Our last two columns presented the relevance of plans and programs to performance standards of cooperatives as prescribed under M.C. 2013-15. We added some required documents that are being monitored by CDA personnel during inspection aside from the presence of mandatory reports. The later portion of our last issue was on the computation of some ratios with the acronym PISO. Given such financial ratios combined with the non-financial ratings provide us basis in computing for the performance of the cooperative. In order to get the non-financial score, we use 35% as multiplier of the total points earned and 65% on the total financial ratings. We then add the products of the computed financial and non-financial ratings and determine the over-all performance based on the performance standard table according to category of cooperatives.
The adjectival rating and percentage range are as follows: Excellent performance – medium and large coops: 91-100%, small cooperatives: 81-100%, micro coops: 75-100%; Very satisfactory performance – medium and large coops: 81-90%, small coops: 71-80%, micro coops: 61-74%; Satisfactory performance – medium and large coops: 71-80%, small coops: 61-70%, micro coops: 51-60%; Fair performance – medium and large coops: 61-70%, small coops: 51-60%, micro coops: 41-50%; and Needs Improvement – medium and large coops: 60% and below, small coops: 50% and below, micro coops: 40% and below.
Knowing the over-all performance of the cooperative is not the end but rather the beginning of understanding the cooperative. It is the start in analyzing the status of the cooperative in terms of its strong and weak points. Identifying the aspects with low points (others call it red flag) in the non-financial and financial ratings will guide us in the planning of future activities to possibly increase and attain higher ratings. Knowing the areas with high scores in all aspects and sustaining such good points will also contribute in the over-all performance of the cooperative.
To our fellow cooperators, the performance standard is not meant to be a competition of ratings among cooperatives. It was designed as a tool to improve existing systems in each cooperative and attain efficiency and effectiveness. An honest to goodness assessment of our respective cooperative should bring out the best answers to our questions “what went well?” and “what needs to be done?”. Such questions should not only be answered by the officers and management staff but members’ involvement must be considered. It is our advocacy that participatory approach in the planning, implementation and evaluation be practiced by cooperatives and other forms of organizations to achieve common goals. Having these in mind, we can further advance and prepare a holistic development plan for the growth of our cooperative.
Personally, I subscribe to the idea that organizational plans should be periodically assessed and re-entry plans must be prepared. Cooperatives are not exempted from such practice and the Board of Directors must craft policies to institutionalize planning within the organization. We noticed that cooperatives that formulate plans and programs that are periodically assessed with the participation of members, officers and staff have continuously increased their assets, net surplus and membership.
Believe it or not plans and programs can be prepared by anybody whether an individual or group of persons. However, we need to establish some tools to measure such plans/programs. For cooperatives, the tools are in place and it is within your reach to use. Congratulations to cooperatives that apply CDA M.C. 2013-15 in assessing their respective organizations. We join you in your journey in making cooperatives as the best form of organization in the world.
We join the nation in celebrating the culmination of cooperative month celebration. To our readers out there who have not joined cooperatives, join us and feel the cooperative atmosphere.
As I am writing this piece, Typhoon “Lando” severely inflicted damages to human lives, homes, crops, livestock, infrastructures and environment. This is the best time for cooperatives to sustain its commitment to community development. Let us reach out to the victims by looking into the needs of our members especially for their capital for socio-economic undertakings and to non-members within the community. Serving them with gladness, utilization of accumulated Community Development Fund and having the heart to help others makes a difference.
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