21ST MBCC ANNUAL GENERAL ASSEMBLY

“Empowering members to lead the stability

of the Cooperative business and beyond”

Baguio City National High School
Gov. Pack Rd., Baguio City

March 11, 2018

21st MBCC ANNUAL GENERAL ASSEMBLY
Baguio City National High School
Gov. Pack Rd., Baguio City
March 11, 2018

I. REGISTRATION AND OPENING PROGRAM

A. REGISTRATION AND ELECTION
i. Registration – 6:30 AM to 9:00 AM
ii. Presentation of Candidates
iii. Announcement of Election
Rules and Guidelines
iv. Election and Casting of Votes – 7:00 AM to 11:30 AM

*PROGRAM WILL START UPON THE DETERMINATION OF QUORUM

v. Invocation
vi. National Anthem
vii. Cooperative Pledge
viii. Welcome Address
ix. Introduction to Guest Speaker
x. Guest Speaker Hon. Arthur L. Allad-iw
Chairperson , Committee on Employment, Livelihood,
Cooperative, Handicapped and Differently-Abled Persons
xi. Inspirational Message Atty. Franco G. Bawang Jr.
Regional Director, CDA-CAR
xii. Financial Talk Maria Fe Gerlie C. Mercado
Certified Financial Educator of Colorado USA (CFed)
Senior Marketing Director – International Marketing Group

II. BUSINESS PORTION

A. Call to Order
B. Proof of Due Notice
C. Roll Call and Declaration of Quorum
D. Consideration and Approval of Minutes of the 20th General Assembly
E. Answers to open questions in the 20th General Assembly
F. Approval of the following
i. Result of External Audit Report
ii. Budget for CY 2018
G. Presentation of Reports
H. Changes to be Presented to the General Assembly

III. ADJOURNMENT of the 21st GENERAL ASSEMBLY

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Contents
Minutes of the 20th General Assembly _______________________ 1
Chairman’s Report _____________________________________ 12
Manager’s Report ______________________________________ 15
Treasurer’s Report _____________________________________ 19
Proposed Budget for CY2018 _____________________________ 20
Secretary’s Report _____________________________________ 21
Audit Committee Report _________________________________ 24
Election Committee Report _______________________________ 26
Ethics Committee Report ________________________________ 28
Education Committee Report _____________________________ 29
Conciliation and Mediation Committee Report ________________ 30
Office and Administration Report __________________________ 31
Business Tie-up Report _________________________________ 32
Corporate Social Responsibility Report _____________________ 33
Audited Financial Statements _____________________________ 36
Notes to Financial Statements ____________________________ 50
MBCC Services _______________________________________ 62
Truth in Lending Act ____________________________________ 66
Organizational Structure _________________________________ 68

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 Minutes of the 20th General Assembly
Minutes of the 20th Gen er al Assembly

Held on March 12, 2017 at Moog Controls Corporation Covered Court

Emcee: Donnalyn Ascano and Marcus Enrico Valencia

Speaker: Mr. Rafael Gayaso CEO, NORLU-CEDEC

Part I:

Started accepting members for registration and election at 6:00 AM

At 8:00 AM, the Secretary announced the quorum.

Part II. PROGRAM PROPER

1. Invocation was led by Dir. Jerry Paras

2. National Anthem
3. MBCC COOP Pledge
4. COOP Anthem
5. Opening Remarks was delivered by Dir. Enrico Protacio
6. Secretary announced the quorum, 63% or a total of 638 members registered as of 8:00AM
7. Chairman Pauline Baba opened the General Assembly Meeting
8. Approval of the 19th General Assembly:
The minutes of the meeting for the 19th General Assembly was approved by Mr. Victoriano Buaquen and
seconded by Mr. Gilbert Awisen.
9. The speaker was introduced by Dir. Ryah Sarile
10. The Inspirational talk was delivered by Mr. Rafael Gayaso:
Mr. Gayaso thanked MBCC for inviting him as a speaker and congratulated MBCC for being financially viable
and becoming more visible in the Cooperative Sector.
He discussed about the Republic Act No. 9510 otherwise known as the “Credit Information System Act (CISA)”.
He presented the salient points of the CISA where he discussed the purpose, coverage, implementing agency, credit
data for submission, fines and penalties for non-submission of CISA information. He discussed the positive and negative
effects of the CISA to Cooperatives and shared the initiatives of NORLU CEDEC in order to address this new law.

Question and Answer Portion:

Mr. James Aquillo asked “How do you relate the secrecy law in CISA?”
Mr. Gayaso responded that “It’s same with the violations to their right of privacy”.
Mr. Jumel Baldonadi asked – “Is there a need of court order to open our information?”
Mr. Gayaso’s responded: “This is how I understood the presentation: RA9510 (CISA) have reiteratively called
out it’s applicability to Corporations, however, it required our Coops to submit the information of the members to
CIC. This conflicts with the provisions specified in RA9520 which also stated:” Autonomy and Independence -
Cooperatives are autonomous, self-help organizations controlled by their members”. With this, the worry of the

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members should be that their credit information and basic data therein might become accessible to and used by
Corporations or credit entities for their own interests”

Ms. Iris Bumalo asked – “Why should the members be concerned with the topic you presented? What is really
the issue?”
Mr. Gayaso responded: “As this case seems to be escalated to the Court of Appeals and it could take long, it is
very important to ensure to keep the members up to date as to the progress of the case”

Dir. Baba added that, “If the cooperatives will not comply, a penalty of Php 30,000 per day will be implemented.
There are costs involved in the implementation like set-up of equipment, hire new staff who will be in-charge of
updating the data in the CISA system. We’ll give update to members once the result is given by NORLU-
CEDEC.”

She also supplemented that after this General Assembly, the BODs will post the resolution on the bulletin board
with a duration of 5 days, as the Board would we need to know who among the member agrees or not and what
information will be given to NORLU and SEC.

11. Raffle drawn for 28 prizes by Ms. Consuelo Tominez.

12. Ms. Melissa Soriano introduced the external auditor.
13. Mr. Henson Eyeg presented his report to the General Assembly
Below are the highlights of Mr. Eyeg’s Report:
a. Net surplus decreased to 3% due to decrease on interest income
b. Total revenues decreased by 4%
c. Interest rate decreased by 4% from 14% to 10%
d. Expenses financing cost interest increased by Php 77,000.00 or 14%
e. Allocation of funds for 25%
f. Total asset increased by 13% or Php15M cash, investment increased by 5.7%, long term investment
increased by 4.5%, loans increased by 2%
g. Php259M asset, liability is Php68M (26%), 74% equity
h. Share capital increased by 11%
i. Total COOP indicators 99/100 due to no laboratory cooperative. (Include Laboratory Coop on long term
plan)
j. Total PESO Points is 86/100

Question and Answer Portion:

Mr. Nathaniel Calapardo asked about the current asset which is 16M as other funds and deposit which he also
asked last 2015 GA.
Manager Maribel Pasngadan responded that “these are cash in bank funded but the purpose is as statutory
fund. The cash will not be use as payment for expenses. It will only serve as statutory fund.”

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 Minutes of the 20th General Assembly
14. Ms. Melissa Soriano proposed that Mr. Henson Eyeg remains to be the auditor of the Financial Statement for
Calendar Year 2017. Mr. Richard Laguisma made a motion to which Mr. Rafael Garcia seconded.
15. Another batch of 20 prizes was drawn by Mr. John Rey Abellera

Reports for General Assembly

1. Education Committee report was presented by Dir. Enrico Protacio
A. Trainings and Seminar
i. Conducted Pre-Membership seminar to members and non-members
ii. Sponsored and supported various trainings and seminars attended by MBCC officers and staff
as part of development.
iii. Participated in different activities such as Conferences and Assemblies
B. Membership: paved way for approval of 57 new MBCC Members in 2016
C. Financial Expense: total expenditure of the Education Committee for the year 2016 was at Php
352,164.70 against budget of Php 439,804.53
D. Future State:
i. Continuation of mandatory training for cooperative officers pursuant to Article 44 of RA 9520
and Rule 7 of its Implementing Rules and Regulations.
ii. Completion of the following:
Pre Membership Education Seminar (PMES)
Livelihood trainings for Members
Membership Education Seminar (MES)
MBCC website.
Lakbay Aral for Members and Officers
Continuous Education for Officers and Members.
Calendar of Cooperative related training opportunities for 2017

2. BODs Development Plan was presented by Chairman Pauline Baba

Special Projects coming from Optional Fund:
a) Financial Assistance to members for their medical needs short term plan
- Proposed that this will come from 10% of the optional fund amounting to Php 785,647.58. No
guidelines presented.
b) Laboratory Cooperative
- Need fund for the research, allotted fund is Php 392,823.64
c) Remaining of Php 6,678,004.60 for Land, Building and Infrastructure.
Chairman asked if there are any questions for the proposed project.

