annual report 2008

2008inREVIEW25,833 members

P264.32M loans releasedP51.90M savings generated

P173.75M total assetsP42.26M share capital

P9.58M net surplus9 BRANCHES

1 SATELLITE OFFICE

ADVANCING the MANDATE, REACHING the WORLD

In 2008, Paglaum increased its membership to 25,833 cooperators. These members are spread all over Northwestern Mindanao. As Paglaum expands its area of coverage, more and more families become productive and self-reliant.

On the other hand, 2008 was an appointed time for reaching out to the world. Paglaum established its website, enabling the cooperative to be introduced to the worldwide web. Paglaum discovered more opportunities by working with global organizations like Kiva and Oikocredit. Through these wonderful partnerships, Paglaum has increased its assistance to the projects of its enterprising members.

Table of ContentsMessages ........................................................ 42008 at a Glance ........................................... 17Meeting Standards, Achieving Safety and Soundness ........................... 18BOD & Committee Election ‘08 ..................... 18CGAP Financial Ratios .................................. 18Credit Management Report ........................... 19Innovating to Address Rural Poverty ............. 20Famous home-made Suman reaches the US, Japan ........................... 23PAGLAUM Activites ....................................... 24The Men & Women behind PAGLAUM MPC ..................................... 26PACAP appoints PCDFI as FOCAS Secretariat................................. 2825 Years of Empowering Rural Communities ................................. 29Independent Auditors’ Report ........................ 302008 Awards and Citations ............................ 44Budget for 2009 ............................................. 45Trainings Attended by Board, Management, & Staff for 2008 ............... 46Laboratory Cooperative ................................. 47Board of Directors & Officers ......................... 47Advertisements .............................................. 48

P A G L A U M 2 0 0 8 A N N U A L R E P O R T� �2 0 0 8 A N N U A L R E P O R T P A G L A U M �

It is with great pleasure that I extend my warm greetings to the entire workforce and

members of PAGLAUM MULTI-PURPOSE COOPERATIVE (PMPC) as you conclude another year of operation through the conduct of your 17th Annual General Assembly.

Truly, year 2008 was a challenging year for all of us with the crises that hit the economy on a global level, which we are still facing at present. However, cooperatives around the globe have remained solid during the said crisis. No less than the International Cooperative Alliance (ICA) issued a statement which can become the driving force of cooperatives to continue to have a positive outlook of the future – “the role of cooperatives in the process of economic recovery should be given due recognition by the policy makers at a global and national level and therefore urge upon the governments to establish good partnership with cooperatives to protect economically vulnerable population so as to minimize the impact of global economic meltdown at the ground level”.

I applaud the management, staff and the general membership of PMPC for its continuous forward and upward movement as an organization, as evidenced in the ever-growing membership of more than 25,000 in its nine (9) branches in Northwestern Mindanao. It has also received numerous citations from major award giving bodies such as the Land Bank of the Philippines GAWAD PITAK 2007, with PMPC

C O O P E R A T I V E D E V E L O P M E N T A U T H O R I T Y5 t h F l o o r B e n - L o r B l d g . , 1 1 8 4 Q u e z o n A v e n u e , Q u e z o n C i t y

being conferred as the Regional Winner – Agri-Based Category. Most recently, PMPC was awarded the Century Coop Circle Award by MASS-SPECC Cooperative Development Center.

These awards truly speak of the hard work of every men and women behind PMPC, constantly raising the bar in providing excellent cooperative service despite such trying times, which is indeed deserving of commendation. The achievement of your organization lie on the shoulders of committed and hard-working leaders and members, the pillars on which the organization leans on for support, and the dynamic force that propels it forward.

As you chronicle another year of PMPC history, I earnestly hope that you will continue to be an effective instrument in promoting and accelerating the development of your cooperative and your members through the Power of Cooperation. Therefore, I call upon you to continue to faithfully and fully practice the principles and values of cooperativism and to reassert the unique identity of cooperatives so that you will achieve more success in the years to come.

Our best wishes to Paglaum Multi-Purpose Cooperative!

LECIRA V. JUAREZChairperson

Warmest greetings to the officers and members of the Paglaum Multi-Purpose Cooperative (PMPC) as you hold your 17th Annual General Assembly.

Your cooperative has been awarded the Century Coop Circle Award by MASS-SPECC Cooperative Center during the 39th Mindanao Coop Leaders’ Congress in Davao City.

Indeed, you deserve such recognition because you have consistently provided business opportunities and community development projects for the people in your community.

I hope that during your 17th General Membership Meeting, you will undertake more income generating projects for your members and assist us in the delivery of basic services to the people of Misamis Occidental and nearby areas.

More power to all of you and Mabuhay!

GLORIA MACAPAGAL-ARROYOPresident, Republic of the Philippines

MANILAApril 2009

M A L A C A Ñ A N P A L A C EM A N I L A


Congratulations to PAGLAUM MULTI-PURPOSE COOPERATIVE on your 17th Annual General Assembly!

The LANDBANK Countryside Development Foundation, Inc. highly treasures its partnership with PMPC. Your commendable efforts to reaching out to 25,833 members in Misamis Occidental and offer of various allied services to members is worthy of emulation of all progressive, newly emerging multi-purpose cooperatives.

We wish that you continue to uphold, expand and deepen your commitment to provide responsive services especially to the members of the marginalized sector – to assist them in helping themselves get out of poverty and thereby help in bringing about true and real countryside development.

Again, a toast to another successful year. Congratulations and MORE POWER!

ILUMINADA L.E. CABIGAS President, LCDFI

12th floor All Asia Capital Building105 Paseo de Roxas, Legaspi VillageMakati City, PhilippinesTel. Nos. 817-08-05 * 810-79-20Telefax: 892-52-86E-mail Address: [email protected]

L A N D B A N K C o u n t r y s i d eD e v e l o p m e n t F o u n d a t i o n , I n c .

ASSOCIATION OF ASIAN CONFEDERATION OF CREDIT UNIONSNo. 24, Ramkhamhaeng 60, Bangkapi, Bangkok 10240, Thai land P.O. Box 24-171, Bangkok 10240, Thai land Tel : 66-2-374-5101; 374-3170; Fax: 66-2-374-5321Emai l : [email protected] ; Website: http://www.aaccu.coop

Greetings from ACCU!

Indeed, it is with great pleasure to convey the congratulatory message

of the Association of Asian Confederation of Credit Unions on the 17th Annual General Assembly of Paglaum Multi Purpose Cooperative (PMPC). We are very pleased to be part of PMPC development as our Supporter member.

Over 65-70% of the Philippine population is situated in the rural areas where poverty incidence is higher and where the need for access to necessities like land, agricultural inputs, and services including access to credit and savings instruments is much higher. At present, Asia continues to experience the highest concentration of rural poor in the world. It is estimated that about 800 million people live in absolute poverty in Asia. According to a report published by IFAD, the total number of rural poor in Asia is expected to swell to 922 million by the year 2010. According to Asian Development Bank (ADB), about 25.4 million Filipinos are living below the Asian Poverty

Line (APL) of US$ 1.35 a day (a new benchmark set by ADB to measure poverty on the Asian continent). In the advent of the Global Financial Crisis, new poor entrants are expected to rise. With the above scenario, undoubtedly, PMPC should be commended for its unwavering commitment in eradicating poverty by reaching out to poor and disadvantaged communities. We believe that PMPC will continue with its mission in reaching people who most need the services of your cooperative.

We salute the leaders and management for winning the painful exercise at the grassroots level in building self-reliant cooperative financial institution that serves the poor. The dedicated leadership and professional management of PMPC are quite capable to manage the challenges ahead of

you. PMPC is number one cooperative in the Philippines on poverty alleviation with outreach of 25,833 members, portfolio of 122 million pesos and repayment rate of 92.12%.

We are very much aware of the initiatives of the leaders and management in acquiring new knowledge and skills to ensure the quality of your servcies and continually demonstrate your differentiation with other financial institutions.

We congratulate the members, Board of Directors, Officers, and Management for your achievements and encourage you to excel in every endeavour that you will take.

RANJITH HETTIARACHCHIChief Executive Officer


Congratulations to the officers, management and staff of Paglaum MPC

in the celebration of its 17th Annual General Assembly! Among the cooperatives in Mindanao, Paglaum MPC belongs to the younger batches of cooperatives. Young as it is, Paglaum has shown that it has what it takes to be a strong and healthy cooperative serving the members and the community. The various awards it has received is a testament to the achievements it has made.

MASS-SPECC is honored to have accompanied the cooperative in crafting its strategic plan from 2007 to 2011. The strategic plan outlines where Paglaum Cooperative would like to be in terms of its membership, presence, financial strength, products and services and human resources. The 2009 business planning has highlighted that the cooperative is not just within the targets; there are areas where it has surpassed the targets. The achievements are such that a review is already scheduled to address the positive improvements.

M A S S - S P E C C C o o p e r a t i v e D e v e l o p m e n t C e n t e rT i a n o - Y a c a p i n S t s . , C a g a y a n d e O r o C i t y

Today, Paglaum Cooperative has made major strides in the area of microfinance. A number of cooperatives have visited the cooperatives to benchmark its successes. Its delinquency rate is at 6.66% PAR. It has fully provided for probable losses. Apart from achieving key standards for savings and credit, Paglaum Cooperative has shown its pioneering mettle. It has operationalized the 1st Pinoy Coop ATM in the Northwestern side of Mindanao. By year-end of 2008, this ATM has the most number of switch transactions among the Pinoy Coop ATMs in Mindanao. Given the success in the present Plaridel office, more ATMs are envisioned to be operationalized in the other branches. This is all in the name of better services to the members; that the members can have access to the financial services of the cooperative anytime and anywhere.

With the advent of new developments in electronic

financial servicing, the connectivity of Paglaum MPC to the world is in sight. It is just a matter of time. As Paglaum continues to bridge the economic divide by providing the opportunities for the members to improve their lives, it is also contributing to bridge the digital divide. And this is no ordinary contribution to a world which is now primed by the influence of information and communications technology.

As you continue to reap successes, may the cooperative continue to work with other cooperatives in MASS-SPECC. For the cooperative movement is only as strong as we keep the flames of cooperativism alive among the individual members and among cooperatives. Again, congratulations!

SYLVIA OKINLAY-PARAGUYAChief Executive Officer

Paglaum Multi-Purpose Cooperative:Empowering Mindanao’s Rural CommunitiesA Message to the PMPC General Assembly

With financial upheavals in the United States and elsewhere in the world,

the Philippines is in for a rough ride in the year 2009 and beyond. The effects of global recession are even now being felt in the smallest, most rural of communities in the country. It will be a titanic task to help these communities and their constituents become more resilient, stable, and self-sustainable to weather the financial storm.

