OCGEMPC

Thursday, March 31, 2011

2011 R - 010 - ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

Excerpts from the Minutes of the Meeting of the OCGEMPC Board of Directors Held on 31 March 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-010

ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

WHEREAS, the OCGEMPC Board of Directors has decided to conduct an investigation of suspected offenses committed by certain officers of the cooperative;

WHEREAS, there is a need for the Board to adopt the terms of reference for the said investigation in order to set its limits, and ensure that it be objective, systematic and beneficial to the interest of the OCGEMPC;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby adopts the following Terms of Reference which shall take effect immediately until the investigation is officially terminated:

TERMS OF REFERENCE

FOR THE OCGEMPC BOARD OF DIRECTORS’ INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY REYNALDO ERINGCO AND AILEEN C. SANCHEZ AGAINST THE OCGEMPC

A. BACKGROUND

This investigation was triggered by the discovery, sometime in March 2011, of OCGEMPC documents showing unusually large amounts of loans amassed by, and way beyond the capacity to pay of, certain members of the cooperative. A summary review of these documents by the Board showed that as of January 2011 Reynaldo Eringco, part time staff of the OCGEMPC has a total unpaid loans balance of P990,482; Aileen C. Sanchez, Director and former Chairperson of the OCGEMPC has a total unpaid loans balance of P502,675; the latter’s sister, Anna Lucille Cuevas has a total unpaid loans balance of P136,742; and their brother Alfred Cuevas a total unpaid loans balance of P85,335. It appeared from the records that the said loans were acquired in violation of OCGEMPC policies, rules, and regulations.

In the Board meeting held on 11 March 2011 Ms. Sanchez was confronted with the above-mentioned records of her loans and those of her siblings and Reynaldo Eringco. Ms. Sanchez denied responsibility for her own loans and told the Board that she did not know she owed the Cooperative that much already. She told the Board that in fact, this was the first time she learned of the total amount of her loans. She said, “Rey Eringco buried me in loans without my knowledge.” She admitted having had some financial problems in the past and that she indeed needed loans, but that Rey Eringco had always assured her that there were still loan windows available to her.

Reynaldo Eringco, on the other hand, when confronted with the records and told of Ms. Sanchez’ statements against him, just kept silent and did not respond nor react.

Considering the gravity of the probable offenses committed, and the sensitive positions occupied by the two principals involved, the Board decided to pursue an investigation of the amassed unusual loans. The Board also decided to take this opportunity to investigate other probable major offenses committed by Ms. Aileen Sanchez, about which many members are still asking for information, but which were never investigated nor put to proper closure during the term of Ms. Sanchez as Chairperson of the OCGEMPC Board.

In the meantime, Reynaldo Eringco is placed on preventive suspension, while Ms. Sanchez voluntarily went on a leave of absence from her duties as officer of OCGEMPCI pending the investigation.

B. NATURE AND PURPOSE OF THE INVESTIGATION

This investigation is essentially a fact-finding activity or series of activities to establish the truth regarding the probable irregular transactions and offenses committed by Mr. Reynaldo Eringco and Ms. Aileen Sanchez against the OCGEMPC.

More specifically, this investigation shall be based on already existing prima facie evidence and shall aim to:

1. Establish more objectively whether offenses were actually committed

2. Determine the nature of the transactions, how offenses were committed, and establish who were responsible or liable for them

3. Draw lessons from the facts gathered in the investigation that could guide the Board in promulgating new, or revising existing policies, rules and regulations to further protect the general interest of members and improve the operations of the cooperative.

C. SCOPE OF THE INVESTIGATION

1. Subjects of the Investigation – Without prejudice to the future investigation of other possible offenses of other officers and members, this investigation shall focus only on the following probable offenses based on OCGEMPC records:

a. Unusual Loan Accounts of Reynaldo Eringco, Aileen Sanchez, Anna Lucille Cuevas and Alfred Cuevas

b. Unliquidated Cash Advances of Aileen Sanchez and Rey Eringco

c. Unauthorized Erroneous Computation and Distribution of Dividends which caused an upheaval of OCGEMPC members in year 2010.