Allotment of Php 2M on Equity Fund

Treasurer Jess Ilagan explained the reason on the request for allotting 2M on equity fund.

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 Minutes of the 20th General Assembly
Question and Answer Portion:
Ms. Mirasol Dapula – “How did you come up with the 10% proposal for financial assistance to member?”
Dir. Baba responded that “10% is an initial allocation considering our members count with a Php 1,000.00 each.
Still under review. This will increase or decrease next year depending on the budget.”

Mr. John Lapuz – “We already have fund but you don’t have the implementing procedure yet?”
Dir. Baba responded that, “this is not yet approved, it’s for GA’s approval. This amount is just an estimate and
assumptions”

Mr. Victoriano Buaquen – “What if a member has a catastrophic disease and he already exhausted benefits from
our service provider and still needs some financial assistance and will ask for the BODs financial support, will
that be coming from other special fund?”
Dir. Baba responded that, “This is what the BODs have done before. We released a Resolution on extending
financial assistance to members who are in a critical condition, however there has been a question raised about
the decision, so BODs suspended the assistance until further analysis. In line with this resolution, this Financial
Assistance is what the BODs are proposing.”

Ms. Novelyn Daya – “We need to see the guidelines and rules of Financial Assistance before we approve.”
Dir. Baba responded that, “BODs will create the guidelines and policy and will be released through a Resolution.
It will be approved after 7 days posting without raised questions.”

Mr. Jess Ilagan – “Same question on the 10%, what is the composition of the 5% allocation for Laboratory
Cooperative?”
Dir. Baba responded that, “Same process will be followed, BODs will create the guidelines and policy and will
be released through a Resolution. It will be approved after 7 days posting without raised questions.”

Mr. Richard Laguisma – “On the Php 6.6M for building and infrastructure, are we saving part of it yearly?”
Dir. Pauline Baba answered that “It’s allocated as mandated by law, it is fixed and depending on what comes
out of the computation, that is what we allocate. It is increasing every year as our funds are also increasing”.
Additional question by Mr. Richard Laguisma – “What is the status of the plan to put up a building?”
Dir. Pauline Baba responded that, “The plan was set aside, before we go with that we (BODs) would like to have
a firm plan that will be presented again to the General Assembly for approval.”

3. Community and Social Responsibility Report was presented by Dir. Christopher Estigoy
Below is the list of donations or financial support given by MBCC:
i. Financial support to Brookspoint Elementary School
ii. Financial support to Barangay Loakan Proper
iii. Financial support to Baguio Volleyball Team who represented the city in the Shakey’s Volleyball
League.

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MBCC participated in the Union of Cooperative of Baguio City Sports Fest.

Future plans for our Community Social Responsibility:

1. Donation of sports equipment to Mil-an National High School - Loakan Proper Barangay.
2. Livelihood projects for the 3 Barangays where our cooperative is located: Loakan Proper Brgy.,
Liwanag-Loakan Brgy. and Apugan Loakan Brgy. In this regard, the committee will meet with the
Barangay Captains to come up with proposal.
3. Sports participation for the members will also be continued [e.g. CUBC sport fest]
4. Other activities for our CSR will be addressed when need arises, e.g. Creek Clean-up Drive financing,
Sports Programs of Barangays, donations to calamity victims

4. Office and Administration report was presented by Dir. Ryah Claudette Sarile
The Office and Administration committee closely worked with the Manager and Staff in setting the direction and
improving the office operations.

For FY 2016, the O&A Objectives were as follows:

i. Financial Perspective
A. Eliminate cost on paper and printing of member's loan statement of account by providing loan passbook
for all member
i. Testing – Sept. 30, 2016
ii. Implementation – Jan. 1, 2017
B. Establish income generating tie-up with BENECO and BAWADI through bills payment
ii. Customer Perspective
A. Enhance capabilities of management personnel for efficient and effective delivery of quality service to
member
B. Complete performance appraisal of MBCC Staff by end of CY
iii. Internal Process Perspective
Strengthen Operations Management
i. Review policy on liquidation of cash advance
ii. Monthly report of collection vs. deposit
iii. Submit regular report to BOD every month
iv. Create a policy on mode of loan issuance (Cheque vs. ATM)
v. Create policy of record retention
vi. Establish operations metrics
vii. Implement subscription receivable certificate to members to address CDA Audit finding
viii. Comply with CISA (RA9510) requirements
ix. Complete MBCC HR Manual
iv. Learning and Growth Perspective
- Attend NATTCO E-Koop system familiarization training – As needed

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 Minutes of the 20th General Assembly
- Complete mandatory trainings
- Conduct financial literacy seminar to officers and members
v. Other Accomplishments:
a) Completed the policy on Confidentiality of Information.
b) Completed the Officer’s Performance Evaluation tool.
c) Initiated template for policy format
d) Established the process flow in the selection of appointive officers:
e) Conducted team building activity for the office staff, formed the MBCC Staff vision.

5. Ethics Committee Report was presented by Mr. Roger Bancilo

Below are the 7 action items Ethics Committee closed for CY2016.
i. Review existing MBCC Code of Ethics and identify what needs to be amended/revised in the code.
ii. Consolidate benchmarking documents from last year and complete the final draft revision of the
MBCC Code of Ethics.
iii. Present the final draft of the Revised Code of Governance and Ethical Standard to the Board for
evaluation, review and approval.
iv. Formulate a process flow chart/swim lane on cases involving ethical issues.
v. Develop process or checklist on how to monitor compliance to the Coop Code of Conduct and Ethical
Standards. (Internal process on Actual Case scenario)
vi. Finalize the Complaint Form.
vii. Revise the MBCC Code of Governance & Ethical Standards. (Art. 8, Sec. 1 - Sec. 3 of the Code).

Next Steps for FY2017

a. Benchmark with other coops on how they monitor compliance to their Coop Code of Conduct and
Ethical Standards.
b. Review of the MBCC Code
The MBCC Code needs an Implementing Rules and Guidelines as to the coverage of each offense
mentioned in Article 8, Section 1 to Section 3.
c. On Going Review on the monitoring tool (document) on the implementation of the MBCC Code of
Governance & Ethical Standards.
d. Implementing Rules and Guidelines of the MBCC Code.
Ongoing consolidation of reference materials for the Implementing Rules and Guidelines of the MBCC
Code specifically on the coverage of each offense mentioned in Article 8, Section 1 to 3.

6. Conciliation and Mediation Report was presented by Mr. Wilfredo Santiago

a) Con Med guidelines and implementing rules was submitted to BOD, now for final review.
b) Budgeting and committee budgeting activities was done November 29, 2016.
c) 3 delinquent members’ conciliation activities for closure.
d) 2 other incoming delinquent members for communication and process for conciliation.

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e) Trainings attended.
f) Summary CDA Quarterly reports, all submitted to Management office and was complied with.

7. Audit Committee Report presented by Ms. Melissa Soriano

Ms. Soriano discussed the general orientation of the Audit which is:
i. A system and independent examination to determine whether the organization’s activities and related
results comply with planned arrangements and whether these arrangements are implemented
effectively and are suitable to achieve objectives.
ii. It is conducted periodically.
iii. It should be documented for review purposes for future improvement.
iv. Conducted by competent persons not having direct responsibility of the areas being audited to ensure
total and complete objectivity.
v. Covers primarily both financial and management aspects.

