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Samal Multi-Purpose Cooperative Strategic Audit

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In Partial Fulfilment of the Requirements for the

MM 106 – Strategic Management

 Table of Contents

I. The Company………………………………………………………………………1

 Introduction

 The Industry/ Environment

 The Company in Focus

 Strategic Options
 INTRODUCTION

A cooperative is a duly registered association of persons with a common bond

of interest, who have voluntarily joined together to achieve a lawful common social or

economic end, making equitable to contribution to the capital required and accepting

a fair share of the risks and benefits of the undertaking in accordance with universally

accepted cooperative principle (Philippine Cooperative Code 2008). Cooperatives

have a rich and vibrant history in the Philippines and have been a force for positive

change in the people of the Philippines for over 100 years. Its core principles are

open and voluntary membership, democratic control, limited interest in capital,

division of net surplus, cooperative education, and cooperation among cooperatives.

Furthermore, Philippine cooperatives have enjoyed overall growth but many have

faced challenges. According to Jones (2019), one of many reasons for a cooperative

failure was lack of education and training that is strongly correlated with the following

variables such as lack of capital; inadequate business volume; lack of membership

support and loyalty; vested interests among cooperative leaders, leading to graft and

corruption; weak leadership and mismanagement; and lack of government support.

Philippines Cooperative Draft of 2020 showed that there are 18,065 number of
cooperatives in the Philippines and has 10.7 million overall members (10% of the

population). Among those are 9,541 multi-purpose cooperatives all across the

country and of those is the cooperatives is SIMC (Samal Island Multi-Purpose

Cooperative). SIMC main branch is located at SIMC Building, Mabini Street,

Peñaplata, Samal District, Island Garden City of Samal, Davao del Norte. As of 2020,

the cooperative’s number of regular members are 8,631 and associate members is

12, 197, so all in all the cooperative is consists of 20,828 members. The cooperative

is engaged in encouraging thrift and savings mobilization among the members for

capital, formation, creating funds in order to grant loans for productive and

providential purposes to its members, providing goods and services, and other

requirements of the members, and promoting the Cooperative as a way of life for

improving the social and economic well- being of its members.

SIMC has proven that they are highly competitive cooperative for over 50

years. However, during the SIMC’s annual report for the year 2020, the cooperative

faced some strategic problems/issues. First issue is it lacks full dissemination and

implementation of its code of governance and ethics for its members; secondly,

members perception in airing their ideas, feedbacks, and opinion is very limited;

third, its members’ satisfaction on the action made on their feedbacks and services is

low; fourth the low utilization of education to members; fifth, it has less effective plans

and programs for responsiveness to Gender, Elderly, Youth and Person with Special

Needs members and affiliation; sixth, it has low utilization of its Continuing Education

Training Fund (CETF) due to federation/union; and Seventh it has a weak internal

control that leads to corruption among its top management.

 These are the strategic problems/issues that SIMC are currently facing.

Hence, this study intently aims to address such given problems/issues for SIMC’s

strategic management process to prosper.

COOPERATIVE AND ITS ENVIRONMENT

In May 1971, or four years later, the Peñaplata Parish Credit Cooperative

Union, Inc. (PPCCUI), the first of its kind in the Municipality of Samal was registered

with the then Cooperative Administration Office (CAO) and officially started the

operation. The initial capital was P 75.00 and P 5.00 each incorporator which was

lent to members at 1% interest rate per month. The word “Parish” was inserted in the

organizations official name in recognition of the efforts exerted by the Canadian

Parishioners who caused the preparation of the organization in embracing the

concept of cooperativism to bring about the community development.

After ten years of operation the membership had been increased. However,

instead of growing more this dwindled due to inadequacies in the management

process brought about by the absence of continuing technical and administrative

capability trainings. These management lapses were aggravated by the lack of

commitments among the members who were then reluctant in paying promptly their

obligations.
 Somehow, the cooperatives officers realized that the shortcomings being

experienced by the organization can only be possibly done by those who are

aggressive, committed, and innovative. Inspired by this belief, in 1986 they opted to

pass unto the new set of leaders the responsibilities of managing the cooperative

and such decision were compensated since from the year onwards the latter’s

financial status did again momentum and after almost two years, stability was

eventually attained. Hereafter, the trust and confidence of the general membership

was recovered.