Such is the work of Paglaum Multi-Purpose Cooperative. Throughout its years of existence, Paglaum MPC has consistently strived to strengthen itself for the sake of its membership and the communities it serves. From its humble beginnings, the coop has successfully expanded with its nine branches in Northwestern Mindanao, reaching out to the poorer communities of Zamboanga del Sur, Zamboanga del Norte, and Misamis Occidental. Its membership base, now 25,833 strong, is a force to reckon with as far as the local economies of these Mindanao communities are concerned.

Innovation after innovation, award after award, Paglaum Multi-Purpose Cooperative excelled. Consistent in setting standards of performance for itself and its members, the coop is one outstanding cooperative that continues to evolve into

a bigger, stronger, and more empowering institution in local economy building. In cooperation with other financial institutions, the local government, the civil society, the business sector, Paglaum MPC brings together the stakeholders whose collective efforts are channeled to a holistic socio-economic development – one that looks at the individual, his or her household, and the local community where he or she makes a decent living.

SEEDFINANCE Corporation is witness to the rise of Paglaum MPC and its conquest of various challenges. From the very start of the partnership with CARE in the 1990s, then with the spun-off SEAD-NGO, and now with the SEEDFINANCE Corporation, Paglaum MPC has always been consistent in its adherence to industry performance standards, to SEEDFINANCE policies, to visionary governance and safe and sound operations, to making a difference in the lives of countless poor but enterprising cooperative members and the villages and towns where they live. Needless to say, the hands and fingers of positive change is

brought by Paglaum MPC to the socio-economic landscape of Northwestern Mindanao.

It is our singular pride to be a partner of the Paglaum Multi-Purpose Cooperative in the empowering, development work in Mindanao. From microfinance to SME-finance, from human development to community and local economy building, SEEDFINANCE reiterates also its commitment to support Paglaum Multi-Purpose Cooperative in terms of financial and technical assistance and business development services to ensure that the work in alleviating poverty and building economically self-sustainable communities will be realized sooner.

Congratulations are in order. To the leaders and general membership of Paglaum MPC, more power and continue on, making a difference in the lives of thousands!

JUN P. PEREZManaging Director & C.O.O.SEEDFINANCE Corporation

P A G L A U M 2 0 0 8 A N N U A L R E P O R T10 112 0 0 8 A N N U A L R E P O R T P A G L A U M 11

It is with great pride to extend my warm greetings and felicitations to all the officers and members of Paglaum Multi-Purpose Cooperative (PAGLAUM) on the occasion

of your 17th Annual General Assembly in April 2009.

Once again, I salute the dedicated men and women behind the operation of PAGLAUM Coop for their tireless endeavor in positioning the cooperative in map of sterling progress. The Provincial Government of Misamis Occidental is proud to have PAGLAUM Coop as its partner in the development process of the province. Truly, the effort of the cooperative in reaching out to rural communities has gained immense success as evident by its prestigious awards received such as the 2006 Most Outstanding Cooperative in the Philippines, Gawad Pitak 2007 and the Century Coop Circle Award.

As you gather on this auspicious and meaningful event, it is my fervent hope that you continue your exemplary unity and solidarity which you have demonstrated throughout the years of your existence. I am optimistic that your unwavering commitment to service will further bring your cooperative into the limelight of more success and sustainability. The Provincial Government is always behind your efforts in helping revitalizing the spirit of cooperativism which is an effective vehicle towards the attainment of our dream for enduring peace and prosperity.

Happy 17th Annual General Assembly and Mabuhay!

LORETO LEO S. OCAMPOS Provincial Governor LPP National President

R e p u b l i c o f t h e P h i l i p p i n e sP R O V I N C E O F M I S A M I S O C C I D E N T A L

O F F I C E O F T H E P R O V I N C I A L G O V E R N O RC a p i t o l , O r o q u i e t a C i t y , 7 2 0 7

The First District of Misamis Occidental is so blessed that amidst the period of crucial economic struggles, it never ceases to believe that there is “paglaum”, through the

Paglaum Multi-Purpose Cooperative. This is the role that Paglaum Multi-Purpose Cooperative has proven in 17 progressive and successful years of strengthened commitment in making the lives of the people better and productive, through helping them how to help themselves. This, I consider, as your truest and most meaningful achievement, among the many commendable achievements you obtained.

Our partnership for sustainable development may take us a longer mile as we together follow the same direction and pursue one vision especially for our rural communities. Your successes and progress create a pattern of greater achievement and brighter future ahead. Therefore, I must congratulate the dynamic leaders, the innovative staff, and the dedicated members of Paglaum MPC, who endeavor in order to bring the coop to its height.

Thus, I pray for a fruitful and a happy 17th Annual General Assembly Paglaum MPC!

HON. MARINA P. CLARETE Congresswoman, 1st District, Misamis Occidental

R e p u b l i c o f t h e P h i l i p p i n e s

H O U S E O F R E P R E S E N T A T I V E SQ u e z o n C i t y , M e t r o M a n i l a


In the light of societal needs, my warmest CONGRATULATIONS to Paglaum Multi-Purpose Cooperative on your 17th Annual General Assembly! That only shows how you give

an ultimate HOPE to the people, and how you remained being resolute in your objectives by building a foundation for a potent and more cohesive community.

In the midst of the emerging problems confronting our economy, it is just proper to give recognition to the potentials of your Multi-Purpose Cooperative in formulating solutions for the betterment of the quality of lives of the people in the community. Your involvement and participation for a comprehensive outcome in all possible sustainable development programs is vital to the lives of the people from all walks of life who are differently-abled. Likewise, your contribution to nation building lasts as we fight together in solving financial crisis, thereby, raising the nation against the doom of poverty.

Furthermore, please instill in your minds that in every endeavor you pursue, service to the people specially the poorest among the poor must be our major concern. The service must come from the heart that would sincerely cater to the needs of the people.

I fervently hope for a more resounding success and continuing development of your Multi-Purpose Cooperative who will be our partner in attaining goals of prosperity and peace!

Again, CONGRATULATIONS and more power! Mabuhay!

ATTY. ROLANDO E. YEBES Provincial Governor

R e p u b l i c o f t h e P h i l i p p i n e sP R O V I N C E O F Z A M B O A N G A D E L N O R T E

O F F I C E O F T H E P R O V I N C I A L G O V E R N O RP r o v i n c i a l C a p i t o l , D i p o l o g C i t y | T e l . N o . ( 0 6 5 ) 2 1 2 - 4 8 3 7 | F a x N o . ( 0 6 5 ) 2 1 2 - 3 5 6 3

On the occasion of the 17th Annual General Assembly of the Paglaum Multi-Purpose Cooperative I gladly convey my earnest accolades to all its members for having

marked another fruitful and beneficial year in the service to its members and the society. Driven by the core principles of solidarity and community, you have actively contributed to the upliftment of the economic, social, political and moral conditions of the people. And I congratulate you for such a commendable feat!

This assembly articulates your resolute commitment to carry on with the vision and the mission that brought you together in this cause. In the phase of economic challenges, the role of cooperatives must persist and unveil new and better avenues of service to its members. Being a multi-awarded cooperative in Mindanao, I am confident of your capacity to sustain the state of operations, as well as meet the needs and respond to the challenges of the present with precision and competence. Stability calls you to remain qualitatively unchanged as you confront today’s economic recession. I look forward to PMPC’s steadfast journey toward greater innovations.

Congratulations and Mabuhay!

AURORA ENERIO-CERILLES Provincial Governor

R e p u b l i c o f t h e P h i l i p p i n e sP R O V I N C E O F Z A M B O A N G A D E L S U R

O F F I C E O F T H E P R O V I N C I A L G O V E R N O RP a g a d i a n C i t y | T e l . N o . ( 0 6 2 ) 2 1 4 1 - 8 6 8 / F a x N o . 2 1 4 2 - 3 5 9

P A G L A U M 2 0 0 8 A N N U A L R E P O R T1� 1�2 0 0 8 A N N U A L R E P O R T P A G L A U M 1�

In behalf of the Board of Directors of Paglaum Multi-Purpose Cooperative, I am once again privileged to congratulate all of us for a well-accomplished 2008. We have heard

frightening news about the global financial crisis, hitting the most advanced countries.

Despite all these sad stories, we finished 2008 with resounding success. What was our secret? First, let me emphasize that our strength as a cooperative was due to our dedication. We have shown this by paying our loans and other obligations promptly. We put Paglaum first in the roster of financial service providers. Second, we have a team of committed officers, management, and staff that continue to strive for professional growth and excellence in the work. Third, we are guided by our vision and mission which is the reason why we work not just for ourselves, but for everyone that belongs to Paglaum.

By the end of 2008, our cooperative grew in quality and quantity. This is proof that with the right motivation and intention, we can certainly move up no matter how difficult the situation is.

Again, my appreciation belongs to the management and staff for their energy to keep our coop up and running. We have outsmarted the global financial crisis in 2008. And we have more confidence that we will be able to sustain our momentum in 2009 and beyond.

VIRGINIA S. ROSAL BOD Chairperson

P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V EE a s t e r n L o o c , P l a r i d e l , M i s a m i s O c c i d e n t a lT e l e f a x N o . ( 0 8 8 ) 3 4 4 - 8 6 3 3 o r C e l l N o . 0 9 2 1 - 2 4 3 - 2 4 9 6E m a i l a d d : p a g l a u m c o o p @ y a h o o . c o m

My warm greetings and felicitations to the visionary leaders, ever supportive staff, proactive members, and all the people behind the forthcoming 17th Paglaum

Multi-Purpose Cooperative Annual General Assembly on May, 2009.

It is my pride that Paglaum Multi-Purpose Cooperative, a nationally-renowned cooperative, was born in our town. With God’s grace and with the power of cooperativism, I believe that the transformation of Plaridel on year 2020: from a Town to a City, is feasible. Your outstanding records of achievements coupled with the unrelenting support of the members, I am certain that your cooperative will achieve more than what it has envisioned.

Being the partner of the Local Government of Plaridel, I sincerely thank you for your commitment in providing access to microfinance services to our small farmers, fisherfolks and other marginalized sectors in this municipality. Our joint effort will, definitely, strengthen our commitment in addressing poverty issues.

Let us continue working together so that, together, we will fulfill our noble visions for the welfare of the people.

God bless!

