TIMOTHY G. GABUNA
Board Chairman
CHRISTINA R. BARZABAL
General Manager
REGINALDO M. MARCELO
Treasurer
STATEMENT OF REPRESENTATION
A S S E T S
CURRENT ASSETS:
Cash and Cash Equivalents
Loans and Receivables, Net
Inventories
Other Current Assets
Total Current Assets
NON-CURRENT ASSETS:
Property, Plant and Equipment, Net
Other Non-Current Assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES:
Deposit Liabilities
Trade, Non-Trade and Other Payables
Interest on Share Capital Payable
Patronage Refunds Payable
Other Current Liabilities
Total Current Liabilities
NON-CURRENT LIABILITIES:
Retirement Fund Payable
Members' Benefit and Other Funds Payable
Total Non-Current Liabilities
TOTAL LIABILITIES
EQUITY
Paid-Up Share Capital
Donations and Grants
Statutory Funds
Total Equity
TOTAL LIABILITIES AND EQUITY
NOTES
2014
2013
2.3, 3
2.5, 2.6, 4
2.7
7,243,703.14
35,316,142.61
997,246.18
301,502.71
43,858,594.64
1,181,219.34
37,475,300.26
871,696.25
468,402.73
39,996,618.58
2.8, 5
6
838,693.13
3,636,416.93
4,475,110.06
48,333,704.70
578,069.93
3,636,416.93
4,214,486.86
44,211,105.44
22,805,314.41
2,049,908.07
2,532,331.88
425,171.66
690,351.12
28,503,077.14
18,270,400.03
2,726,373.18
2,397,956.18
328,110.65
649,423.82
24,372,263.86
2.10
1,607,022.63
1,020,257.29
2,627,279.92
31,130,357.06
1,576,966.34
1,020,257.29
2,597,223.63
26,969,487.49
2.11
12,138,760.82
(63,246.36)
5,127,833.18
17,203,347.64
48,333,704.70
12,220,953.65
18,479.64
5,002,184.66
17,241,617.95
44,211,105.44
7
2.13
2.13
8
2.13, 9
NOTES
REVENUES:
Gross Income on Sales
Interest Income from Loans
Service Fees
Fines, Penalties, Surcharges
Membership Fees
Concession Income
Rental Income
Income/Interest from Investments/Deposits
Miscellaneous Income
Total Revenues
LESS: EXPENSES:
Financing Costs
Selling Costs
Administrative Costs
Total Expenses
NET SURPLUS FOR THE YEAR (FOR ALLOCATION)
Reserve Fund
Education and Training Fund (Local)
Optional Fund
Community Development & Social Fund
Interest on Capital & Patronage Refunds
NET SURPLUS (AS ALLOCATED)
2.12
10
2.12.1
2.12.2
2.12.2
2.12.3
2.12.3
2.12.3
2.12.4
2.12.5
2014
2013
11,799,572.49
5,512,423.61
1,369,372.11
22,404.56
5,600.00
3,699,350.66
240,261.10
14,618.38
760,664.79
23,424,267.70
12,514,184.23
5,340,935.49
1,916,091.44
6,815.98
7,100.00
4,248,249.02
291,881.15
5,293.33
721,882.04
25,052,432.68
636,852.69
16,001,918.88
4,760,869.21
21,399,640.78
2,024,626.92
202,462.69
202,462.69
141,723.88
60,738.81
1,417,238.85
2,024,626.92
521,116.50
17,292,405.94
5,676,478.59
23,490,001.03
1,562,431.65
156,243.17
156,243.17
109,370.22
46,872.95
1,093,702.14
1,562,431.65
11
2.13
NOTES
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Surplus for the Year
Adjustments to Reconcile Net Surplus to Net
Cash Provided by Operating Activities:
Depreciation
Retirement Benefit Expense
Change in Assets and Liabilities:
Decrease (Increase) in:
Short-Term Investments
Loans and Receivables
Inventories
Other Current Assets
Increase (Decrease) in:
Deposit Liabilities
Trade, Non-Trade and Other Payables
Other Current Liabilities
Net Cash Provided by Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Property, Plant and Equipment
Net Cash Used in Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Withdrawal/Addition of Share Capital
(Decrease)in Donations and Grants
Payment of Interest on Share Capital & Patronage