Achievements for the year:

a. Audit Manual – Done
b. Awareness on the following:
i. Loan policies (Ex. Net pay, Loan attachments, capacity to pay and re-evaluation of Net pay)
ii. Cash Management
iii. Budget Preparation Timeline
iv. Audit work on not only Cash count
v. Financial literacy – Understanding Audit process and impact to operations by other officers
c. Regular Committee monthly meetings-Regular, Ad hoc or on the spot
d. CDA Audit Award 100% Compliance in coordination with Management.

Future State:
• Continuation of Audit processes and Strat Plans in 2017
• Completion of the following:
• Obtain final documented and updated policies
• Regular Review of DOSRI accounts
• Creation of an Annual Audit Program (similar to a metric reporting system)

Open Findings:
• BOD – 11 items since 2015
• BOD / Management – 49 items for 2016
• BOD and Audit Committee meeting – Clarification of roles

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 Minutes of the 20th General Assembly
Open Recommendation based on findings includes the following:
a) Creation of resolution on the (7) Seven days posting of resolutions in the MBCC bulletin board and be included
in the policy since then Chairman Palispis mentioned in the Special GA (Sept 2015) that this is not a written
policy. Reference : Risk Management
b) BOD to discuss and review the elimination of the loanable amount 2x, 3x and 4x the CBU of the member to
eliminate unsecured loans. Majority of other coops are not practicing this scheme. This is with emphasis on the
members' capacity to pay. Increase if margin from Php2500 to around Php 5000 take home pay. Reference :
Risk Management
c) Create Policy on the payment of Share Capital for Associate members in case of Cooperative Closure.
Reference RA9520 Chapter VII: Dissolution of Cooperatives.
d) Creation of Officers’ Performance matrix.
e) LRF vs Outside Provider

For General Assembly approval for Audit Committee:

1. Creation of performance based matrix for Audit members with results monitoring:
a) Reports generation based on findings, improvements and ideas to be submitted to the committee chair
b) At least 1 project per year = 2 projects per term

Question and Answer Portion:

Ms. Socorro Noble asked “What are the 11 open action items since 2015?”
Ms. Soriano answered that “5 out of 11 was discussed earlier while for the others are taken care of”

8. Investment Committee Report was presented by Mr. Jess Ilagan

CY2016 income from loans down by 6% from last year. The full impact of interest rate reduction from 14% to
10% effective mid of 2015 was felt this year. Following by reduced of loan releases from almost Php 400 Million down
to only Php Php 203 Million in 2016.
Total revenue is 4% lower than 2016 budget and 2015 actual revenue. Income from investments were up to 78%
while posted 56% higher than financing cost for member’s savings deposits.
Cash and other funds and investments, amount to Php 66,117,460.00 ending CY2016.
The increase on cash and investment s were visible to different backs. Also in 2016, MBCC started to expand exposure
to other investment vehicles for excess funds.
2016 represented a milestone in terms of cooperative’s cash position balance, closing the calendar year with
Php 66 Million. Back in 2014, cash and other deposits balance of Php 30 Million was 17% lower than the funds that
require readily available cash. But, over the last one and a half years, cash in banks, other funds and
deposits/investments has grown 121% due to consistent monthly cash allocation for savings liability funds, member’s
funds, and statutory funds, deposited to different banks and bank accounts. In CY2016, cooperative’s cash and
investments exceeded the funds by 38% for the first time in MBCC history.

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 Minutes of the 20th General Assembly
9. Treasurer’s Report was presented by Mr. Jess Ilagan
Mr. Ilagan presented the CY 2017 Budget and January – March 2018 interim budget for General Assembly’s
approval.
Below are the highlights of the budget.
Revenue
Total Revenues Php 20,569,240.00
Expenses
Interest Expense on Deposits Php 693,032.00
Total Administrative Cost Php 5,802,189.00
Total Expense Php 6,495,221.00
Net Surplus on Operations Php 14,074.020.00

Treasurer Ilagan also asked the GA to approve the Php 2M allotment of an equity fund for investment. It will be
used for a financial companies that could benefit the cooperative.
Question and Answer Portion:
Ms. Maria Lovella Nugo asked “if the Php 2M will be invested on one Financial Institution only?”
Treasurer Ilagan explained that “BODs will issue a resolution to what Financial Institution to be use, this is
after the review of the Treasurer and Manager with the approval of the BODs on the recommendation.”

After the question were answered, Treasurer Ilagan asked again for the approval of the allotment of Php 2M on
the equity fund. Ms. Maria Lovella Nguddo approved the proposal and seconded by Ms. K-Anne Cabacungan.

10. Manager’s Report presented by Ms. Maribel Pasngadan

Ms. Pasngadan reported the accomplishments made by operations team for CY2016.
1. Operations
a) Procedures Manual, the management created procedures manual that contains the step by step
procedures on the day to day transactions which serve as a guide to employees.
b) Internal control, strictly implemented internal control on the dual control in opening the vault, keeping of
records, approving, disbursing, recording and collection of cash and signing of disbursement vouchers.
c) Management propose pre audit and post audit of disbursements and drafter guidelines for the
implementation.
d) Account Balances
e) Taxes and licenses

2. Customer Care
3. Financial highlights
a) Funds, statutory and funds payable are funded.
b) Loans, other factor was no calamity loan release during 2016.
c) Revenues. Net surplus for 2016 was lower by Php 410,890.00 as compared in 2015.

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 Minutes of the 20th General Assembly
4. Action Plans for 2017 – Management
a) To provide loan passbooks to members.
b) To upgrade the current system to continuously provide quality service to all members.
c) To venture into other kinds of services that will add revenues to the cooperative.
d) To involve members to all cooperative activities and promotion programs.
e) To facilitate submissions of payments and reports to government agencies.
f) To standardized savings withdrawal form.
5. Awards
MBCC was awarded as best performing cooperatives in the city of Baguio for the year 2015-2016 as one of the
Century Cooperative. For the year 2016 an additional award was given to MBCC as to one of the cooperatives
who achieved 100 percent compliance to the CDA inspection requirements.

Dir. Baba presented the following item for approval of GA:

1. Amendment of MBCC By-Laws to correct the registered name of MBCC from “The Moog Baguio Credit Cooperative”
to “Moog Baguio Credit Cooperative”
Ms. Socorro Noble moved to approve this change, Mr. Jan Michael Dacapias seconded.

Dir. Protacio presented the following item for approval of GA:

Creation of website of MBCC with budget of approximately Php25,000 for set-up and yearly maintenance fee of
Php500.00
Ms. Florie May Pamaylaon moved to approve the creation of MBCC website and the proposed budget, seconded by
Mr. Melchris Santos.

Treasurer Jess Ilagan presented the CY 2017 budget for the months April – December 2017 and interim budget for CY
2018 covering January to March 2018.

Treasurer Jess explained that there is a correction in the report presented versus what was printed in the annual report
on the item under revenue: Income/Interest from Investment because of revisions after the printing of the annual report.

Question and Answer Portion:

Ms. Mary Ann Pingcas asked for verification on the 10% increase of the staff salaries and asked to show their
salaries for transparency. Treasurer Ilagan corrected that increase is 3%, to cover for inflation and merit and
showed the salary of the staff. Additional information given by Dir. Sarile that 1.5% is across the board increase,
1.5% is for merit, depending upon their performance.

Treasurer Jess explained that there is a correction with the report presented and what is printed in the annual
report on the item under expenses: Officer’s Honorarium because of positions that were not filled upon resignation
of officers

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Manager Pasngadan explained the item provision for probable losses.

Mr. Kirby Ang asked if the budget for website is included in the presented budget. Dir. Baba explained that budget
will be under CETF. Dir. Baba asked for approval from the GA. Kirby Ang moved that the proposed budget for
CY 2017 be approved, seconded by Mr. Mark Cyril Sim.

Treasurer Jess Ilagan presented the interim budget of 2018 for expenses on the period of January – March 2018.
He focused on the GA expense with the increase to Php1.9M. Dir. Baba explained that MBCC will celebrate the
20th anniversary by 2018. Additional cost of Php1,000 will be given as token. Other factors of the increase will be
provisions for increase in price due to inflation. Mr. Rodel Benan moved that the proposed interim budget for CY
2018 be approved, seconded by Ms. Maureen Subala.

