BOD AND CEO’S REPORT

Year 2015 had been a good year for the Cooperative where we were able to deliver good
results. The Management had done its best to be responsive to the needs of the members
while ensuring the stability of the Cooperative.

The Cooperative’s manual had been revisited to conform with the standards and directives of
different governing bodies. Amendments and revisions worked as step boards in the fulfilment
of the Cooperatives’ vision, mission and objectives.

Overall, the Cooperative performed collectively with notable increases especially in revenues
and resources.

FINANCIAL CONDITION AND RESULTS OF OPERATION

The total number of Regular members increased from 4,113 to 4,860 or 747 new members for
the year 2015, Our Associate members also increased from 9,805 to 13,740 or 3,935 new
associate members. Total membership of our Cooperative is 18,600 for the year 2015.

The Cooperatives’ total assets posted an increase from Php404,594,840.49 in 2014 to

Php587,480,992.25 for 2015. The increase in our assets is funded by deposits, share capital, Net
Surplus and other sources of funds.

With the contributions of the old and new members, the Cooperative have a total share capital
amounting to Php142,568,551.84 or an increase of 37% from the Php104, 825,467.31 share
capital in 2014.

The Cooperative’s total deposits stood at Php 386,151,020.24. Deposit constitutes 65% of the
total Assets, an indication of the trust and confidence of members to the Cooperative to
manage their resources. Liquidity is 40% more than the liquidity requirement for cooperative of
15%. This means that the Cooperative can pay off maturing obligations anytime.

Loans Receivable posted an increase by Php23,068,837.56 from Php216,938,215.44 in 2014.

Loans Receivable constitute 55% of our total assets. For the year 2015, the cooperative was
able to release an amount of Php 265 million loans to 5,225 members. Delinquency is within
the Coop standards and manageable.

The Cooperative managed an increase of Php7,868,070.61 as net surplus, from

Php23,723,401.31 in 2014 to Php31,591,471.92 in 2015. The major contributor to the gross
surplus is our income from the financing activities which is 84% of the total gross surplus. While
income from allied services constitute 16%%. (Rentals, Western Union, Bills payments, Ticketing
etc.)
PROJECT IMPLEMENTED FOR 2015

With our goal to serve the members’ housing and lot needs, we were able to purchase a lot in
Bahong, Takian, La Trinidad, Benguet. Development is ongoing and to be offered to interested
members. Reservations however are being accepted.

HUMAN RESOURCE DEVELOPMENT

To be able to service the growing membership and resources of the Cooperative, our officers
and management staff attended 7 local and 1 International trainings on Cooperative
management to harness their learning in managing the cooperative affairs efficiently and
effectively.

The Board of Directors in their continuous pursuit to improve operations, passed and enacted
15 resolutions for the year 2015.

SOCIAL SERVICES

For our Social Services to members, an amount of Php1,810,510.90 was disbursed to 109
members for Hospital Assistance, while Php3,052,677.30 was also disbursed to 30 family
members for the Mutual Aide Assistance.

As part of our Social Responsibility to the community, the following were implemented:

1. Ten students were able to avail of our scholarship grant.

2. Donated 25 rolls of pressurized hose to the constituents of Barangay Lubas.
3. Accepted On the Job Traininees from CCDC, SLU colleges of Accountancy and BSU
college of Agri-Business.

The Cooperative is committed to continue its services at its best capacity to serve the needs of
the members.

We thank all our members, officers and staff for their continuing support, dedication and trust
towards the attainment of the Cooperative’s Vision- A Model State University-based
Cooperative.

Finally, we give thanks to God Almighty for his unending love that we are able give glory to His
name through the Cooperative’s services.

