1. Lyceum-Northwestern University Graduate Studies
THE STATUS OF COOPERATIVES IN SANTA IGNACIA, TARLAC
FY 2011 : BASIS FOR POLICY RECOMMENDATION
A Star Paper
Presented to the Faculty of
The Institute of Graduate and Professional Studies
Lyceum-Northwestern University
Dagupan City
In Partial Fulfillment of
the Requirements for the Degree
MASTER IN PUBLIC ADMINISTRATION
By:
BUEN MIGUEL DELA CRUZ JR.
April 2012
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2. Lyceum-Northwestern University Graduate Studies
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CERTIFICATE OF ADMISSION TO CANDIDACY
FOR THE DEGREE MASTER IN PUBLIC ADMINISTRATION
This is to certify that BUEN MIGUEL DELA CRUZ JR., was admitted to candidacy for
the degree Master in Public Administration as of 2nd Semester 2011-2012 after passing the
Comprehensive Examination in his Courses under the Customized Program for Local
Executives/Officials, given last March 29, 2012.
ROMANA O. FABREGAS, Ph.D.
Dean, Institute of Graduate and
Professional Studies
___________________________________________________________________________
APPROVAL SHEET
This star paper entitled “THE STATUS OF COOPERATIVES IN SANTA IGNACIA
TARLAC FY 2011: BASIS FOR POLICY RECOMMENDATION ” submitted by BUEN
MIGUEL DELA CRUZ JR. in partial fulfillment of the requirements for the degree “MASTER
IN PUBLIC ADMINISTRATION” under the Customized Program for Local
Executives/Official has been examined and is hereby recommended for acceptance and
approval.
JOSEFINA B. BITONIO, DPA
Adviser
JOSEPHINE T. FLORES, DPA
Program Coordinator
CYNTHIA P. LOPEZ, Ph.D.
Member
PERLA E. LEGASPI, DPA
PCL Program Director
Accepted and approved in partial fulfillment of the requirements for the degree Master in Public
Administration, with a grade of 95%..
ROMANA O. FABREGAS, Ph.D.
Dean, Institute of Graduate and
Professional Studies
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3. Lyceum-Northwestern University Graduate Studies
ACKNOWLEDGEMENT
With honor and pride, the researcher wishes to express his heartfelt and
profound gratitude to all those unselfishly helped and contributed to the
realization of this academic endeavor. Specifically, he invokes the Almighty’s
blessings upon the following:
Dr. Romana O. Fabregas, Director for Graduate School and Professional
Studies for being the panel Chairman whose guidance, suggestion and comments
greatly improved the study;
Dr. Josefina B. Bitonio, my adviser, for her unwavering support, sacrifice,
patience and understanding and for gladly sharing her valuable time and expertise
in the conduct of this research;
Dr. Perla E. Legazpi, Dr. Josephine T. Flores, Dr. Cynthia P. Lopez and
panel members respectively, of LNU Graduate School, for making helpful
comments that have greatly improved the study;
To all the employees of the LNU- Graduate School, Dagupan City, for
being hospitable and courteous to the researcher every time we rubbed elbows in
their offices;
To the PCL Officers thank you very much for embarking on this program
and to all my PCL classmates, I enjoyed the interactions and learning from your
experiences as legislators.
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4. Lyceum-Northwestern University Graduate Studies
The Cooperative Development Authority officer of Tarlac Province, Mr.
Raul Encarnacion and Paterno Dela Cruz for providing the necessary data from
the 2011 CDA-CARIS;
Attorney Saklulu B. Enrado, our Municipal Mayor in the municipality of
Santa. Ignacia, Tarlac, Hon Noel C. Antonio, our Municipal Vice Mayor of the
municipality of Santa Ignacia, Tarlac for their approval of financial assistance in
taking our masteral degree in Public Administration at Lyceum Northwestern
University in Dagupan City.
Likewise,to my officemate Mdm.Cecille,Glaiza,Veblen, Cora and Nikki
always ngpapabaon ng SMILE,
To all the outstanding cooperative officials and members of Santa.
Ignacia,Tarlac, for giving their untiring assistance and contributing their thoughts
and perspectives which significantly contributed to the achievement and success
of this study;
My loving parents, Buen Duco Dela Cruz Sr.(Deceased) & Leonarda
Miguel Dela Cruz, brothers, Orly, Buly, Willy, Danny, Juvy and sisters, Erling,
Mely, Arlene who served as my inspirations in the completion of this Special
Paper; my special sweet ladies Jemalyn, Mylene, Hazel and Dianne who really
inspired me during my school days of taking my masteral degree; my one lovely
dearest kid, Buen Margarette C. dela Cruz, together with Merry gay Jimuela,
Tintin her playmate and cousin, and the very special contribution of Eunice Ann
and Mary Ann in encoding my paper.