Announcement of Election Winners by Mr. Marlon Gerola, Committee Chairman

Closed registration at 10:00, closed casting of votes at 11:30

Election Committee:
Paulo Marquez 719 votes

Audit Committee:
Gene Encarnacion 707 votes

Board of Directors:
Tamayo, Anna Fe 488 votes
Ilagan, Jess Israel 471 votes
Paras, Jerry 444 votes

Total number of members = 1,026; Voted = 890

Meeting adjourned at 12:38 PM

Prepared by: Angeline F. Songsong Approved by: Pauline Aimee Baba

Secretary BOD Chairperson

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 Chairman’s Report
Chair man ’s Rep ort

Dear fellow MBCC Officers, Members and Colleagues,

First of all, it is with great pleasure to acknowledge all our MBCC officers, employees and
members for their hard work, contribution and commitment in making our cooperative
successful once again.

I should say that this 2018 general assembly, we have plenty of reasons to celebrate.
“We will never
reach this far 20th Anniversary and Foundation
without your
support,
Yes, this 2018, we are celebrating our 20th foundation and anniversary as Moog Baguio
dedication,
Credit Cooperative. It started with 15 cooperators and Php 3,000,000 initial capital. Beyond
contribution and
expectation, and despite of all the crisis and challenges, our cooperative has proven its
love for our
stability, adaptability and credibility for two (2) decades inside and outside Moog premises.
cooperative”
Now with a total asset of over 270 million pesos and total member of more than 1,000 Moog
and former Moog employees, MBCC was recognized as one of the best cooperatives in
Baguio, CAR, and now, even in the National level.

In line with this celebration, I would like to pay tribute to those who started our cooperative,
especially to the cooperators, first batch of officers, employees and General Assembly
members who have been with our cooperative for the past 20 years. Your service, belief
and trust in our cooperative over these years have been exceptional.

And of course, to all MBCC members today, we will never reach this far without your
support, dedication, contribution and love for our cooperative.

With all my heart, Congratulations and Happy 20th Anniversary.

Recognition and Awards

As we celebrate our 20th anniversary and foundation, CY2017 has been another
remarkable year for our cooperative as we continue to be recognized and awarded in
Baguio as:
- Best Performing Cooperatives In the City of Baguio as one of the Century
Cooperatives (at least 100 Million Asset)
- Best Performing Cooperatives in the City of Baguio as one of the First Top 10
Cooperative to Comply with their Annual Report Requirements
- Best Performing Century Cooperative in the City of Baguio (Hall of Fame)

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 Chairman’s Report

These acclaimed recognitions would not be possible without the cooperation and teamwork within the cooperative.
Kudos to MBCC Management Team (Maribel, Adril, Ruth and Mac) who lead us to accomplish these recognitions
and awards.
2017 in Summary
Aside from the external recognition, I can say that CY2017 was a good year for our cooperative in terms of revenue
and profit growth. Even with the continuous impact of the reduced interest rate in 2015, gross revenue was still
up by 4% from last year, and even slightly higher compared to 2015. The increase was greatly influenced by the
3% up on interest from loans, and 32% increase on interest from investment vehicles like Retail Treasury Bills,
Money Markets and high yield time deposits.

On the other hand, expenses were up by 5% from previous year. This was mainly driven by the increase in
Financing Cost by 40% due to the consistent savings made by our members. This is good news though, despite
this increase, total spending posted for the year was still 4% lower than the budgeted expenses.

Note that during our calendar year, we have implemented strategies for revenue growth and members’
satisfaction. We increased the Contingency Loan from Php 20,000 to Php 50,000 payable in 12 months, from the
original 6 months, implemented the Php10,000 Christmas Loan. This drove the increase in loan receivables.
Additional services like business tie ups with BENECO (for electricity bills payment) and Chevron (for gasoline
allowance) were started; the medical assistance policy and guidelines for MBCC’s medical financial support to our
members was likewise released. Due to improved revenues and controlled expenses over the course of the year,
Net Surplus was up by 3% from last year and 4% favorable over our budget.

MBCC PLAN 2018 and Beyond

Although our outlook for 2018 will be directed by our performance in 2017, with a forecast increase of only 3% in
Revenue, we are optimistic that future plans from 2018 onwards will be more exciting and attractive to all our
members to invest in MBCC. Here are few of our 2018 and beyond plans.
- Increase the Members Benefits: Focus more on giving member’s benefits rather than on dividends.
- Expand the Business Tie Up: Our Goal is to be a “one stop shop” cooperative on all financial
products and services, and help members with small businesses to tie up with our Cooperative to market
their business.
- Launching of Laboratory Coop
- Full implementation of MBCC Website
- Development of Business Loan Policy
- Start planning to be a Multi-Purpose Cooperative
- Other development plans (Automation of Loan Application, having our own Building)

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Final Note
CY2017, same as our previous years, has represented a milestone in terms of
Cooperative’s financial performance, showing consistent increase in Assets, Revenue
“With the right
and Profit. We expect challenges like taxation for cooperative, mandatory compliance to
attitude, spirit of
trust, integrity and CISA, emerging investment competitors, etc, will come our way as we gear towards our

teamwork, we will future plans. With the right attitude, spirit of trust, integrity and teamwork, we will focus
be able to and invest our energies and talents in serving the General Assembly and building our
continue focus bright future together.
and invest our
energies and In CY2018, let’s stay on track as we continue our journey to 20 years and beyond.
talents in serving
the GA and
To God be all the Glory!
building our bright
future together
with our
Jess Israel L. Ilagan
cooperative”
Chairperson, 2017

14
 Manager’s Report
Manag er ’s Repo rt

Management objectives for the year 2017:

Strategy Management Objective Status

1. Provide new loan window for members Done
Financial
and increase interest income from loans
Perspective
and other fees.
2. Increase income from investments. Done

1. Provide loan passbook to members. Done

This will help members keep track their
Customer
loan balances.
Perspective
2. Involve members in cooperative Done
activities and promotion programs.

1. Upgrade the current system to

continuously provide quality service to Done
all members. This will facilitate technical
assistance in cases of critical situations.
2. Upgrade Internet/Change provider. In process
3. Standardize saving withdrawal form. Done
Internal Process
This will entail lower cost on the office
Perspective
supplies.
4. Facilitate submissions of payments and Done
reports to government agencies.
5. Coordinate with the officers on the Done
installation of the computer’s anti- virus
system.

15
 Manager’s Report
Financial Highlights

The net surplus increased despite the decreased in interest rate from 14% in 2015 to 10% in June 2015 up to
present. The increase was attributed to the increase in the interest on loans and interest income from
investments.

Cash in Bank, Investments, Other Funds and Deposits

December 31, 2017 December 31, 2016

Cash in Bank 66,297,057.12 38,850,985.81
Short Term Investment 6,743,414.01 6,446,776.64
Long-Term Investment 6,671,425.99 4,557,565.93
Other Funds and Deposits 14,192,340.40 16,206,131.36
Total 93,904,237.52 66,061,459.74

The cash in bank includes ordinary time deposits and cash being used in the operation. The short-term and long-
term investment are the statutory funds including the other funds and deposits. All are deposited to reputable
banks earning interest.

16
 Manager’s Report
Awards and Recognition

17
Manager’s Report

Maribel Pasngadan
Manager, MBCC

18
 Treasurer’s Report
Treasu rer ’s Rep ort

Objectives for the year 2017:

Strategy Objective Status

1. Ensure funds are available for the daily operations of the Done
Financial Cooperative.
Perspective
2. Monitor investments of excess funds are done timely and Done
efficient.