SGD. DAVID JOSEPH L. BOGNADON SGD. JANE T. ASIONG

Chairperson BOD Chief Executive Officer
GRAPHICAL PRESENTATION OF THE COOPERATIVE’S 3 YEARS
PERFORMANCE

Membership

Membership
5000

4000

3000

2000 Membership

1000

0
2013 2014 2015

Share Capital Contribution

(In Millions)

Share Capital
150

125

100

75
Share Capital
50

25

0
2013 2014 2015
 Assets/ Loans Receivable
(In Millions)

600
550
500
450
400
350
300 Total Assets
250 Loans Receivables
200
150
100
50
0
2013 2014 2015

Total deposit Liabilities

(In Millions)

total deposits
400

350

300

250

200
total deposits
150

100

50

0
2013 2014 2015
 NetIncome
(In Millions)

Net Income
40

35

30

25

20
Net Income
15

10

0
2013 2014 2015
 2016 Operational Budget
Benguet State University Multi-Purpose Cooperative (BSU-MPC)
2016 projected Financial Operation
2016 Budget
Revenues
Interest on Loans 45,000,000.00
Filing Fees/Service Fee 14,400,000.00
Membership Fees 100,000.00
Fines 5,000,000.00
Passbook Income 250,000.00
Income fr. Investment 4,000,000.00
Total Revenues 68,750,000.00
less: Financial Costs
Interest on Deposits 15,000,000.00
Interest on borrowings
other charges on borrowings
Provision for PLL
Total Financial Cost 15,000,000.00
Gross Revenues after financial cost 53,750,000.00
Less: Personnel Costs
Salaries & wages 3,078,000.00
Employees Benefits 256,500.00
SSS/EC/Philhealth 250,000.00
Retirement Benefit 256,500.00
Total Personnel Cost 3,841,000.00
Admin Cost
Office Supplies 400,000.00
Power, Light & Water 175,000.00
Trans & Travel 779,000.00
Repairs & maintenance 250,000.00
Communication Expense 103,600.00
Representation 120,000.00
Advertising/Promotional 75,000.00
General Assembly Expense 1,000,000.00
Periodicals 5,000.00
Social Services 50,000.00
Taxes & Licenses 30,000.00
Meetings & Conferences 2,161,875.00
Collection Expenses 750,000.00
Rent Expense 322,000.00
 Notarial Fee/professional 120,000.00
General Support Services 991,558.33
Miscellaneous Exp. 50,000.00
Officers' Honorarium 1,476,000.00
Insurance 100,000.00
members benefit 1,000,000.00
Provision for C G F 747,250.00
Depreciation & Amortization 4,500,000.00
Total Admin Cost 15,206,283.33
TOTAL Expenses 19,047,283.33
NET SURPLUS FOR THE YEAR 34,702,716.67
Add: income fr. Allied Services
Rent Income 5,700,000.00
Transport Income 75,000.00
Western Union Income 50,000.00
BENECO 75,000.00
LTWD & EFLY 75,000.00
Total Income fr. Allied 5,975,000.00
NET SURPLUS 40,677,716.67
 Projected Sources and Usage of Funds
2016
Cash Beginning Balance, 2015 179,521,057.00
Cas h Recei ved
Savi ngs Depos i t 320,000,000.00
Ti me Depos i t 130,000,000.00
Share Capi tal 50,000,000.00
Loan Col l ecti ons 300,000,000.00
Due to CETF 1,579,573.60
Educati on Fund-l ocal 1,579,573.60
Communi ty Devt. Fund 947,744.16
Coop Guarantee Fund 398,000.00
Mutal Ai d As s i s tance 1,500,000.00
Hos pi tal As s i s tance 2,000,000.00
Ins urance Payabl e 5,400,000.00
Members hi p Fees 100,000.00
Interes t on Loans 45,000,000.00
Fi l i ng Fee 14,400,000.00
Fi nes 5,000,000.00
Rent Depos i ts 50,000.00
Rent Income 5,700,000.00
Wes tern Uni on Sent Out 925,000.00
Wes tern Uni on Income 50,000.00
BENECO/LTWD/E FLY 150,000.00
Trans port 75,000.00
Pas s book Fee 250,000.00
Income fr. Inves tment 4,000,000.00
Total Cas h Recei ved 889,104,891.36
Total Cas h Handl ed 1,068,625,948.36
Les s Us es
Savi ngs Depos i t 260,114,643.02
Ti me Depos i t 75,000,000.00
Loans Rel eas es 360,000,000.00
Ins urance Payabl e 3,510,000.00
Accounts Payabl e 3,500,000.00
Educati on Fund-l ocal 1,551,600.00
Mutual Ai d As s i s tance 2,000,000.00
Hos pi tal As s i s tance 4,000,000.00
Due to CETF 1,050,000.00
Coop Guarantee Fund 398,000.00
Communi ty Devt. Fund 700,000.00
Interest on S/C & Pat. Refund 22,114,030.34
Bui l di ng (new) 5,500,000.00
Bui l di ng Improvement 2,000,000.00
Offi ce Equi pment 273,500.00
Furni ture & fi xtures 50,300.00
Property Investment 67,000,000.00
Investment 50,000,000.00
Western Uni on Pay Out 1,500,000.00
Interest on Deposi ts 15,000,000.00
Sal ari es & wages 3,078,000.00
Empl oyees Benefi ts 256,500.00
SSS/EC/Phi l heal th 250,000.00
Offi ce Suppl i es 256,500.00
Power, Li ght & Water 175,000.00
Trans & Travel 870,000.00
Repai rs & mai ntenance 250,000.00
Communi cati on Expense 100,000.00
Representati on 120,000.00
Adverti si ng/Promoti onal 75,000.00
General Assembl y Expense 1,000,000.00
Peri odi cal s 5,000.00
Soci al Servi ces 50,000.00
Taxes & Li censes 30,000.00
Meeti ngs & Conferences 2,161,875.00
Col l ecti on Expenses 750,000.00
Rent Expense 296,000.00
Notari al Fee 120,000.00
General Support Servi ces 991,558.33
Mi scel l aneous Exp. 50,000.00
honorari um 1,476,000.00
Insurance 100,000.00
members benefi t expense 1,000,000.00