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5. Lyceum-Northwestern University Graduate Studies
Above all, to the Lord Almighty, for providing him the needed strength,
courage, wisdom, determination in pursuing this study.
BUEN MIGUEL DELA CRUZ JR.
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6. Lyceum-Northwestern University Graduate Studies
DEDICATION
This paper is lovingly dedicated
to all the cooperatives in Santa Ignacia, Tarlac
for promoting local pride and social integration
in the locality. It is an honor for me to work
with them in their integral role
in the community’s social innovation and
economic development strategies.
Buen
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7. Lyceum-Northwestern University Graduate Studies
ABSTRACT
Title
: THE STATUS OF COOPERATIVES IN SANTA IGNACIA,
TARLAC FY 2011 : BASIS FOR POLICY RECOMMENDATION
Researcher
: BUEN MIGUEL DELA CRUZ JR.
Institution
: Lyceum NorthWestern University
Institute of graduate and Professional Studies
Dagupan City
Degree
: Master in Public Administration
Date
: April, 2012
Adviser
: JOSEFINA B. BITONIO, DPA
Objectives
:
The study assessed the status of cooperatives in Santa Ignacia from the period
FY 2011 and also determined the constraints affecting the growth and development
of cooperatives in the municipality.
Specifically, the study sought to answer the following objectives:
1. To know the status of the registered cooperatives in the municipality of
Santa Ignacia, Tarlac along:
1.1 General information on the year registered, type, nature of business,
sector and operational status;
1.2 Membership by Gender; and
1.3 Employees by Gender.
2. To know the extent of the capital structure of the cooperative in terms of
authorized capital, subscribed capital and paid up capital.
3. To examine the financial structure of cooperative relative to assets,
liabilities and net worth.
4. To find out how the cooperatives are financially performing based on their
volume of business, gross income, administrative expense and net surplus.
5. To study how cooperatives are complying with their statutory reserves
such as: General Reserve Fund (GRF), Cooperative Education and
Training Fund (CETF) and Optional Fund (OF).
6. Based from the findings, determine the constraints that affects the growth
and development of cooperatives and to come up with the proposed policy
recommendations to strengthen the operation of cooperatives in Sta.
Ignacia, Tarlac.
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8. Lyceum-Northwestern University Graduate Studies
Methodology
The descriptive research design was used to come up with valid and
reliable findings on the general profile of cooperatives; capital structure of the
cooperative in terms of authorized capital, subscribed capital and paid up capital;
financial structure of cooperative relative to assets, liabilities and net worth;
financial performance based on their volume of business, gross income,
administrative expense and net surplus; and compliance to statutory reserves such
as: General Reserve Fund (GRF), Cooperative Education and Training Fund
(CETF) and Optional Fund (OF). The sources of data came from the 2011 CDACARIS, and secondary data, such as, articles of cooperation and by-laws,
cooperative annual performance reports (CAPR) and available and audited
financial statements from the.14 cooperatives with operating and non operating
status in Santa. Ignacia, Tarlac
Findings:
Based on the specific objectives in Chapter 1, the following are the salient
findings of the study:
1. There were 14 cooperatives registered from 1991 -2011; mostly (57.14%)
were registered between 2000 - 2011 are Multi Purpose Cooperatives
(92.87%) these cooperatives are engaged in two services namely credit and
trading (50%); with agriculture as the predominant sector (78.57%) and with
13 cooperatives operating (92.87%).
2. The male members (54.03) are slightly higher in numbers than the female
members. The boards of directors were also dominated by male officers
(73.97%). The Bond of membership is residential (85.72%).
3. There were four full time employees and 43 part time employees, mostly
female employees (68.08%).
4. The cooperatives in Santa Ignacia, Tarlac have an Authorized Capital (AC) of
P 3,222,100, Subscribed Capital of P 1,822,940.00 (SC) and Paid Up Capital
(PC) of P380,338.49.
5. The cooperatives generated an asset of P 6,938,014.31, Total liabilities of
P 4,080,908.07 and Total Net worth of P 2,857,106.24
6. The business performance revealed a total volume of business derived from
credit and trading amounted to P6,394,321.87 with a Gross Income (GI) of
P1,265,759.85, Administrative Expenses (AExp) of P 970,092.22 and a Net
Surplus (NS) of P 333,412.47.
