Title
Revised Cooperative Social Audit Guidelines
Law
Memorandum Circular No. 2018-01
Decision Date
Apr 3, 2018
Revised guidelines mandate that all registered cooperatives conduct a social audit, focusing on social performance assessment to evaluate their effectiveness in delivering social development services, with reports prepared by accredited independent auditors.
A

Scope and Coverage

  • Applies to all registered cooperatives regardless of type or category.
  • Mandates social audit as a standard procedure.

Key Definitions

  • Auditor: Cooperative's internal auditor, audit committee, or designated social auditor.
  • Management Social Performance Report: Report on achievements of the cooperative's social development plan.
  • Social Audit: Evaluation of cooperative's social impact and ethical performance vis-à-vis its mission and goals.
  • Social Audit Report: Certified document produced from social audit.
  • Social Audit Working Document: Tool used during the audit.
  • Social Development Plan and Budget: Annual social programs with approved budget.
  • Social Development Programs: Activities aimed at achieving social goals.
  • Social Goals: Desired social conditions guiding cooperative's objectives.
  • Social Impact Assessment: Evaluation of positive and negative outcomes of social programs.
  • Social Performance: Effective implementation of cooperative's social mission.
  • Social Performance Assessment: Review of cooperative's social development plan and budget execution.

Objectives of the Guidelines

  • Guide cooperatives in assessing social performance.
  • Standardize tools and formats for social audit reports.
  • Prescribe submission procedures and timelines to the CDA.

Key Areas in Social Performance Assessment

  • Review of Vision, Mission, Core Values, and Social Goals.
  • Evaluation of Policies and Guidelines on Social Development.
  • Analysis of Social Development Programs targeting cooperative and community.
  • Scrutiny of utilization of Community Development Fund.
  • Use of Social Audit Working Document as assessment tool.

Social Audit Report

  • Comprises a narrative report detailing observations and recommendations.
  • Includes completed Social Audit Working Document as annex.
  • To be attached to Cooperative Annual Progress Report (CAPR).
  • Prepared by internal or designated social auditors, signed by Chairperson and General Manager.
  • Must be typewritten or printed in prescribed format.

Management Social Performance Report

  • Annual report on social development accomplishments, prepared by management.
  • Serves as a reference for auditors but retained within cooperative.

Repealing Clause

  • Repeals Memorandum Circular No. 2013-16.

Effectivity and Compliance

  • Takes effect upon CDA Board approval and fifteen days post-publication with ONAR.
  • Cooperatives to adopt revised forms starting submission for 2018's social performance in 2019 onward.

Legal Authority

  • Approved by CDA Board Resolution No. 049-2018 dated February 20, 2018, and signed by CDA Chairperson Orlando R. Ravanera.

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