Years

Canteen Building 10 Years

Canteen Improvement – to be applied to future

Allocation on Optional Fund

The useful life and depreciation and amortization method are reviewed periodically to ensure that
the period and method of depreciation and amortization are consistent with the expected pattern of
economic benefits from items of property and equipment.

Financial Liabilities
Revenue Recognition

Service charges are recognized upon release of loans, interest income is recognized only upon
payment.

Income Tax

Cooperatives are exempt from Income Tax and other duties subject to certain conditions.

Subsequent Events

Post year-end events that provide additional information about the cooperative’s position at the
reporting date (adjusting events) are reflected in the financial statements. Post year-end events that
are not adjusting events are disclosed in the notes when material.

3. CASH AND CASH EQUIVALENT

This account consists of the following:
YEAR
PARTICULARS 2017 2016 2015
Cash on Hand
35,651.00 26,558.00 13,915.00
Cash in Bank-Banco de Oro
156,690.28 311,027.85 876,136.53
Cash in Bank-Land bank of the Philippines
619,874.85 515,518.35 -
Cash in Bank-Philippine National Bank
160,997.42 37,765.70 -
Revolving Fund
- - 50,000.00
Petty Cash Fund
- - 10,000.00
TOTAL CASH AND CASH
EQUIVALENTS 973,213.55 890,869.90 950,051.53

4. LOANS RECEIVABLE
This account is composed of:
 YEAR
2017 2016 2015
Current
2,170,193.91 1,546,772.04 1,696,478.79
Past Due -
- 60,212.00
Total
2,170,193.91 1,606,984.04 1,696,478.79
Less: Unearned Income
96,948.75 108,013.24 112,348.00
Allowance for Probable Losses -
24,000.00 12,000.00
Net Loans Receivable
2,049,245.16 1,486,970.80 1,584,130.79

5 ACCOUNTS RECEIVABLES

This account is composed of: YEAR

2017 2016 2015
Accounts Receivable - Trade
Current
271,146.72 345,635.23 123,428.00
Past Due
- 92,851.00 80,458.00
Less: Allowance for Probable Losses -
23,600.00 11,800.00
Net Accounts Receivable
247,546.72 426,686.23 203,886.00

6 INSTALMENT RECEIVABLES
YEAR
2017 2016 2015
Current -
90,126.00 98,200.00
Unrealized Gross Margin -
10,815.12 11,536.00
Net Installment Receivables
79,310.88 86,664.00 -

7 PROPERTY AND EQUIPMENT

YEAR
 2017 2016 2015
Furnitures, Fixtures and Equipment
488,015.60 398,408.60 382,408.60
Additional
47,509.13 89,607.00 46,000.00
-
Sold 2 units computer
30,000.00
Total
535,524.73 488,015.60 398,408.60
- - -
Less: Accumulated Depreciation
320,690.45 274,300.21 253,525.21
Net Book Value, December 31
214,834.28 213,715.39 144,883.39

Canteen Building
737,659.75 737,659.75 737,659.75
- - -
Less: Accumulated Depreciation
245,888.63 172,123.63 98,358.63

491,771.12 565,536.12 639,301.12

Canteen Improvements
806,268.93 603,917.82 588,917.82
Additional for the year
141,121.00 202,351.11 15,000.00
Total
947,389.93 806,268.93 603,917.82
Charge to Optional Fund -465,468.75 -437,344.30 -408,204.04
Net Book Value, December 31
481,921.18 368,924.63 195,713.78
TOTAL PROPERTY & EQUIPMENT
1,188,526.58 1,148,176.14 979,898.29

8 ACCOUNTS AND OTHER PAYABLES

YEAR
2017 2016 2015
Accounts Payable - Trade
34,192.90 5,789.00 112,273.29

9 ACCRUED ESPENSES
Insurance Payable -1,779.44 38.16 -481.40
SSS, Philhealth Contribution Payable -2,708.80 0.00
-4,488.24 38.16 -481.40

10 OTHER CURRENT LIABILITIES

Interest on Share Capital Payable
251,013.28 196,871.16 300,369.08
 Patronage Refund Payable
107,577.12 84,373.36 128,729.61
Retirement Fund Payable -
27,980.00 -
Due to Union /Federation (CETF)
43,056.64 23,443.04 38,354.15
TOTAL OTHER CURRENT LIABILITIES
429,627.04 304,687.56 467,452.84