7. There were three statutory reserves funded by the cooperaties. The General
Reserve Fund (GRF) amounted to P 379,343.08, Cooperative Education and
Training Fund (CETF) P 180,432.34 and Optional Fund (OF) of P 380,338.49
with a total reserves amounting to P 940,113.91.
Conclusions:
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9. Lyceum-Northwestern University Graduate Studies
Based on the findings, the following conclusions were drawn:
1. The cooperatives in Santa Ignacia, Tarlac are mostly operating with small
2.
3.
4.
5.
6.
7.
membership based and engaged in limited services makes it difficult for the
cooperatives to compete with other businesses in the locality.
By gender, the male members are more than the female as well as more male
Board of Directors. Majority of the cooperatives employed female part time
employees manifesting that volume of business not enough to fund salaries
and benefits of full time employees.
The cooperatives have exceeded their capital structure making them stagnant
without new subscription from members.
On the financial structure, all the cooperatives are categorized as micro
category having small assets and perceived as not stable in running their
business.
The cooperatives managed to earn positive net surplus for their statutory
reserves and retuned back to members in the form of interest on share capital
and patronage refund.
Almost all cooperatives complied in putting up their statutory reserves
namely: General Reserve Fund, Cooperative Education and Training Fund and
Optional Fund.
The constraints affecting the cooperatives were found to be coming from
internal and external environment.
8. Micro cooperatives do not have policy guidelines in running its day-to-day
activities and operation.
Recommendations
In the light of the findings and conclusions drawn from the study, the
researcher sets forth the following recommendations
1. The proposed policy recommendations in Chapter III are highly recommended
for the safe and sound operation of the cooperatives in Sta. Ignacia, Tarlac.
2. The Sanggunian Bayan Oversight Chairman on Cooperatives can pass an
ordinance on the strengthening of cooperatives with corresponding funding to
assure the implementation of plans and programs for cooperatives.
3. The LGU in cooperation with CDA should provide a feedback to the 14
cooperatives and offer mentoring or technical assistance in the preparation of
programs and projects supplemented by policy guidelines formulation
activities to firm up the implementation of identified plans and programs by
both the cooperatives and partner agencies.
4. The cooperatives need to have a strong internal control mechanism as guide in
governing the operation of the cooperative.
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10. Lyceum-Northwestern University Graduate Studies
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TABLE OF CONTENT
Page
Title Page
i
Certification and Approval Sheet
ii
Acknowledgement
iii
Dedication
vi
Abstract
vii
Table of Contents
x
List of Tables
xiii
List of Figure
xiv
CHAPTER
I
THE PROBLEM
Rationale
1
Framework of the Study
4
General Objective
7
Specific Objectives
7
Scope and Delimitation
8
Significance of the Study
8
Definition of Terms
10
II. Methodology
13
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11. Lyceum-Northwestern University Graduate Studies
Page
Page
Research Design
Source of Data
13
Instrumentation and Data Collection
15
Tools for Data Analysis
III
13
15
RESULTS AND DISCUSSION
General Information on the Registered Cooperatives
Membership by Gender
Status on Employees by Gender
Capital Structure
Financial Structure
Business Performance
Statutory Reserves
Constraints that Affects the Growth and Development of
Cooperatives
Proposed Policy Recommendations
17
19
20
21
23
25
26
28
30
III CONCLUSIONS AND POLICY RECOMMENDATIONS
Conclusion
Recommendations
35
36
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12. Lyceum-Northwestern University Graduate Studies
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BIBLIOGRAPHY
37
APPENDICES
A. General Information on Cooperatives
B. Status on Membership by Gender
C. Employment Status by Gender
D. Capital Structure
E. Financial Structure
F. Business Performance
G. Statutory Reserves
CURRICULUM VITAE
39
41
42
43
44
45
46
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13. Lyceum-Northwestern University Graduate Studies
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LIST OF TABLES
TABLE
1
Page
List of Registered Cooperative and Confirmation Date
2
Research Questions, Data Sources and Tools for
Analysis
3
General Information on the Registered Cooperatives
4
Membership by Gender
5
Status on Employees by Gender
6
Capital Structure
7
Financial Structure
8
Business Performance
9
Statutory Reserves
10 Constraints that Affects the Growth and Development of
Cooperatives
11 Proposed Policy Recommendations
14
16
18
19
20
22
24
26
27
29
31
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LIST OF FIGURES
FIGURE
1
Map of Santa Ignacia, Tarlac
2
Capital Structure
3
Financial Structure
4
Business Performance
5
Statutory Reserves
Page
15
22
24
26
27
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