How To Calculate A Bank Balance Sheet

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1 CAMARINES NORTE DEVELOPMENT COOPERATIVE (CANDEVCO) Ground floor, Regan Building, J. Lukban St., Daet, Camarines Norte CDA Registration No. CIN V. Financial Reports with supporting schedules a. ) Statement of Financial Condition b. ) Statement of Operation c. ) Statement of Changes in Equity d. ) Statement of Cash Flows e. ) Notes to Financial Statement f. ) Related Schedules: Bank Reconciliation Statement Aging of Receivables using PAR Property and equipment schedules Members loans receivables, savings/ time deposits, and paid-up share capital Investments Accounts payable Loans payables Allocation and Utilization of Statutory Funds NATIONAL CONFEDERATION OF COOPERATIVES MICOOP GROUP

2 MMA ACCOUNTING SERVICES 147 CHICO ST., HAPPY HOMES SUBD., DAET, CAMARINES NORTE MERCEDES M. ALFUERTE, CPA - PROPRIETRESS TEL. NO MOBILE NO Board Cert. No PTR No January 19,2012 BIR AN BOA CERT. NO.0829 STATEMENT OF REPRESENTATION TO THE COOPERATIVE DEVELOPMENT AUTHORITY In connection with my examination of the financial statements of CAMARINES NORTE DEVELOPMENT COOPERATIVE covering the period from January 1, 2011 to December 31, 2011 that are herewith submitted to the Cooperative Development Authority, I hereby represent the following: 1. That said financial statements herewith were prepared and presented in conformity with the generally accepted accounting principles; 2. That in the conduct of my audit, I adhered the generally accepted auditing standards of the Philippines and the Standard Audit System for cooperatives (SACS) as required by the Cooperative Development Authority; 3. That I am qualified as provided for in Section 14 of the Code of Professional Ethics for Certified Public Accountants and Article 81 of R.A (Cooperative Code of the Philippines) 4. That I am fully aware of my responsibility as an independent auditor for the audit certificate issued and attached to the financial statements and the sanctions to be bestowed on me for any misrepresentations that I may have willingly or unwillingly committed; 5. That I make representations in my individual capacity as a Certified Public Accountant; 6. That I am a member of PICPA - CAMARINES NORTE CHAPTER.

3 MERCEDES M. ALTUj Board Cert. No PTR No January 19, 2012 BIR AN BOA CERT. NO MMA ACCOUNTING SERVICES 147 Chico St., Happy Homes Subd., Pamorangon, Daet, Camarines Norte MERCEDES M. ALFUERTE, CPA - Proprietress Tel. No : Mobile No INDEPENDENT AUDITOR'S REPORT March 5, 2012 THE BOARD OF DIRECTTORS CAMARINES NORTE DEVELOPMENT COOPERATIVE DAET, Camarines Norte Dear Ladies & Gentlemen, I have audited the accompanying financial statements of your cooperative, which comprise the statement of condition as of December 31, 2011, statement of operation and cash flows for the penod then ended and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Philippine Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements. An audit involves performing procedures selected depend on my judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, I consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence that I have obtained is sufficient and appropriate to provide a basis fo my audit. In my opinion, the financial statements present fairly, in all material respects, the financial position o your cooperative as of December 31, 2011 and of its financial operation and cash flows for the period then ended in accordance witkhiffippine Financial Reporting Standards.

