Question & AnswerQ&A (CDA MEMORANDUM CIRCULAR NO. 2013-16)
The legal bases are Article 80, Chapter IX and Article 53, Chapter V of RA 9520 and Rule 11 of its Implementing Rules and Regulations.
It mandates that cooperatives registered under RA 9520 shall be subject to an annual financial, performance, and social audit conducted by an independent social auditor accredited by the Authority.
The social audit must be conducted by an independent social auditor accredited by the Cooperative Development Authority (CDA).
Social audit is a procedure where the cooperative assesses its social impact and ethical performance vis-à-vis its stated mission, vision, goals, and code of social responsibility.
All registered cooperatives, regardless of types and categories, are subject to social audit and must submit the Social Audit Report.
The purpose is to validate the cooperative's adherence to the cooperative principle of 'Concern for Community' and to appraise its social performance and ethical impact on members and community.
The Social Audit Report must include the cooperative's annual socio-civic undertakings, progress, and achievements relative to its community development and ethical performance.
The Chairperson and the General Manager certify the truthfulness of the report, and the Chairperson gives the final approval.
The Social Audit Report must be submitted no later than 120 days from the end of each calendar year.
A fine of Php100.00 per day of delay is imposed, and the cooperative may be subject to cancellation or may be required to merge or consolidate with another cooperative in the same area.
In the initial year, the cooperative's Internal Auditor or Audit Committee shall conduct the social audit and prepare the report before accreditation of an independent social auditor.