The early years of 1990’s was considered as the most fruitful and productive

one’s ever experienced by the organization where the cooperative status gained

prominence not only in the locality but likewise in Samal Island as manifested by its

being accredited by the municipal government to participate in the local governance

through the Local Special Bodies as mandated by the 1991 Local Government Code.

Further, these external resources were augmented by the capital share from

the members as a result of the membership expansion affected by the Education

Committee which was very active as it is today. It was also during this period that the

cooperative extended its services to the other two Districts namely Babak and

Kaputian. This was made possible in 1991 when it was re – registered with the

Cooperative Development Authority (CDA) eventually changing its original name to

Samal Island Multipurpose Cooperative. During these years the services were

expanded from regular and special productive loan to income generating projects,

financing loans for those engage in medium - scale business enterprises, and salary

loans for private and government employees in the same manner that it already
accepted considerable amount for regular savings and special savings deposits for

members and non – members respectively which was actually practiced even before

the late 1990’s. SIMC is registered under the Cooperative Development Authority

with a Registration Number: 9520-11001578 in the province of Davao Del Norte,

Region 11.

In Cooperation among Cooperatives Affiliation of SIMC is sustained with the

CCDC, MASS-SPECC, CUTE and MCN. While Coop NATCO supported in

marketing, mentoring and coaching. Community outreach programs for nation

building were initiated by the Cooperative. Among its programs and activities are the

following: Angus Deboning, Candle Making and Sardines Making for the livelihood

program, Bloodletting, Sports activities for Youth Development and Health program

and Tree Planting for Environmental Sustainability. A total of five hundred twenty-five

(525) benefited foretasted programs fund sourced from the (CDF) Community

Development Fund. The Coop has approved policy in response to Gender, Elderly,

Youth and Person with Special Needs. Orientation on Gender Sens1nvity was

conducted with a point of one (1). SIMC upholds partnership among cooperatives

and other Organizations. Among others are MCN as an NGO, CCOC or Cooperative

Development Council of the City and strong linkage with the local Government Unit

of the Island Garden City of Samal.

The Cooperative serves both members and non-members. Accordingly, the

Cooperative’s transactions with non-members are subject to taxes including income

tax. The cooperative development highlights such as 1) Investment/Allied Service-

Fifty (50) Lawn Lots sold at Samal Memorial Gardens (131 Total Lawn Lots sold);
One (1) Foreclosed Property Sold at San Jose (470 sqm.); Implementation of SIMC

Gasoline Station Pangkabuhayan Showcase; 2) Community Services- Blood Letting

Activity with Provincial Economic Enterprise and Development Office (PEEDO) and

City health Office; Livelihood Training (Candle Making) for members during the

anniversary of Babak Branch; Participate in the Brigada Eskwela by providing paints,

pails, brooms, waste bins, and first aid kit to Beneficiary public schools in the island

(Elementary and High School).

THE COOPERATIVE FOCUS

SIMC envision a stable and competitive cooperative adhering to good

governance; a partner in nation building. SIMC commits to provide competitive and

quality services in uplifting the economic status of the stakeholders for a better and

fairer community. SIMC adheres to the values of Service Excellence, Innovation,

Motivation and Commitment. The primary objective of the Cooperative’s capital

management is to ensure that the Cooperative complies with externally imposed

capital requirements and the Cooperative strong credit ratings and healthy capital

ratios in order to support its business and to maximize members’ value.

The Cooperative manages its capital structure and makes adjustments to it. In

order to maintain or adjust the capital structure, the Cooperative may accept new

members, adjust the amount of interest in share capital and patronage refund and

increase distribution of net surplus to statutory funds. No changes be made in the

objectives, policies and processes in 2020, 2019 and 2018. SIMC is composed of 11

Board of Directors, 3 Election Committee, 3 Audit Committee, 3 Credit Committee, 3

Ethics Committee, 3 Mediation and Conciliation Committee, 3 Social Audit

Committee, 3 Education and Training Committee and 3 Gender and Development

Committee.