ATTY. ERNIE D. CLARETE Municipal Mayor

R e p u b l i c o f t h e P h i l i p p i n e sP R O V I N C E O F M I S A M I S O C C I D E N T A L

O F F I C E O F T H E M U N I C I P A L M A Y O RM u n i c i p a l i t y o f P l a r i d e l


2008 AT A GLANCE( w i t h 2 0 0 7 c o m p a r a t i v e f i g u r e s )

0

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PLARIDEL CALAMBA OROQUIETA TUDELA DIPOLOG PAGADIAN OZAMIZ SINDANGAN MOLAVE

20072008

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BRANCHES 2007 2008PLARIDEL 3,225 3,920CALAMBA 2,527 3,112OROQUIETA 3,322 4,351TUDELA 1,742 2,498DIPOLOG 3,506 4,687PAGADIAN 1,101 1,676OZAMIZ 1,171 2,219SINDANGAN 917 2,122MOLAVE 0 1,248TOTAL 17,511 25,833

Membership

BRANCHES 2007 2008PLARIDEL 9,202,912 11,338,117 CALAMBA 4,478,578 6,226,063 OROQUIETA 8,275,945 9,218,945 TUDELA 2,599,125 3,936,261 DIPOLOG 3,373,283 4,584,657 PAGADIAN 5,828,406 2,274,127 OZAMIZ 966,098 2,086,818 SINDANGAN 482,723 1,814,777 MOLAVE - 787,502TOTAL 35,207,070 42,267,267

Share

BRANCHES 2007 2008PLARIDEL 11,896,604 16,951,948 CALAMBA 4,467,407 10,906,229 OROQUIETA 5,480,031 10,432,850 TUDELA 1,593,584 2,530,250 DIPOLOG 2,900,473 3,341,348 PAGADIAN 965,261 1,719,729 OZAMIZ 1,006,167 3,930,002 SINDANGAN 429,328 1,426,187 MOLAVE - 656,471TOTAL 28,738,855 51,895,014

Savings

BRANCHES 2007 2008PLARIDEL 29,044,710 45,399,452 CALAMBA 20,248,720 33,198,724 OROQUIETA 30,152,526 48,642,568 TUDELA 18,223,593 32,457,876 DIPOLOG 25,744,948 35,381,080 PAGADIAN 5,905,217 18,007,026 OZAMIZ 12,855,093 25,085,689 SINDANGAN 7,486,575 16,543,106 MOLAVE - 9,599,029TOTAL 149,661,382 264,314,550

Loans Released

BRANCHES 2007 2008PLARIDEL 26,008,003 42,549,190 CALAMBA 13,454,910 24,538,959 OROQUIETA 20,646,746 32,200,342 TUDELA 9,229,839 15,343,373 DIPOLOG 11,847,356 14,811,597 PAGADIAN 8,735,354 8,164,467 OZAMIZ 7,391,617 12,073,904 SINDANGAN 6,062,954 9,938,821 MOLAVE - 6,036,935TOTAL 103,376,779 165,684,588

Total Assets

The global financial crisis which was heavily suffered by most powerful economies around the world in 2008 has once again placed us in a frightful situation. The World Bank and the Asian

Development Bank predicted more devastating effects of the global crisis such as bankruptcies, job losses, and increased poverty.

According to our Philippine economists, we may have been less-affected by the financial crisis in 2008, but we will witness its full impact in 2009. This sounds very frightening to all of us Filipinos, indeed.

The 2008 operations tell us a different story. The audited financial statements reveal to us that we have performed well despite difficult situations. We have posted a net surplus of Php9.58M, exceeding our annual net savings projection. My congratulations therefore to all the members of the Board of Directors, management, and staff who used team effort and dedication in their work to withstand the test of time.

We have continued to grow in our total assets. We have increased the number of our members. We have opened our doors in Molave, Zamboanga del Norte and Tangub City, Misamis Occidental.

Our successful linkage with Kiva International, the world’s first person to person micro-lending website, has funded more than 300 of our micro-entrepreneurs. The funds come from individual lenders who have the passion to help finance the enterprising poor. Our website, powered by PLDT SME Nation makes us more competitive in the market. We will introduce more innovative products and services as we take advantage of our web connectivity. One can access Paglaum’s information by visiting www.paglaumcoop.org.ph.

My dear friends, it is in reaching out to our rural communities that we are able to advance our mandate- to improve the lives of the families we serve. We will not get tired of reaching-out because we are inspired to serve as a team and as a family. We will not fear the grim prediction of 2009 because we are well-prepared for it. I am confident in our team. We will weather the storm.

GADWIN E. HANDUMON General Manager

P A G L A U M M U L T I - P U R P O S E C O O P E R A T I V EE a s t e r n L o o c , P l a r i d e l , M i s a m i s O c c i d e n t a lT e l e f a x N o . ( 0 8 8 ) 3 4 4 - 8 6 3 3 o r C e l l N o . 0 9 2 1 - 2 4 3 - 2 4 9 6E m a i l a d d : p a g l a u m c o o p @ y a h o o . c o m


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MEETING STANDARDS, ACHIEVING SAFETY AND SOUNDNESS

More than anything else, Paglaum Multi-Purpose Cooperative adheres to globally- acceptable financial and organizational standards. This is to ensure safety and stability of the cooperative that leads to its sustainability. The various standards for savings and credit cooperatives and micro-finance institutions reveal that Paglaum was able to maintain a healthy condition.

CGAP FINANCIAL RATIOS Standards 31-Dec-07 31-Dec-08FINANCIALSTRUCTURE EarningAssets 85-95% 67% 72%LoanPortfolio 70-80% 66% 70%Savings 70-80%orincreasing 27% 29%ExternalLoans 20-30%ordecreasing 21% 25%ShareCapital =or<20% 34% 24%Reserves =or>10% 3% 5%

SUSTAINABILITY/PROFITABILITYReturnonEquity(ROE) =or>20% 13% 19%ReturnonAssets(ROA) =or>10% 5% 6%OSS =or>120% 114% 122%FSS =>100% 108% 111%YieldonGrossLoanPortfolio =or>25% 54% 76%Profit Margin = or > 80% 96% 95%FundingExpenseRatio =or<10% 2% 5%CostofFundsRatio =fundingexpenseratioor<commercialrate 7% 3%Debt-to-EquityRatio =or<8X 160% 2% PORTFOLIOQUALITY Portfolio-at-Risk =or<5% 4% 8%ArrearsRate =or<5% 2% 8%RepaymentRate =or>95% 90% 96%AllowanceforLoanLosses =100%ofPAR>1yrand=35%ofPAR<1yr 95% 53%LoanLossRate =or<Allowanceforloanlosses 0.62% 0.00% EFFICIENCY/PRODUCTIVITYNo.ofClientsperFieldStaff 12 165 131AverageLoanSizeperClient =or<P25,000 7,144.08 8,626.17OperatingExpenseRatio =or<25% 32% 25%CostperClient 1,841.18 3,375.31CostperPesoLoan =or<0.15 0.39 0.35

The table shows Paglaum’s comparative performance for the

years 2007 and 2008 vis-à-vis the CGAP Financial Ratios. These

ratios particularly refer to Paglaum’s performance in its Micro-Finance operations. Please note that there

was a significant improvement in the coop’s performance in most of the

ratios presented (from 2007 to 2008).

Safety and soundness can be achieved only if there is prudence in the operations

of the cooperative and if financial disciplines are in

place. In the same manner, Paglaum continues to

aspire for a higher degree of professionalism among its

officers, management, and staff because it believes in

the significance of its human resources in achieving safety

and soundness.

Above data show Paglaum MPC’s performance in its savings and credit operations for 2008. Paglaum is seen achieving the standards on Provisions for Loan Loss of less than 12 months, Solvency, and Liquidity ratios. On the other hand, Paglaum will have to prioritize in meeting the requirements for Delinquency, Net Institutional Capital, and Non-Earning Assets.

APPEAL RATIOS (From PEARLS ratios of WOCCU)RATIOS STANDARD COOP STATUSA1 (Delinquency) < or equal to 5% 6.66%P2 (Loan loss provision <12 mos) 35% 56.55%P6 (Solvency) 110% 113.38%E9 (Net Institutional Capital) > or equal to 10% 5.35%A2 (Non-Earning Assets) < or equal to 5% 17.37%L1 (Liquidity) 15% or higher 56.87%

BOARD Of DIRECTORSLuz G. MonevaEduardo P. Delos SantosRosario B. BationVictor ChupuicoTeodolita T. BatoJacinto PaalisboVirginia S. Rosal

TOTAL ACTUAL VOTES CASTQUALIfIED VOTERS

Audit Inventory Committee(AIC):Natividad M. JaimMarilou A. Dela Rosa

Credit Committee (CRECOM):Rosario O. JangadJeccil R. TuastumbanNila B. Quimno

TOTAL1399144115681279127811351249

29496709

18301405

151412171496

BOD & COMMITTEE ELECTION ‘08OFFICIAL RESULTS

is seen to improve communication system between Paglaum’s branches and departments. The website serves as the databank of the coop’s information, which can be readily accessed by its partners, officers, management, staff, and even the members. Web site building opens new markets and expands market reach by going online. This is in anticipation of Paglaum’s future businesses that will make use of the internet. Since Paglaum is fully-connected to the worldwide web, reaching out to the world is as easy as clicking the computer mouse in seconds. More and more people and businesses use the Internet to find information. Paglaum is in the pipeline of IPVPN (Internet Protocol Virtual Private Network)

connectivity. This is a solution that links all branches to the head office, enabling them to electronically-monitor business transactions, any time of the day. IPVPN allows companies to transmit data and voice communication between branch offices and the corporate network.

Expanding Paglaum’s reach through Oikocredit. Oikocredit is a worldwide, cooperative financial institution offering loans, capital and technical support to microfinance institutions and other enterprises focused on building opportunities for

i m p o v e r i s h e d e n t r e p r e n e u r s

without access to credit.

T h e

Oikocredit international support office is based in Amersfoort, the Netherlands and Oikocredit has local representation in around 30 countries worldwide. Oikocredit finances projects of groups that are in need of credit but are faced with difficulties in obtaining loans through standard financial institutions for the lack of collateral. Oikocredit does not finance organizations, businesses, and projects which raise ethical objections, cause social conflict, or would cause serious damage to the environment. Oikocredit ultimately aims to facilitate meaningful transformation in the lives of the end-users of its resources from positions of vulnerability to socioeconomic security and as much as possible, as community social investors.

Kiva’s (www.kiva.org) mission is to connect people through lending for the sake of alleviating poverty.

The people you see on Kiva’s site are real individuals in need of funding - not marketing material. When you browse entrepreneurs’ profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.