Total Cash di sbursement 888,723,506.69

Cash Bal ance, end December, 2016 179,902,441.67

 ELECTION COMMITTEE REPORT
In view of the need to elect new set of officers for the BSUMPC, the Election Committee guided
by the provisions thereof in the BSU MPC Election Code and By Laws, carried out the election during the
General Assembly on February 27, 2014 at the BSU Closed Gymnasium.

To make this possible, the committee has initially undertaken several activities. To wit:

Determined the positions held by officers whose term of office expires on February
2015 ( 4 for Board of Directors, 1 for Election Committee and 1 for Audit Committee );
Posted the vacant positions and the schedule of filing for candidacy’
Screened the candidates in coordination with management;
Posted the names of qualified candidates;
Selected qualified election deputies; and,
Prepared for the conduct of the election.

The election of qualified officers commenced on February 27, 2014 in line with the General
Assembly. Underscoring the protocol, the activity started with the presentation of candidates which
was immediately followed by the opening of the polling centers and the casting of votes. Strictly, the
polling centers were closed at 3:00 PM; followed shortly by the canvassing of ballots.

In light of the above, results were as follows:

No. Name No. of Votes Rank

BOARD OF DIRECTORS (5)
1 BOGNADON, DAVID JOSEPH L. 877 3
2 CHUA, EDNA B. 905 2
3 DE LOS SANTOS, FELECIANO R. 799 5
4. KUDAN, SILVESTRE L. 1014 1
5. SOLIMEN, JULIA A. 835 4
AUDIT COMMITTEE (2)
1 BAYENG, ENGELBERT C. 511 3
2 BUGTONG, VIOLETA B. 426 4
3 KINNUD, RICHARD H. 588 1
4 RAPUSO, MARY JOY S. 572 2
ELECTION COMMITTEE (2)
1 BALIAG, JANE S. 934 2
2 DUGAT, VIRGINIA R. 936 1

Since there are four (4) vacant positions to complete the Board of Directors; David Joseph L.
Bognadon, Edna A. Chua, Feleciano R. De Los Santos, Silvestre L. Kudan, and Julia A. Solimen as verified
by the number of votes garnered, were declared winners. In a similar manner, Richard H. Kinnud, Mary
Joy S. Rapuso and Jane S. Baliag and Virginia R. Dugat were declared winners for the Audit and Election
Committee respectively.
 Two weeks after the election, during a meeting called for the purpose, all newly elected officers
of the BSUMPC took their oath of office, after having sworn to office, the members of the election
committee met to select among themselves as Chair, Vice Chair, and a Secretary.