The cooperative management is composed of the Chief Executive Officer,

Chief Operations Officer, Executive Secretariat Services, Treasurer, Risk

Compliance Officer, Occupational Environment Security & Safety Officer, Human

Resource Management, Management Information System, Audit Program

Management, Operations Support Services Group under it are Records Management

& Administrative Services, Property Management & Building Administrative Services,

Accounting, Account Management, Credit Administration & Loan Servicing and Cash

Operations. In CY 2020 SIMC’s total number of members is 20,828 of which 8,631 of

these are regular and 8,006 are associates; and 4,191 are beneficiaries under the

micro lending program. The amount of share capital in CY 2020 is 123,805,841, this

is higher from the previous year which was 117,166,816.

Members under the micro finance program has benefitted the following

services: group insurance, medical and health assistance, educational, and burial

assistance or damayan. Continuing Education and Training Program availed in the

current year are the following services: PME, Livelihood, Leadership Training,

Financial Literacy and Fundamentals of Cooperative. SIMC’s human resource is well

accorded with just compensation and benefits. Staff and Employees of their

cooperative received standard wages and provided with other non-monetary

benefits. Other development highlights include investments/allied services,

community services, expansion of potential members, on bloodletting for blood bank

donation, mortuary fund assistance and capacity building program.

The Cooperative operation is driven by the six standard areas of concern. The

three components in these areas have an aggregate actual score of twelve (12) out

of the fifteen (15) standard rating. VMG and Feedback Mechanism generated perfect

score, however the Code of Governance and Ethical Standards which fall short of its

score is still being attended. Based on the Committee Report generated from the

50th General Assembly of Samal Island Multi-Purpose Cooperative. The Social Audit

Committee presented the results of their evaluation concerning the six areas such as

Organization, Membership, Staff/Employees, Cooperation among Cooperatives,

Community and Nation, and Network, Alliances and Linkages which are deemed

very significant aspects of cooperative operations.

The areas that it falls short of rating are the following;

1. Code of Governance and Ethics;

2. Member’s satisfaction on the action made on their feedbacks;

3. Provision of Education to Members;

4. Members and affiliation;

5. CETF due to federation/union;

6. Responsiveness to Gender, Elderly, Youth and Person with Special Needs

SIMC’S STRATEGIC OPTIONS

Strategic options help the step process that includes identifying direction,
analyzing resources, implementing and formulating strategies and evaluating their

effectiveness. SIMC prepares its strategy for a competitive market and to assists in

identifying potential opportunities and risk to ensure a cooperative stability to achieve

its goals. Members of the cooperative are being informed/ updated through website/

social media. SIMC installed its own website where the member accessed vital

information about the operation while membership meeting is done periodically while

the annual performance of coop is disclosed in the souvenir program. Also,

suggestion boxes located in the strategic area of the cooperative per branch office

were designed for member’s feedback mechanism.

SIMC Employees Support Program and Work Environment conformed to the

standards as well. Awards and Recognition, Continuing Education Program and

Sports Development Program are regular programs for employees. Logistical

Support is appropriate and Work Environment is conductive. Community outreach

programs for nation building were initiated by the cooperative such as candle

making, Bangus deboning and etc.

In the midst of some challenges of the operations encountered, SIMC has

approved policy in response to Gender, Elderly, Youth and Person with Special

Needs. The cooperative ethics committee devoted its time in research, discussion

and compilation of ethics-related documents and community practices which would

be useful in the discharge of its duties and functions. To gather more relevant data,

the committee was able to conduct benchmarking in one FOCCUS- member

cooperative where a fruitful discussion on issues and concerns of the ethics

committee was actualized. Also, the committee develop and disseminates its code of
governance and ethical standards through research activities on the existing

documents in SIMC, brainstorming on the content of the drafted CGES, focused

group discussion with selected employees in each branch and rewriting the draftees

CGES and aligning this with SIMC Policy or Manual Operations. This milestone

activities done by the committee is essential in order to achieve its goal to overcome

the 0 participation at code of Governance and Ethical Standards. SIMC strive to work

hard to deliver excellent service to the general membership and enjoin the

management in attaining targets and goals toward success, conciliation and

mediation of members attending trainings and seminars would be a great help in the

formulation of such manual.

