gledco: top performing cooperative in ilocos region

Government of Laoag Employees Development CooperativeSUCCESS STORY / BEST PRACTICES

Management’s Report

A Lecture Presentation during The Regional Gender Summit in

Cooperatives MMSU Teatro Ilocandia

City of Batac, Ilocos NorteOctober 4-5, 2012

GLEDCO Top Performing Cooperative in Ilocos

Region



The Birth of GLEDCO

Primary: To create funds in order to grant loans for productive and providential purposes to all members who are employees of the City Government of Laoag.

On Nov. 29, 2001, twenty (20) cooperators with one hundred forty-five (145) members agreed to form a cooperative, with the following main objective:

Authorized Capital Stock:Amount P 1,744,000Shares 3,488

Subscribed Capital Stock:Amount 436,000Shares 872

Paid-in Capital / Assets 125,000

# of Original Members 165

Financial Highlights

–Nov. 29, 2001



CDA Approval

The Cooperative Development

Authorityapproved the Certificate of

Registration (DAG-4458)

of

GLEDCOon

January 22, 2002.

LOGO / SEAL



financial HIghlights



ASSETS

Year Amount Increase %11/2001 125,000.00

2002 6,709,747.89 6,584,747.89 5267.80%2003 21,540,721.72 14,830,973.83 221.04%2004 36,434,224.76 14,893,503.04 69.14%2005 48,825,704.39 12,391,479.63 34.01%2006 69,262,209.93 20,436,505.54 41.86%2007 93,240,818.97 23,978,609.04 34.62%2008 121,802,769.87 28,561,950.90 30.63%2009 150,375,938.07 28,573,168.20 23.46%2010 174,231,554.63 23,855,616.56 15.86%2011 248,502,648.97 74,271,094.34 42.63%



Increase in Assets by P 74.271 MCompared to 2012 level

Overshoot 2011 target by P 48.53 M



Capitalization Membership

Date Amount # of Shares Amount # of Shares Fee1/22/2002 1,744,000.00 3,488 2,000.00 4 100.00 1/25/2003 20,000,000.00 40,000 5,000.00 10 300.00 1/01/2004 20,000,000.00 40,000 5,000.00 10 500.00 1/22/2006 50,000,000.00 100,000 10,000.00 20 1,000.00 1/27/2007 100,000,000.00 200,000 10,000.00 20 1,000.00 3/28/2009 150,000,000.00 300,000 10,000.00 20 1,000.00 5/02/2011 250,000,000.00 500,000 10,000.00 20 1,000.00

Authorized Capital Share Subscribed Capital Share



Subscribed Capital Shares

Year Amount Increase %11/2001 436,000

2002 1,744,000 1,308,000 300.00%2003 7,919,000 6,175,000 354.07%2004 12,009,000 4,090,000 51.65%2005 17,781,000 5,772,000 48.06%2006 36,984,000 19,203,000 108.00%2007 61,731,000 24,747,000 66.91%2008 92,038,000 30,307,000 49.10%2009 110,411,000 18,373,000 19.96%2010 126,845,500 16,434,500 14.88%2011 152,464,500 25,619,000 20.20%



Subscription increased by P25.619M (20.20%) compared to 2010 level.

Total Authorized Capital Shares is P250M.

Common Shares

P 126,595, 500

PreferredShares

P 25,865,000



Year Amount Increase %11/2001 125,000.00

2002 1,278,334.24 1,153,334.24 922.67%2003 4,978,464.23 3,700,129.99 289.45%2004 8,784,339.39 3,805,875.16 76.45%2005 14,295,920.87 5,511,581.48 62.74%2006 21,058,302.71 6,762,381.84 47.30%2007 31,686,743.41 10,628,440.70 50.47%2008 40,595,776.99 8,909,033.58 28.12%2009 49,635,079.60 9,039,302.61 22.27%2010 60,143,076.57 10,507,996.97 21.17%2011 75,280,000.00 15,136,923.43 25.17%

PAID -UP

S C



Paid-up Share

Capital in

crease

d

by

P15.137 milli

on

(25.17%)

compared to

2010

level.

