By Rjay Zuriaga Castor
The Cooperative Development Authority (CDA) in Western Visayas reported that many cooperatives in the region are struggling to process their Certificates of Compliance (COC), particularly with the submission of their financial audit reports.
CDA-6 Director Antonio Escobar said the region had 2,012 cooperatives in 2023, but only 40 percent have complied with the requirements.
“Despite some extensions, many cooperatives still have not submitted their documents. The main challenge is preparing audited financial statements, especially for micro and small cooperatives,” he said.
An audited financial statement is a key requirement for obtaining a COC, a certificate issued to all types of cooperatives after they comply with CDA regulations.
One of the benefits of securing a COC is receiving a certificate of tax exemption, which allows cooperatives to avail of tax incentives.
Escobar noted that one of the challenges faced by cooperatives is the high cost of engaging the services of an independent Certified Public Accountant (CPA) accredited by the CDA.
Under the Philippine Cooperative Code of 2008, cooperatives must be audited by a CPA accredited by the Board of Accountancy and the CDA.
In addition to financial challenges, Escobar acknowledged issues with the CDA’s online portal. Cooperatives have cited technical glitches as contributing to the delays in their compliance.
The CDA-6 further encouraged smaller cooperatives to consider merging or consolidating to improve operational efficiency, expand their reach, and enhance their services.
“We urge micro and small cooperatives struggling with compliance to consider merging, especially if they have similar purposes or products,” Escobar suggested.
“They should seek out a surviving cooperative that can take the lead in their business operations,” he added.
Escobar emphasized that the CDA’s goal is not to increase the number of cooperatives but to ensure that existing ones are of high quality and can meet regulatory requirements.
In addition to compliance issues, the CDA has received numerous complaints concerning alleged misconduct by officers of transport cooperatives.
Escobar said the CDA-6 has already taken action on these complaints, resulting in the preventive suspension of officers in three cooperatives.
“We have filed a petition for the creation of a management committee to oversee these cooperatives if the officers continue to neglect their duties. We are committed to addressing these allegations seriously,” he emphasized.