On the other hand, Audit of the Financial Statements objectives are to obtain

reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditors'

report that includes opinion. As part of an audit in accordance with PSA, SIMC

exercise professional judgment and maintain professional skepticism throughout the

audit. SIMC see to it that audit committee obtain an understanding of internal control

relevant to the audit in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the Cooperative's internal control. As to its continuing dedication in improving the

cooperative’s governance, the assigned committee on different areas had

continuously monitored the adequacy and effectiveness of the cooperative's

performance to ensure that these are in accordance with the cooperative principles

and generally accepted accounting procedures.

 Conclusion

On the SMIC situation it highlights their strategic problem/issues there are

Code of Governance and Ethics, Members satisfaction on the action made on their

feedbacks, Provision of Education to Members, Members and affiliation, CETF due

to federation/ union, Responsiveness to Gender, Elderly, Youth and Person with

Special Needs.

Solutions

These are the possible solutions and implications in order to overcome

strategic problems/issues of the SMIC.

Conducting a seminar about their ethical framework, on enhancing and to

build a foundation to its members on their ethical frameworks on where the individual

can improve their ethical standards and overcome the 0 participation on the Code of

Governance and ethics that provide personal rules or strategies for ethical decision

making that will act more consistently and confidently. Moreover to the

responsiveness to gender, elderly, youth and person with special needs can also

help in boosting their ethical framework, on where strong foundation of ethical

frameworks are a personal value that give more priority to such virtues as honesty,

fairness, integrity and self-respect. It also to practice gender equality and develop

ethical values to maintain high ethical standards.

 Enhanced efficiency, democracy and economic development in the

cooperative through policies, programs, support services, structure and system,

which focus Gender Equality. Gender and development will be established to

facilitate the integration of gender mainstreaming in the operations of the SMIC.

Livelihood programs for cooperative members, gender balance in leadership,

management/staff/ members, disaster preparedness and health and well-being for

cooperative members shall be implemented.

Develop strategic management on where they can formulate and

implementing strategies to accomplish long-term goals and sustain competitive

advantage. Develop strategic leadership that will inspires all members to successfully

engage in a process of continuous change, performance enhancement and improve

strategies. A leader has an ability to maintain strategic control.

Service development in which can fully satisfy the all members to the actions

of their feedback. In which develop more high security at workplace, facilities and to

their accounts. Provide more safety needs like first aid kit, disinfecting tools and

materials especially alcohol to avoid the virus like Covid as well as the safety gear

like mask and plastic covers that help to avoid more face contact.
PART TWO: COMPANY EVALUATION

COMPANY ANALYSIS

A. Management Review

The Board of Directors and Management of the Samal Island Multi-

Purpose Cooperative (SIMC) presents the Cooperatives Performance,

Development and Highlights for the Calendar Year (CY) 2020.

SAMAL ISLAND MULTI-PURPOSE COOPERATIVE (SIMC)

5 YEAR REPORTS OF COOPERATIVES PERFORMANCES
FOR YEARS 2016 TO 2020

ASSETS

2016 2017 2018 2019 2020

349,499,103 387,067,226 485,001,501 521,858,945 553,952,720

11% 25% 8% 6%
111% 125% 108% 106%

SHARE CAPITAL

2016 2017 2018 2019 2020

77,987,346 89,833,887 94,009,757 100,000,000 128,986,551

15% 5% 6% 29%
115% 105% 106% 129%
 SAMAL ISLAND MULTI-PURPOSE COOPERATIVE (SIMC)
5 YEAR REPORTS OF COOPERATIVES PERFORMANCES
FOR YEARS 2016 TO 2020

NET SURPLUS

2016 2017 2018 2019 2020

14,163,401 24,551,619 36,033,829 20,098,716 7,646,056

73% 47% -44% -62%
173% 147% 56% 38%

DEPOSITS

2016 2017 2018 2019 2020

213,489,940 220,538,394 254,108,913 282,721,572 321,956,644

3% 15% 11% 14%
103% 115% 111% 114%

LOANS

2016 2017 2018 2019 2020

247,907,162 361,472,686 458,611,424 478,903,781 508,536,281

46% 27% 4% 6%
146% 127% 104% 106%
A.1 Strength

The Board of Directors (BOD) and Management strength focuses on

the four components of its cooperatives operations namely;

a. Assets;

b. Share Capital;

c. Deposits; and

d. Loans.