Kiva partners with existing expert microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified entrepreneurs. That said, they are usually short on funds. Through Kiva, our partners upload their entrepreneur profiles directly to the site so you can lend to them. When you do, not only do you get a unique experience connecting to a specific entrepreneur on the other side of the planet, but our microfinance partners can do more of what they do, more efficiently.

nnovating

facilitate the disbursement and collection of these loans raised on the internet. In just less than six months, the Kiva lenders have assisted Paglaum’s 654 micro-entrepreneurs with loans totaling Php8.1M in additional funds for the cooperative. It financed members’ various projects such as livestock-raising, vegetable production, rice farming, fishing, sari-sari store, and many more. All these individual stories, with their corresponding pictures, can be found in the Kiva website for everyone to see. As Paglaum enters the active phase of Kiva partnership, more members are expected to be assisted.

PAGLAUM Reaches the World via Internet. Access to Paglaum’s information and services can be done 24/7 through browsing www.paglaumcoop.org.ph. Powered by the PLDT SME Nation, this facility

The Philippines has also its share of the global economic crisis. A number of manufacturing companies have ceased its operations, causing sudden unemployment of thousands of Filipinos.

The year 2008 was seen to be very tragic but it taught Paglaum MPC to be more resilient and innovative. Its innovativeness was its means to advance its mandate- to help improve the lives of its members. The year made everyone at Paglaum more challenged and thrilled to embrace major innovations in serving the members.

THE KIVA PARTNERSHIP. Last November 2008, Paglaum MPC forged partnership with Kiva Microfunds, the world’s first person-to-person micro-lending website, empowering individuals to lend directly to different entrepreneurs around the globe. Kiva’s lenders are ordinary individuals – teachers, nurses, bus drivers, farmers, students, retirees. By visiting the Kiva website, they are able to lend small amounts of funds (minimum of US$25) to finance the loans of various individual or groups of microentrepreneurs from the developing countries such as the Philippines. Kiva works through a local microfinance partner (such as Paglaum MPC) to

POVERTYtoADDRESS RURAL

For most world economic powers, 2008 was unfortunate. Some of the biggest financial institutions suffered heavy blows, and eventually shut-off their operations. The crisis created by the rich

countries in the North has severely affected major world industries, from the mining industry in Zambia to the toy-making industry in China. The Global Financial Crisis was the most popular lingo of all people from all walks of life.

The reason is simple. The suman business started by Mrs. Dionesia Dela Pena has gone through many years of dedicated product development. The taste has improved year after year. As people continuously patronize the native delicacy, they can testify that Mrs. Dela Pena’s suman has improved its taste so much that it became very famous among the people of Oroquieta. For some, it is something that’s “to die for”.

Paglaum has witnessed how this business flourished. It helped Dionesia improve her business through m i c r o - l o a n s availed from the cooperative. When her son John Paul decided to marry, she introduced the suman business to her daughter in-law Lyn.

As soon as Lyn developed the necessary skills in making suman, she has decided to sustain the business introduced by her mother in-law

Dionesia. Being new in the business, Lyn suffered some “birth pains” in running the suman-making. She had no idea how to anticipate consumer demand. Oftentimes, she sells so few. Sometimes, she ends up having a lot of unsold suman. Aside from improved product, her other constraint was on how to acquire capital in order to purchase some of the equipment she needed in her business.

Then one day, her mother in-law suggested that Paglaum Multi-Purpose Cooperative (PMPC) is offering small loans to micro-entrepreneurs like her.

Prompted by her need to raise funds, she immediately went to Paglaum to seek financial assistance. She

then became a micro-finance borrower. The proceeds of her first loan amounting to Php3,000.00 was used to buy equipment and purchase ingredients for her suman. With her interest to keep business growing and improve her product, she diligently

Featured Micro-Entrepreneur

famoushome-made suman reaches the us, Japan

What is the secret of Oroquieta City’s suman that balikbayans would love to bring back

to the US and Japan? Even a local traveler to this gentle city will find it necessary to bring some of this native delicacy back to his/her destination.

The new cab availed through Paglaum’s motor-vehicle loan helps the transportation needs of Lyn’s business.

The suman that has gained so much popularity in Oroquieta City has also reached the US and Japan; the success of Mrs. Dionesia Dela Peña was handed

over to daughter-in-law Lyn.

attended various business development training/workshops conducted in her center.

The business has been known to be one of Misamis Occidental’s favorite delicacies. A lot of prominent people in the province place orders of suman on special occasions and send them to their visitors as a pasalubong (homecoming treat). Some foreign visitors bring the products to the United States, Japan, Hongkong, and many more.

Due to the high demand for suman, the couple needed more financial assistance to meet consumer demand. Paglaum continued to lend Lyn and husband to support the expansion of their business. She is now on her 11th loan cycle, with loan availed amounting to Php14,000.00. The couple considers Paglaum MPC instrumental to their business success. Recently, the couple availed of motor-vehicle loan to support transportation requirements of their growing business. From 300 pieces sold five (5) years ago, the average daily production of suman is now 1,000 pieces.

Due to increase in volume of production, the couple has employed their neighbors as grinder, packers, and banana leaves cleaners.

The future looks bright for the couple’s only child as their suman business continues to be nourished through Paglaum’s assistance. For her part, Mrs. Dionesia dela Pena is very happy to see her son and daughter in-law prosper in their business she handed to the couple as pamana.

Leo S. Ocampos, and Oroquieta City Mayor, Atty. Jorge T. Almonte. Mr. Heidrich was also able to attend the dinner meeting of the Rotary Club of Oroquieta City being the guest of Mr. Gadwin E. Handumon.

Paglaum Opens Molave Branch & One Satellite Office. The opening of a branch in the progressive town of Molave, Zamboanga del Sur increases P a g l a u m ’ s opportunity to reach-out to the c o m m u n i t i e s of Zamboanga del Sur. The said expansion has added 1,248 members since it opened on April 30, 2008. Meanwhile, Tangub City satellite office was opened on October 20, 2008 as part of Ozamis branch expansion. These openings bring a total of nine (9) branches and one (1) satellite office serving 25,833 members in Northwestern Mindanao.

For 2008, Paglaum applied for accreditation with Oikocredit. After conducting assessment, Paglaum was accredited as a qualified Micro-Finance Institution (MFIs) with P32M credit line granted. This will go a long way in providing loans to the micro-entrepreneurs and financing other projects of Paglaum.

Insurance now made more affordable to Micro-Entrepreneurs. In partnership with CARD-MBA, Paglaum has pioneered micro-insurance program in order to serve its

micro-entrepreneurs. Paglaum’s partnership with CARD-MBA is on a Build, Operate and Transfer (BOAT) scheme where the latter operates the micro-insurance services for three years. On the fourth year, Paglaum will take over the management of this program. This program assures members’ dependents of a maximum of Php100,000.00 insurance benefits for only Php15/per week. A member may also avail of the retirement plan for a minimal Php5.00 weekly premium. With this program offered by Paglaum, getting a life insurance

and retirement plan is made more affordable to the coop member.

New Loan Products. The coop launched two new loan products in order to help members improve housing condition and acquire vehicles for use in their enterprises. The Micro-Housing loan product allows qualified members to borrow a maximum of Php300,000.00 from the coop either for home repair or acquisition of a home lot. The coop also offers vehicle/motorcycle loan in order to assist members in moving their business faster. This product helps members save on transportation cost incurred in running their enterprises.

German Bank Official visits Paglaum. The year 2008 was indeed a year of reaching out to the world for Paglaum MPC. Heinz Peter Heidrich, the Honorary Consul to the Republic of the Philippines & Managing Director of Essen Bank of Bistum, Germany paid Paglaum MPC a two-day visit on June 27-28, 2008.

This rare visit of Mr. Heidrich to the rural communities of Misamis Occidental was made in order to explore possible partnership between Paglaum MPC and Essen Bank of Bistum and several other partner organizations of Essen Bank in Europe that support micro-finance programs. The visit was spent well for separate meetings with Paglaum’s Board of Directors, Governor Loreto

The year 2008 may have been a sad story for most economies around the world. But with prudence in management and openness to change, Paglaum MPC was able to weather the crisis and serve their members well. Through the years, Paglaum has touched the lives of so many Misamisnons and Zamboangenos. These are the farmers, vendors, laborers, ordinary employees, and many others. It gave hope even to the most vulnerable sectors- the persons with disabilities (PWDs), indigenous peoples (IPs), and the elderly. Paglaum continues to reach out to rural communities simply because it is the heart of its business.


The Philippines-Australia Community Assistance Program (PACAP) has been working with the

Provincial Government of Misamis Occidental and various stakeholders since 2005. PACAP is an Aus-AID grant facility envisioned to empower poor communities to pursue economic growth and achieve better standard of living. The reach of PACAP projects is nearly across the entire Philippine archipelago, through the Focused Community Assistance Scheme (FOCAS) and Responsive Assistance Scheme (RAS) funding modalities.

The Province of Misamis Occidental is one of the recipients of PACAP through its FOCAS window. This program supports community development projects through Integrated Area Development (AID) approach. PACAP interventions is assisted and facilitated by Civil Society Organizations, POs, Academe, National Line Agencies and Local Government Units.

The facilitation is performed by FOCAS Secretariat. In Misamis Occidental, Paglaum Community Development Foundation Incorporated was chosen as FOCAS Secretariat for Coconut FOCAS Area in 2005. For keeping a good track record, PCDFI was chosen as the Provincial FOCAS Secretariat that spearheaded the facilitation of programs of the four FOCAS areas in the province. There are four (4) FOCAS areas and these have evolved in the past three years. The four (4) FOCAS themes are: Coconut Industry Rehabilitation and Development Program (CIRDP), Save Labo River Program (SLRP), Iligan Bay Coastal Resource Management and Development Program (IBRCMDP) and Mt. Malindang Range Natural Park Development Program (MMRNPDP).

The highlight of the CIRDP was the establishment of the integrated coconut processing center in the CIRDP FOCAS. CIRDP’s working principle is quite simple – the first step in rehabilitating the coconut industry in the province is to process the whole coconuts into primary products, specifically, copra, raw coconut fiber and coconut dust/peat. This scheme would add value to the coconut more than the traditional copra demand. These various products will be processed in a P10 Million facility named, Misamis Occidental 1st Integrated Coconut Processing Center (MOFICPC) at Bolibol, Oroquieta City. The project was able to leverage 40%

PACAP appoints PCDFI as FOCAS Secretariat

of its fund from other sources. PACAP’s exposure through the 7 CSO’s implementing PACAP funded project is about P 6 Million while the rest is equally shared by the private sector and the Local Government of Oroquieta City in capital investment. The FOCAS area covers the municipalities of Aloran, Lopez Jaena, Plaridel and the city of Oroquieta.