Internal Create a standard work for the Treasurer position to enable easy
Process transition for next officer. Done
Perspective

Jennifer Estrada
Treasurer, MBCC

19
 Proposed Budget for CY2018
Propo sed Budg et for C Y2018

MOOG BAGUIO CREDIT COOPERATIVE

Budgeted Statement of Operation for the CY 2018

% Inc
2018 BUDGET 2017 BUDGET 2017 ACTUAL Increase (Decrease) Remarks
(Dec)
REVENUE ITEMS
CREDIT OPERATION
INTEREST INCOME FROM LOANS 20,271,808.78 19,597,132.22 19,458,001.84 674,676.56 3%
SERVICE FEES 4,635.00 - 6,389.00 4,635.00 100%
FILING FEES 53,420.00 49,680.00 52,685.05 3,740.00 7%
FINES, PENALTIES AND SURCHARGES 51,525.22 54,998.49 86,924.62 (3,473.27) -7%
TOTAL INCOME FROM CREDIT OPERATION 20,381,389.00 19,701,810.71 19,604,000.51 679,578.29 3%

ADD: OTHER INCOME

Significant increase due to earnings done in 2017 from
INCOME/INTEREST FROM INVESTMENT 1,174,697.33 827,535.82 1,261,193.70 347,161.51 30%
our investments
Reduction due to no significant increase in Moog
MEMBERSHIP FEES 10,600.00 12,000.00 17,400.00 (1,400.00) -13%
employee last year
Increase due to our commissions from our
COMMISSION INCOME 17,894.40 - 23,218.19 17,894.40 100%
Gasoline/Grocery tie ups
MISCELLANEOUS INCOME 12,882.24 46,588.58 5,475.51 (33,706.34) -262%
TOTAL OTHER INCOME 1,216,073.96 886,124.40 1,307,287.40 329,949.56 27%

TOTAL GROSS REVENUES 21,597,462.97 20,587,935.11 20,911,287.91 1,009,527.86 5%

LESS: EXPENSES
FINANCING COST
Under budgeted last year, correcting this year to align
INTEREST EXPENSE ON DEPOSITS 994,314.39 693,327.29 859,289.00 300,987.10 30% with projected increase of members saving in our
cooperative
OTHER FINANCING CHARGES - - -
TOTAL FINANCING COST 994,314.39 693,327.29 859,289.00 300,987.10 30%

ADMINISTRATIVE COSTS
SALARIES AND WAGES 1,312,309.55 1,235,585.34 1,221,546.98 76,724.21 6% Annual increase of our employees
EMPLOYEES BENEFITS 356,738.48 259,284.07 269,682.54 97,454.41 27% Clothing allowance and a service incentive (5yrs)
SSS/ECC/PHILHEALTH, PAG-IBIG CONT. 79,175.06 76,167.60 76,292.60 3,007.46 4%
RETIREMENT BENEFIT EXPENSE 85,444.28 46,713.67 46,875.13 38,730.61 45%
OFFICERS HONORARIUM AND ALLOWANCES 947,288.13 913,048.80 906,502.57 34,239.33 4%
Due to projected reduction in paper consumption as
OFFICE SUPPLIES 122,337.08 178,967.10 123,354.79 (56,630.02) -46%
we lean out our operation
Inclusion of 2 new committees that requires training
TRAVEL AND TRANSPORTATION 1,007,648.75 682,825.00 561,730.00 324,823.75 32%
(GAD and Lab Coop)
INSURANCE 40,000.00 40,000.00 5,805.00 - 0%
REPAIRS AND MAINTENANCE 25,000.00 10,000.00 764.00 15,000.00 60%
TAXES AND LICENSES 144,488.00 12,000.00 6,927.00 132,488.00 92% Tax for our Amendment in our Capitalization
PROFESSIONAL FEES 170,000.00 110,000.00 94,000.00 60,000.00 35% NATTCO (CISA)
COMMUNICATION EXPENSES 30,456.00 19,788.00 15,394.56 10,668.00 35%
REPRESENTATION - - - -
GENERAL ASSEMBLY MEETING EXPENSES 1,903,988.00 640,650.00 556,140.30 1,263,338.00 66%
MEETINGS AND CONFERENCES 123,950.00 108,225.00 71,748.00 15,725.00 13% Increase due to additional committees created
AFFILIATION AND LITIGATION FEE 52,000.00 - (52,000.00)
PROMOTIONAL EXPENSES - - 2,000.00 -
Significant increase due to 20th anniversary
MEMBERS BENEFITS EXPENSES 2,861,000.00 1,141,000.00 1,090,596.83 1,720,000.00 60% celebration (foundation day in May incentive, Birthday
Cards)
MISCELLANEOUS EXPENSE 3,600.00 - 5,774.57 3,600.00 100%
DEPRECIATION AND AMORTIZATION 136,630.64 95,468.82 76,882.06 41,161.82 30%
PROVISION FOR PROBABLE LOSSES ON LOANS 202,258.93 200,944.09 200,944.08 1,314.84 1%
TOTAL ADMINISTRATIVE COST 9,552,312.91 5,822,667.49 5,332,961.01 3,729,645.42 39%

TOTAL EXPENSES 10,546,627.31 6,515,994.78 6,192,250.01 4,030,632.53 38%

NET SURPLUS/(NET LOSS) BEFORE OTHER ITEMS 11,050,835.66 14,071,940.33 14,719,037.90 (3,021,104.67) -27%
OTHER ITEMS:
PRIOR YEAR'S ADJUSTMENT - - 78,926.41
TOTAL OTHER ITEMS - - 78,926.41

Almost 30% reduction in our bottomline but mostly

NET SURPLUS/(NET LOSS) 11,050,835.66 14,071,940.33 14,640,111.49 (3,021,104.67) -27%
distributed as members benefit

20
 Secretary’s Report
Secr etar y’s R eport

Attendance on the Monthly Officer’s Meetings

Attendance is taken from the month of April 2017 to January 2018.

POSITION NAME PRESENT EXCUSED ABSENT REMARKS
Jess Israel L. Ilagan 10 0 0
Enrico N. Protacio 10 0 0
Board of Jerry P. Paras 9 1 0
Susie Ann A. Cuilan 10 0 0
Directors
Ryah Claudette Q. Sarile 6 4 0
Christopher A. Estigoy 10 0 0
Ana Fe C. Tamayo 9 0 1
Audit Melissa M. Soriano 9 1 0
Mary Grace D. Solomon 5 2 3
Committee
Gene U. Encarnacion 8 1 1
Gerola, Marlon 9 0 1
Garcia, Geronimo 7 1 2
Election Resigned July
Marquez, Paulo 4 0 0
Committee 2017
Started
Ana May Laranang 4 1 0 September
2017
John Rey C. Abellera 10 0 0
Education Kate L. Ardonia 6 1 3
Committee Shirley E. Saludo 9 1 0
Adrian B. Dalao 9 1 0
Ethics Roger K. Bancilo 10 0 0
Mabell R. Bacon 7 2 1
Committee
Edralyne L. Lee 9 1 0
Conciliation Girly B. Betito 9 1 0
and Almeo Riego 9 1 0
Mediation
Committee Jonas Lumase 9 1 0

Treasurer Jennifer T. Estrada 9 1 0

Resigned
Angeline F. Songsong 8 0 0 December
Secretary 2017
Started
Shirley G. Jacob 4 0 0
October 2017
Manager Maribel S. Pasngadan 7 3 0

21
 Secretary’s Report

Attendance to BOD Meetings

Attendance is taken from the month of April 2017 to February 2018.