11 EXPENSES
This account is composed of: YEAR
2017 2016 2015
Selling and Administrative Cost:
Salaries and Wages & 13th month pay
116,321.90 111,595.35 112,098.80
Staff Benefits
- 2,403.30 2,749.40
Officer's Honorarium and Allowances
121,590.00 96,780.00 65,616.00
Officer's Incentives
45,000.00 89,217.60 47,268.00
Per Diem
73,341.39 68,398.63 36,738.00
Office Supplies
5,533.60 4,257.70 8,846.25
Power, Light and Water
16,694.20 15,923.64 16,599.85
Travel and Transportation
6,094.40 4,669.20 4,203.95
Insurance
5,513.69 5,513.69 5,463.70
Repairs and Maintenance
14,815.00 10,509.00 11,400.00
Taxes & Licenses
8,932.00 2,116.75 3,186.75
Communication Expenses
10,557.50 12,411.95 17,077.24
Representation
34,092.45 9,965.30 9,974.00
General Assembly Meeting
- 64,599.10 23,638.16
Meetings and Conferences
28,759.88 31,536.84 22,120.47
Training/Seminars -
- 34,632.14
Notarial Fee -
1,250.00 300.00
Christmas Expenses
5,404.00 17,565.50 414.00
Photocopies
500.00 2,500.00 135.00
Professional Fee
10,000.00 15,000.00 15,000.00
Legal Fee
 1,000.00 49,059.00 2,000.00

Donations
10,900.00 1,464.00 7,750.00
Bank Charges
3,500.00 -
Community Service
1,077.00 -
Medical Expenses
- 2,500.00
Miscellaneous Expense
17,629.12 15,709.46 16,602.13
Provision for Probable Losses
23,800.00 23,800.00
Depreciation and Amortization
46,390.24 49,915.26 36,299.45
TOTAL SELLING AND ADMINISTRATIVE
COSTS 608,696.37 742,343.41 465,181.15

SCHEDULE OF TAXES AND LICENSES ARE AS

12 FOLLOWS:
YEAR
2017 2016 2015
CDA Re-registration fee
Business Permit
1,036.75 1,036.75 1,036.75
Barangay Clearance
50.00 50.00 50.00
Water Laboratory Test
1,250.00 - 1,600.00
CDA Certificate of Compliance/Penalty
6,095.25 300.00
BIR-Certified True Copy of ITR, FS and
COR - 230.00 -
CTC
500.00 500.00 500.00
TOTAL
8,932.00 2,116.75 3,186.75

MUNTINLUPA NATIONAL HIGH SCHOOL MULTI-PURPOSE COOPERATIVE

 Year 2017 2016 2015

Current Assets
3,564,191.66 3,142,336.33 3,138,516.82
Non-Current Assets
1,188,526.58 1,148,176.14 979,898.29
Total Assets
4,752,718.24 4,290,512.47 4,118,415.11
Current Liabilities
459,330.70 310,514.72 579,244.73
Non-Current Liabilities
- - -
Total Liabilities
459,330.70 310,514.72 579,244.73
Paid-up Share Capital
3,910,648.00 465,000.00 465,000.00
Deposit for Share Capital
Subscription - 3,193,470.69 2,748,816.89
Total Paid-up Capital
3,910,648.00 3,658,470.69 3,213,816.89
Donations/Grants
70,000.00 70,000.00 70,000.00
Statutory Funds
312,739.24 251,527.06 255,353.49
Total Equity
4,293,387.24 3,979,997.75 3,539,170.38
Total Liabilities and Equity
4,752,717.94 4,290,512.47 4,118,415.11

Sales
8,333,710.44 8,540,717.65 6,899,241.40
Cost of Sales
5,797,953.29 6,123,675.19 4,613,855.36

2,535,757.15 2,417,042.46 2,285,386.04

Less: School Share
98,825.73 55,538.13 22,106.31
Gross Profit from Sales
2,436,931.42 2,361,504.33 2,263,279.73
Expenses
1,561,658.20 1,456,930.35 1,405,424.57
Net Surplus
875,273.22 904,573.98 857,855.16

Distribution of Net Surplus

Reserve Fund (10%)
51,227.20 40,177.79 61,299.67
Education and Training Fund due to
CETF (Apex) (5%) 25,613.60 20,088.89 30,649.83
 Local (5%)
25,613.60 20,088.89 30,648.83
Optional Fund (7%)
35,859.04 28,124.45 42,909.76
Community Development Fund
(3%) 15,368.16 12,053.34 18,389.90
Amount available for interest on
share capital (49%) and patronage
358,590.40 281,244.52 429,098.69
refund (21%)
Net Surplus
512,272.00 401,777.88 612,996.68