The Cooperatives total assets for the past five years had stable upward

movements of which it had an average increase of 10%. This shows that the

BOD had successfully formulated strategic plan of which the management had

succesfully implemented.

Its share capital made its peak on 2020 obtaining 29% incremental

change from 2019 having only 6% positive movement. This contrues that

members of the cooperative and new investors place their money to the

cooperative with a firm belief of the its success.

 Alongside with the above said components, deposits also made a

positive impact garnering an average of 9% for the past five years of its

performance. It implies that members entrust their money to the cooperative

as shown by yearly upward trend of its deposits.

Finally, the Cooperatives primary strength is the loan component. Facts shows

that there is a stable upward trend from 2016 to 2020. This only provides that

its deposits are effectively manages by releasing it in the form of loans.

A.2 Weakness

The Cooperative’s weakness lies in the Net Surplus component. As

shown in the table; it had positive effect from 2016 to 2017 performances,

however from 2018 to 2019 a -44% drop occured. And eventually a drastic fall

of 62% from 2019 to 2020. It primary cause is the effect of pandemic that

creates business stoppage resulting to jobless workers that are coincidentally

members of the cooperative.

B. Election Review

B.1 Strength

The election committee conducts the 2020 annual election with the

highest turn-out of votes. Such success can be attributed to the active

 assembly support extended by members who are motivated to join the

assembly and responsibly cast their votes, the selfless effort of the officers

and whole hearted cooperation extended by the Board of Directors, the

Management with the able assistance of the Board of Tellers.

This result shows the growing awareness and active involvement of the

members in the governance of the Cooperative by choosing responsible,

competent and dedicated leaders towards achieving the goals set forth.

B.2 Weakness

A point of consideration that SIMC should consider in an election is that

the creation of provision in its charter or by laws of procedures for filing

petitions for disqualifications of the nominated candidates. Furthermore, the

BOD should also an option for “No election” in case the members opts to

retain the prior officers. At most, the conduct of election shall be recorded by

camera so as to ensure a clean, honest, orderly and efficient election.

C. Social Audit Review

The Social Audit Committee for 2020 reveals positive overall results of

its evaluation of its socia audit with respect to the six areas of consideration

namely;

1. Organization;

2. Membership;
 3. Staff/Employees;

4. Cooperation among cooperatives;

5. Community and nation; and

6. Network, alliance and linkages.

STANDAR POINTS EARNED POINTS EARNED

NO. AREA OF CONSIDERATION
D POINTS 2020 2019

I ORGANIZATION 15 15 12
II MEMBERSHIP 35 25 34
III STAFF/EMPLOYEES 10 10 10
IV COOPERATION AMONG COOPERATIVES 10 9 8
V COMMUNITY AND NATION 25 20 22
VI NETWORK ALLIANCES AND LINKAGES 5 5 5
TOTAL 100 84 91

VERY
RATING SATISFACTORY OUTSTANDING

ASSETS

2016 2017 2018 2019 2020

81 84 91 93 84
3% 9% 2% -9%
103% 109% 102% 91%

VERY VERY VERY

SATISFACTORY SATISFACTORY OUTSTANDING OUTSTANDING SATISFACTORY

C. 1 Strength
 Based on the graph it is evident that the performance of SIMC is increasing

every year. This means that the officers, committees, management and staff

are working hand in hand towards the betterment of the cooperative. However

during 2020 the rating decline due to COVID-19 global pandemic. SIMC’s

social activities were greatly affected because of some programs and trainings

were not realized due to the pandemic. Members economic status were also

affected resulting to the decrease of their economic growth.

C.2 Weakness

There was major drop off points for Membership. It can be connected to

the global pandemic COVID-19 which evidently downturns the economic

status of the workers. Such business closure creates a negative impact to the

welfare of the working class in particular to the private industries. This explains

the abrupt downturn from “Outstanding” rating for 2018 and 2019 with score of

91 and 93 respectively to “Very Satisfactory” in 2020 with a score of 84.