Refunds Payables
(Decrease) in Retirement Fund Payable
(Decrease) in Members' Benefit & Other Funds Payable
Change in Statutory Funds
Net Cash Used in Financing Activities
NET INCREASE (DECREASE) IN CASH
CASH AND CASH EQUIVALENTS, JANUARY 01
CASH AND CASH EQUIVALENTS, DECEMBER 31
2014
2013
2.12
2,024,626.92
1,562,431.66
2.8
2.10
140,865.80
495,147.67
214,733.24
568,929.91
2,159,157.65
(125,549.93)
166,900.02
2,607,089.88
(2,046,525.58)
92,417.89
(233,462.41)
4,534,914.38
(676,465.11)
40,927.30
8,760,524.70
621,905.23
1,988,332.60
58,207.06
5,434,059.48
2.8, 5
(401,489.00)
(401,489.00)
(111,274.50)
(111,274.50)
2.11
(82,192.83)
(81,726.00)
115,863.48
(1,100.00)
2.13
2.10
(1,185,802.14)
(465,091.38)
(481,739.55)
(2,296,551.90)
6,062,483.80
1,181,219.34
7,243,703.14
(1,800,229.21)
(565,792.51)
(32,271.27)
(3,581,106.08)
(5,864,635.59)
(541,850.61)
1,723,069.95
1,181,219.34
2.4
2.5, 2.6, 4
2.7
7
8
2.13, 9
2.3, 3
SHARE CAPITAL
Beginning Balance
Add: Additional Capital Build-Up
Less: Withdrawals in Capital
Ending Balance
DONATIONS AND GRANTS
Beginning Balance
Add: Additional/Credits
Less: Charges
Ending Balance
STATUTORY FUNDS:
RESERVE FUND:
Beginning Balance
Add: Allocation: 10% net surplus from Operations
Less: Charges
Ending Balance
EDUCATION AND TRAINING FUND
Beginning Balance
Add: Allocation: 10% net surplus from Operations
Less: Charges
Ending Balance
OPTIONAL FUND
Beginning Balance
Add: Allocation: 7% net surplus from Operations
Less: Charges
Ending Balance
COMMUNITY DEVELOPMENT AND SOCIAL FUND
Beginning Balance
Add: Allocation
Credits
Less: Charges
Ending Balance
TOTAL STATUTORY FUNDS
TOTAL EQUITY
NOTES
2.11
2014
2013
12,220,953.65
692,307.70
(774,500.53)
12,138,760.82
12,105,090.17
115,863.48
12,220,953.65
18,479.64
(81,726.00)
(63,246.36)
19,579.64
(1,100.00)
18,479.64
2,163,147.00
202,462.69
(0.02)
2,365,609.67
3,208,199.21
156,243.17
(1,201,295.38)
2,163,147.00
1,397,237.62
202,462.69
(262,903.24)
1,336,797.07
2,529,887.66
156,243.17
(1,288,893.21)
1,397,237.62
1,437,628.11
141,723.88
1,579,351.99
2,020,814.06
109,370.22
(692,556.17)
1,437,628.11
4,171.93
60,738.81
(218,836.29)
(153,925.55)
5,127,833.18
17,203,347.64
355,660.30
46,872.95
(398,361.32)
4,171.93
5,002,184.66
17,241,617.95
2.13
9
Loans Receivable
Time Deposits (MIF)
Paid-Up Share Capital
To correct erroneous recording of O.R. No. 131053, 131078
dated 12/05/14 received from Chardarello Policarpio, Jebriel
Puno, respectively.
CREDIT
62.00
62.00
5,000.00
4,450.00
550.00
Sub-Concession Income
Petty Cash Loans Receivable
To correct erroneous recording of O.R. No. 131171 dated
12/12/14 received from Larry Palaming.
1,300.00
26.95
DEBIT
1,300.00
26.95
6,879.40
75.00
6,804.40
Canteen Supplies
Purchases - Canteen
To correct erroneous recording of CV Nos. 1200002176,
1200002203, 1200002205, 1200002232 dated 11/05/14,
11/20/14, 11/28/14.
22,875.00
Purchases - Canteen
Accounts Payable - Suppliers
To record unrecorded purchases as per CV No. 1200002232
dated 11/28/14 paid to LCP General Merchandise and to
reverse adjustments made as per CV Nos. 1201018,1201592
,1201594, 1201601, 1201975 dated 02/18/14, 05/06/14,
05/08/14, 09/05/14 paid to Joenne Enterprises, Dimax Dist.
Enterprises, MEC Foxt Express, Suncoast Brands
International and Contrade Integrated, respectively.
72,161.15
22,875.00
72,161.15
PARTICULARS
AJE NO.