4 CAMARINES NORTE DEVELOPMENT COOPERATIVE Ground floor, Regan Building, L. Lukban St., Daet, Camarines Norte CDA Registration No. CIN TOTAL ASSETS 13,098, , STATEMENT OF FINANCIAL CONDITION As of December 31, 2011& ASSETS CURRENT ASSETS 62, , CASH ON HAND CASH IN BANK 241, , CASH IN BANK-LBP (CURRENT) 260, CASH IN BANK-LBP (SAVINGS) 501, , , , PETTY CASH FUND LOANS RECEIVABLE MICROFINANCE LOAN 556, AGRI LOAN 8,378, ,565, NON-AGRI LOAN 8,935, ,565, REGULAR LOAN PROVIDENTIAL LOAN PRODUCTIVE LOAN TOTAL LOANS RECEIVABLE 813, , , , ,366, ,210, ,301, ,776, ALLOWANCE FOR PROBABLE LOSSES ON LOANS (267,709.58) (63,372.85) OTHER RECEIVABLES 1,049, , UNUSED OFFICE SUPPLIES 89, , PREPAID EXPENSES 48, , ACCOUNTS RECEIVABLE 3, TOTAL CURRENT ASSETS 11,794, , LONG TERM INVESTMENTS LONG TERM INVESTMENTS - COOPERATIVES 110, , TOTAL LONG TERM INVESTMENTS 110, , PROPERTY AND EQUIPMENT FURNITURE, FIXTURES AND OFFICE EQUIPMENT 310, , ACCUM. DEPRECIATION - FURNITURE, FIXTURES, AND OFFICE EQPMT. (138,120.42) (77,130.64) TRANSPORTATION EQUIPMENT 103, , ACCUM. DEPRECIATION - TRANSPORTATION EQUIPMENT (39,187.95) (18,471.15) LEASEHOLD RIGHTS AND IMPROVEMENT 187, , TOTAL PROPERTY AND EQUIPTMENT 424, , OTHER ASSETS ORGANIZATIONAL COSTS 64, , COMPUTERIZATION COSTS 108, , OTHER FUNDS AND DEPOSITS 88, , DUE FROM HEAD OFFICE/BRANCH/SUBSIDIARY 401, , ASSETS ACQUIRED IN SETTLEMENT OF LOANS 3, _ MISCELLANEOUS ASSETS 103, , TOTAL OTHER ASSETS 770, ,637.84

5 LIABILITIES CURRENT LIABILITIES SAVINGS DEPOSITS SAVINGS DEPOSIT KIDDIE SAVINGS 2,033, ,578, , , ,043, / 1,594, TIME DEPOSITS SSS/ECC/PHILHEALTH PREMIUM AND PAG-IBIG CONTRIBUTIONS PAYABLE INTEREST ON SHARE CAPITAL PAYABLE PATRONAGE REFUNDS PAYABLE DUETOCETF-NATCCO ACCRUED EXPENSE OTHER PAYABLES ACCOUNTS PAYABLE ACCOUNTS PAYABLE - NOTARIAL FEE TOTAL CURRENT LIABILITIES 337, / 10, , , , , , ,463, , , , , , , ,726, LONG - TERM LIABILITIES LOANS PAYABLE - LONG TERM RETIREMENT FUND PAYABLE TOTAL LONG-TERM LIABILITIES OTHER LIABILITIES MUTUAL BENEFITS FUNDS PAYABLE MICOOP DAMAYAN LOAN INSURANCE TOTAL OTHER LIABILITIES 7,500, , ,601, , , , , ,000, , ,045, TOTAL LIABILITIES EQUITY 10,504, ,771, MEMBERS EQUITY PAID - UP SHARE CAPITAL - COMMON PAID-UP SHARE CAPITAL-PREFERRED UNDIVIDED NET SURPLUS (LOSS) NET SURPLUS (LOSS) UNDIVIDED NET SURPLUS (LOSS), END 938,574.37^ 999, / 576, (576,250.35) , , , (817,082.28) 0.00 TOTAL MEMBERS EQUITY 1,937, ,029, DONATIONS/GRANTS DONATIONS AND GRANTS TOTAL DONATIONS/GRANTS STATUTORY FUNDS RESERVE FUND EDUCATION AND TRAINING FUND (LOCAL) OPTIONAL FUND COMMUNITY DEVELOPMENT FUND TOTAL STATUTORY FUNDS 108, , , , , , , , , , , , , , TOTAL EQUITY 2,593, TOTAL LIABILITIES & EQUITY 13,098, ,599, Prepared by: Certified Correct by: Jessebel LX Cabal^uinto Bookkeeper

