Revised copy of Cooperative Performance Standard Instrument PISO Indicators, Financial Information and Rating Form

1. REVISED COPY OF COOPERATIVE PERFORMANCE STANDARD INSTRUMENT
PISO INDICATORS
PROFITABILITY PERFORMANCE 24
a. Profitability Ratio 4
Measure the capacity of the cooperative to generate surplus
Net Operating Surplus
Gross Operating Revenue and/or Gross Margin
30% and above full points 4
25% to below 30% three quarters points 3
10% to below 25% half points 2
5% to below 10% quarter points 1
below 5% zero 0
c. Earnings per share 4
Measure the capacity of cooperative to provide earnings to members' capital contribution
Net Surplus
Members' Equity - Treasury Share
Php 1.50 and above full points 4
1

2. Php 1 to below 1.50 half points 2
.50 cents to below Php1.00 quarter points 1
below .50 cents zero 0
b. Profitability Growth Rate 4
Measure the growth rate of profitability for the period
Earnings per share end - Earning per share beginning
Earnings per share beginning
100% and above full points 4
75% to below 100% three quarter points 3
50% to below 75% half points 2
30% to below 50% quarter points 1
below 30% zero 0
d. Asset Efficiency Rate 4
Measure the efficient use of assets to generate surplus
Net surplus
Total Assets
20% and above full points 4
10% to below 20% half points 2
5% to below 10% quarter points 1
2

3. below 5% zero 0
e. Rate of Interest on Share Capital (as prescribed in the by-laws; or if not provided, follow Rule 10 of IRR) 4
NOTE : ENCODE THE FORMULA AS PROVIDED IN RULE 10
Measure the return on members' share capital
Higher than the inflation rate full points 4
within the inflation rate half points 2
2 points below the inflation rate quarter points 1
greater than 2 points below the inflation rate zero
f. Rate of Patronage 4
Measure the rate of returns on members' patronage
above 30% of the net surplus for distribution to members full points 4
20% to below 30 % half points 2
10% to below 20 % quarter points 1
below 10 % zero 0
Note: if the rate of patronage refund is more than twice the rate of interest on capital, the rating is zero
INSTITUTIONAL STRENGTH
a. Net Institutional Capital
Measure the level of institutional capital after subtracting the allowance for probable losses
3

4. (Reserves + Allowance for probable losses on loans and or accounts receivable) - (Problem receivables
assets + past due receivables+ receivables under litigation+restructured receivables)
Total Assets
10% and above full points 4
7% to below 10% three quarter points 3
4% to below 7% half points 2
1% to below 4% quarter points 1
below 1% zero 0
b. Appropriate Provisioning for Probable Losses
b.1 Past due of more than one (1) year
measure the adequacy of provision for probable losses for past due accounts of more than one (1) year
Allowance for probable losses on receivables
Past due receivables over one (1) year
100% and above full points 4
90% to below 100% three quarter points 3
80% to below 90% half points 2
70% to below 80% quarter points 1
below 70% zero 0
b.2 Past due of thirty one (31) days to one (1) year
4

5. Measure the adequacy of provisions for probable losses for past due accounts 31 days to 1 year
Allowance for probable losses on receivables - allowance required for
past due receivables one year and above
Total past due receivables 31 days to 1 year
35% and above full points 4
25% to below 35% three quarter points 3
15% to below 25% half points 2
5% to below 15% quarter points 1
below 5% zero 0
STRUCTURE OF ASSETS
a. Percentage of non-earning assets to total assets
Non-earning assets
Total Assets
75% and above zero 4
50% to below 75% quarter points 3
25% to below 50% half points 2
10% to below 25% three quarter points 1
below 10% full points 0
c. Members' equity to total assets
5

6. Measure the degree of participation of members' share to total assets
Paid-up share capital + Deposits for capital subscription
Total Assets
NOTE: SHARE CAPITAL ONLY
50% and above full points 4
40% to below 50% three quarter points 3
30% to below 40% half points 2
20% to below 30% quarter points 1
below 20% zero 0
d. Deposit liabilities to total assets
Measure the percentage participation of deposit liabilities to total assets
Total deposit liabilities
Total Assets
50% to 65% full points 4
40% to below 50% three quarter points 3
30% to below 40% half points 2
20% to below 30% quarter points 1
(definition = it should be withdrawable anytime)
deposits that can be pre-terminated anytime
6