A large portion of the grant fund for Save Labo River Program (SLRP) FOCAS covering the cities of Tangub, Ozamiz and the municipality of Clarin, is spent for the construction of water system. The remaining allotted fund was earmarked for watershed rehabilitation and livelihood projects of 12 barangays within the Labo Watershed. The water system project was able to leverage about P1.4Million worth of materials from the Community Managed Agrarian Reform Project (CMARP) of DAR and about P 925,000.00 in cash from the Local Government of Ozamiz City and the Provincial Government of Misamis Occidental through the PEO provided its technical expertise.

Iligan Bay Coastal Resource Management and Development Program (IBCRMDP) FOCAS followed the lead of CIRDP. The FOCAS piloted the Marine Ornamental Fish (MOF) project and envisioned this as an integrating project. MOF was conceived via industry-based Value Chain Analysis (VCA). The stakeholders saw the light on the partnership between the South East Asia Fisheries Development Center (SEAFDEC) and the Provincial Government of Misamis Occidental on grouper hatchery. Banking on this partnership,

the stakeholders decided to undertake the integrated grouper nursery and grow-

out project under the Misamis Occidental Aquaculture Ventures Corporation (MOAVEC).

Mt. Malindang Range Natural Park Development Program (MMRNPDP) FOCAS is also embarking on the VCA of rubber industry. It will cover the Municipalities of Bonifacio, Don Victoriano, and Concepcion. Mt. Malindang FOCAS has seven (7) on-going projects. The FMC approved to plant more than 300 hectares of rubber both as industrial and reforestation crop.

Paglaum CDFI did not only function as Secretariat for CIRDP FOCAS. They were also approved as FOCAS Secretariat of the three other FOCASes of Misamis Occidental for 2008 until PACAP ends its engagement in the province in 2009. This major role of PCDFI in the implementation of various projects in the Province of Misamis Occidental proves that the foundation is ready to undertake other engagements with other donor agencies and partners in the future.

It was a different scenario back in 1983. Children were severely malnourished and mostly out of school. This sad plight of the young kids in Plaridel had caught the attention of Ms. Louellyn Monera, who, along with the concerned committee of St. Nicholas de Tolentino of the Philippine Independent Church, founded Paglaum Center now PCDFI. Part of its humble beginnings was the construction of its first building out of salvaged materials. From the time PCDFI started, it offered various services and programs that aimed to empower the members of the community especially the children. Focused areas were on health and nutrition, education, and community development which include programs on literacy, skills training, responsible parenthood, and coop capacity building. Through these programs, children improved their health condition and many received basic education. Parents enhanced home management skills. Community empowerment was at work. The foundation’s biggest step towards evolution was the organization of Paglaum Multi-Purpose Cooperative (PMPC) on February 1992, which was headed by Mr. Gadwin E. Handumon, Project Administrator. The cooperative was created with only 35 members, mostly

parents of beneficiaries, with an initial capital of P2,000.00. This cooperation was born out of the beneficiaries’ long experience of working with each other through parents’ core group in the center. PMPC pursued the socio-economic development of the community through various micro-enterprises and livelihood projects such as micro-finance for the marginalized sector, palay marketing and trading in support to the farmers, financial intermediation such as savings

generation, capital build-up formation and other services. This has realized Paglaum Community D e v e l o p m e n t Foundation’s desire to have more families that are liberated from the bondage of hopelessness. Not only did it respond to the attainment of the total well-being of children, most importantly, it established PMPC as the means to promote self-help among the people in the community through

savings, which in turn are used to lend to members in need of financial support. During its 25 years of community service, despite adversity and challenges, Paglaum Community Development Foundation, Inc. is able to continue serving the people in hope that one day their lives will have a brighter future. It is no doubt that Paglaum has dedicated 25 years of service to the people of Misamis Occidental and Zamboanga Peninsula. This selfless commitment to service was recognized via numerous awards and citations received from various local, national, and international allied organizations. Moreover, as Chief Executive Officer and General Manager of PCDFI and PMPC respectively, Mr. Gadwin E. Handumon was recognized as 2007 Most Outstanding Misamisnon for his sincere efforts in bringing about positive developments in Misamis Occidental. PCDFI taught the communities to be pro-active and help change their fate. PCDFI’s presence in the communities is as good as its symbol. It means that for every storm that has passed, PAGLAUM is the rainbow and the sun. It means new hope and a new day.

years of Empowering Rural Communities25

Paglaum Community Development Foundation Incorporated (PCDFI) is a community-oriented child development center under the network of Kindernothilfe, Incorporated based in Plaridel, Misamis Occidental. Reaching its 25 years of community service, Paglaum Community’s impact is already taking a tangible shape.

THE 25TH ANNIVERSARY WAS MORE MEMORABLE THROUGH THE PRESENCE OF (from left to right) MR. PETER BELLEN, KNH-PHILIPPINES COUNTRY PROGRAM MANAGER, DR. JONA CARABAL-HANDUMON,

prime movers MRS. LOUELLYN H. MONERA with her husband MR. GREGO E. MONERA beside her; MR. GADWIN E. HANDUMON, PCDFI Administrator(3rd from right) beside him GOV. LORETO LEO OCAMPOS, Province of

Misamis Occidental.Ever supportive partners from banks and Local Government Units graced the occasion.

Mr. Gadwin E. Handumon initiated the formation of Paglaum Multi-Purpose Cooperative, with initial cooperators coming from the parents/

beneficiaries of the foundation.


December 31, December 31,

Notes 2 0 0 8 2 0 0 7

A S S E T S

NON CURRENT ASSETS

Property and equipment 2.3,3.1 P 15,635,976 P 13,738,775

Investments 2.4,3.2 2,616,269 1,013,468

Other assets 3.3 3,291,211 3,565,685

CURRENT ASSETS

Cash on hand and in banks 28,460,736 10,363,004

Receivables 2.5,3.4 121,705,903 74,941,348

Other current assets 2.6,2.7 2,043,922 1,007,666

P 173,754,018 P 104,629,946

E Q U I T Y A N D L I A B I L I T I E S

EQUITY

Share capital, authorized 6M shares at P10 par P 42,272,772 P 35,212,235

Donations and grants 3.5 3,097,950 2,010,960

Statutory funds 3.6,4 9,297,190 2,939,359

NON CURRENT LIABILITIES

Long-term liabilities 3.7 18,376,025 10,787,553

Other liabilities 3.8 17,621,499 10,496,440

CURRENT LIABILITIES

Deposit liabilities 3.9 50,335,530 28,210,493

Accounts payable and accrued expenses 3.10 5,875,802 2,738,647

Interest on share capital and patronage 4 2,409,775 1,308,101

Current portion of long-term debts 3.7 24,467,475 10,926,158

P 173,754,018 P 104,629,946

See Notes to Financial Statements.

STATEMENTS OF FINANCIAL CONDITIONPAGLAUM MULTI-PURPOSE COOPERATIVE

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Members Paglaum Multi-Purpose Cooperative Plaridel, Misamis Occidental

We have audited the accompanying statements of financial condition of Paglaum Multi-Purpose Cooperative as of December 31, 2008 and 2007, and the related statements of operation and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility

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 misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan to perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend upon the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors 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 on 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. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly in all material respects, the financial position of Paglaum Multi-Purpose Cooperative as of December 31, 2008 and 2007, and of its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

PANGILINAN, MOLO & CO. By: TIN No. 006-239-530

ROGELITA J. MOLO

Partner TIN No. 186-236-360 CPA License No. 96078 April 17, 2009 BOA Accreditation No. 0296 Cagayan de Oro City, Philippines PTR No. 0887043B / January 8, 2009


For the years ended December 31,

Note 2 0 0 8 2 0 0 7

CASH FLOWS FROM OPERATING ACTIVITIES

Net income 9,589,140 P 3,977,392

Adjustments to reconcile net income to net cash

used in operating activities:

Depreciation 2.3,3.1 2,113,718 1,359,332

Changes in operating assets and liabilities

Increase (decrease) in:

Loan receivable 2.5,3.4 ( 46,764,555 )( 30,512,022 )

Other current assets 2.6,2.7 ( 1,036,256 )( 287,523 )

Deposit liabilities 3.9 22,125,037 9,794,939

Accounts payable and accrued expenses 3.10 2,897,426 1,185,960

Net Cash Used in Operating Activities ( 11,075,490 )( 14,481,922 )

CASH FLOWS FROM INVESTING ACTIVITIES

Increase in investments 3.2 ( 1,602,802 )( 113,636 )

Acquisition of property and equipment 3.1 ( 4,010,919 )( 4,418,347 )

Increase in other assets 3.3 274,474 ( 2,106,648 )

Net Cash Used in Investing Activities ( 5,339,247 )( 6,638,631 )

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in share capital 7,060,537 13,612,802

Increase in donations and grants 3.5 1,086,990 131,010

Proceeds from loans availments 3.7 21,129,789 5,849,958

Payment of interest on share capital and patronage ( 1,295,611 )( 147,993 )

Increase in other liabilities 3.8 7,125,059 3,026,737

Decrease in statutory funds 3.6 ( 594,295 )( 317,618 )

