I.

GENERAL STATEMENT

a. Proposed Name: Walang Katapusang Savings and Credit Cooperative

b. Type of Cooperative: Savings and Credit Union
c. Field of Membership: Residential Residents of, or working in, or, with
dependents studying in Daro, Dumaguete City, Negros Oriental
d. Address of Cooperative: Brgy. Daro Dumaguete City, Negros Oriental
e. Number of Original Members: Twelve (12) members
f. Projected Increase Membership for the:
First Year: 20% of community residents
Second Year: 20% of community residents
Third Year: 20% of community residents
Fourth Year: 20% of community residents

II.

PURPOSE OF THE COOPERATIVE

1. General Purposes
a. To encourage thrift and savings mobilization among the members for capital
formation.
b. To create fund in order to grant loans for productive and providential
purposes to its members.
2. Secondary Purposes
a. To promote the cooperative as a way of life for improving the social and
economic well-being of the community.
b. To actively support the local government and other concerned organizations
in promoting the cooperative as a practical means toward sustainable
socioeconomic development under a truly just and democratic society.
c. To do any related activity for the members and self-government, and to
improve social and/or economic well-being.

d. To undertake other activities for effective and efficient implementation of the

provisions of the cooperative code.
e. To develop the knowledge of the members on the principles and practices of
cooperatives to enable them to actively and competently participate in
managing the affairs of the cooperatives.
f. To institutionalize a dynamic savings mobilization and capital build-up
scheme to sustain its development activities and long-term investment.
g. To implement policy guidelines that will ensure transparency, equitable
access to its resources and services, and promote the interests of its members.
h. To adopt such other plans as may help foster the welfare of the members,
their families and the community.

Proposed Business Activities

The initial business activity that the cooperative will undertake is to pool the
savings of each member for capital formation and to grant loans for productive
and providential purposes. This activity will include the following:

a. To encourage members to save initially at least 5% of their monthly salary in

the credit union.
b. To loan out to members funds at 1% interest on the unpaid balance.
c. Loans will only be for productive and providential purposes.

III.

ECONOMIC AND TECHNICAL ASPECTS OF BUSINESS OPERATIONS

1. Non-existence of Duplicate Cooperative
There is no credit cooperative existing in the proposed are of operating
catering to the same group or association.

2. Personnel for the Proposed Cooperative

The Walang Katapusan Savings and Credit Cooperative will secure/source the
staff of the credit union from its membership. The prospective area of
operation has several residents who have college degree in business
administration. These are qualifies personnel to handle and administer the
business operations of the credit union.
3. Machinery/Equipment
The operation of the credit cooperative does not require any expensive
machinery or equipment. In its first years of operation, all recording may be
done manually. As business picks up in the later years of its existence, a
computer or a typewriter may be budgeted and purchased. The cooperative
will also accept any donation of a second-hand computer.
4. Training Needs of the Cooperative
The College of Saint Paul University Dumaguete is spearheading the
formation of the cooperative in the area. The faculty of the said institution will
handle all training that the staff will require.
5. Feasibility of Business Operations
a. There is no cheap source of credit in the vicinity.
Near the proposed are, there are a couple of commercial as well as savings
banks. However, like all other banks, interest charges are high and there is
a need to secure the loan with collateral.
b. There is a large pool of competent managers.
The members of this single-purpose cooperative represents a large pool of
competent well-educated, and well-trained members who can be tapped to
manage the cooperative.
c. Checks-and-balance-mechanism are present.

IV.

The board lays down the general policies and the operations personnel
implements them. The credit committee processes and approves loan
applications and deposit withdrawals of members. The supervisory
committee will regularly check on the corporate transactions, the working
of the credit committee and on the treasurer, bonded, is the custodian of
all funds and accepts all the money paid to the credit union as well as
make out all authorized disbursement.
FINANCIAL ASPECT
1. Source of Capital:

a. Members share capital contribution;

b. Revolving capital build-up, which consist of the deferred payment
of patronage refund or interest on the share capital;
c. Continuous capital build-up from the 50% investment from interest
and capital and patronage refund;
d. Loans and borrowings, including time and saving deposits;
e. Subsidies, grants, legacies, aids, donations, and such other
assistance from any local or foreign institution, public or private.
f. Retention from the proceeds of services procured by members;
g. Other sources of funds that may be authorized by law.

2. Cooperative Earnings from Operations:

a. First year = P 80,500
b. Second year = P 125,782
c. Third year = P 167,875
3. Operating Expenses:
a. First year = P 15,352
b. Second year = P 35,632
c. Third year = P 87,478
4. Capital Investments: The cooperative has no proposal yet on capital
investments, it will try to solicit, though, from City Hall or from the
congressman area if a second-hand computer. On the fourth or fifth
year, the cooperative may buy a brand-new computer to replace the old
donated computer.

V.

MANAGEMENT STRUCTURE
1. Who will be designated to manage the day-to-day operations of the
cooperative?

In the first two years of operation, there will be a management

committee. On the third year, depending on the board of directors, a
general manager may be appointed.
2. Will the members be required to deposit their savings and patronize
the services of the cooperative? Yes.
3. How many members will comprise the board of directors?
Three (3). They are:
a. Alyssa Jane Villegas - Chairman
b. Karyl Salvoro Vice Chairman
c. Sean Migue Tomaroy Director
4. What will be the role of the board of directors?
The board of directors, as a body, has general supervision and control
of the affairs of the cooperative. It shall provide policies consistent with
laws, the by-laws, and the resolution of the general assembly for the
management of its business and the guidance of its members, officers,
and employees.
5. Will the cooperative have an audit committee?
Yes. The membership consists of the following:
a. Beverly Dumosmog
b. Allyssa Gail Gandola
c. Jolly Dawn Eumague

6. Will the cooperative have a credit committee?

Yes. The membership consists of the following:
a. Daisy Redula
b. Gwyn Fampulme
c. Dana Rhys Gako
7. Will the cooperative have an education committee?
Yes. The members consists of the following:
a. Queenie Bucio
b. Nila Tingcang
c. Meca Agnes

8. Will the cooperative have an election committee?

Yes. The membership consist of the following:
a. Michael Kristoffer Doyongan
b. Vincent Paul Villahermosa
c. Mika Gapol
9. Will the cooperative hire an accountant/bookkeeper?
Yes. However, on the first years of its operations, the accountant or
bookkeeper will be on a volunteer basis. On the fifth year, the books
will not be in disarray because the treasurer is an accounting major
graduate.
10. What is the proposed compensation for the following?
a. Treasurer or Manager
Year 1 = voluntary basis only
Year 2 = prevailing minimum wage level
b. General Manager
Year 1 = voluntary basis
Year 2 to 3 = per diem as fixed by board
Year 5 = minimum wage level + 2000.00
c. Accountant
Year 1 = voluntary basis only
Year 2 to 4 = per diem as fixed by board
Year 5 = prevailing minimum wage level + 1000.00