7. e. External borrowings to total assets
Measure the dependence of cooperative to external borrowings
Total external borrowings
Total Assets
no external borrowings full points 4
1% to 20% three quarter points 3
above 20% to 30% half points 2
above 30% to 40 % quarter points 1
above 40% zero 0
OPERATIONAL STRENGTH (STAYING POWER)
a. Volume of business to total assets
Measure the capacity of assets to generate business
Total volume of business
Total assets
75% and above full points 4
50% to below 75% three quarter points 3
25% to below 50% half points 2
1% to below 25% quarter points 1
below 1% zero 0
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8. b. Solvency
Measures the degree of protection that the cooperative has for members savings and share capital
contribution in the event of liquidation of the cooperative's assets and liabilities
(Assets + Allowances for probable losses) - [ (Total liabilities - Deposit liabilities)+
(Past due receivables + restructured receivables + receivables under litigation)]
Deposit liabilities + Share capital
110% and above full points 4
100% to below 110% three quarter points 3
85% to below 100% half points 2
75% to below 85% quarter points 1
below 75 zero 0
c. Liquidity
Measure the cooperative's ability to service its members' deposit on time
Liquid assets - Short term payables
Total members' deposit
15% and above full points 4
10% to below 15% three quarter points 3
5% to below 10% half points 2
1% to below 5% quarter points 1
below 1% zero 0
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9. d. Efficiency
d.1 Cost per volume of business
Measure the efficiency in managing the cooperative's business
Operating cost - (members' benefit expense+ social service expense)
total volume of business
25 centavos and below full points 4
26 to 32 centavos three quarter points 3
33 to 39 centavos half points 2
40 to 46 centavos quarter points 1
47 centavos and above zero 0
0.15
d. 2 Administrative efficiency
Administrative cost - (members benefit expense+ social service expense)
Average total assets
10% and below full points 4
above 10% to below 15% three quarter points 3
above 15% to below 20% half points 2
above 20% to below 25% quarter points 1
above 25% zero 0
d.3 Turnovers
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10. Measure the number of times receivables are moving within the reporting period
and/or the number of times inventories are moving within a reporting period
Receivables (trade &loans)
Average Receivables
4 times and more full points 4
3 to below 4 half points 2
2 to below 3 quarter points 1
below 2 zero 0
Cost of Sales
Average Inventory
12 and above full points
9 to below 12 three quarter points
6 to below 9 half points
3 to below 6 quarter points
below 3 zero
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11. PERFORMANCE RATING FORM
PARAMETERS STANDARD POINTS
MEDIUM AND LARGE
I. ORGANIZATIONAL ASPECT 76
a. Leadership 25
a.1 Functions, Duties and Responsibilities 10
a.2 Qualifications and Disqualifications 2
a.3 Composition 1
a.4 Continuing Education and Training 4
a.5 Financial Literacy 3
a.6 Succession Planning 3
a.7 Ethics 2
b. Human Resource and Management 14
a.1 Functions, Duties and Responsibilities 3
a.2 Personnel Policy 2
a.3 Staff Development and Career Pathing 3
a.4 Compensation and Benefits 4
a.5 Ethics 2
c. Members 12
c.1 Capitalization 5
c.2 Governance 5
c.3 Ethics 2
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12. d.Structure 4
c.1 Organizational Structure 2
c.2 Operational Structure 2
d. System and Mechanism 21
d.1 Maintenance of Books Codification of Documents 2
d.2 Manuals 6
d.2 Business Operation vis-à-vis Articles of Cooperation 2
d.3 Compliance to Rules and Regulations 7
d.4 Statutory Fund 4
d.5 Retirement Fund
II. ECONOMIC ASPECT 104
55.46%
a. Adequacy of Internal Control 28
b. Financial Performance 76
b.1 Profitability Performance 24
b.1.1 Profitability Ratio 4
b.1.2 Earning per Share Ratio 4
b.1.3 Profitability Growth Rate 4
b.1.4 Asset Efficiency Rate 4
b.1.5 Rate of Interest on Share Capital 4
b.1.6 Rate of Patronage Refund 4
b.2 Institutional Strength 12
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13. b.2.1 Net Institutional Capital 4
b.2.2 Adequacy of Provisioning (more than 1 year) 4
b.2.3 Adequacy of Provisioning 31 days to 1 year) 4
b.3 Structure of Assets 16
b.3.1 Non-Earning Assets to Total Assets 4
b.3.2 Members Equity to Total Asset 4
b.3.3 Deposit Liabilities to Total Assets 4
b.3.4 Borrowings to Total Assets 4
b.4 Operational Stamina 24
b.4.1 Volume of Business to Total Assets 4
b.4.2 Solvency 4
b.4.3 Liquidity 4
b.4.4 Cost per Volume of Business 4
b.4.5 Administrative Efficiency 4
b.4.6 Turn-over Ratio 4
III. SOCIAL ASPECT 4
TOTAL RAW SCORE 184
Note : with asterisk are bonus points
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14. Financial Information
Administrative Cost: _______________________________________________________________
Allowance for Probable Losses on Account Receivables: ____________________________________
Allowance for Probable Losses on Investments: ___________________________________________
Allowance for Probable Losses on Loans: _______________________________________________
Allowance Required for 1 year and above: _______________________________________________
Average Total Assets: ______________________________________________________________
Deposit Liabilities: ________________________________________________________________
Earning Assets: ___________________________________________________________________
Earnings per Share Beginning: _________________________________________________________
Earnings per Share End: _____________________________________________________________
External Borrowings: _______________________________________________________________
Financing Cost: ___________________________________________________________________
General Reserve Fund: ______________________________________________________________
Gross Operating Revenue: ___________________________________________________________
Inventory: ________________________________________________________________________
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15. Liquid Assets: ____________________________________________________________________
Member's Benefit Expense: __________________________________________________________
Members Equity: ___________________________________________________________________
Net Operating Surplus: ______________________________________________________________
Net Surplus: ______________________________________________________________________
Non-performing Assets: _____________________________________________________________
Paid-up Share Capital: _____________________________________________________________
Past Due Receivables for 31 days to 1 year: _____________________________________________
Past Due Receivables for more than 1 year: ______________________________________________
Problem Receivables: ______________________________________________________________
Rate of Interest on Share Capital: ______________________________________________________
Rate of Patronage Refund: ___________________________________________________________
Receivables Under Litigation: ________________________________________________________
Receivables: _____________________________________________________________________
Restructured Receivables: ___________________________________________________________
Risk Assets: _____________________________________________________________________
Short Term Payables: ______________________________________________________________
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16. Total Assets (current): _______________________________________________________________
Total Assets (previous): ______________________________________________________________
Total Liabilities: ___________________________________________________________________
Total Volume of Business: ___________________________________________________________
Treasury Share: ____________________________________________________________________
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