Common Shares 59,290,000Preferred Shares 15,990,000Total 75,280,000

Breakdown



Year Amount Increase %2002 3,776,315.222003 12,284,934.35 8,508,619.13 225.32%2004 19,788,422.21 7,503,487.86 61.08%2005 25,550,533.44 5,762,111.23 29.12%2006 40,555,458.23 15,004,924.79 58.73%2007 52,134,038.00 11,578,579.77 28.55%2008 67,960,568.06 15,826,530.06 30.36%2009 85,602,735.61 17,642,167.55 25.96%2010 94,364,770.59 8,762,034.98 10.24%2011 141,996,906.41 47,632,135.82 50.48%

Time Deposits



Time Depositsincreased by

P47.632 million(50.48%)

compared to 2010 level.

Breakdown # of Accts AmountRegular Members 144 72,967,026.20Associate Members 170 69,029,880.21Total 314 141,996,906.41


Management’s Report PROCESSED

LOANS

PhP / In Millions

Year Amount2002 8.815 2003 30.110 2004 37.057 2005 46.080 2006 61.650 2007 71.590 2008 88.181 2009 112.277 2010 132.381 2011 185.682

Total 773.823

Quarter Amount # of Accts. Amount # of Accts.

1st 42.409 657 40.773 957

2nd 39.906 1,026 24.151 609

Sub-Total 82.315 1,683 64.924 1,566

3rd 63.422 1,370 36.547 942

4th 39.945 825 30.910 737

Sub-Total 103.367 2,195 67.457 1,679

Grand Total 185.682 3,878 132.381 3,245

2011 2010



Total loans for 2011 increased by P53.30 million (40.26%) compared to 2010 level

Number of loans processed increased by

633 (19.51%).



Amount % Amount % %

Consolidated 59.150 31.86% 45.590 34.44% 13.560 29.74%

Regular 31.648 17.04% 31.115 23.50% 0.533 1.71%

All Purpose 21.774 11.73% 13.965 10.55% 7.809 55.92%

Petty Cash 14.242 7.67% 8.553 6.46% 5.689 66.51%

Monetization (Bonus) 8.747 4.71% 7.275 5.50% 1.472 20.23%

Check Rediscounting 14.648 7.89% 9.049 6.84% 5.599 61.87%

Housing 22.341 12.03% 3.400 2.57% 18.941 557.09%

Buy-out (GFIs) 0.903 0.49% 2.086 1.58% -1.183 -56.71%

Business 0.550 0.30% 0.700 0.53% -0.150 -21.43%

Car 1.935 1.04% 1.200 0.91% 0.735 61.25%

Appliance 0.995 0.54% 1.365 1.03% -0.370 -27.11%

Calamity 4.245 2.29% 2.015 1.52% 2.230 110.67%

Express Loan 1.351 0.73% 0.675 0.51% 0.676 100.15%

G-Card 3.035 1.63% 5.253 3.97% -2.218 -42.22%

Rice 0.118 0.06% 0.140 0.11% -0.022 -15.71%

Total 185.682 100.00% 132.381 100.00% 53.301 28.71%

2011

Particulars

2010 ChangesPROCESSED

LOANS



Amount % Amount % Amount %

GLEDCO 185,682,104 97.05% 132,381,389 95.59% 53,300,715 40.26%

GSIS 4,834,743 2.53% 5,059,768 3.65% (225,025) -4.45%

PAG-IBIG 803,908 0.42% 1,050,150 0.76% (246,242) -23.45%

DBP 0 0.00% 0 0.00% 0 0.00%

TOTAL 191,320,755 100.00% 138,491,307 100.00% 52,829,448 38.15%

Market Share - Loan Releases2011 2010 Changes

Agency



GLEDCO gets the biggest market share with an

increase of P53.301M or

40.26% in 2011 while the other

GFIs’ share decreases.



Amount % Amount % Amount %

GLEDCO 136,697,848 97.77% 113,085,987 97.16% 23,611,861 20.88%

GSIS 2,533,198 1.81% 2,658,908 2.28% (125,710) -4.73%

PAG-IBIG 579,120 0.41% 637,276 0.55% (58,156) -9.13%

DBP 0 0.00% 11,534 0.01% (11,534) -100.00%

TOTAL 139,810,166 100.00% 116,393,705 100.00% 23,416,461 20.12%

Market Share - Loan Remittances2011 2010 Changes

Agency



increase remittance

level by P23.612 million

(20.88%) in 2011 compared to 2010. Other

GFIs occupy only a minimal

share in the market.