During the year, the members of the Election Committee attended the Planning Workshop of
the BSUMPC and Series of Seminars for Officers of Cooperatives.

With regard to the 2015 Election of Officers, the Committee determined the following positions
vacant as the term of the incumbent will expire by February 2015: (4) Board of Directors; one (1)
member of the Audit Committee; and one (1) member of the Election Committee. In preparation, the
Election Committee posted the vacant position and the schedule for filing of candidacy.

4 Board of Directors
1 Audit Committee
1 Election Committee

Prepared by:

Sgd. VIRGINIA R. DUGAT Sgd. JANE S. BALIAG Sgd. MANOLITA N. ALVARO

Secretary Vice Chair Chair
 AUDIT COMMITTEE REPORT

The audit work has covered financial, management, and social aspects of the
Cooperatives. Financial audit covered the evaluation of financial activities of the cooperative,
management audit, the monitoring of policies and processes relative to the operation of the
cooperative and social audit, assessment of the social impact of the cooperative to its
members, the community and the environment.
The Committee has brought to the attention of Management and the Board of Directors
(BOD) audit observations which we believe contribute to the betterment of the Cooperative.
The following were the highlights:
Financial On the preparation and fair presentation of the financial condition, results of operation
and flow of funds, the Committee recognizes that the responsibility rests upon
Management. The Committee’s part was to make certain there is reasonable
assurance that accounting policies were followed and that informed judgement has
been used by Management in the preparation and presentation of the cooperative
financial affairs. In the overall, the audit work reveals there is such an assurance.

The Audit Committee regularly reviewed the Interim Financial Statements and has
conferred with management on several matters that needed some discussion. One of
which is on the merging of the Land and Building accounts on the Statement of
Financial Condition. The Committee recommended that the accounts be broken down
into two – Land and then Buildings, and that appropriate adjustments be made on the
recorded accumulated depreciation. The recommendation was partly implemented as
the two accounts were already presented separately. Other observations and
recommendations were left to the discretion of Management and BOD.

The Audit Committee noted that there is a functional External Audit done by a licensed
and CDA-accredited auditor. This raises the credibility of the coop’s financial
presentation.
Operations The Committee brought to the attention of the BOD at least two issues that need to be
and addressed for the betterment of Management and Cooperative operations. One is on
Management the approval of loans. We noted that the Cooperative has that good practice of adopting
Audit different levels of approval depending on the amount of loan. It is believed that such
levels of approval contribute to efficiency in the delivery of service as for instance, a
member availing of lower amount of loan can easily obtain the loan without passing
through different levels.

Aconcern raised by the Committee is on personnel matters. This includes

completeness of Personnel Records, Policies and Procedures in hiring, and the
vacancies which were not filled out. Management has acknowledged the report and
assurance was made improvements will be made on this aspects. It was also noted
that a revised “Personnel Policies” is being worked out at the level of the Board of
Directors.
Social Audit A survey has been conducted to find out sentiments of members regarding the services
of the Cooperative. The result revealed that members generally find it easy to air their
opinions, ideas and feedback to the Cooperative. Members are generally satisfied with
the Cooperative services. And, members generally feel a positive impact of the
cooperative to their income, livelihood, and assets. This signals a healthy relationship
between Management and the Cooperative members. Management and cooperative
staff are commended for sustaining efforts for maintaining member satisfaction.
 The BOD too has acknowledged specific recommendation by members gathered during
the survey and expressed assurance that suggestions shall be acted upon.