Net Cash F-rovided From Financing Activities 34,512,469 22,154,895

NET INCREASE IN CASH

ON HAND AND IN BANKS 18,097,732 1,034,342

BEGINNING CASH ON HAND AND IN BANKS 10,363,004 9,328,662

ENDING CASH ON HAND AND IN BANKS P 28,460,736 P 10,363,004


STATEMENTS OF CASH FLOWSPAGLAUM MULTI-PURPOSE COOPERATIVE

Note 2 0 0 8 2 0 0 7

INCOME 2.9

Income from loans P 46,620,194 P 25,257,031

Gross profit on sales 1,591,138 1,335,103

Other income 4,315,145 4,988,313

52,526,477 31,580,447

OPERATING EXPENSES 2.9

Financing costs 2,829,535 1,321,670

Personnel costs 20,886,836 12,679,149

Depreciation 2.3,3.1 3,244,542 2,291,771

Transportation and travel 2,331,536 1,663,417

Provision for probable losses 2.5,3.4 2,763,591 1,332,053

Office and store supplies 1,526,830 1,098,333

Rent 1,630,295 951,913

Meetings and general assembly 1,524,025 808,398

Light and water 917,410 668,286

Ads, promotions and representation 757,666 637,406

Education and training 405,140 590,226

Repairs and maintenance 680,714 570,230

Honoraria 150,700 438,491

Professional and legal fees 516,369 402,507

Postage and communication 653,740 383,129

General support and social services 472,314 190,563

Members' benefit expense 295,483 178,520

Insurance and bonds 133,789 124,616

Taxes and licenses 135,762 121,291

Miscellaneous 1,081,058 1,151,085

42,937,337 27,603,055

NET INCOME 9,589,140 3,977,392

DISTRIBUTION OF NET INCOME 4

Reserve (60%) 5,753,484 2,386,435

Education and training (5%) 479,457 198,870

Optional (P50,000 for community dev't fund) (10%) 958,914 397,739

Interest on share capital and patronage (25%) 2,397,285 994,348

9,589,140 3,977,392

NET INCOME P - P -


STATEMENTS OF FINANCIAL OPERATIONSPAGLAUM MULTI-PURPOSE COOPERATIVE

For the years ended December 31,


PAGLAUM MULTI-PURPOSE COOPERATIVE

STATEMENT OF FINANCIAL OPERATION PER BRANCH

FOR THE YEAR ENDED DECEMBER 31, 2008

PLARIDEL CALAMBA OROQUIETA DIPOLOG

INCOME

Income from loans 8,172,749 P 6,525,089 P 9,566,833 P 6,144,660

Management support - - - -

Other income 1,074,263 910,402 1,016,936 712,968

9,247,012 7,435,491 10,583,769 6,857,627

OPERATING EXPENSES

Financial Costs

Interest on deposits liabilities 585,613 340,412 454,533 106,461

Interest expense on borrowings 546,258 307,832 533,757 101,237

Personnel Costs

Salaries and wages 1,518,800 1,645,218 1,403,870 1,550,208

Employees' benefits 572,728 257,836 634,882 469,028

SSS, Phil-Health, EC and HDMF 125,358 117,020 113,941 95,077

Provision for ees' retirement 165,303 207,467 256,750 92,053

Other administrative Costs

Provision for probable loss 204,332 140,000 365,150 402,000

Depreciation and amortization 358,974 168,337 263,595 225,448

Rent 76,517 186,000 229,999 294,280

Members benefit expense 60,965 67,880 - 35,219

General support and social services 6,000 - 87,283 18,793

Office supplies 225,927 143,643 190,098 208,279

Light and water 140,093 75,794 126,697 88,919

Repairs and maintenance 81,967 81,706 61,158 88,166

Transportation and travel 246,783 195,321 166,698 109,780

Audit and professional fees 156,064 42,512 47,165 35,086

Honoraria - - 4,100 -

Meetings and assembly 150,339 123,647 279,382 218,298

Ads, promotion and representation 102,971 19,454 28,526 5,367

Trainings and seminars 48,288 34,271 42,422 67,884

Communications 155,093 28,142 41,692 60,459

Insurance and bonds 20,050 1,556 9,206 2,181

Taxes,licences and fees 3,273 23,580 4,165 11,049

Management support 1,312,629 997,081 1,413,960 677,065

Social Services 12,322 37,010 25,402 27,641

ATM Expense - - - -

Miscellaneous 115,832 28,712 119,640 120,055

6,992,480 5,270,430 6,904,067 5,110,034

NET INCOME P 2,254,532 P 2,165,061 P 3,679,702 P 1,747,594


PESOS Indicators

2007 2008

STANDARD 2 0 0 8 2 0 0 7 SCORE SCORE

PORTFOLIO QUALITY

Portfolio at Risk ( Current Loans)Portfolio at Risk 5 % or less 6.66% 3.30% 15 12

Allowance for probable losses

over 1 year 100% 100% 100% 5 5

under 1 year 35% 100% 100% 5 5

EFFICIENCY

Asset Yield at least inflation rate (8%) 6.89% 4.64% 4 3

Operational Self-Sufficiency > 100 % 109% 92% 0 3

Loan Portfolio Profitabilty More than 20% 47% 45% 4 4

Cost per peso loan P 0.10 per P 1.00 loan 0.45 0.49 0 0

Administrative Efficiency 3 to 10 % 31% 26% 0 0

Return on member's share >inflation 6% 4% 4 3

STABILITY

Solvency At least 110 % 140% 108% 8 10

Liquidity Not less than 15% 44.87% 27.03% 10 10

Net institutional capital At least 10% 5.59% 2.28% 2 6

OPERATIONS

Trend in external borrowings decreasing toward 0 10% -4% 3 0

Membership growth target 31% 63.79% 4 4

STRUCTURE OF ASSETS

Non-earning assets /total assets Not more than 5 % 30% 28% 0 0

Total deposits/total assets 55% to 65% 29% 27% 0 0

Net loans receivables/total assets 70% to 80% 70% 64% 1.5 1.5

Share Capital /Total Assests 35% to 45% 24% 34% 2 0

TOTAL 67.5 66.5

WEIGHT (80%) 54 53.2



STATEMENT OF FINANCIAL OPERATION PER BRANCHFOR THE YEAR ENDED DECEMBER 31, 2008

MOLAVE HEAD OFFICE TRAIN'G & DEV'T FLGC

INCOME

Gross profit on sales P P P P 1,591,138

Income from loans 935,471 -

Management support - 6,065,964 -

Other income 203,590 1,002,989 53,050 278,261

1,139,062 7,068,953 53,050 1,869,399

OPERATING EXPENSES

Financial Costs

Interest on deposits liabilities 4,827 - -

Interest expense on borrowings 47,512 1,332,852 77,011

Personnel Costs

Salaries and wages 331,077 3,952,813 33,172 387,984

Employees' benefits 87,572 147,859 43,230

SSS, Phil-Health, EC and HDMF 13,480 206,557 29,079

Provision for ees' retirement 26,040 344,027 37,742

Staff development - 335,045 -


Provision for probable loss - -


Rent 90,000 - -

Members benefit expense 28,764 30,553 -

General support and social services -

Office supplies 68,386 227,967 4,210 42,393

Light and water 28,722 63,368 5,907 94,087

Repairs and maintenance 13,104 141,956 34,046

Transportation and travel 57,433 562,108 16 505,638

Audit and professional fees 35,471 45,043 5,625

Honoraria - 135,600 11,000

Meetings and assembly 17,615 234,952 8,020

Ads, promotion and representation 22,524 327,677 450 92,554

Trainings and seminars 19,116 - 4,202 -

Communications 18,469 208,368 18,002

Insurance and bonds - 43,837 42,009

Taxes,licences and fees 1,093 4,795 5,744

Management support 56,335 - 141,168

Social Services - 105,705 18,568

Miscellaneous 22,500 309,333 1,500 21,742

1,372,900 9,199,862 91,070 1,960,783

NET INCOME (LOSS) (P 233,839) (P 2,130,908) (P (38,020) (P 91,385 )


STATEMENT OF FINANCIAL OPERATION PER BRANCHFOR THE YEAR ENDED DECEMBER 31, 2008

PAGADIAN TUDELA OZAMIS SINDANGAN

INCOME

Income from loans P 2,767,399 P 5,992,708 P 3,923,822 P 2,591,462

Management support - - - -

Other income 396,574 660,631 480,742 353,977

3,163,973 6,653,339 4,404,565 2,945,438

OPERATING EXPENSES

Financial Costs

Interest on deposits liabilities 32,987 58,492 118,119 24,153

Interest expense on borrowings 85,806 286,704 318,238 295,968

Personnel Costs

Salaries and wages 1,098,030 957,995 821,026 830,454

Employees' benefits 185,144 368,983 458,674 197,139

SSS, Phil-Health, EC and HDMF 57,869 65,903 34,456 25,034

Provision for ees' retirement 188,442 136,516 165,115 94,840


Provision for probable loss 163,379 286,814 207,264 994,653


Rent 189,000 83,000 390,000 91,500

Members benefit expense 1,945 31,080 9,733 29,344

General support and social services 63,050 - - 3,750

Office supplies 49,125 75,466 129,550 161,785

Light and water 51,044 83,018 116,567 43,195

Repairs and maintenance 43,271 43,610 41,206 50,525

Transportation and travel 76,781 107,558 146,707 156,714

Audit and professional fees 33,278 31,881 16,574 67,670

Meetings and assembly 154,608 135,354 111,002 90,808

Ads, promotion and representation 40,333 16,895 6,895 94,020

Trainings and seminars 52,915 27,293 30,025 78,724

Communications 32,928 18,540 27,907 44,139

Insurance and bonds - 3,371 8,477 3,102

Taxes,licences and fees 15,273 9,327 48,850 8,615

Management support 240,712 656,593 353,964 216,457

Social Services 9,666 14,583 7,848 34,692

Miscellaneous 32,169 144,281 49,770 115,523

3,060,652 3,807,943 4,148,094 3,914,224

NET INCOME (LOSS) P 103,321 P 2,845,396 P 256,470 (P 968,785 )


Notes to FS Page 1 of 5

NOTES TO FINANCIAL STATEMENTSPAGLAUM MULTI-PURPOSE COOPERATIVE

DECEMBER 31, 2008 AND 2007

1. ORGANIZATION AND TAX EXEMPTIONThe Paglaum Multi-Purpose Cooperative was registered with Cooperative Development Authority (CDA) under Registration No. CGY – 976 on July 30, 1992 in accordance with the provisions of R. A. 6938 and 6939 otherwise known as the Cooperative Code of the Philippines, which provides for exemptions from income and other taxes under certain conditions.

In accordance with the Code, the Cooperative is exempted for ten years from the payment of all national, city, and provincial, municipal or barangay taxes of whatever name and nature, including exemptions from customs duties, advances sales or compensating taxes on its importation of machineries, equipment and spare parts which are not available locally as certified by the Department of Trade and Industry. The exemptions, however, are subject to the following restrictions:

a) The Cooperative shall enjoy tax exemptions from government taxes or fees imposed under internal revenue laws

provided that the Cooperative does not transact business with non-members or the general public.

b) The Cooperative, if transacting business with non-members or the general public may be exempted from tax if the accumulated reserves and undivided net savings of the Cooperative do not exceed P 10 million.

The cooperative’s area of operation covers the whole Northwestern Mindanao covering the provinces of Misamis Occidental, Misamis Oriental, Zamboanga del Norte, Zamboanga del Sur, Zamboanga Sibugay and Lanao del Norte. Its principal office is located at Plaridel, Misamis Occidental. It has branches in Oroquieta, Calamba, Dipolog, Tudela, Pagadian, Ozamis and Sindangan.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Preparation. The Cooperative’s financial statements have been prepared in conformity with Philippine

accounting standards and reporting practices of Cooperatives in the Philippines, and under the historical cost convention.

2.2 Use of Estimates. The preparation of financial statements in conformity with Philippine Accounting Standards requires the use of estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates.

2.3 Property and Equipment. Property and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to expense as incurred, significant renewals or betterments are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operation as other income or loss for the period.