6 CAMARINES NORTE DEVELOPMENT COOPERATIVE Ground floor, Regan Building, L. Lukban St., Daet, Camarines Norte CDA Registration No. CIN STATEMENT OF OPERATIONS For the Period of December 31, 2011 & 2010 INCOME OPERATING INCOME INTEREST INCOME FROM LOANS INTEREST INCOME - AGRI LOAN INTEREST INCOME - PROVIDENTIAL LOAN INTEREST INCOME - PRODUCTIVE LOAN INTEREST INCOME - NON-AGRI LOAN TOTAL INTEREST INCOME FROM LOANS SERVICE FEES FILING FEES FINES, PENALTIES AND SURCHARGES MEMBERSHIP FEES INCOME/INTEREST FROM INVESTMENT MISCELLANEOUS INCOME NOTARIAL FEE PASSBOOK MISCELLANEOUS INCOME. ID TOTAL MISCELLANEOUS INCOME 135, , , ,851, ,290, , , , , , , ,421, ,707, , , , , , , , , , , , , , , Tf-VTAI OPFRATIIMG INCOME 4.322, , TOTAL INCOME EXPENSE FINANCING COSTS INTEREST EXPENSE ON DEPOSITS 75, , INTEREST EXPENSE ON BORROWINGS 845, , TOTAL FINANCIAL COST 921, , SALARIES AND WAGES EMPLOYEES BENEFITS SSS/ECC/PHILHEALTH, PAG-IBIG CONT. RETIREMENT BENEFIT EXPENSE OFFICERS HONORARIUM AND ALLOWANCES TRAININGS/SEMINARS OFFICE SUPPLIES POWER, LIGHT AND WATER TRAVEL AND TRANSPORTATION GAS, OIL & LUBRICANTS TRANSPORTATION &TRAVEL TOTAL TRAVEL AND TRANSPORTATION INSURANCE " REPAIRS AND MAINTENANCE RENTAL TAXES AND LICENSES PROFESSIONAL FEES COMMUNICATION EXPENSES REPRESENTATION GENERAL ASSEMBLY MEETING EXPENSES MEETINGS AND CONFERENCES BANK CHARGES LITIGATION EXPENSES SOCIAL SERVICES EXPENSES PROMOTIONAL EXPENSES GENERAL SUPPORT SERVICES MEMBERS BENEFITS EXPENSES MISCELLANEOUS EXPENSE DEPRECIATION AND AMORTIZATION PROVISION FOR PROBABLE LOSSES ON LOANS TOTAL ADMINISTRATIVE COST 740, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,869, ,272,051.80

7 EXTRAORDINARY ITEMS SUBSIDIZED PROJECT EXPENSE GAIN OR LOSS ON SALE OF ACQUIRED ASSETS/PROPERTIES AND EQUIPMENT TOTAL EXTRAORDINARY ITEMS (44,975.18) (43,975.68) (44,975.18) (44,975.18) TOTAL EXPENSE 3,746, ,885, NET INCOME (LOSS) , Net Surplus Distributed as Follows: General Reserved Fund Optional Fund Education and Training Fund ( Local) Community Development Fund Interest on Share Capital and Patronage Refund 57, , , , , , , , , , TOTAL P 576, , Prepared by: Certified Correct:

8 CAMARINES NORTE DEVELOPMENT COOPERATIVE (CANDEVCO) Ground floor, Regan Building, J. Lukban St., Daet, Camarines Norte CDA Registration No. CIN H STATEMENT OF CHANGES IN EQUITY, STATUTORY FUNDS AND GRANTS AND DONATIONS For the Year Ended, December 31, 2011 Equity Share Capital, Common, Beginning 409, Add: Additional Capital Build-up 667, Total 1,076, Less: Withdrawal in Capital 138, Share Capital, Common,End 938, Share Capital, Preferred, Beginning 620, Add: Additional Capital Build-up 1,006, Total 1,626, Less: Withdrawal in Capital 627, Share Capital, Preferred, End 999, Reserve Fund Balance, Dec. 31, , Add: Credits 10% Net Surplus from Operations 57, Total 415, Less: Charges Total Charges Balance, Dec. 31, , Cooperative Education and Training Fund Balance, Dec. 31, 2011 is,s79m Add: Credits 10% Net Surplus from Operations Total 44, Less: Charges Total Charges Balance, Dec. 31, 2011 Optional Fund Balance, Dec. 31, 2011 Add: Credits Total Less: Charges 7% Net Surplus From Operations 44, , , , Total Charges Balance, Dec. 31, 2011 Due to Union/ Federation Balance, Dec. 31, 2011 Add: Credits 68, N/A N/A Total Less: Charges 1/2 of 10% Net Surplus from Operations N/ A Remittances to Union/FpHprai-inn N/A N/A