2. Period Covered by the Investigation – As indicated in the OCGEMPC records which are the bases of this investigation, the period to be covered by this investigation shall be from year 2008 to March 2011.

D. METHODOLOGY AND PRECEDURE OF THE INVESTIGATION

1. The investigation shall be done mainly through a diligent review of OCGEMPC official documents and records concerning the corresponding transactions under investigation. This shall include, but may not be limited to, loan notes, ledgers, journals, transacted checks, books of accounts and other financial documents.

2. Face to face interviews of the principals, concerned OCGEMPC staff and other witnesses shall also be done whenever necessary to elicit pertinent information, verify records, clarify transaction procedures and crosscheck the testimony of some witnesses.

3. Whenever necessary, some of those concerned may be requested to sign affidavits.

4. The proceedings of the investigation and the facts gathered shall be thoroughly and systematically recorded for official record purposes and other future use.

E. THE INVESTIGATING BODY

1. As provided in the OCGEMPC By-Laws, the Board shall be the body to conduct this investigation. It may, however, seek the assistance of the Ethics Committee and other Committees of the OCGEMPC in the conduct of this investigation.

Done this 31st day of March 2011 at Olongapo City, Philippines.

Friday, March 11, 2011

2011 R - 008 - APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-008

APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

WHEREAS, R.A. 9520 and the OCGEMPC By-Laws require the holding of a General Assembly and Election of Officers every year;

WHEREAS, the Election Committee has proposed the adoption of a schedule of activities leading to the conduct of the annual General Assembly and Election of Officers for the guidance of all concerned, and to ensure that these activities shall be conducted in a truly democratic manner;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in meeting assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to adopt the proposed Schedule of Activities leading to the annual OCGEMPCI General Assembly and Election of Officers, as follows:

Activity

1. Announce date and venue of the GA; announce/post vacant positions to be filled up through elections

2. File Certificates of Candidacy (CC)

3. Screen candidates; release list of, and notify qualified candidates

4. Candidates campaign

Schedule/Duration:

1. At least 30 days before GA announce/post vacant positions to be filled up through elections

2. Start exactly 30 days before elections, lasting 10 consecutive days,ending at 5:00 p.m. on the 10th day

3. Start exactly on the day after deadline notify qualified candidates of filing CC’s, lasting exactly 7 consecutive calendar days thereafter

4. Start exactly 14 days before election and ends on election day

Done this 11th day of March 2011 at Olongapo City, Philippines.

2011 R - 007 - APPROPRIATING THE AMOUNT OF P200, 000 TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-007

APPROPRIATING THE AMOUNT OF TWO HUNDRED THOUSAND PESOS (P200, 000) TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

WHEREAS, it is necessary to allocate funds for the conduct of the OCGEMPC 2011 General Assembly in order to ensure its success and at the same time put a limit on its expenses;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby appropriates the amount of Two Hundred Thousand Pesos (P200,000) out of the general operating funds of the OCGEMPC, to defray the expenses to be incurred in the conduct of the General Assembly to be held in 20 April 2011.

Done this 11th day of March 2011 at Olongapo City, Philippines.