D. Internal Audit review

The SIMC’s continuing dedication in improving the governance

processes to arrive at favorable financial soundness, this committee had

continuosly monitor the adequacy and effectiveness of the Cooperative’s

performance to ensure that these are in accordance with the cooperative

principles and generally accepted accounting procedures.

D.1 Strength

The audit committee based their audit on result or output. Hence the

areas of audit includes;

A. Internal Control

B. Recurring Analysis

C. Policy Reformation

D. Human Resource Management

E. Validating of Inventory Report Submitted by the Management

These audit areas constitutes the core group of the SIMC. The issues

identified in these areas will great affect the operations of the Cooperative.

Therefore, its determination and subsequent solutions may prevent the

cooperative for incurring huge losses which is detrimental to its goals and

objectives.

D.2 Weakness

The problem with the result-based/output audit is that it does not

pinpoint the real problem. Its form of audit may cause large amount of time

and money without knowing the real cause of the problem emanates. While it

may be true that the existence of a problem prompts the audit committee to
 subject it, it does not guarantee wether it is the source of problem or not. It

would entail lost of money in conducting an audit where it is source from the

other side of the coin.

E. Conciliation and Mediation review

The Conciliation and Mediation Committee received the consolidated

List of Delinquent Accounts from the four (4) Branches for Mediation and

possible settlement.

No. of 1st 2nd 3rd

Branch Mediated Mediated Percentage
Members Notice Notice Notice

Babak District 8 8 4 1 0 0 13%

Samal District 10 10 2 3 2 0 30%
Kaputian District 4 4 4 3 1 0 75%
Total 22 22 10 7 3 0 32%

Strength

The process of serving and delivering the Notices was done by the

members of the Committee itself and with the assistance of the Area

Collectors since face to face and assemblies were at its height of prohibition. It

can be shown upon that Kaputian District had mediated around 3 out of 4

members attaining atleast 75% mediation rate.

Weakness
 Samal district with total number of 10 members subject for mediation

garnered 30% mediation rate or 3 out 10 members. The lowest mediation

acted upon was Babak District with 13% or 1 out of 4 members was mediated.

This is primarily attributed to COVID 19 pandemic that the Cooperative

suffered lengthy and strict lockdowns not only in Manila but throughout all

provinces including Davao del norte. It cause their actions and responses to

the problems limited and inefficient.

F. Credit review

Credit committee’s purpose is to assist the Board of Directors in fulfilling

its responsibilities by providing oversight of the cooperative policies and

management activities relating to identifying, assessing, measuring,

monitoring and managing collaborative credit risk.

LOAN RELEASES
NO. OF
BRANCHES AMOUNT
ACCOUNTS
BABAK 2,007 87,243,916
SAMAL 5,581 250,097,314
KAPUTIAN 3,073 54,231,487
DAVAO 894 29,208,477
TOTAL 11,555 420,781,194
 TOTAL AMOUNT OF LOAN RELEASES FROM
MAIN AND BRANCHES
87,243,916

420,781,194 250,097,314

54,231,487
29,208,477

BABAK SAMAL KAPUTIAN DAVAO

COMPARATIVE RESULTS ON THE NUMBER OF

LOAN RELEASES
5,581
6000

5000

4000 3190 3,073

3000 2349
2,007
1751
2000
1050 894
1000

0
BABAK SAMAL KAPUTIAN DAVAO
 COMPARATIVE RESULTS ON THE AMOUNT OF
LOAN RELEASES
300,000,000 267,264,139
250,097,314
250,000,000

200,000,000

150,000,000
92,542,231
87,243,916
100,000,000 72,421,385
54,231,487
38,524,351
29,208,477
50,000,000

-
BABAK SAMAL KAPUTIAN DAVAO

Strength

The Samal Branch coveted the top spot for both number of loans and

amount of loans releases with 48% and 59% respectively. Followed by the

Babak branch which acquired 17% of number of loans processed and 21%

amount of loans processed. On the third spot is the Kaputian branch which

obtains 27% of the number of loans processed and 13% of the amount of

loans processed for the year 2020. This indicates that the intervention made

by the three branches amidst the pandemic results to effective and efficient

outputs.