8
Catering Sales
Retail Sales
Service Fees - Canteen
Puchases - Canteen
To correct erroneous recording of SI. Nos. 75385, 75388,
75390, 75455, 75462, 75505, 75506, 75524,75526, 75539 dated
10/08/14, 10/11/14, 10/14/14, 10/15/14, 10/17/14, 10/18/14.
9
10
11
12
13
14
CREDIT
2,377.50
74.00
1,814.50
637.00
187.50
Retail Sales
Counter Sales
To correct erroneous recording of SI No. 75492 dated 10/14/14.
250.00
Counter Sales
Service Fees - Canteen
Accounts Receivable - Canteen
To adjust the overstatement of SI No. 75832 dated 11/07/14
sold to ADMU/HRMO.
190.00
28.50
187.50
250.00
218.50
9.00
50.00
CREDIT OPERATION
15
Other Interest Income
Interest Income from Loans
To correct erroneous recording of CV Nos. 120000486,
120000488 dated 12/13/14.
DEBIT
9.00
50.00
0.90
0.90
1,760.00
1,760.00
the historical cost convention. The accounting policies have been consistently
applied by the Cooperative and are consistent with those used in the previous
year, except for the adoption of the new standards.
2.2
2.3
2.4
2.5
2.6
2.7
Inventories
The inventories are stated at cost determined by using first-in, first-out
method.
2.8
2.9
2.10
Retirement Cost
The Cooperative has funded, non-contributory defined benefit retirement plan
covering all employees. Retirement costs are actuarially determined using the
Projected Unit Credit Method. This method reflects the years of service
rendered by employees to the date of valuation and incorporates assumptions
concerning employees projected salaries. Retirement costs include current
service cost plus amortization of past service cost, experience adjustments
and changes in actuarial assumptions over the expected average remaining
working lives of the covered employees. The Cooperative has established a
retirement fund to comply with the Republic Act No.7641 known as the New
Retirement Law.
2.11
Share Capital
This represents the paid-up share capital of regular members of the
Cooperative and is withdrawable only upon termination of membership. It
earns interest depending on the net surplus realized by the Cooperative but
not to exceed the normal rate of return on investment as determined by
Cooperative Development Authority (CDA).
2.12
Income recognition
Income is recognized to the extent that it is probable that the economic
benefits will flow to the Cooperative and the income can be reliably measured.
The following specific recognition criteria must also be met before income is
recognized.
2.12.1 Interest Income from loans
As discussed under policy loans receivable, unearned interest is
recognized as income over the life of the receivable using accrual
method. Interest Income from loans is recognized as income when
collected and earned.
2.12.2 Service fees, fines, penalties and surcharges
Service fees, filing fees, fines, penalties and surcharges are
immediately recognized as income upon collection.
2.12.3 Membership fees, concession income,rental income
Membership fees are recognized as income immediately upon
collection. These are payments other than the share capital
contribution of the members.
2.12.4 Income/Interest from investments/Deposits
Income/interest income from investments is recognized as income
periodically on accrual basis
2.12.5 Miscellaneous Income
These are income that are not classified under the above criteria.
2.13
Statutory Funds
The mandatory order of distribution of the net surplus of the Cooperative is set
forth in Article 86, Act No. 9520, as follows:
1. An amount for the reserve fund which shall be at least ten per
centum(10%) of net surplus: Provided, That, in the first five(5) years of
operation after registration, this amount shall not be less than fifty per
centum(50%) of the net surplus..
2. An amount for the education and training fund, shall not be more than ten
per centum(10%) of the net surplus. Half of the amounts transferred to the
education and training fund annually under this subsection shall be spent
by the cooperative for education and training purposes; while the other half
may be remitted to a union or federation chosen by the cooperative or of
which it is a member.
3. An amount for the community development fund, which shall not
be less than three per centum(3%) of the net surplus.
4. An optional fund, a land and building, and any other necessary fund the
total of which shall not exceed seven per centum(7%).
5. The remaining net surplus shall be made available to the members in the
form of interest on share capital not to exceed the normal rate of return on
investments and patronage refunds: Provided, that any amount remaining
after the allowable interest and the patronage refund have been deducted
shall be credited to the reserve fund.
This year, the Cooperative has allocated 10% for the reserve fund, 10% for
the education and training fund, 7% for optional fund/land and building fund,
3% for the community development fund while the remaining goes to interest
on share capital and patronage refunds.