All in all, 2015 still has been a good year for the Cooperative. Congratulations to
all. Thank you.
The Audit Committee:

(SGD) MARY JOY S. RAPUSO

Member

(SGD) RICHARD H. KINNUD

Member

(SGD) GERRY ANNE W. CALABIS

Chairperson
 EDUCATION COMMITTEE REPORT

ACCOMPLISHMENT REPORT CY 2015

DATE ACTIVITIES ACCOMPLISHMENT VENUE
January 10, 2015 Conducted 72 participants BSU Elementary
February 14, 2015 PMES 130 participants Canteen
March 14, 2015 January- 144 participants
April 14, 2015 December 68 participants
May 9, 2015 2015 118 participants
June 13, 2015 55 participants
July 11, 2015 85 participants
August 8, 2015 92 participants
September 12, 2015 131 participants
October 10, 2015 100 participants
November 14, 2015 98 participants
December 12, 2015 97 participants
TOTAL PARTICIPANTS 1,190
March 31, 2015 Conducted Basic Coop Chrysanthemum
Seminar Management and Hall, BSU
Governance
-Management
-BOD
-Officers
April 7, 2015 Meeting Agenda: FITS Center,
1. Changes in the BSU
conduct of the pre-
membership
seminar
a. Focus only in the
history of BSUMPC
b. Advantages of
joining
cooperativism and
reasons for
attending PMES
c. Management and
operation of the
BSU MPC
2. Financial
Assistance/Scholarshi
p Grant Policies
a. The number of
grantees shall be
increased from 6 to
10 include students
enrolled in other
 schools aside from
BSU
b. The grant shall also
be increased to
fifteen pesos only
(PhP 15,000.00)
per student/
semester regardless
of where they are
enrolled in
●Average grade
should be 2.5 or
80%
●3rd year college
● Parents should be a
member
●Document
requirement shall
apply

3.Social Audit and the

Education Committee
● The continuing
education is part of
the corporate social
responsibility of the
cooperative and
such activity is
lodged with the
education
committee.
●One activity is to
conduct trainings for
interested future
officers in
coordination with the
management

July 29-31, 2015 Training Training of Trainers Piña Collina,

for Education Tagaytay City
Committee
Attended by Mr.
Nardo Pastor and
Amelia Kimeu
- Travel report was
submitted
 4. Brochure on the
BSU MPC
● The brochure was
already prepared by
Ms. Kimeu.
Additional
information such as
the updated version
of the mission and
vision of the BSU
MPC shall be
included. It shall be
presented to the
BOD for critiquing
once it is completed
- The brochure was
already submitted
last August to
Director Julia
Solimen and a copy
to the Jane T.
Asiong, Manager
BSU MPC
October 14-18, International The following Bangkok,
2015 Educational members of Thailand
Field Tour Education Committee
joined the educational
tour to different
cooperatives and
other historical places
-Director Julia
Solimen
-Mr. Nardo Pastor
-Ms. Amelia Kimeu

Prepared and Submitted by:

SGD. JULIA A. SOLIMEN
BOD/Vice Chair, Education Committee
Members:
SGD. NARDO A. PASTOR
SGD. AMELIA M. KIMEU
SGD.GRACE B. QUIJANO
 CREDIT COMMITTEE REPORT