Monday, February 21, 2011

2011 R - 006 - POLICIES AND GUIDELINES ON CASH ADVANCES

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on February 21, 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011 – 006

POLICIES AND GUIDELINES ON CASH ADVANCES

WHEREAS, it is necessary to promulgate policies and guidelines regarding cash advances as part of the internal control measures of the cooperative;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled;

RESOLVE, AS IT IS HEREBY RESOLVED to, as it hereby promulgates the following:

Title: POLICIES AND GUIDELINES ON CASH ADVANCES

I. PURPOSES OF CASH ADVANCES – Cash Advances may be allowed only for official/operational purposes. to wit:

1. Purchases of office supplies, fixed assets, merchandise inventory and other supplies when direct payment to the vendor/supplier is not possible under the circumstances of the transaction, or when payment by check is not possible

2. Expenses for repairs, maintenance, and other services

3. Seminars, conferences, conventions, meetings and training attended by officers and staff

4. Other expenditures necessary for the continued operation of the cooperative’s business, such as motor vehicle rental, traveling expenses, and other necessary services

5. Cash advances for salaries, wages or allowances of office employees and staff shall be allowed provided, that these are only for, and do not exceed, the total amount due in the current pay period, and are fully deducted automatically on the nearest payday after the cash advance has been made.

II. LIMITS ON AMOUNT OF CASH ADVANCE

1. Only officers and staff of the cooperative shall be allowed to make cash advances which shall not exceed Twenty Thousand Pesos (P20,000), Only Bonded Officer shall allowed to make cash advances amounting to more than Twenty Thousand Pesos (P20,000).

2. The amount of cash advance shall be limited to the price of the item/s to be purchased, repairs to be undertaken and services to be rendered by Companies/Dealers/Suppliers who do not accept checks as payment.

3. For cash advances re; purchases, repairs and services, such shall be canvassed first to have an idea how much cash advance is to be taken. For this purpose, Request slip, purchase order or job order should be prepared first by the end user, duly approved by the approving authority.

4. For cash advances regarding travels for two days or more, to attend conventions, seminars and trainings, this shall be limited to seminar fees, if any; per diems/traveling allowances, lodging fees and transportation expenses.

III. APPROVAL OF CASH ADVANCES – the approval of cash advances is hereby assigned based on the amounts as follows:

1. Manager Up to 20,000

2. The Chairman Over 20,000 to P100, 000

3. Majority of the Board of Directors Over 100,000 to P500, 000

4. General Assembly Over P500, 000

IV. LIQUIDATION OF CASH ADVANCES

1. All cash advances shall be liquidated within seven days after the transaction has been consummated for which cash advance was taken.

2. Statement of liquidation expenses should be prepared by the employee who took the cash advance. Such liquidation statement should be properly supported and documented. As such, the bookkeeper shall ensure the accuracy, authenticity and correctness of data in the documents prior to booking of liquidation.

3. No succeeding cash advances shall be granted unless the previous cash advance has been properly liquidated in full.

4. Cash advances not liquidated within the period specific shall be booked as accounts receivable from the officer or management staff concerned who made such cash advances and will bear an interest rate of one percent (1%) per month, automatically deducted from the salaries for a maximum period of twelve (12) months until settled in full. Provided however, when the un-liquidated amount is less than P1, 200 the deduction period is a maximum of 6 months.

5. All cash advances are subject to post audit by the Audit and Inventory Committee, while cash advances amounting to more than P20,000 are subject to both pre and post audit by the Audit and Inventory Committee as part of the cooperative’s internal control measures.

V. CASH ADVANCE FORMS

1. The Treasurer or Cashier shall not make any disbursement for cash advance unless supported by a duly approved Cash Advance Form. The following forms shall be printed and used in requesting and liquidating cash advances:

(a) CASH ADVANCE REQUEST and RECEIPT FORM

DATE (State the date here)

Requesting cash advance in the amount of ____(Amount in words and figures)_______ to defray expenses for the following purpose/s: ________

Requested by: (Signature of requestor over printed name), (Position in the Coop)

APPROVED FOR: (Approved amount in words and figures) SUBJECT TO LIQUIDATION WITHIN SEVEN DAYS, and other pertinent coop policies on cash advances.

Approved by: (Signature of approving authority over printed name)

(Position in the Coop)

RECEIPT:

I hereby acknowledge receipt of the above-stated amount on (date of receipt), and I hereby bind myself to the coop policies on cash advances.