Evidently there was an overall increase of number of loans processed

during the year 2020. A fact that the branches exceeded the 2019

performances in processing loan applications. However, the counterpart of the

number of loans are the amount releases which the results contradicts with.
 Weakness

Only Davao branch generated 8% of the number of loans processed

with correspinding 7% amount of loans processed. The reason of which is that

restrictions in davao city is much more than in Island Garden City of Samal

(IGACOS).

As shown in the table there was a constant decrease of amount of

loans granted from CY 2019 to CY 2020. The main reason of this could be

connected to the COVID 19 pandemic that cause numerous workers jobless.

This affects the economic stability of working class situated in IGACOS and

Davao City causing downturn of its loan amount processed.

Customers

Collaborator

COLLABORATORS –
KEY WORDS: DISTRIBUTOR, SUPPLIER AND ALLIANCES

Samal RHU-Dental Division introduces "Modyul sa Pag-atiman sa Ngipon" to Child

Development Workers of Samal District
"We still make you smile behind those masks" is the theme of the Samal-RHU Dental
Division led by Dr. Frances C. Meregillano as they introduced the "Modyul sa Pag-atiman sa
Ngipon" to the 18 Child Development Workers of Samal District yesterday, October 14, 2021,
at Samal Cultural Gym.
Significantly, the module is an initiative of the Provincial Health Office-Dental Division in
Davao del Norte in partnership with the Provincial Social Welfare and Development Office
and with the assisstance of the City Social Welfare and Development Office. With the
support of the sponsors who provided the needed materials: the South Davao Rotary Club,
headed by Michael Chellathurei donated reams of bond paper for the printing of modules; the
Gaisano store, represented by James Justine L. Gaisano, donated school supplies; the
Provincial Health Office-Dental Division provided dental supplies; and the SIMC, headed by
General Manager Glenn Merida, provided the tokens for the attendees, the program was
made successful and plausible.
All in all, 863 sets of school supplies, dental supplies, and modules were accumulated
and are expected to be distributed to the 734, and counting, daycare enrollees.
As stated by Dr. Meregillano, "Through this module we will be able to reach them, still
promoting how to take care of their teeth and, at the same time, having fun doing it. To reach
out the values of taking care sa atong mga ngipon." The main goal of the Samal RHU—
Dental Division is to continue their movement of educating and bringing awareness to
children about the necessity of taking care of their teeth amidst the pandemic.
That being said, SIMC members formed a group to distribute bond paper in every
Public school in Samal. Some of the schools are located in Kaputian, Babak and Center of
Samal areas. A 360 Reams of A4 Bond Paper were turned over by SIMC, represented by its
new General Manager, Glenn G. Merida and duly received by the Dep-Ed, Division office of
Island Garden City of Samal, represented by its SDS, WINNIE E. BATOON.
Apart from the above-mentioned groups, SIMC also partnered with SIMC Gasoline
Station. It is currently situated at 3PJ4+737, Island Garden City of Samal, Davao del Norte.
Also, another branch established in Davao City, the Davao Satellite branch and is located at
Merco Building, J.P Cabaguio Avenue Davao City.

Other alliance formed in collaboration with the Government facilitated activities was
the SIMC Service Tent during BJMP Vaccination Program and the Talicud Island Garden
City of Samal " LTO Caravan" in support to LGU-Samal initiated Emission Service. These
activities which was being supported by the organization for the social benefit of the
community, not just among the members of the Cooperative but also from the people
residing in Samal.

Competitor

Tagum cooperative is the current competitors of SMIC. In spite of

having branches to other location tagum cooperative is also reaching their

client through online. Tagum cooperative has an official website in where you

can access through membership and loans and you can research and

understand there services and operations. Tagum cooperative is 53 years in

service, 9 billions of assets and 188 thousand total members. Tagum

Cooperative mission is committed to significantly contribute in improving and

sustaining the social and economic well-being of members and the community

by providing highly innovative and relevant products and services. There core

values is derived from the name TAGUM COOP, which is Trustworthiness,

Accountability, God-Centered, Unity, Member Friendly, Competence,

Openness, Optimism and Passion. Tagum cooperative has a voluntary open

ownership on where open to all without gender, social, racial, political, or

religious discrimination. You may shop, you may join, and you may leave the

coop at any time. Tagum cooperative also implemented education, training

and Information, Democratic owner control, cooperation among cooperatives,

owner economic participation, concern for community and autonomy and

independence.