Depreciation is computed on a straight-line method over the estimated useful lives of the properties as follows:

Classification Estimated Useful Life

Building and improvements 5-50 years

Office furnitures, fixtures and equipments 1-5 years

Transportation equipments 5 years

For the years ended December 31, 2 0 0 8 2 0 0 7

Sales P 13,375,181 P 13,935,547

Cost of Sales:

Inventory, beginning 195,786 116,508

Purchases (net of returns) 12,215,448 11,995,536

Freight In 8,580 4,030

Milling expenses 377,985 463,179

Labor 281,948 216,976

Total goods available

for sale 13,079,746 12,796,230

Inventory, ending 1,295,703 195,786

11,784,043 12,600,444

GROSS PROFIT ON SALES P 1,591,138 P 1,335,103


STATEMENTS OF GROSS PROFIT ON SALES

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�0 412 0 0 8 A N N U A L R E P O R T P A G L A U M �1


3.2 Investments. The Cooperative invested in the following: 2 0 0 8 2 0 0 7

Cooperative Rural Bank of Oroquieta P 305,000 P 305,000 MASS-SPECC Cooperative Development Center 654,970 514,152 Coop Life Insurance Mutual Services (CLIMBS) Association 184,367 97,295 SEED Finance Corporation 525,000 - PACAP project 150,000 - PhilamLife 485,656 - Other business 165,000 - Others 146,276 97,021

P 2,616,269 P 1,013,468

3.3 Other Assets. This account comprises the following: Construction in progress P - P 1,115,888 Other funds and deposits 400,498 400,498 Due from WI-MAX 1,681,264 1,652,628 Refundable deposit 180,500 96,500 Due from western union transactions 709,509 285,364 Others 319,440 14,807

P 3,291,211 P 3,565,685

3.4 Receivables. This account consists of the following: Loans receivable P 122,192,348 P 69,178,201 Less: allowance for probable losses 5,148,295 2,516,166

Net realizable value 117,044,053 66,662,035 Add: Other receivables 4,661,850 8,279,313

P 121,705,903 P 74,941,348

3.5 Donations and Grants. This account consists of the following:

COOP-NATCCO P 1,500,000 P 500,000 Department of Agriculture 319,750 319,750 Office of the Governor of Misamis Occidental – Hon. L. Ocampo 315,000 315,000 Cooperative Development Authority 212,500 212,500Countryside Development Fund of Cong. Cresente Paez 150,000 150,000 Kindernothilfe E.V. – Lingap Pangkabataan, Inc. 90,200 90,200 Joint Development Ventures for Peace and Progress Foundation 80,000 80,000 Countryside Development Fund of Senator Franklin Drilon 50,000 50,000 Philippine Business for Social Progress 20,000 20,000 MASS-SPECC Cooperative Development Center 20,000 20,000 Others 340,500 253,510

P 3,097,950 P 2,010,960


2.4 Investments. The Cooperative carries its investments under the cost method. Dividends are recognized as income when received from the net accumulated earnings of the investee from the date of acquisition. When there is a significant or apparently permanent decline in value of the investments as indicated by series of operating losses of the investee or other factors, the carrying amount of the investment is written down to its fair value.

2.5 Loans Receivable. Loans receivable are stated at outstanding balance reduced by allowance for probable losses. Allowance for probable losses is the estimated amount of losses from loans using portfolio at risk computation. Past due over one year is provided 100% and 35% on past due below one year. The appropriate officers of the Cooperative review loan portfolio regularly.

2.6 Prepayments. Payments made in the current year that benefited or can be used in future periods as prepayment amortized over the period benefited.

2.7 Inventories. Merchandise and unused supplies inventories are stated at lower of cost or market.

2.8 Retirement fund. The Cooperative has not established a formal retirement fund. However, it accrues the estimated cost of retirement due to qualified employees. It is determined using a simple mathematical computation to comply with the Republic Act 7641 (Retirement Law).

2.9 Revenue and Expense Recognition. Revenue and expenses are generally recognized under the accrual basis of accounting. However, interests on loans are recognized as income when earned and collected. The Cooperative has applied this consistently in previous years.

2.10 Impairment in Assets. The need to recognize any impairment loss is assessed by comparison of the carrying value of the asset against the higher of net selling price and value in use.

2.11 Provisions. A provision is recognized when the Cooperative has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

3. COMPOSITION AND BRIEF DESCRIPTION OF VARIOUS FINANCIAL STATEMENTS CAPTIONS

3.1 Property and Equipment. This account is composed of the following:

Transactions during the year Description

Balances 01/01/2008 Additions Disposal

Balances 12/31/2008

Warehouse and Drier P 4,575,946 - - P 4,575,946 Land and Improvements 1,011,374 169,541 - 1,180,915 Building and Improvement 3,659,467 444,323 - 4,103,790 Furnitures and Equipment Transport Equipment Others

6,205,856 4,462,552

60,440

2,900,690 502,294

-

- -

5,929

9,106,546 4,964,846

54,511

Total Cost 19,975,635 4,016,848 5,929 23,986,554

Total accumulated depreciation 6,236,860 2,113,718 - 8,350,578

Net Book Value P 13,738,775 1,903,130 (5,929) P 15,635,976

Depreciation expenses for the years ended December 31, 2008 and 2007 are P2,113,718 and P1,358,999, respectively.



4. ALLOCATION OF NET INCOME

The Cooperative’s constitution and by-laws explicitly provides that its net savings at the end of the fiscal year shall be distributed in the following manner:

a) At least ten percent (10%) of net savings shall be set aside as General Reserve Fund. The general reserve fund is created and shall be provided for the stability of the Cooperative and to absorb losses, if any in its business operations.

b) Ten percent (10%) of net savings shall be set-aside for Cooperative Education and Training Fund. One half (1/2) of this amount shall be utilized by the Cooperative for its own education and training activities. The other half shall be remitted to the apex organization of which member the Cooperative is a member.

c) Ten percent (10%) of net savings shall be set aside for other reserve fund (Optional Fund for Equipment fund).

d) The remaining net savings shall be allocated for the interest on share capital and patronage refund computed in accordance with the Rule 4 of the Cooperative Code of the Philippines.

However, the Cooperative’s board of directors in its 2009 board meeting resolved that the allocation for general reserve fund and cooperative education and training fund in 2008 would be 60% and 5%, respectively of the net income.

5. RELATED PARTY TRANSACTIONS

The Cooperative extended loans to members of the board, officers and staff with the same terms and conditions offered to members.

6. OTHER MATTERS

Certain accounts in the year 2007 financial statements have been reclassified and re-arranged to conform to the year 2008 financial statement presentation.

The Cooperative’s financial statements have been approved for release by the General Manager on April 8, 2009.


3.6 Statutory Funds. This account consists of the following: Transactions during the year

Fund Balances

01/01/2008 Adjustments NS Distributions

Balances 12/31/2008

Reserve fund P 2,387,668 (358,584) 5,753,484 7,782,568 Education and training fund 129,373 (67,974) 239,728 301,127 Optional fund 422,318 (167,737) 958,914 1,213,495

TOTAL P 2,939,359 (594,295) 6,952,126 P 9,297,190

3.7 Long-term Liabilities. This account consists of the following:

Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) P 625,000 P 1,875,000 People’s Credit and Finance Corporation (PCFC) 9,405,958 6,015,228 National Food Authority (NFA) 1,927,864 2,103,125 United Coconut Planters Bank (UCPB-CIIF) 10,275,617 4,000,000 MASS-SPECC Cooperative Development Center 5,333,333 1,763,977 Small Economic Activity Development (SEAD)/LPI 1,347,826 3,739,130 Land Bank of the Philippines (LBP) 3,060,037 2,217,251 National Livelihood Support Fund 8,831,282 - Small Business Guarantee and Finance Corporation 1,500,000 - KIVA 536,583 -

Total 42,843,500 21,713,711 Less current portion (see Current Liabilities Caption of the SFC) 24,467,475 10,926,158

Total P 18,376,025 P 10,787,553

These loans bear interest rates ranging from 0% to 16% per annum and are payable from two to twenty years.

3.8 Other Liabilities. This account is composed of the following:

Mutual aid fund reserve P 6,956,424 P 2,476,684 Mutual aid fund 6,871,464 5,809,013 Retirement fund 3,793,612 2.210,743

P 17,621,499 P 10,496,440

3.9 Deposit Liabilities. This account represents deposits made by members and customers of the Cooperative in form of either deposits or regular savings deposits. The Cooperative gives interest to these deposits at rates higher than market rates.

3.10 Accounts payable and accrued expenses. This account consists of the following: 2 0 0 8 2 0 0 7

Other accounts payable P 2,820,701 P 1,472,493 Insurance payable 2,015,370 759,509 Accrued interest payable 635,929 347,486 Due to CETF – Apex 367,920 128,232 Unearned interest income 35,729 21,052 Other accrued expenses 153 9,875

P 5,875,802 P 2,738,647

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�� 4�2 0 0 8 A N N U A L R E P O R T P A G L A U M ��

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198,4

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0

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0

72,0

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42.6

4

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66,6

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24,0

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18,0

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0

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0

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0

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6,0

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0

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8

111,9

04.8

8

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6,0

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4,8

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1,2

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1,2

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0

6,0

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27,1

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0

Affili

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47,0

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47,0

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Taxe

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3,3

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5,0

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25,0

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0

3,9

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0

14,0

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0

14,4

87.0

0

48,0

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12,0

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0

13,0

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0

6,0

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0

144,6

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0

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30,0

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0

36,0

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0

30,0

00.0

0

18,0

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0

12,0

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0

30,0

00.0

0

36,0

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0

192,0

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0

Pro

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125,0

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0

30,0

00.0

0

15,0

00.0

0

33,0

00.0

0

60,0

00.0

0

12,0

00.0

0

72,0

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0

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60,0

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419,0

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0

120,0

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0

180,0

00.0

0

84,0

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0

48,0

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0

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Depre

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420,0

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0

195,0

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0

156,0

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0

240,0

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0

194,4

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0

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3,7

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Com

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9

A. PlAquE of RECognition Given to PAGLAUM COMMUNITY DEV’T FOUNDATION INC. & PAGLAUM MULTI-PURPOSE

COOPERATIVE for the exemplary performance and achievements as the municipality’s best performing cooperative which has gained consistent recognition and awards from both local and national levels, thereby making the Municipality of Plaridel truly proud as it has greatly contributed to the municipality’s journey towards development and progress, thus worthy to be honored as GARBO SA PLARIDEL. Given on September 20, 2002 at the Provincial Function Hall, Oroquieta City.