POSITION NAME PRESENT EXCUSED ABSENT REMARKS
Jess Israel L. Ilagan 12 0 0
Enrico N. Protacio 9 0 3
Board of Jerry P. Paras 11 1 0
Susie Ann A. Cuilan 11 1 0
Directors
Ryah Claudette Q. Sarile 8 4 0
Christopher A. Estigoy 11 0 1
Ana Fe C. Tamayo 7 2 3
Resigned
Secretary Angeline F. Songsong 8 0 0
December 2017
Started October
Shirley G. Jacob 5 0 0
2017
Manager Maribel S. Pasngadan 9 2 1

Released Board Resolutions for CY2017:

DATE OF
SERIES BR No. TITLE
ISSUE

Resolution for Opening of eGov ATM Account and

2017 03/07/2017 03_01
Designating the Authorized Signatories

In the Matter of Updating the Authorized Signatories for Metro

2017 4/25/2017 04_01
South Cooperative Bank

In the Matter of Updating the Authorized Signatories for Sun

2017 4/25/2017 04_02
Life Asset Management Co. Incorporated

In the Matter of Updating the Authorized Signatories for

2017 4/25/2017 04_03
Philippine National Bank, Rizal Park Branch

In the Matter of Updating the Authorized Signatories for

2017 4/25/2017 04_04
Banco De Oro, Baguio Session Branch

In the Matter of Updating the Authorized Signatories for

2017 4/25/2017 04_05
Banco De Oro, SM Baguio Branch

In the Matter of Updating the Authorized Signatories for

2017 4/25/2017 04_06
Metrobank Magsaysay Branch

22
 Secretary’s Report
Appointment of new officer for committees for the calendar
2017 4/25/2017 04_07
year 2017

Appointment of Secretary and Treasurer for the calendar year

2017 4/25/2017 04_08
2017

Strongly Opposing the Repeal of Cooperatives Tax

2017 4/26/2017 04_09 Exemptions in Article 60 and 61 of Republic Act. No. 9520, As
proposed in Senate and House Bills.

In the Matter of Increasing the Amount and Terms of

2017 5/24/2017 05_11
Contingency Loans

In the Matter of Increasing the Minimum Take Home Pay of

2017 5/24/2017 05_12
Members

Guidelines on the Financial Assistance for Members with

2017 6/15/2017 06_12
Critical and Life-Threatening Illness

In the Matter of Increasing the Minimum Mandatory Capital

2017 10/02/2017 09_13
Build-up(CBU)

In the Matter of Documenting a Codified Approval and Signing

2017 9/20/2017 09_14
Authority(CASA)

2017 9/20/2017 09_15 In the Matter of Setting Guidelines on Officers as Co-makers

In the Matter of Creating Gender and Development (GAD)

2017 9/20/2017 09_16
Committee

In the Matter of Creating A Steering Committee for Laboratory

2017 12/5/2017 11_17
Cooperative

A Resolution Designating the Representative of this

2017 12/1/2017 12_17
Cooperative to the BCCDC as Member

Shirley Jacob
Secretary, MBCC

23
 Audit Committee Report
Aud it Com mittee R eport

It is our commitment to serve and help the cooperative in achieving it vision and mission, sustain awareness on
risks and controls, ensure transparency and good governance and most of all ensure growth of members on their
financial needs, we present our report for the year 2017 as follows:

Strategy Objectives Status

To Assure stability of Cash Flow and Ensure that all

that requires Funding are met for FY2017
Financial Annual / Regular work
a. Conduct Cash Count / Cash Audit bi-monthly.
Perspective
b. Conduct Spot/Random audit checking in the
office - as needed/Daily

Strengthen Operations Management:

c. To diligently provide status reports, projects ,
improvements and monthly reports to GA Done annually
d. To Comply with Audit procedures based on
Reports – included in the
policies and RA9520 during actual audits.
monthly meeting minutes
Internal Process
To review Annual Reports - Ensuring compliance
Perspective
and accuracy of data.
Internal Process
a. To conduct Review of Accounting manual and
Perspective other Office Manuals monthly to assure Spot checking
manuals are up to date.
To Prepare / Complete an audit program/calendar
which will serve as a guide for the audit committee in
Continue to CY2018
performing their responsibilities and followed by
members by end of August 2017

To manage External Audit Activities Done / Annual

Sustain development of human capital through

trainings, seminars and benchmarking.

Continuous educational improvement for FY2017:

Learning and Done
a. Continuous education through attending
Growth
trainings and seminars. - includes Non-
Perspective
Mandatory Trainings

b. Familiarization of the NATTCO system and

Continue to CY2018
documents process flow.

24
 Audit Committee Report
c. Semi-annual visit to CDA- visit/forum with Done - through CDA Audit May
2017 and updates January
CDA for updates and bench markings. 2018

d. Semi-annual meetings with Secondary

Continue to CY2018
coops - NORLU/NORWESLU

Actions / Achievements for the year:

1. Regular Committee monthly meetings-Regular, Ad hoc or on the spot
2. Increased Awareness on the following:
a. Audit findings : External Auditor, CDA
b. Budget Preparation Timeline
c. Regular Audit on disbursements
d. Understanding Audit process and impact to operations by other officers
e. Adherence to annual reports

Future State:
• Continuation of Audit processes and Strat Plans in 2018
• Adherence to the new Performance Audit report or Governance and Management Audit Report

Open Findings:
• Closed findings 39, Open 21 : Waiting for BOD updates
• BOD and Audit Committee meeting – Clarification of roles

Open Recommendations (GA 2017) based on findings includes the following:

1. Create Policy on the payment of Share Capital for Associate members in case of Cooperative Closure.
Reference RA9520 Chapter VII: Dissolution of Cooperatives.
2. LRF vs Outside Provider

For General Assembly approval for Audit Committee:

1. Presentation of new External Auditor for the calendar year 2018 to be included in the minutes of meeting
upon presentation

Melissa Soriano, Mary Grace Solomon, Gene Encarnacion

Audit Committee

25
 Election Committee Report
Election Com mittee R eport

The committee closely worked with the BOD in setting the direction and improving the committee.

For FY 2017, Election Committee Objectives:

Strategy O&A Objectives Status

Done
From last year’s 2017 election of officers,
the EleCom had an allocated budget of
Implement activities within allocated budget.
Financial 24,000.00 pesos for the rentals of 20
Perspective Allotted for the Election
computers, 1 printer, technical staff/support
and installation fee. Actual expense was
19,000.00 pesos.
Done
Provided voting process instruction that will
Provide election process guidelines to ensure
be visible at every table during election day,
smooth election process.
Customer to ensure members are clearly aided while
Perspective they cast their votes.

Complete performance appraisal of the

Completed
committee by end of CY

Strengthen Operations Management Done

1. Install Anti-Virus in our Computers

Review and improve the MBCC Election

Code

1. Incorporate the retraining of On-going

Cooperative Officers every 5 years

2. Include section 6 of CDA

Internal Process
Perspective Memorandum Circular No.2015-09

Amendment on Disqualification of Candidates On-going

Done
EleCom is continuously implementing and
searching for various approaches to
Awareness Campaign
improve the members’ awareness about
MBCC leadership. The goal is to strengthen
our CALL TO SERVICE and be an MBCC
officer.

26
 Election Committee Report
With the concurrence of the BOD, Elecom
was able to implement the following:

3. Posting of each committee’s Duties

and Responsibilities.

4. Posting of mandatory trainings that a

new officer will be required to
undergo.

5. Posting of the Honoraria and RATA

(Representation Allowance and
Transportation Allowance), of
MBCC officers, both elected and
appointed.

6. Posting of election campaign

(posters).

7. By using the MBCC webmail,

EleCom sent an invitation to file a
certificate of candidacy via email to
members who were able to join at
least one seminar/training that was
sponsored by our cooperative.

8. Personal invitation to members.

9. Early posting of the memo for the

filing of the Certificate of Candidacy
(December 15, 2017 to February 1,
2018).

10. Extension of the filing of Certificate

of Candidacy to February 23, 2018.
Comply with all the mandatory trainings for
On-going
Learning and Election Committee
Growth Perspective
Succession Policy Not Started

Marlon Gerola, Geronimo Garcia, Anna May Laranang

Election Committee

27
 Ethics Committee Report
Ethics Co mm ittee Rep ort

The Ethics committee is tasked to receive and hear complaints on any violations of the MBCC Code of
Governance and Ethical Standards (Ethics Code), and closely worked together with the Board of Directors and in
collaboration with the Conciliation and Mediation Committee.

For CY 2017, the Ethics Committee Objectives were as follows:

Strategy Objectives Status

Financial
Work within the allocated budget.
Perspective
Enhance the MBCC Code of Governance
and Ethical Standard (Ethics Code) by
creating Implementing Rules and
Regulations and Guidelines (IRR) of the
Code.
Customer
Incorporate the Code of Governance and
Perspective
Ethical Standards (Ethics Code) on the
PMES and MES.
Disseminate, promote and monitor
compliance with the approved MBCC Code
of Governance and Ethical Standard.
Learning and
Complete the MBCC Mandatory trainings
Growth
imposed by CDA.
Perspective
Within budget
Partially done
The initial draft will be endorsed to the
next set of Ethics Committee officers.
Done
PMES/MES-Ethics presentation Module
was forwarded to the MBCC Education
Committee.
Done
Monthly Ethics Trivia board will be
posted on the MBCC bulletin board.
Ethics Chair and Vice-Chair –
completed trainings.
Ethics secretary – one training left for
completion.