9 Prepared by: Certified Correct by: Jessebel D. jeabalquinto Bookkeeper

10 Ground floor, Kegan ounamg, L. i_un.ua-._., _ _, CDA Registration No. CIN STATEMENT OF CASH FLOW For the Period Ended, January 01,2011 To December 31, CASH FLOWS FROM OPERATING ACTIVITIES NET SURPLUS (LOSS) Adjustment to reconcile Net Surplus to Add : Net Cash provided by Operating Activities ALLOWANCE FOR PROBABLE LOSSES ON LOANS DEPRECIATION EXPENSES Add (Deduct) : Changes in Current and Other Assets (Inc.) Dec In UNUSED OFFICE SUPPLIES (Inc.) Dec In COMPUTERIZATION COSTS (Inc.) Dec In DUE FROM HEAD OFFICE/BRANCH/SUBSIDIARY (Inc.) Dec In PROVIDENTIAL LOAN (Inc.) Dec In PRODUCTIVE LOAN (Inc.) Dec In AGRI LOAN (Inc.) Dec In NON-AGRI LOAN (Inc.) Dec In OTHER RECEIVABLES (Inc.) Dec In PREPAID EXPENSES c.) Dec In ORGANIZATIONAL COSTS ^rfic.) Dec In OTHER FUNDS AND DEPOSITS (Inc.) Dec In ASSETS ACQUIRED IN SETTLEMENT OF LOANS (Inc.) Dec In MISCELLANEOUS ASSETS Add (Deduct) : Changes in Current and Other Liabilities Inc. (Dec) In INTEREST ON SHARE CAPITAL PAYABLE Inc. (Dec) In KIDDIE SAVINGS Inc. (Dec) In ACCOUNTS PAYABLE Inc. (Dec) In ACCOUNTS PAYABLE - NOTARIAL FEE Inc. (Dec) In LOAN INSURANCE Inc. (Dec) In TIME DEPOSITS Inc. (Dec) In SSS/ECC/PHILHEALTH PREMIUM AND PAG-IBIG CONTRIBUTIONS PAYABLE Inc. (Dec) In ACCRUED EXPENSES Inc. (Dec) In PATRONAGE REFUNDS PAYABLE Inc. (Dec) In SAVINGS DEPOSIT Inc. (Dec) In MICOOP DAMAYAN Deduct: Charges against Statutory Funds EDUCATION AND TRAINING FUND (LOCAL) RESERVE FUND OPTIONAL FUND COMMUNITY DEVELOPMENT FUND UNDIVIDED NET SURPLUS (LOSS), END Cash Flows provided by (used for) Operating Activitie :ies CASH FLOWS FROM INVESTING ACTIVITIES - c. (Dec) In LONG TERM INVESTMENTS - COOPERATIVES _ c. (Dec) In FURNITURE, FIXTURES AND OFFICE EQUIPMENT Inc. (Dec) In TRANSPORTATION EQUIPMENT Inc. (Dec) In LEASEHOLD RIGHTS AND IMPROVEMENT Cash Flows provided by (used for) Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES (Inc.) Dec In LOANS PAYABLE - LONG TERM (Inc.) Dec In RETIREMENT FUND PAYABLE (Inc.) Dec In DONATIONS AND GRANTS (Inc.) Dec In PAID - UP SHARE CAPITAL - COMMON (Inc.) Dec In PAID-UP SHARE CAPITAL-PREFERRED Cash Flows provided by (used for) Financing Activities 576,2S , , , , , (23,984.20) (15,245.36) 44, , (321,806.75) (82,468.83) (485,447.50) (73,146.75) (479,803.25) (556,956.00) - (2,812,619.11) (3,263,269.43) (803,004.95) (246,721.16) , , (47,208.35) (41,708.32) (3,000.00) - 7, (98,829.87) 230, (6,563.86) 7, , , (7,000.00) 3, , , , , (8,592.37) 3, , , , , (4,263.07) 73, , (173,372.26) 68, , (1,393,335.63) 173, (2,956,948.04) (3,073,851.38) (40,000.00) (29,394.00) , , ,500, , (44,975.18) 529, , (70,000.00) (53,624.25) (53,255.00) 50, (126,248.90) 2,000, , (44,975.18) 352, , ,418, ,733, NET INCREASE (DECREASE) IN CASH CASH BALANCE, BEGINNING (527,160.11) 1,100, (466,708.14] 1,566,864.16