Strength

The common strength of the competitor is they have skilled workers,

strong financing, strong diverse workforce and democratic owner control this

are the capabilities that by virtue of being rare, costly to imitate, and non

substitutable and become potential sources of competitive advantage.

Weaknesses
 TC weakness is obsolete technologies in where it may increase cyber

attack and having weak cyber security vulnerabilities can put the coop into a

huge problem like to experience hacking the accounts and bash the coop of

their pit falls performance.

Opportunities

Opportunities may exist to the Tagum Cooperative as Possible new

branches, weak market rivals and emerging of technologies in which the

cooperative can gain competitive advantage.

Threats

The common treats of cooperative are implementing new Government

Regulations that coop can put to risk by increasing the operational cost of man

power or anything operational activities of the coop. Resources scarcities in

which it will experience Resource scarcity is the lack of availability of supplies

required to maintain life, or a certain quality of life. New entrants is a threat of

new competitors entering the market and Substitute service a threat of

substitute service based on the ability of consumers to find what they want

from the other cooperatives.

Climate (environment)

Regulations and government oversight

The Philippines is currently experiencing a pandemic virus crisis

resulting in a slowdown economy because of the mandated lockdowns all over

the country. The SMIC believe that a cooperative strong financial position it

can readily meets its maturing obligations and continue as going concern.

Under R.A. No. 9520, cooperatives are exempted from the payment of al

national city, provincial, municipal or barangay taxes of whatever name and

nature, including exemption from the customers duties, advance sales of

compensating taxes on its importation of machinery, equipment and spare

parts which are not available locally as certified by the Department of Trade

and Industry.

SMIC commence to develop the Code of Governance that consolidates

the key governance practice of the SMIC. The details and content of each

article as institutional practice are article 1-6 which is the preamble,

declaration of policy, vision core values and goals of the cooperative. Article 7

is the Board of Directors composition, roles, responsibilities, powers and

function. Article 8 is the duties and responsibilities of the cooperative officers.

Article 9 is the qualifications, duties and responsibilities of the management

staff. Article 12 the accountability in the external auditor. Article 13 the rights of

the members such as right to information, right to share capital and patronage

refund. Article 15 the required regular reports.

Improving the governance processes to arrive at favorable financial

soundness, SMIC continuously monitor the adequacy and effectives of the

cooperative’s performance to ensure that there are in accordance with the

cooperative principles and generally accepted accounting procedures. The

internal control is need to be done to review and remind management adhere

the provisions embodied in RA 9520 and the articles of cooperation and by

laws of the cooperative such as mortuary cash assistant availment,

receivables and its supporting documents, cash disbursement and surprise

cash counts.

Social and cultural

A SMIC member under the finance program has benefited a group

service, medical and health assistance, educational and burial assistance.

SMIC employees support program and work environment conformed with the

standards as well, awards and recognition, continuing education program and

sports development program. Logistical support is appropriate and Work

Environment is conducive.

Community outreach programs for nation building were initiated by the

cooperative. Among its programs and activities are bangus deboning, candle

making and sardines making for the livelihood program, bloodletting, sports

activities for youth development and health program and tree planting for

environmental sustainability.

Technology

Technology is one of the foundations of the SMIC now a days, using

the Internet and continuing explosion in communication technologies. SMIC is

an indispensable on the technology where they can check their annual report

audit and finance through the Microsoft excel, making sales transaction online

and analyzing members preferences. Moreover, physical distance is hardly

matters anymore because of the technology and internet in where SMIC

connect to virtual space on where SMIC board of directors and committees

hold meetings, access common databases, share information and files, make

plans and solve problems together without ever meeting face to face. Which

they also practices the e-mail in sending reports, web blogs, text message,

online media, electronic commerce and social networks and It is very helpful

during this pandemic.