Year Amount Increase %

2002 762,507.50 2003 2,825,610.86 2,063,103.36 270.57%2004 4,664,442.16 1,838,831.30 65.08%2005 7,022,542.67 2,358,100.51 50.55%2006 8,935,512.36 1,912,969.69 27.24%2007 10,699,807.95 1,764,295.59 19.74%2008 13,883,855.29 3,184,047.34 29.76%2009 17,182,338.73 3,298,483.44 23.76%2010 20,843,562.14 3,661,223.41 26.37%2011 25,905,787.29 5,062,225.15 29.46%Total 112,725,966.95

Gross Income from Loans



Gross IncomeParticulars Amount % Dist. Amount % vs 2010 % Dist.

Loans 20,843,562 70.18% 25,905,787 124.29% 69.57%Raffl e draws 7,156,297 24.10% 8,524,821 119.12% 22.89%Insurance (LPP) 331,606 1.12% 484,718 146.17% 1.30%Pharmacy / Grocery 455,162 1.53% 547,573 120.30% 1.47%Canteen 167,829 0.57% 139,034 82.84% 0.37%Printing Services 309,291 1.04% 708,120 228.95% 1.90%Loading Business 36,116 0.12% 10,375 28.73% 0.03%Membership fees 97,125 0.33% 570,475 587.36% 1.53%PLDT / Cellcards 29,912 0.10% 26,925 90.01% 0.07%Interst (Bank) 47,228 0.16% 58,241 123.32% 0.16%Philam Life 3,127 0.01% 2,596 83.02% 0.01%Others 220,817 0.74% 256,540 116.18% 0.69%Total 29,698,072 100.00% 37,235,205 125.38% 100.00%

20112010



Annualized Income (Estimates)– P32.376

million. Gross Income is higher by P4.859

million against 2011 target

and higher by P7.537 million against 2010 actual performance



Net Surplus / DividendsYear Net Surplus Dividends

2002 581,787.04 465,429.63 2003 2,187,121.40 1,749,597.12 2004 4,196,614.65 3,357,291.72 2005 5,103,905.87 4,082,813.50 2006 6,237,615.29 5,381,783.81 2007 7,422,316.78 6,722,130.91 2008 9,035,035.47 8,237,872.25 2009 11,790,549.22 10,979,918.70 2010 15,815,957.69 14,728,651.26 2011 20,509,552.45 18,219,306.82

Total 82,880,455.86 73,924,795.72

2011Net Surplus (per FS) 9,160,982.49 Members' Benefits 11,348,569.96 Actual Net Surplus 20,509,552.45 Projections 15,713,238.52 Increase 4,796,313.93

Dividends (per FS) 6,870,736.86 Members' Benefits 11,348,569.96 Actual Dividends 18,219,306.82 Projections 14,659,928.89 Increase 3,559,377.93



0

5000

10000

15000

20000

25000

2002 2004 2006 2008 2010

Net Surplus Dividends

We exceeded:12011 Net Surplus Target by P4.796M2 2010 Net Surplus by P4.694M3 2010 Dividends by P3.491M



AWARDS

Special Award to CCDC (CY 2008)

1st Placer - Most Outstanding Cooperative Award - Provincial Level (FYs 2006 – 2008)

5th Placer – Top Ten Cooperatives in Region I (FY 2008)Certificate of Recognition – Large Asset Category –

PhP100 Million (FY 2008)1st Placer - Most Outstanding Cooperative Award -

Institutional Category – Regional Level (FY 2009)Plaque of Commendation – 2011 CDA Gawad Parangal



2010 PROVINCIAL AND REGIONAL COOPERATIVE MONTH

CELEBRATION



Best Practices …1. Very Supportive Local Chief Executive / Legislative Department of the City Government of Laoag.

City Resolution # 2002-007, Series of 2002



City Resolution # 2002-007, Series of 2002Resolution Conferring Official Recognition to

the Government of Laoag Employees Development Cooperative (GLEDCO).