11 Certified Correct by:

12 CDA Registration No. CIN NOTES TO FINANCIAL STATEMENTS As of December 31, 2011 Note 1 Organization The Camarines Norte Development Cooperative (CANDEVCO) was registered with Cooperative Development Authority (CDA), under the new registration number: CIN on October 23, 2009 as prescribed under Article 144 of RA 9520 otherwise known as the "Philippine Coopertive Code of 2008". The main services are savings and credit. Note 2 Significant Accounting Policies The accounting policies used in the preparation of financial statements conform with the generally accepted accounting principles and have been consistently applied in the preparation of the statements. A. Loans Receivable It represents loan balances of members classified in accordance with the standard chart of accounts for Credit Cooperatives. B. Property and Equipment Property and Equipment are stated at cost. Depreciation is computed using straight-line method based on the estimated useful life of the asset. Notes 3 Schedules to financial statements 3.1 Cash on hand As of December 31, 2010 undeposited collections amounted to Cash in bank Deposited cash to: LAND BANK OF THE PHILIPPINES 3.3 Petty Cash Fund (Savings Account # ) (Current Account# ) Total Cash set aside for small expenditures in the hands of the Cashier/ Teller , Loans Receivables This amounts represents total loans granted to members and its corresponding type which is classified in accordance with standard chart of accounts for credit cooperatives. Micro Regular Agri Loan Non-Agri Loan Providential Loan Productive Loan 556, ,932, , ,366, less: Allowance for probable losses on loans Total 3.5 Other Receivables Receivables from NATCCO and expenses for old CANinFvrn 267, ,098,

13 3.6 Unused ottice supplies It repesents unused Coop forms and supplies per inventory at cost. 07.U7->.OU 3.7 Prepaid Expenses *8, This represents payment made in advance for office rental, six months at 8,000/ month. 3.8 Long Term Investments-Cooperatives This represents Paid-Up Share Capital to NATCCO Property and Equipment Furniture, Fixtures and Office Equipment Accum. Depreciation-FFOE ( ) Transportation Equipment Accum. Depreciation-Transportation Equipment ( ) Leasehold Rights and Improvement Net Book Value: 424, Other Assets This other assets represents organizational cost incurred before operation and computerization costs for e-koopbanker system and it is amortized monthly for the period of 3 years. This also represents miscellaneous assets and trainings & seminars attended reclassified as miscellaneous assets and it is amortized for the period of one year. This account also represents Fund for retirement benefits of CANDEVCO's Regular Employees Organizational Cost Computerization Costs Miscellaneous Assets Due from head office/ Branch/ Subsidiary(old transactions) Other Funds and Deposits T o t a l 767, Savings Deposits and Time Deposits Savings mobilization of member-depositors. Savings Deposits Kiddie Savings Time Deposits Total 3.12 Long-term liabilities This amount represents the outstanding loan balance from NATCCO bearing interest of 13% per annum ,381, Retirement Fund Payable This account represents retirement benefits of regular employees Paid-Up share capital This accounts represents paid-up share capital of the menbers which cannot be withdrawn during the term of mambership in the cooperative. Common Preffered TOTAL 3.15 Undivided Net surplus This account represents the undivided net surplus as of the period December 31, ,937, Net Surplus, as of December 31, ,250.35

14 3.16 Donation and Grants This represents ICCO-Cordaid grant on E-koopbanker System installation Reserve Fund This represents Net surplus of previous year 415, Note 4 Reclassification of Accounts Certain accounts in this financial statements were reclassified to conform to the Standard Chart of Accounts for Savings and Credit Cooperatives. Note 5 Miscellaneous Income Composition of miscellaneous income as of December 31, 2010, are as follows: PASSBOOK REGISTRATION FEES 94, PHOTOCOPIES 40, , Note 6 Allocation and distribution of net surplus: General Reserve Fund Optional Fund Community Development Fund Cooperative Education and Training Fund Interest on Share Capital and Patronage Refund 10% 7% 3% 10% 70%

