QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2011-16)
The CDA cited the provisions of Republic Acts No. 6939 and 9520 as the legal basis, aligning with the State policy of providing incentives to registered cooperatives under RA 9520 (Philippine Cooperative Code of 2008) and other related laws/issuances.
A CGS is a certificate issued by the CDA to operating cooperatives that have complied with mandatory requirements under RA 9520, its IRR, and other administrative issuances, entitling them to avail incentives and privileges granted to cooperatives.
Regular Purpose is for complying with mandatory requirements under RA 9520 to avail incentives/privileges (e.g., CDA-BIR Joint Rules for Articles 60 & 61 of RA 9520, in relation to RA 8424 and LGU permits/licenses). Special Purpose is for other legitimate purposes such as financial assistance, importation of machinery/equipment/spare parts, rice importation program, or accreditation as a training provider.
A letter request signed by the Chairman/authorized representative; proof of compliance to statutory reports for the preceding fiscal year (or complete copies); updated bond of accountable officers/employees; minutes of the General Assembly for the current/preceding year showing elections, approval of development/annual plan and budget, and acceptance of reports/financial statements (or for newly registered cooperatives, special GA minutes within 90 days); and payment of the certification fee.
A signed letter request stating purpose; a copy of the latest CGS issued for regular purpose for the preceding year or current year (as applicable); a favorable endorsement from the concerned Extension Office; and payment of the certification fee.
They are exempt from compliance with Section 6.1(b & c) if they secure the CGS within 90 days from registration. If they secure the CGS after 90 days but not more than one year from registration, they are only exempt from Section 6.1(b & d(1)) (i.e., specific subset of requirements as stated in the guideline).
Non-submission of statutory reports for two or more consecutive years; delayed submission of statutory reports by more than six months for at least two consecutive years; non-compliance with CDA guidelines (violations of laws, guidelines, circulars, and bylaws); and the existence of a question on the legitimacy of leadership.
It is a ground to deny issuance when there is a question on the legitimacy of leadership. It is relevant because even if documents and reports exist, unresolved legitimacy issues can still bar CGS issuance.
Extension Office Director generally approves both regular and special CGS applications except those specifically reserved. Executive Director approves applications for tertiary cooperatives, cooperative banks, insurance cooperatives, or within Central Office jurisdiction for regular purpose. Chairperson approves special CGS for (1) incentives for rice importation, (2) incentives for importation of machinery/equipment/spare parts, and (3) other specific purposes peculiar to electric cooperatives, cooperative banks, and cooperative insurance societies.
Upon recommendation of the Extension Office Director, the Board of Administrators may waive: statutory reports for the preceding year and minutes of the General Assembly meeting for the preceding year (including election results). However, other requirements in Section 6 must still be complied with. In lieu of waived items, a certification from the LGU and other concerned agencies about the fortuitous event is required.
Certification fee is Php 100.00 per CGS. Penalties include Php 300.00 for every year of failure to secure a CGS for regular purpose, and Php 300.00 for late filing of application for regular purpose.
The cooperative must secure a Regular Purpose CGS on or before April 30 of the current year. Requests received after the period are treated as late filing and incur a Php 300.00 penalty.
CDA Memorandum Circular No. 2008-03 dated February 14, 2008 is amended. The repealing clause indicates that the 2011 guideline updates/amends the prior one accordingly.
It takes effect fifteen (15) days after filing a copy with the Office of the National Administrative Register (ONAR).