I. Title: A Draft Policy On Oversight Function of BOD in Audit Committee of CSMPC
1. To provide oversight function for Audit Committee; 2. To draw up regular reports of its programs of activities including those in pursuance of their socio-economic undertakings, showing their progress and achievements… (Article XIII, Section 4, paragraph 1); 3. To assist the Audit Committee (AC) in monitoring the adequacy and effectiveness of the cooperative’s management and control system; 4. To provide goods and services to its members to enable them to attain increased income, savings, investments, productivity and purchasing power, and promote among themselves equitable and distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing (Article 7 (a) Objectives and Goals of a Cooperative); 5. To provide optimum social and economic benefits to its members (Article 7 (b) of R. A. 9520) (Article 7 (b) Objectives And Goals of Cooperatives);
A. Definition of Terms:
1. Oversight Function refers to the assistance in monitoring the adequacy and effectiveness of the cooperative’s management and control system; 2. Audit Committee refers the committee which is composed of three (3) members created and elected during the general assembly meeting and such functions are stated in Article V, Section 9; 3. Board of Directors (BOD) refers to the officers of the cooperative to provide general policy direction, formulate the strategic development plan, establish policies and procedures for the effective operation and ensure proper implementation of such… etc. (Article V, Section 7).
B. IMPLEMENTING Guidelines and Procedures:
1. Any member of the Board of Directors (BOD) shall oversee the cooperative’s Audit Committee (AC) as provided by the Board through BOD resolution; 2. The assigned member of the Board shall do the following: 2.a Secure reports in Audit and Inventory of Stocks, Sales Transactions, Purchased Items, Income and Disbursement, and Bank Transactions; 2.b Provide the needed forms in Audit and Inventory of Stocks, Sales Transactions, Cash Counting and Safe Keeping, Purchasing and Receiving, Bank Deposits, and Member’s Profile in his/her financial status and accountabilities; 2.c Provide tutorial services in electronic presentations of data to the concerned elected and appointed officers of the cooperative.; 3. The assigned member of the Board in an oversight function in Audit Committee shall only ask data/reports from the secretary of the said committee; 4. He/She shall seat in during the committee meeting set by the chairman of Audit Committee; 5. He/She shall ask the committee feedbacks and recommendations with regards to financial stability, responsibility and accountability, as well as of draft and implemented policies of the cooperative and such shall be reported and presented during the regular BOD meeting.
C. Penalty of Violation:
Anybody who violates this policy shall be liable for Written Reprimand in the first offense; Oral Reprimand in the Second Offense; and Suspension from Work in one regular working day without pay in the Third Offense. Beyond these violations stated is subject for Involuntary Termination as stipulated in Article III, Section 9 (c) (ii) and (iii) that state … When he/she has continuously failed to comply with his/her obligations and when he/she has violated any provision of this By-laws and the rules promulgated by the cooperative as provided by Republic Act 9520.
IV. Separability Clause:
Should any part of this policy is found inconsistent with existing laws, rules, and regulations, the remaining guidelines and procedures hereof shall remain in full force and effect.
The General Manager shall oversee the overall day to day business operations of the cooperative by providing general direction, supervision, management and administrative control over all the operating departments subject to such limitations as may be set forth by the Board of Directors or the General/Representative Assembly (Rule 7, Section 4.9).
This policy shall take effect fifteen (15) days following the approval of the Board of Directors and posting of this policy in three (3) public areas where the cooperative operates.
Article XIII, Section 4, paragraph 1 Article 7 (a) Objectives and Goals of a Cooperative Article 7 (b) of R. A. 9520) (Article 7 (b) Objectives And Goals of Cooperatives Article V, Section 9 Article V, Section 7 Article III, Section 9 (c) (ii) and (iii) Republic Act 9520 Rule 7, Section 4.9
Approved and adopted per Board Resolution No. __, s. 2014 dated __________, 2014.