Current Ratio 7.76 10.12 5.42

Working Capital
3,104,860.96 2,831,821.61 2,559,272.09
Return on Assets
0.11 0.10 0.30
Debt Ratio
0.10 0.07 0.14
Debt to total equity
0.11 0.08 0.16

Current Ratio

10.12

7.76

5.42

2017 2016 2015

Current ratio expresses the extent to which the current liabilities of a business are covered by its current assets . A
current ratio of 2 would mean that current assets are sufficient to cover for twice the amount of a company's short
term liabilities. In this graph the researcher find out that Muntinlupa National High School has a capability to pay
off their liabilities because it’s all its all greater than 2 and it shows that the cooperative has perform well as year
pass by.
 Working Capital

3,104,860.96
2,831,821.61
2,559,272.09

2017 2016 2015

Working capital represents the cash and other current assets, after covering liabilities, that provide a company
with the liquidity to invest in activities associated with operating and growing a business. As shown in graph,
Muntinlupa National High School Multi-Purpose Cooperative has risen every year that simply determine that grow
quickly and can able to survive in the long-run.

Return on Assets

0.30

0.11
0.10

Debt to total equity

0.16

0.11
0.08

2017 2016 2015

 Debt Ratio

0.14

0.10
0.07

2017 2016 2015

A higher ratio or value is commonly sought-after by most companies, as this usually

means the business is performing well by generating revenues, profits, and cash
flow. The ratios are most useful when they are analyzed in comparison to similar
companies or compared to previous periods. The most commonly used profitability
ratios are examined below.

CONCLUSIONS

Cooperatives are not just to provide for loans and patronage refund but to see to it that members’ social
needs are also achieved. In the light of the study that was made, the following conclusions were formulated:
Be proposed to improve and to maintain the efficient and effective operation of multi-purpose cooperatives
Muntinlupa National High School. The researcher used the audited financial statement for the last three year
as the main source of data. By the cooperatives to new and existing members as part of the information drive
to educate, to campaign, to attract potential members, and to retain existing members of the cooperative;
regular internal and external audits were being conducted to check the actuality of the transactions of the
cooperative particularly on its financial resources. The study also noted that cooperatives are lack in the
 marketing control system to promote their cooperatives. It was also revealed in the study that control
measures on credit operation and canteen, marketing except on the allocation of approved budget for sales
promotions and marketing and the feedback mechanism to determine the satisfaction level of customers, and
finance were strong. Based on the findings of the study, the Muntinlupa National High School Multi-purpose
Cooperatives generally adopt strong internal control systems relative to organization and human resources,
production/operations, marketing, and finance.

RECOMMENDATION

Based on foregoing findings and conclusions drawn from the study the researchers presented the
following recommendation: 1) Muntinlupa National High School Multi-purpose Cooperatives should always follow,
implement, and monitor the internal control system on the identified control points. 2) Muntinlupa National High
School Multi-purpose Cooperatives should continue to be guided by the annual program and development, and
strategic plan in consonance with the identified vision, mission, goals, and objectives of the organization. 3)
Regular review of the policies and procedures in the different, control points should be done considering the
trends, innovations, and regulatory policies affecting the cooperative industry. 4) The Muntinlupa National High
School Multi-purpose Cooperatives should come up with institutionalized policies and guidelines in giving
recognition and rewards to officers, management staff, and members. 5) Muntinlupa National High School Multi-
purpose Cooperatives should appropriate and approve budget for sales promotion and marketing whenever
necessary. 6) Muntinlupa National High School Multi-purpose Cooperatives should institutionalize a feedback
mechanism to assess the level of satisfaction of customers. 8) A related study on the management of internal
control system of cooperatives should be conducted to the non-operating cooperatives to fairly compare and
determine the differences in the implementation and its impact on the internal control system adopted by
cooperatives.

REFERENCES

https://accounting-simplified.com/financial/ratio-analysis/current.html

http://www.businessdictionary.com/definition/cooperative.html

http://www.cda.gov.ph/resources/issuances/implementing-rules-and-regulations/rules-and-regulations-
implementing-certain-provisions-of-ra-9520

https://www.nap.edu/read/10836/chapter/11

https://cleartax.in/s/profitability-ratio
https://www.scribd.com/doc/121608915/Thesis-Cooperative

http://www.eajournals.org/journals/international-journal-of-community-and-cooperative-studies-ijccs/vol-1issue-
1september-2014/study-financial-performance-multipurpose-cooperative-unions-tigrai-region-ethiopia/