Roger Bancilo, Edralyne Lee, Mabell Raymundo

Ethics Committee

28
 Education Committee Report
Education Com mittee R eport

Objectives for the year 2017:

Strategy Objective Status

Financial Implement activities within the

Within budget
Perspective allocated/approved budget
Increase membership by 5% Done
Complete Social Audit Survey (Section II.
Internal Done
Membership)
Process
Make MBCC website live by July 2017 Done
Perspective
Create, review and revise a policy on trainings
Partially done
(Record retention, waiver, etc.)
Provide NATTCO Introduction Training to all
Not completed
officers
Partially done
Provide 100 % of mandatory trainings to all Fundamentals of Cooperatives
officers and Basic Governance trainings
completed
Provide at least 1 session of Membership Done
Learning and
Education Seminar 2 sessions of PMES conducted
Growth
Provide 2 sessions of Financial Literacy Training Not completed
Perspective
Done
Attend all General Assemblies of Affiliate
Participated in NORLU-CEDEC
Cooperatives
and NORWESLU GA
Attend 100% of CDA Mandated Activities Done
Provide at least one training for each committee
and members Done
Complete 2 livelihood trainings Not completed

Enrico Protacio, John Rey Abellera, Kate Ardonia, Adrian Dalao, Shirley Saludo
Education Committee

29
 Conciliation and Mediation Committee Report
Conciliat ion and M ediation Co mm ittee Rep ort

Objectives for the year 2017:

Strategy Objectives Status

On-going
Financial Increase collection from the delinquent members Communication efforts on-going
Perspective - 3 on-going cases with the delinquent members and
their co-makers
Review drafted Conciliation and Mediation Program for On-going
modifications/improvements is such a way that it will Waiting for initial review schedule
Customer
be beneficial to the members and the cooperative. with the BODs.
Perspective
Design and fabricate feedback box to encourage more
Done
ideas/questions/suggestions from members.
Submit monthly report on collection updates of Done
Internal
delinquent members.
Process
Comply with the required semi-annual report of
Perspective Done
cooperative cases to the CDA through the Manager.
On-going
1 member without Financial Risk
Complete mandatory trainings
Management training – waiting
Learning and for training schedule
Growth Attend training on Basic Mediation Course/ADR Done
Perspective Training Program All members attended
On-going
One member to apply for accreditation to be a
Immersion on barangay and other
Recognized Conciliator-Mediator by the CDA
coop’s cases

We strive to continually advocate constructive resolution of conflict amongst officers and members, whenever it
arises.

Girly Betito, Almeo Riego, Jonas Lumase

Conciliation and Mediation Committee

30
 Office and Administration Report
Office and Ad ministr ation R eport

The Office and Administration committee closely worked with the Manager and Staff in setting the direction and
improving the office operations.

For FY 2017, the O&A Objectives were as follows:

Strategy O&A Objectives Status

Monitor provision of loan passbook to members Completed
Financial
Monitor establishment of tie-up with gasoline
Perspective Done, tie-up existing with Caltex
service provider
Establish operations metrics:
Not yet started
1. Membership growth
Customer
2. Turnover of members
Perspective
Complete performance appraisal of MBCC
Completed
Staff by end of CY
Done, monitored completion c/o
Create policy for record retention
Manager
Monitor conduct of quarterly evaluation and
Done
group discussion
Internal Process
Conduct/participate in team building Done , conducted Effective Customer
Perspective
activity/recollection Service training to MBCC Staff
Complete MBCC HR Manual Complete
Complete the Officer’s Performance Evaluation
Complete
tool
Attend NATTCO E-Koop system familiarization
Not yet started
Learning and training – As needed
Growth Done, attended-“Improving Your
Attend developmental trainings
Perspective Performance in the Board”
Establish Laboratory Cooperative Turned-over to Lab Coop Committee

Thank you fellow Coop members for the opportunity to serve you for the past 2 years. There were hurdles along
the way, but I take away the learnings from those challenges. Let us continue to support the endeavors of the
cooperative and we look forward to more growth and success in the coming years.

Happy 20th Anniversary to us! Mabuhay MBCC!

Ryah Claudette Sarile

Member, Board of Directors

31
 Business Tie-up Report
Busin ess T ie-up Rep ort

For FY 2017, the Business Tie-Up Objectives were as follows:

Strategy Business Tie- up Objectives Status

Having External Business partners who offers Tiongsan = Grocery and Merchandise
Quality Products and Services to members. (Gift Check at 5k and Merchandise Loan)
- Additional Income ( giving the cooperative SM= Grocery and Merchandise
discounted price for the product and services
(Gift Check at 5k maximum)
offered)
Waiting for the on-going policy making for
the Business Tie- up.
Financial Internal (members) as Business partners,
Perspective offering their quality products and services to
fellow members.
- Additional income for the cooperative and at
the same time helping cooperative members On- going review and policy making.
to be productive and educating to be
Entrepreneurs.

Enhancing the credibility of Business Tie-up

policy.
Customer Policy making on- going
- Quality of the Products and Services
Perspective Offered by the partners.
Creation of Memorandum of Agreement
- Delivery of products
- product and services warranty
Creation of standard selection plan and On-going
requirements for External Business tie-up
partners.
Internal Creation of Standard selection plan and
Requirements for Internal Business Tie-up On-going
Process
partners.
Perspective
Plan for Business Tie- Up day, during Coop.
For proposal
Month, December, and General Assembly.
Implementation of MOA as requirement with
On-going with the Policy
the partners.
Learning and Planning for possible Livelihood Trainings for
Not yet started
Growth the Officers and members.

Perspective Encourage members to be more focus on

entrepreneurship skills.

Anna Fe Tamayo
Member, Board of Directors

32
 Corporate Social Responsibility Report
Corporat e Social R espo nsibilit y R eport

With a respectable history, MBCC has gained a lot of success especially in our Cooperative Social Responsibility,
our cooperative is so much connected to the communities, that it made a big impact by giving back.

For 20 years we’ve been helping our communities whether it is in our area of responsibility or outside. Some of the
actions that our cooperative has done in helping our community are:

Environment

MBCC members,
Loakan Proper
Barangay officials
and Moog Controls
Corp. employees all
helped in the clean-
up of Loakan Proper
creek. MBCC also
donated boots, and
tools for clean-up
drive.

33
 Corporate Social Responsibility Report

Donations

MBCC donated
sports equipment to
this year’s Moog
Reaching Out
Program recipient
which is Mauro P.
Lauran Elementary
School in
Banayakeo, Atok,
Benguet.

34
 Corporate Social Responsibility Report
We, as a cooperative, still need to exert more effort in the future in fulfilling our social responsibility. We need to
focus on areas such as:
1. Setting up of a cooperative society.
2. Social Empowerment including assistance to our communities in developing small scale businesses,
employment opportunities.
3. Vocational trainings for the youth.
4. Special attention also is given to education through scholarships and trainings.
5. Rehabilitation of mentally and physically challenged persons.
6. Legal awareness to those who are deprived of their rights.