Section 2

The City Government shall allow the free use of any available space/facilities in the regular conduct of its operations in consonance with Section 2 Article 63 of R.A. 6938 …

Section 3

The City Government shall allow the deduction of such amounts from the payroll in consonance with Sections (1), (2) and (3) under Article 59 of R.A. 6938 …



RA 9520, Art. 27, # 3 - Government Officers & Employees ….

Any government employee may, in the discharge of his duties as member in the cooperative, be allowed by the head of office concerned to use official time for attendance of the general assembly, board and committee meetings of cooperatives as well as cooperative seminars, conferences, workshops, technical meetings and training courses locally or abroad; Provided, That the operations of the office concerned are not adversely affected.RA 9520, Art. 62 # 2 - Privileges of Cooperatives

Cooperatives organized among government employees, notwithstanding any law or regulation to the contrary, shall enjoy the free use of any available space in their agency, whether owned or rented by the government.



City Resolution # 2010-002, Series of 2010Resolution Declaring January 22 of each year

as GLEDCO Day in the City of Laoag.



Best Practices …2. Commitment to Good Governance in its day to day operations by Dedicated Officers and Management Staff.

a) Regular conduct of general / mid-year general assemblies.

b) Conduct of mid-year and year-end assessment and planning conferences.

c) Regular conduct of two (2) board meetings a month.

d) Conduct of monthly / weekly meetings with Management Staff.

e) Conduct of monthly PMES (We have our own trainors).

f) Monthly financial statements are posted at bulletin boards / distributed to different offices.

g) Monthly / Annual Performances are compared against Targets as set forth in the approved Annual Budget.

h) Maintenance of Website / Facebook Account.


Management’s Report 3. Committed / Supportive members of the General Assembly to all the programs and plans of GLEDCO.



Share Capital (Members’ Benefits

of 8% based on ASC) 25%Time Deposits (Regular) 5-8%One Time Special Savings Account 5-8% Regular Special Savings Account 7%Savings Deposits 3%Savings (Among Program) 3%Kiddie Saver’s Club 3%

4. Innovative Savings Mobilization Programs



Amount

Car/Housing/Business Loan 1.2 / 4M

Buy-out Loan (GFIs) 1.2M

Hold-out Loan (80% of TD/SC) 1.2M

Consolidated Loan 1.0M

Regular Loan 500T

Medical Loan 200T

Appliance Loan 150T

All-Purpose Loan 150T

Calamity Loan

G-Card Loan 15T

Petty Cash Loan 18T

Express Loan 5T

Rice Loan

Purchase Order (PO)

Check Rediscounting

Monet. of P IB/Loyalty/Clothing/Provident/RATA

Retirement Pay/Salary/Honorarium/Hazard Pay

1 cavan

5T

30T

LOAN TY PE

Features / Others

1. Interest rates at 10%

2. Zero advance interest

3. Longer repayment period (ex. Housing loan to a maximum of 20 years)

4. Loans are covered by insurance up to maturity period

5. Rediscounting of checks @ 1% per month.

6. Filing Fee – ¼ of 1% of gross amount of loan or 100.00 whichever is higher.

5. Enhanced Credit Facilities



Capital Build-up – 50% of Interest on Capital & Patronage Refund (ICPR) - at least 1% of each good/service acquired by the

member

Jan. 22, 2004 – reduced from 50% to 30% of ICPR

Jan. 22, 2006 – reduced from 30% to 10% of ICPR if paid-in capitalis P501 shares and above.

- reduced from 30% to 20% of ICPR if paid-in capitalis 201–500 shares

July 22, 2006 – continuous capital build-up through payroll deduction,at least one percent (1%) of his/her monthly

basic salary or the amount of P100, P150, P200, P250 or more, at the option of the member

6. Continuous Capital Build-up Program



Jan. 22, 2002 - Elected Officials only

Jan. 22, 2004 - inclusion of associate members such as ElectedOfficials, Department of Public Safety employees,Casual employees and Heirs of members.