ACCOMPLISHMENT REPORT CY 2015

The CRECOM had two meetings to deliberate on loan applications and three special
meetings.
1.) First meeting was on April 24, 2015 at 12:00nn – the Committee went over the list of
loan applicants for the previous meeting (January 30, 2015) and there was a loan
release of 1.5 million. There were 10 loan applications deliberated and the meeting
was adjourned at 2:40pm.
2.) Second meeting on July 6, 2015 at 12:00nn – the agenda were the following:
a. Finalization of semi-annual report: Submitted to the Board Secretary
b. Formulation of CRECOM policies: Schedule of meetings is every 12:00nn
onwards with special meetings as the need arises and the use of Coop T-
shirt during meetings
c. Deliberation on loan applications – There were five applicants for loan
3.) First special meeting at Calajo Restaurant on July 2, 2015 (12:00nn) – Discussed
CRECOM report and plans for the BOD meeting
4.) Second special meeting at Calajo Restaurant on September 9, 2015 (12:00nn) –
Discussed on the proposal questionnaire for the monitoring of loans approved by the
CRECOM.
5.) Third special meeting at Inglay Restaurant on December 28, 2015 (12:00nn) –
Discussed and prepared the CRECOM accomplishment report for 2015 covering the
months of April to December 2015. The agenda were the following:
a. Submit the functions and responsibilities of the CRECOM based on the
seminar on Cooperative Good Governance Seminar
b. Prepared suggestions for the CRECOM
c. Prepared the accomplishment report for 2015

The CRECOM members attended the seminar on Cooperative Good

Governance held at the Chrysanthemum Hall R & R Bldng, BSU on June 27, 2015 and
the Annual Planning held at the PTA Resort, Bolasi, San Fabian, Pangasinan on
October 24-25, 2015.
Ester Fianza participated in the Cooperative Study Visit in Thailand on October
14-17, 2015 and the Regional Cooperative Month Celebration at Luna, Apayao on
October 27-28, 2015.
Ester Fianza and Samuel Poliden joined the BOD lunch at El Cielito Inn last
December 19, 2015.
Lastly, the CRECOM was very grateful to the BSU MPC for giving the chance to
work with the Cooperative.

(SGD) ESTER T. FIANZA (SGD) SAMUEL L. POLIDEN (SGD) ALLEN G. DANIS

Chairperson Secretary Member
 ETHICS COMMITTEE REPORT
ACCOMPLISHMENT REPORT CY 2015

ACCOMPLISHMENT REMARKS
Conducted a series of reviews of the Code of Ethics The group edited some of the
and Ethical Standards for BSUMPC together with sections/contents of the said code to
Director P. Banda-ay, and with Directors E. Chua best suit the Cooperative’s delivery
and M. Buliyat, respectively. of service to clients; proposed
refinements/amendments were
submitted to management.
Participated in a Joint Meeting with the Election Suggestions to the effect were
Committee and BOD representativeson May 22, for presented to the BOD.
the refinement of the BSUMPC Code of Conduct
and Ethical Standards particularly onItem 2.5
(Prohibition of Dual Membership).
Through the Committee’s initiative suggestion Two (2) suggestion boxes were
boxes were installed at the BSUMPC Main Office installed at the BSUMPC Main Office
The Committee conducted regular meetings to
discuss concerns; from the suggestion boxes
issues/concerns of members were addressed,
which include the following:
 Concern on the Coop’s operating hours  The Manager mentioned that
although the management staff
are reporting earlier than the
actual start of office hours,
required setting up/preparations
prevent them from operating
earlier. A “No Noon Break Policy”
may be considered in the future.

 Concern on slow service from some staff  Issue was brought to the
members Manager’s attention
 Discourteous staff members  Issue was brought to the
Manager’s concern and she
subsequently corrected and
reminded concerned staff
members to always be courteous
to clients.
The Committee subsequently reported to the BOD
the abovementioned comments from clients
together with its recommendation for the BSUMPC
personnel/staff, particularly those directly involved
with the clients to undergo "Customer Care"
reorientation training/seminar.
Attended trainings, seminars, and other activities  Basic Cooperative
Management and Governance
on June 27, 2015 at the
Chrysanthemum Hall of Benguet
State University.
 Annual Cooperative Planning
Workshop at San Fabian,
Pangasinan on Oct. 24-25, 2015
 Joint Committee and BOD
meetings

Prepared:
(SGD) DIEGO P. DUMAPIS
Committee Chairperson

(SGD) ANDREW K. DEL-ONG

Vice-Chairperson

(SGD) CAMEA P. AFADCHEW

Member/Secretary