Foremost, I would like to express my profound gratitude to the Lord for his countless blessings to our families, our employers, friends and acquaintances. We are glad that we reached another milestone in our journey to survival in this wonderful world. It feels great to meet the New Year with a smile coming from every person we meet along the way. But while we laugh and cherish the joyous moments of the previous and ensuing year, we share the burden experienced by our fellowmen who lost their love ones during the Yuletide and this month of January. As they say, life is too short and we need to make use of it to bring out the best in us and serve God, family and country.
Secondly, we take this opportunity to remind all registered cooperatives and business entities to process their business/mayor’s permit. Cooperatives may simultaneously apply for new or renew their accreditation with local government units as peoples’ organization, and work out on their interim financial statements to be audited by accredited certified public accountants. Cooperatives, business institutions and individuals that exceeded 10 million gross sales or revenues need to comply with BIR Revenue Memorandum Circular No. 21-2016 that circularized Professional Regulatory Board of Accountancy Resolution No. 03 series of 2016. There is a need to employ the compilation services of accredited certified public accountants prior to external audit to avoid sanctions/penalties.
Further, on the part of cooperative bookkeepers/accountants and CDA Accredited External Auditors, it is highly encouraged that AFS shall be prepared in accordance with CDA M.C. 2016-06 “Revised Standard Chart of Accounts for Cooperatives” and Philippine Financial Reporting Framework for Cooperatives. Compliance to such issuances will ensure understandability, relevance, materiality and reliability of information and can facilitate financial ratio computations applicable to cooperatives.
In addition, cooperatives must ensure that Cooperative Annual Progress Report (CAPR) and attachments like the duly Audited Financial Statements, Performance Audit Report (PAR) together with Mediation and Conciliation Reports, Social Audit Report (SAR ) and List of Officers, Trainings Attended/Undertaken and Annual Budget and Development Plan are prepared for presentation and approval during the General Assembly Meeting. These reports need to be submitted to the CDA within 120 days from the close of the calendar/fiscal year. However, CAPR and AFS must be electronically submitted through the Cooperative Annual Progress Report Information System (CAPRIS).Hard copy duly signed by accountable officers shall be submitted to the regional office within 5 days from the date of online submission. It is suggested that concerned staff must visit the nearest CDA Field or Regional Office to be oriented on the newly issued guidelines on the issuance of Certificate of Compliance or you may download CDA M.C. 2016-07 “AMENDED GUIDELINES GOVERNING THE ISSUANCE OF CERTIFICATE OF COMPLIANCE (COC)” at cda.gov.ph especially micro cooperatives for some updates.
Moreover, some certificate of tax exemptions of cooperatives expired or are about to expire and the need to work out for renewal is a must. It is my understanding that when the granted exemption privilege lapse, the possibility of imposition of regular charges apply. It is then necessary for all cooperatives to comply with RA 9520 provisions and the CDA-BIR Joint Circular issued for the purpose. Every cooperative must secure certified Xerox copy of its Registration, Articles of Cooperation, by-laws and Certificate of Compliance from CDA as part of the requirements in the application for new or renewal of tax exemption.
Furthermore, filing of income tax return with the BIR together with the Audited Financial Statement of the entity will be on the 15th of April. However, Maundy Thursday and Good Friday fall on the 13th and 14th day of April, hence, April 12 will be the last day of filing. I guess there is a need to prepare and submit the reports earlier to avoid incurrence of penalties. As of this writing, we are still awaiting for the issuance of updated mandatory report forms from the CDA-Central Office. We ask for your patience and understanding as we closely coordinate with persons responsible to supply us the required documents.
Lastly, we would like to extend our prayers and sympathies to our friend Mr. Johnson Miguel for the passing away of her beloved wife last December 25, 2016 and to the family and relatives of Auntie Angelina C. Gomez who passed away last January 4, 2017.