15 CAMARINES NORTE DEVELOPMENT COOPERATIVE SUMMARY OF AUDIT FINDINGS & RECOMMENDATIONS FOR THE YEAR ENDED DECEMBER 31, It is observed that provision for probable loss on loan is not it accordance with the standard set by the authority. Provision for probable loss on loan should be in accordance with standards set by the authority to fairly present the value of loans receivable. 2. Cost incurred on trainings were recorded as Other Assets wherein it should be treated as nominal account Proper classification of accounts should be done. Nominal accounts should be recorded as expense so as not to violate the matching principle in accounting. Follow the standard chart of accounts for cooperative. 3. Schedule of Accounts Receivable should be indicated on the Notes to Financial Statements. 4. Amortization of Other Assets should be done for a period of three years as provided on the accounting standards.

16 with Credit Services in the Philippines (Rating Sheet) Mflmfi nf r.norv CAMARINES NORTE DEVELOPMENT COOPERATIVE Maximum Actual Weiaht Raw Score Score Rating CO( DP 20% C Compliance with Administrative and Local Requirements Organization Operation and Management P Plans/Programs and Performance Total COOP Points PESOS 80% 1/ P Portfolio E Effeiciency S Stability Operations s Strucure of Assets 15 2 u> Total PESOS Points I COOP - PESOS TOTAL RAW SCORE (C rating >.20 x.80) uvt 3ran Rating 58.4 Eq. Jivalent rating of overall actual raw score to 100-Outstanding 90 to 95 - Very Satisfactory 80 to 89 - Satisfactory 70 to 79 - Good below 70 - Poor

17 Administrative Compliance and Management Structure (COOP Indicators) Maximum Raw Score Actual Score Yes No COMPLIANCE WITH Administrative and Legal Requirements (20%) Cooperative Development Authority (CPA) a. Updated Bond of Accountancy Officers b. Registration of amendments, if any c. Allocation of Net Surplus d. Issuance of Share Capital Certificates e. Submission of Annual Report, audited financial statements and information sheet within the prescribed period Bureau of Internal Revenue (B1R) a. Registration as non - EVAT b. Filing of Account Information c. Withholding of Appropriate Taxes (includes taxes on honorarium) d. Certificate of Tax Exemption e. Registration of Books of Accounts Local Government Unit (LGU) a. Business Permit/License 4 Department of Labor and Employment (DOLE) a. Minimum Wage & 13th Month Pay b. SSS c. Philhealth d. HDMF (Pag-lbig) e. Retirement Benefits Sub - Total 18 ORGANIZATIONAL (26%^ Governance and Membership Participation a. Gender Integration (presence of sex-disaggregated data on officers and staff, loan borrowers, depositors b. Attendance of the majority of members in: -Annual General Assembly -Membership Education/Consultation c. Capital Build-Up and Savings Mobilization -70% of members (regular & associate) regularly contribute to share capital at least 70% of the total members are depositors d. Acceptance of Audited Financial Statement by the GA e. Approval of Development Plan by General Assembly f. Adoption of Proper Procedures for the election of the Board of Directors Conduct of regular pre-membership educations 15 15

18 1 I d Business alliance witn 1! -federation other cooperatives e Submission of audited Financial Statements using 1 SCA and Annual Report to the federation/union Sub - Total 1 23 O OPERATION AND MANAGEMENT (40%) 1 Manual of Operation Policies with specific j 24 i provision on the following: a. Membership 2 2 b. Loaning I 4 4 c. Savings/Time Deposits I 4 4 d. Financial Management j 9 -Asset/Liability 2 2 i -Accounting I 3! 3 J _ 1 - Internal Control ' 4 4 i e. Human Resource Development 5! - Hiring, Promotion and Firing Staff Development j Comprehensive/Benefits \ Performance Appraisal Job Description Board of Directors/Committees 8 I a. Board compositions in accordance with by-laws 2 2 b. Meetings of the Directors i 1 1 c. Meetings of the committees 1 1 d. Periodic Review of Policies 2 2 j 1 e. Updated Minutes of Meetings 1 1 f. Updated Committee Reports Management! 8 a. Full-time qualified manager 3! 3 b. Policy on succession of manager and other top positions 3 \ c. Personnel File d. Organizational Structure! l i 1 Sub - Total 8 40 P PLANS/PROGRAMS AND PERFORMANCE M4%1 1 Presence of 7 a. Vision, Mission and Goal 1 ±_ 1 i b. Developmental Plan 2 _^ 2 c. Approved Annual Plan and Budget 2 2 d. Code of Ethics I 2 PGrformancs R&view vi^-^.uie P m i o ^ i ^ n ^ 7 7 Sub - Total TOTAL (COOP Indicators) ~~ 95 1/ The erect cooperate gets the maximum raw score for every positive answer and zero points for every negative answers j 21 j Excludes cooperative who are no longer eligible and those whose addlicattens are still 1 r \4