These are only examples to which our cooperative has to work on to help the community.
HAPPY 20th.ANNIVERSARY TO OUR COOPERATIVE ‘MABUHAY ANG MBCC’

Christopher Estigoy
Member, Board of Directors

35
 Audited Financial Statements
Audited Financial Statements

36
Audited Financial Statements

37
Audited Financial Statements

38
Audited Financial Statements

39
Audited Financial Statements

40
Audited Financial Statements

41
Audited Financial Statements

42
Audited Financial Statements

43
Audited Financial Statements

44
Audited Financial Statements

45
Audited Financial Statements

46
Audited Financial Statements

47
Audited Financial Statements

48
Audited Financial Statements

49
 Notes to Financial Statements
Notes to Financial Statements

50
Notes to Financial Statements

51
Notes to Financial Statements

52
Notes to Financial Statements

53
Notes to Financial Statements

54
Notes to Financial Statements

55
Notes to Financial Statements

56
Notes to Financial Statements

57
Notes to Financial Statements

58
Notes to Financial Statements

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Notes to Financial Statements

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Notes to Financial Statements

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 MBCC Services
MBCC Services

I. Loans
CALAMITY LOAN
Purpose: For repairs of devastated property during a natural calamity or any calamity
expense
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
All members 15,000.00 1 year 10 %

CONTINGENCY LOAN
Purpose: For any contingent, health or emergency expense
Requirements: Capital Build-up (CBU) Passbook
One month pays lip
At least four (4) solvent co-makers for loans in excess of share capital
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
0 to 3 months member 5,000.00 or 2X of CBU whichever is lower
3 months & above 1 year 10 %
50,000.00
member

BUSINESS TIE-UP LOAN

Purpose: To buy appliances(s) or any related commodities from any supplier/dealer with
which MBCC has an official tie-up arrangement
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
3 months to 1 year 2X of CBU or plus 100,000 whichever is
member lower
2 years 10%
3X of CBU or plus 100,000 whichever is
1 year & above member
lower

EDUCATIONAL LOAN
Purpose: To help finance the educational needs.
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
School assessment or receipt of tuition fee
Receipts of school supplies and or uniform

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 MBCC Services
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
3 months & above
50,000.00 18 months 10 %
member

GROCERY LOAN
Purpose: To buy basic grocery needs
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
Tiong San- 2
All members 5,000.00 months 10 %
SM- 1 month

REGULAR LOAN (without Collateral)

Purpose: For provident or productive purposes
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
3 months to 1 year
2X of CBU or plus 100,000 whichever is lower
member 3 years 10 %
1 year & above member 3X of CBU or plus 100,000 whichever is lower

REGULAR LOAN (PDC)

Purpose: For provident or productive purposes
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
5 years & above member 3X of CBU or plus 250,000 whichever is lower 3 years 10 %

REGULAR LOAN (Long-term)

Purpose: For provident or productive purposes
Requirements: Capital Build-up (CBU) Passbook
One month pay slip
At least four (4) solvent co-makers for loans in excess of share capital
Collateral (Title only)
Annotate collateral with registry of deeds

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 MBCC Services
Payment Interest
Who can avail? Maximum Loanable Amount
Terms Rate
1 year & above member x4 of CBU 10 years 10 %

II. Savings

Account Type Amount Interest

Savings Deposit 2,000.00 and up 0.75% per annum
Special Deposit 1.00 and up 0.75% per annum
Mandatory Savings 50.00 and up 2.00% per annum

Time Deposit Interest

2,000.00 to 49,999.99 1.75% per annum
50,000.00 to 99,999.99 2.00% per annum
100,000.00 to 149,999.99 2.25% per annum
150,000.00 and above 2.50% per annum

Mandatory Savings Mechanics:

1. Deposits within the current year are non-withdrawable.
2. Savings withdrawal from this account is on the next calendar year.
3. Maintaining balance is Php 1,200.00 from the previous year.

Sample:

Total Deposits December 31, 2017 Php 10,000.00

Withdrawable amount starting January 2018 – December 2018 Php 8,800.00
Maintaining Balance Php 1200.00

III. Membership Education

Developmental Trainings and Livelihood Trainings

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 MBCC Services
Loan Flow Chart

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 Truth in Lending Act
Truth in L end ing Act

REPUBLIC ACT No. 3765

AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION WITH
EXTENSIONS OF CREDIT

Section 1. This Act shall be known as the "Truth in Lending Act."

Section 2. Declaration of Policy. It is hereby declared to be the policy of the State to protect its citizens from
a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view
of preventing the uninformed use of credit to the detriment of the national economy.

Section 3. As used in this Act, the term

(1) "Board" means the Monetary Board of the Central Bank of the Philippines.
(2) "Credit" means any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract;
any contract to sell, or sale or contract of sale of property or services, either for present or future delivery,
under which part or all of the price is payable subsequent to the making of such sale or contract; any rental-
purchase contract; any contract or arrangement for the hire, bailment, or leasing of property; any option,
demand, lien, pledge, or other claim against, or for the delivery of, property or money; any purchase, or other
acquisition of, or any credit upon the security of, any obligation of claim arising out of any of the foregoing;
and any transaction or series of transactions having a similar purpose or effect.
(3) "Finance charge" includes interest, fees, service charges, discounts, and such other charges incident to
the extension of credit as the Board may be regulation prescribe.
(4) "Creditor" means any person engaged in the business of extending credit (including any person who as a
regular business practice make loans or sells or rents property or services on a time, credit, or installment
basis, either as principal or as agent) who requires as an incident to the extension of credit, the payment of a
finance charge.
(5) "Person" means any individual, corporation, partnership, association, or other organized group of persons,
or the legal successor or representative of the foregoing, and includes the Philippine Government or any
agency thereof, or any other government, or of any of its political subdivisions, or any agency of the foregoing.

Section 4. Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of
the transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules
and regulations prescribed by the Board, the following information:
(1) the cash price or delivered price of the property or service to be acquired;
(2) the amounts, if any, to be credited as down payment and/or trade-in;
(3) the difference between the amounts set forth under clauses (1) and (2);
(4) the charges, individually itemized, which are paid or to be paid by such person in connection with the
transaction but which are not incident to the extension of credit;
(5) the total amount to be financed;
(6) the finance charge expressed in terms of pesos and centavos; and

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 Truth in Lending Act
(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual
rate on the outstanding unpaid balance of the obligation.

Section 5. The Board shall prescribe such rules and regulations as may be necessary or proper in carrying
out the provisions of this Act. Any rule or regulation prescribed hereunder may contain such classifications
and differentiations as in the judgment of the Board are necessary or proper to effectuate the purposes of this
Act or to prevent circumvention or evasion, or to facilitate the enforcement of this Act, or any rule or regulation
issued thereunder.

Section 6. (a) Any creditor who in connection with any credit transaction fails to disclose to any person any
information in violation of this Act or any regulation issued thereunder shall be liable to such person in the
amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection
with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit
transaction. Action to recover such penalty may be brought by such person within one year from the date of
the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in
which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court
costs as determined by the court.
(b) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation
contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or
transactions.
(c) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be
fined by not less than P1,000 or more than P5,000 or imprisonment for not less than 6 months, nor more than
one year or both.
(d) No punishment or penalty provided by this Act shall apply to the Philippine Government or any agency or
any political subdivision thereof.
(e) A final judgment hereafter rendered in any criminal proceeding under this Act to the effect that a defendant
has willfully violated this Act shall be prima facie evidence against such defendant in an action or proceeding
brought by any other party against such defendant under this Act as to all matters respecting which said
judgment would be an estoppel as between the parties thereto.

Section 7. This Act shall become effective upon approval.

Approved: June 22, 1963

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 Organizational Structure
Organizational Structure

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 COOPERATIVE PRINCIPLES
Organizational
VOLUNTARY AND OPEN MEMBERSHIP Structure
DEMOCRATIC MEMBER CONTROL
MEMBER ECONOMIC PARTICIPATION
AUTONOMY AND INDEPENDENCE
EDUCATION, VOLUNTARY TRAINING AND
INFORMATION
COOPERATION AMONG COOPERATIVES
CONCERN FOR COMMUNITY

MBCC VISION
A WORLD CLASS COOPERATIVE
SERVING AS A CATALYST
EFFICIENTLY DELIVERING ECONOMIC
OPPORTUNITIES TO THE DELIGHT OF ITS
MEMBERS.

MBCC MISSION
TO UPLIFT THE SOCIAL AND ECONOMIC
WELL-BEING OF THE MEMBERS BY
PROVIDING COMPETITIVE SERVICES AND
OPERATING IN A LEAN AND EFFECTIVE
WAY THROUGH RELEVANT
TECHNOLOGY AND MANAGEMENT
PRINCIPLES.

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