(Signature over printed name or requestor)

Copy Furnished: The Coop Bookkeeper

(b) CASH ADVANCE LIQUIDATION FORM

Name of Employee: ________________________ Liquidation Date: ______

Position in the Coop: _______________________ Cash Advance Date: _______

AMOUNT OF C. A. _____ (In words and figures) __________ C. A. Voucher No. __

Particulars: (Expense Item/s) Supporting Document/s: Amount:

1.____________ _____________________ P_______________

2.____________ _____________________ P_______________

3____________ _____________________ P_______________

4.____________ _____________________ P_______________

5.____________ _____________________ P_______________

TOTAL LIQUIDATED: P_______________

Amount to be refunded to the Coop / reimbursed by the Coop P ______________

Prepared by: Checked by: Approved by:

_______________________ _____________________ _____________________

Officer/Staff who made Bookkeper/ Accountant Approving Authority

a cash advance

Copy Furnished: The Coop Bookeeper

______________________________________________________

RESOLVED FURTHER, that these policies and guidelines take effect immediately upon approval by the OCGEMPC Board.

Done this 21st day of February 2011 at Olongapo City, Philippines.

2011 R - 005 - POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES IN CASHIERING

Resolution No. 2011 – 005

POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES IN CASHIERING

WHEREAS, it is necessary to promulgate cashiering policies and guidelines as part of the internal control measures of the cooperative;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled;

RESOLVE, AS IT IS HEREBY RESOLVED to, as it hereby promulgates the following:

Title: POLICIES AND GUIDELINES ON OVERAGES AND SHORTAGES, RE: CASHIERING

I. CASH AUDIT

1. The Audit and Inventory Committee shall conduct monthly surprise cash counts in the presence of the bookkeeper, the Coop Manager, and a witness who is a member of said Committee.

2. The surprise cash count shall be documented, and in case of an adverse finding, the Board of Directors, thru the Secretary, shall be furnished a copy within five (5) days from date of cash count. In case there are no adverse findings, Cash Count Reports shall be furnished to the Board every 3 months.

II. OVERAGES: If upon conduct of surprise cash count by the Audit and Inventory Committee (AIC), and on overage is discovered, the following shall be done:

1. The bookkeeper shall locate the difference between the Cash book and the cash count. Meantime, said overage shall be booked as ACCOUNTS PAYABLE. Entry would be: Debit CASH ON HAND and Credit ACCOUNTS PAYABLE.

2. If after a month, such discrepancy can not be traced, said overage shall be booked by the Bookkeeper as OTHER INCOME. Entry would be: Debit ACCOUNTS PAYABLE and Credit OTHER INCOME.

III. SHORTAGES: Shortages discovered during a SURPRISE cash counts being conducted by the Audit and Inventory Committee (AIC) shall be treated as follows:

1. If the amount is less than P100, the Treasurer/Cashier or back up should immediately pay for the said shortage;

2. If the involved amount is more than P100 but less thanP500, said shortage shall be booked as Accounts Receivable against erring officer/staff and MUST be paid in the next payday nearest to the discovery of the Shortage.

3. When the shortage is more than P500, said shortage shall be booked as Accounts Receivable against erring officer/staff and MUST be settled in equal semi monthly deduction from the payroll for a reasonable period, but not to exceed 12 months.

4. If upon investigation, shortages are being incurred due to willful act of the person in charge, that is, due to dishonesty, such shall be a ground for administrative sanction for first offense, as follows:

Amount Involved Penalty

Less than P500 Written Reprimand

P500 to P5, 000 Immediate Preventive Suspension

Over P5, 000 to P10, 000 Termination of Employment/Membership

5. However, if shortages become repetitive, or habitual shortages are being incurred due to integrity problems, despite the administrative sanctions imposed, and regardless of the amount involved, said officer/staff shall be terminated from his/her employment and/or membership in the Cooperative.