19 Ratios Formula SCORE Equivalent Points P- PORTFOLIO QUALITY (25%) ortfolio at Risk Balance of Loans with one day missed payments % Total Loans Outstanding 10,301, Allowance :or Probable Losses on Loans APPL (over 12 months past due) If total amount of allowance > total outstanding balance of loans over 12 months past due using PAR = 100% If total amount of allowance < total outstanding balance of loans over 12 months past due using PAR then: Total Amount of Allowance 123, % Total Outstanding balance of loans 123, over 12 months past due using PAR APPL Total Amount of Allowance - Required (below 12 months Amount of Allowance for loans over 12 past due) months past due using PAR Total Outstanding balance of loans 1 1,686, to 12 months past due using PAR 143, % 12 E- EFFICIENCY (20%) Ratios Formula SCORE Equivalent Points Asset Yield Undivided Net Surplus Average Total Assets ,348, % Interest Income from Loans+Service Fees+Filing Fees + Fines, Penalties, and Surcharge Financing Costs + Admin Costs

20 Loan Portfolio Profitability Interest Income from Loans+Service Fees + Filing Fees + Fines, Penalties and Surcharges Average Total Loans Outstanding = ,539, = 47.35% 4 Cost per Peso Loan Financing Costs+(Admin Costs- Members' Benefit Expense) Average Total Loans Outstanding = ,539, % = 0 Administrative Efficiency Administrative Costs Average Total Assets = ,348, % = 0 11 S - STABILITY (30%) Solvency (Total Assets + Allowance) (Total Liabilities - Deposits Past Due Loans + Loans Restructured+Loans Under Litigation) Deposits + Share Capital 4,319, % 10 Liquidity Liquid Assets - Short Term Payables 8, Total Deposits 2,381, % 10 Net Institutional Capital (Reserves + Allowance from Probable Loan Losses) - (Past Due Loans + Loans Under Litigation Problem Assets) (2, Total Assets 13,098, %

21 S - STRUCTURES (15%) Asset Quality Non - Earning Assets Total Assets = ,098, = 22.52% = 0 Asset Structure Total Deposits Total Assets = 2.381, ,098, = 18.18% 0 Net Loans Receivables Total Assets = , ,098, = 76.60% = 2 Total Members' Share Capital Total Assets = ,098, = 14.79% = 0 2

22 CAMARINES NORTE DEVELOPMENT COOPERATIVE (CANDEVCO) Ground floor, Regan Building, J. Lukban St., Daet, Camarines Norte CDA Registration No. CIN Statement of Bank Reconciliation As of December 31, 2011 Unadjusted Balances CIB- Current CIB- Savings Add: Rental-Dec 2011 Add: Interest Less: Tax Add.lnterest Adjustment due to Rental (Erroneous source-june2011) Php Php Bank 249, , , , Php 501, Php Book 233, , , , Prepared by: JESSEBELD.c/BALQeilNTO Coop Bookkeeper Approved by: LUZIUPA' COOP MANAGER

23 CAMARINES NORTE DEVELOPMENT COOPERATIVE (CANDEVCO) Ground floor, Regan Building, J. Lukban St., Daet, Camarines Norte CDA Registration No. CIN PORTFOLIO AT RISK (PER ALPHALIST (All Loans)) As Of December 31, 2011 SUMMARY AMOUNT % TOTAL LOAN BALANCE PORTFOLIO AT RISK TO 30 DAYS 31 TO 60 DAYS 61 TO 90 DAYS 91 TO 180 DAYS 181 TO 365 DAYS OVER 365 DAYS TOTAL 1,810,647.40