July 22, 2006 – expansion of membership, GLEDCO shall be open to: 1. any natural person, Filipino citizen, of legal age,

with capacity to contract; 2. any one of the immediate heirs of the deceased member; 3. an elected / casual / contractual employee of the

City Government of Laoag

7. Expansion of Membership



% to Total City Employees (1,056) as of December 31, 2011

– 91.67%

MembershipYear Regular Associate Total Increase %

11/2001 164 1 1652002 316 1 317 152 92.12%2003 456 2 458 141 44.48%2004 515 6 521 63 13.76%2005 582 15 597 76 14.59%2006 619 62 681 84 14.07%2007 624 131 755 74 10.87%2008 645 203 848 93 12.32%2009 710 240 950 102 12.03%2010 721 299 1020 70 7.37%2011 817 734 1551 531

2001

2003

2005

2007

2009

2011

0

200

400

600

800

1000

1200

1400

1600 Membership



2011 Actual 2010 Actual Targets Variance1 8% of Average Share Capital 6,797,505.88 5,359,238.63 5,600,000.00 1,197,505.88

1st Semester 2,568,239.38 2,055,110.84 2nd Semester 2,896,418.00 2,235,356.44 2% Additional 1,332,848.50 1,068,771.35

2 1st Raffl e Draw 3,651,989.22 2,704,919.40 3,200,000.00 451,989.22 3 10% Interest Rebates 2,550,099.71 2,315,267.57 2,700,000.00 (149,900.29)

1st Semester 922,656.89 441,906.92 2nd Semester 1,094,266.47 1,268,769.43 5% Additional 533,176.35 604,591.22

Total 12,999,594.81 10,379,425.60 11,500,000.00 1,499,594.81 % to Targets 113.04%

Particulars

Members' Benefits

8. Economic Benefits of Members thru Members’ Benefits Distribution



Actual Members Benefits distributed is 113.04% of

our 2011 Target. This is higher by P1.5 million against 2011

target & higher by P2.62 million

(25.24%) against 2010 actual performance



1. Scholarship Program2. Mutual Benefit Program3. Support to the Pamulinawen Festival4. Assistance to the LCTSCC / ABC Programs5. Support to the Wish Ko Kay Mayor Program6. Support to the City’s Christmas Program7. Search for the Kahanga-hangang Kawani Program8. Support to the Environment / Oplan Dalus Program9. Support to the Philippine Red Cross10.Assistance during typhoon

9. Concern for the Community (Social Responsibility)



SCHOLARSHIP/SUPPORT TO ISKOLAR NI MVFSUPPORT TO PAMULINAWEN FESTIVALSUPPORT TO PHIL. RED CROSSSUPPORT TO "A CAUSE FOR AUGUST"SUPPORT TO CCDC - - - 10,000.00 15,000.00 34,295.00 15,000.00 GAWAD KALINGA - - - - 15,600.00 20,000.00 - SUPPORT TO MEDICAL MISSIONSUPPORT TO OPLAN- DALUS

2009Com. Dev't. Prog. 2005 2006 2007 2008

78,500.00 78,500.00

- - 44,000.00 50,000.00 50,000.00 75,000.00 50,000.00

- 15,000.00 24,000.00 - 31,500.00

38,800.00 20,000.00

- - 10,000.00 10,000.00 25,000.00 18,500.00 -

- - 5,000.00 5,000.00 20,000.00

2010 2011

11,435.00 -

- - - - - 50,490.00 1,000,000.00

- - - - 13,200.00



SUPPORT TO SEARCH FOR MS. COOPERATIVESUPPORT TO BREAKING THE BARRIERS FOR CHILDRENSUPPORT TO "WISH KO KAY MAYOR"SUPPORT TO KAHANGA- HANGA AWARDSUPPORT TO CITY'S CHRISTMAS PROGRAMDONATION/ SPONSORSHIP