NOTE 3 CASH AND CASH EQUIVALENTS
This account consists of the following:
Revolving Fund
Cash on Hand
Petty Cash Fund
Cash in Banks
Tota Cash
2014
600,208.84
108,512.23
5,605.55
6,529,376.52
7,243,703.14
2013
259,364.08
100,000.00
18,671.62
803,183.64
1,181,219.34
2013
41,832,560.38
41,832,560.38
(1,152,773.61)
40,679,786.77
(9,592,554.54)
45,188,747.33
45,188,747.33
(1,152,773.61)
44,035,973.72
(10,039,341.07)
342,759.73
3,780,022.32
106,128.33
4,228,910.38
35,316,142.61
170,275.28
3,143,208.06
165,184.27
3,478,667.61
37,475,300.26
4,148,168.83
402,969.14
4,551,137.97
(3,712,444.84)
838,693.13
3,746,679.83
402,969.14
4,149,648.97
(3,571,579.04)
578,069.93
3,327,654.76
308,762.17
3,636,416.93
3,327,654.76
308,762.17
3,636,416.93
963,386.31
1,030,881.52
(79,784.76)
84,601.62
50,823.38
2,049,908.07
1,134,002.20
1,607,346.31
(7,715.59)
(9,578.88)
2,319.14
2,726,373.18
2014
380,000.00
302,304.20
8,046.92
690,351.12
2013
340,000.00
300,805.65
8,618.17
649,423.82
2,365,609.67
1,336,797.07
1,579,351.99
(153,925.55)
5,127,833.18
2,163,147.00
1,397,237.62
1,437,628.11
4,171.93
5,002,184.66
14,399,357.21
11,322,124.93
6,794,663.03
262,670.29
32,778,815.46
15,879,135.33
13,821,993.54
6,170,583.43
283,177.70
36,154,890.00
871,696.25
21,104,792.90
21,976,489.15
997,246.18
20,979,242.97
11,799,572.49
964,114.14
23,548,287.88
24,512,402.02
871,696.25
23,640,705.77
12,514,184.23
NOTE 11 EXPENSES
Financing Costs:
Interest Expense on Deposits
Total Financing Costs
Selling Costs:
Salaries and Wages
SSS, ECC, Philhealth, Pag-ibig Contributions
Employees' Benefits
Retirement Benefit Expense
Kitchen and Canteen Wares
Laundry
Fuel
Ice and Refrigeration
Spoilage Breakage and Losses
Canteen Supplies
Concession Fees
Rentals
Repairs and Maintenance
Depreciation
Travel and Transportation
Representation
Advertising and Promotion
Miscellaneous Expenses
Total Selling Costs
Administrative Costs:
Salaries and Wages
SSS, ECC, Philhealth, Pag-ibig Contributions
Employees' Benefits
Retirement Benefit Expense
Officers' Honorarium and Allowances
Representation
Meetings and Conferences
Office Supplies
Travel and Transportation
Power, Light and Water
Professional Fees
Taxes, Fees and Charges
Communication
Advertising and Promotion
Insurance
Litigation Expense
Depreciation
Garbage Fees
General Assembly Expense
Social and Community Service Expense
Miscellaneous Expenses
Total Administrative Costs
Total Expenses
2014
2013
636,852.69
636,852.69
521,116.50
521,116.50
7,808,017.89
405,644.70
1,589,352.38
443,124.07
186,775.00
61,300.00
818,884.13
244,309.40
599,642.28
855,248.35
2,320,756.34
132,718.30
204,793.05
63,858.28
138,475.00
107,166.32
2,981.39
18,872.00
16,001,918.88
8,684,756.97
475,970.30
1,387,742.14
462,807.66
533,679.00
62,500.00
689,091.60
295,731.50
545,185.03
1,205,333.25
2,459,479.43
109,440.39
262,346.65
114,534.24
3,807.78
17,292,405.94
861,065.10
53,831.80
65,458.93
52,023.60
575,232.20
86,006.87
72,108.37
183,667.50
66,809.00
2,199,179.20
29,822.22
5,740.00
115,532.54
7,281.99
10,513.96
77,007.52
68,640.00
224,370.41
3,000.00
3,578.00
4,760,869.21
21,399,640.78
970,442.46
83,229.60
102,864.37
106,122.25
693,200.00
233,405.13
111,424.48
263,808.00
247,976.90
1,818,479.71
61,111.17
13,796.18
100,825.58
16,536.90
20,856.51
48,400.00
100,199.00
68,640.00
600,154.35
15,006.00
5,676,478.59
23,490,001.03