26,500.00 64,000.00

TOTAL

- 24,000.00 - 25,500.00 -

2009

- - - - 6,000.00

. ComDev'tProg 2005 2006 2007 2008

20,000.00 - - - - - -

- -

- -

11,610.00 9,000.00 32,000.00 34,000.00 45,200.00 40,434.00 19,950.00

- 5,000.00 - - -

2010 2011

20,700.00 63,703.81

23,610.00 88,000.00 92,500.00 164,900.00 288,300.00 434,654.00 1,311,153.81

12,000.00 35,000.00 1,500.00 6,400.00 66,800.00

Total support to various Community Development Program – P2,403,117.81



BENEFICIARY AMOUNT GIVEN COURSE SCHOOLPRINCESS SARAH DOMINGO 52,500.00 BSBA MMSUKARL HANZ VALENCIANO 30,000.00 CIVIL ENGINEERING MMSUAIDA KRIZELLE VALDEZ 19,500.00 B.S. ACCOUNTANCY MMSUPRINZELLE STARR DELA ROSA 19,500.00 B.S. NURSING MMSUMA. ELOISA VENTURA 3,000.00 B.S. PHYSICS UPNATILYN DOMINGO 3,000.00 B.S. ACCOUNTANCY DWCL

TOTAL 127,500.00

SCHOLARSHIP/EDUCATIONAL ASSISTANCE



Mutual Aid Program (Death Aid)Year # of Recipients Amount

2006 1 129,200.00 2007 6 774,200.00 2008 5 727,200.00 2009 5 782,400.00 2010 5 860,600.00 2011 6 1,039,400.00

TOTAL 28 4,313,000.00


Management’s Report 10.1 Expansion of Business Activities



Period Ended Aug. 31, 2012

Gross Income - P567,022

Net Surplus – P63,252

10. Expansion of Business Activities



Tie-Up with Camella Homes for our Housing Project.

10.2 Expansion of Business Activities



As of 8/31/2012

Availments - P22,227,081

10 Members



Acquisition of Mr. & Mrs. Joe Galiza’s Gasoline Station @ Brgy. # 46 Nalbo




Period Ended Aug. 31, 2012

Gross Sales - P22,064,466.48

Gross Income – P1,748,487.28

Net Surplus – P595,780.01



Expansion of operation at the Laoag City Gen. Hospital / Introduction of the Hospitalization & Emergency Assistance Loan (HEAL)

Provision for health and life insurance / Annual medical check-up of all members.


Public Private Partnership with the City Government of Laoag for the operation of the LCGH Dietary and Laundry Services.


Management’s Report 10.4 Expansion of Business Activities at the LCGH



GLEDCO Cafeteria / Convenience Store @ Laoag City Multi-Purpose Center




Conduct of Two (2) Raffle Draws

Income Target – P5 million




Credit Partnership with and Puregold

Laoag City




The Product

70

Product Features: 1. Payable in 4 installments Zero (0%) interest on member purchases.

2. Acceptable in all outlets and Retail Affiliates

CREDIT PARTNER PROGRAM



Signing of MOA (Credit Partnership) with September 28, 2012



2nd Petron Gasoline Station / Convenience Store at the East of Iglesia ni Cristo, Brgy. 2, Laoag City




Construction of GLEDCO Building @ the Lot acquired from Mrs. Mary Ang (former Colonial Restaurant )




Accounts 8/31/2012 12/31/2011 Changes %Assets 298,854,326.59 248,502,648.97 50,351,677.62 20.26%Loan Portfolio 230,568,897.78 210,567,498.29 20,001,399.49 9.50%Paid-up Capital 87,141,500.00 75,280,000.00 11,861,500.00 15.76%Deposit Liabilities 177,599,787.95 147,183,116.61 30,416,671.34 20.67%Loan Releases 120,049,000.00 185,682,000.00 -65,633,000.00 -35.35%Gross Income 8 Months 29,491,279.82 37,235,205.00 -7,743,925.18 -20.80% Annualized 44,236,919.73 37,235,205.00 7,001,714.73 18.80%Members' Benefits 10,738,223.69 12,999,594.81 -2,261,371.12 -17.40%

FS as of / 8 Months Ended Aug. 31, 2012



GLEDCO’s main objective:

Innovative plans and programs to increase

Excellent

Growth in Assets and

Return on Investments

Total Satisfaction of Members through

GLEDCO continues to adhere to:

G - Good Governance with

L - Leadership in the Cooperative Sector

E - Empowered Members thru Economic Benefits

D - Dedication to the ideals of cooperativism

C - Competitive and Committed Officers and Management Staff

of anO- Organization par

excellence



AGBIAG TI KOOPERATIBA!!!