B. CERtifiCAtE of RECognition Outstanding Cooperative of Landbank of the Philippines, Oroquieta Branch (Agri

Category) in the Landbank Branch-Search for the Outstanding Bank –Assisted Cooperative 2007. Given on the 26th day of October, 2008 @ Clarin, Misamis Occidental, Philippines.

C. PlAquE of APPRECiAtion Outstanding performance as ZMCN member and for the active participation in

“Ugnayan 2008” activity held at the municipality of Clarin, Misamis Occidental. Given this 26th day of October 2008 at Clarin, Misamis Occidental.

F. 2nd RunnER uP And BEst in CostuMEs Street Dancing Contest in 2008 Langaranan Festival during the

celebration of town fiesta of Plaridel, Misamis Occidental

E. fiRst PRiZE: Laptop Computer for a PhP525,000 investment realized Nov 28, 2008 (via cash deposit), SEEDFinance investment generation drive.

d. fiRst PRiZE: Micro-No-More Photoshoot a celebration in pixels of the empowering ripples of MSME finance (an Amateur Digital Photography Contest featuring the heart of the movement – the micro-entrepreneurs and the SMEs.) Given during the 2008 SEEDFINANCE National Stakeholders Conference last November 20-21, 2008 at Sabin Resort Hotel, Ormoc City, Leyte.

and 2008 AWARDS

CITATIONS

g. CooP ConnECtivity PionEERing AwARd BEst PERfoRMing Pinoy CooP AtM (SwitchTransactions) MiCMA AwARdEE Given by MASS-SPECC Cooperative Development Center during its General Assembly last May 1-3, 2009

h. vAluEd CliEnt – MEMBER AwARd5th PlACE CAtEgoRy B

Given by CLIMBS, during its 37th Annual General Assembly last May 15, 2009


The Automated Teller Machine (ATM) is not new in the market. But for rural communities such as the Municipality of Plaridel, it has

brought a lot of convenience to its members who are mostly micro-entrepreneurs.

Before the introduction of Pinoy Coop ATM in Plaridel, many Paglaum members thought that owning an ATM account is only for the salaried workers and the affluent people. Since its establishment more than a year ago, many Paglaum members opened ATM cards for the first time.

The ATM helps expedite withdrawal transactions with minimal fees. Access to the ATM is 24/7. This means that members can withdraw funds even during weekends and holidays. Those that have children studying in the cities can send money directly through their ATM accounts. This is more affordable compared to the remittance service providers that proliferate in every municipality. Above all, this is uniquely Paglaum. Paglaum pioneered coop ATM in Northwestern Mindanao.

The best thing about this service is that Paglaum’s ATM is interconnected with the Megalink, Express Net, and Bancnet networks. In other words, the ATM cardholder of any of the networks mentioned can also make use of the ATM installed in Plaridel. In the same manner, the coop member can withdraw funds from other banks’ ATMs nationwide.

For only P200, the member may be able to open an account. The ATM service facility of Paglaum to the municipality of Plaridel has indeed brought new and innovative ways to serve its members.

Paglaum ATM now fully-operational

Celebrating our Partnership

PAGLAUM was born out of partnership. PAGLAUM was nurtured through partnership.

And, PAGLAUM’s success was made possible through its strong collaboration

with its various partners.

Paglaum recognizes that its steadfast growth is largely because of its valuable partners. These partners honed the organization into what it is now today. They have either provided capacity building or financing support. As Paglaum reaches-out to more

communities, it is grateful to the partnership that was developed. And, as Paglaum celebrates its success, it also celebrates the partnership it has with various organizations.

To all those that have guided and nourished Paglaum Foundation and Cooperative into becoming mature and credible organizations, our sincerest gratitude to all of you


Trainings Attended by Board, Management, & Staff for 2008

DATEJan 8-10

Jan 18-19Jan 16Jan 25Feb 1Feb 1

Feb 23Feb 29 - Mar 1

Feb 19Feb 25

Apr 23-25Apr 21-22Apr 17-18

Apr 19May 30Jun 11

Jul 21-23Jul 26-27Jul 24-25Jul 7-16

Jul 21

Jul 31Jul 30Aug 5Jul 30

Aug 13-15Oct 23-25Oct 16-17

Oct 25Nov 11-13Nov 17-18

Nov 29

tRAining titlERegional Training of Trainers on Financial LiteracyMMC Planning SessionCorn and Palay TradingOrientation/Meeting of ATM Operations1st Human Resource Manager’s ForumCustomer Relationship ManagementUnderstanding Financial StatementsMentoring & Coaching Skills: an Essential Skills in Leadership”Tax Information Update for CooperativeWorkshop on TAG3 Technical Assistance48th Annual General Assembly & Educational ForumCredit Union Microfinance and Business PlanningMIS Regional Consultation and 4th ANNUAL GENERAL MEETINGCash Flow Lending for Credit CommitteeDesign & Implementation of an Energy EfficientProgram Evaluation of the Adopt a TownCredit/Background Investigation & AppraisalSystem Audit Seminar WorkshopMCPI ConferenceHands on Training for Coop FranchiseesSymposium on Federalism; The Key to Rural DevelopmentCUCEOCCCMicro insurance program for the professionalsChallenges and opportunities in financing rural household electrificationCOOP SUMMITAlliance Building Orientation & WorkshopLCDFI Training of Micro-EnterpriseSeminar-Workshop on Risk-Based SME LendingCommunity Development & Leadership Training for Community LeadersTraining of TrainersMASS-SPECC Laboratory Cooperative SeminarBusiness Counseling SeminarTrainers Training on Gender & Development & Family Enrichment ProgramLoan Restructuring Seminar

vEnuEWest End Court Inn Echavez St. Dipolog CityDakak Beach Resort, Dapitan CityClarin, Misamis OccidentalMASS-SPECC, Cagayan de Oro CityBahay Alumni, Brokenshire College, Davao CityTangub City Functon Hall, Tangub CityMASS-SPECC Training Center, Cagayan de Oro CityChali Beach Resort & Conference Center, CDO CityJohann’s Cuisine, Lam-an, Ozamis CityRhovic’s Place, Oroquieta CityDakak Park & Beach Resort, Dapitan CityPhiltown Hotel, Cagayan De Oro CityWaterfront Insular Hotel, Davao CityNaomi’s Botanical Garden, Bañadero, Ozamis CityGrand Meng Seng Hotel, Davao CityPaglaum Training Center, Plaridel, Misamis OccidentalMarco Hotel, Cagayan De Oro CityMASS-SPECC Training Center, Cagayan De Oro CityAsian Dev’t Bank in Ortigas Center, Pasig CityNATCCO Main Office, Quezon CityNaomi’s Botanical Garden, Ozamis CityMergrande Ocean Resort, Davao CityTranca Bay, LagunaCagayan de Oro CityABC Hall, Plaridel, Misamis OccidentalLibertad, Sinacaban, Misamis OccidentalOroquieta CityWe R Inn Hotel, Davao CityTatong’s Beach Resort, Oroquieta CityButuan CityMASS-SPECC, Cagayan de Oro CityGODECOST Center, Dipolog CityMASS-SPECC, Davao CityMASS-SPECC, Cagayan de Oro City

loCAl, REgionAl, nAtionAl tRAinings

DATEMar 31- Apr 11

Jun 13-18

tRAining titlEAcademy for Micro-Finance Development in AsiaCredit Union Chief Executive Competency Course

vEnuEDiscovery Kartika Hotel, Bali, IndonesiaBangkok, Thailand

intERnAtionAl tRAinings

lABoRAtoRy CooPERAtivEEmpowering the youth, Building

Strong Future Coop Leaders The youth’s potential to lead is tremendous. We have witnessed this when Paglaum MPC conducted a Federation Building and Leadership Training for the youth officers on August 8. Paglaum’s objective is to sustain the Laboratory Cooperative. The lab coop will be a venue for shaping future coop leaders. There is going to be a failure in the sustainability of the cooperative if the children and youth of today will not be molded in the spirit of cooperativism. Hence, Paglaum seriously involves the children and youth in the cooperative. They are recognized as the future of Paglaum.

Paglaum’s future plan is to seek partnership/linkages with the youths of the other coops and federations such as MASS-SPECC. It will give the youth of Paglaum their much-needed exposure. With high hopes, these young leaders will be empowered through the savings and leadership/governance programs.

P A G L A U M 2 0 0 8 A N N U A L R E P O R T��

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�0 �12 0 0 8 A N N U A L R E P O R T P A G L A U M �1

Paglaum Multi-Purpose CooperativeCongratulations!

JUDGE FELIPE G. ZAPATOS(Retired RTC Judge, Br. 35, Ozamiz City)

Private Law Practitioner and Notary Public

OFFICEMedina Gym, Don Anselmo Bernad Avenue, Ozamiz City

Tel. # (088)521-4852 / Cell#: 0920-921-2253 GLOBE # 0917-7220200Residence: Purok 5, Bañedero, Ozamiz City

MEMBER:

• Gregorio O. Calit Memorial Lodge No. 154, Oroquieta City• Palilan Lodge No. 239, Jimenez, Mis. Occ.• Oroquieta bodies, A & A. S. R. • filipinas Shrine Club, Aloha Temple Hawaii• Board of Director & Vice Chairman LTMPC, Tangub City

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�2 �32 0 0 8 A N N U A L R E P O R T P A G L A U M �3

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�� 2 0 0 8 A N N U A L R E P O R T P A G L A U M ��

NILO M. BANTILAN Business HeadVisayas & MindanaoSmall & Medium Enterprise GroupPhilippine Long Distance Telephone0918-9177483

Connectivity, Broadbanding, and Beyond.Welcome to NationBanding.

Call us at 101888 0r 171.Log on to www.pldtsme-nation.com.ph

ROLAND D. CADAVASArea Sales HeadSME - Mindanao09209197525

ROBERTO W. SUZONAccount OfficerSME - Mindanao09209826126


ROLAnDO MAnuEL C. TyProprietor

GAMALINDAMEMORIAL HOMES

SOPHIE DESCALLAR GAMALINDAPROPRIETOR

OFFICESOzamiz City, Tel. (088) 521-0374 | Oroquieta City, Tel. (088) 531-1115 | Jimenez, Mis. Occ.

Mortuaries of the following:Pacific Plans, Inc. * Pet Plans, Inc * Provident Plans, Inc * Loyola Life Plan, Inc.

Prudential Life Plan, Inc * Philam Plans, Inc * Consolidated Plans, Inc * Eternal Life Plan, IncPhil Asia Care, Inc * Holy Trinity Plan, Inc * BAFci (brotherhood assistance future concern, inc)

Paglaum Multi Purpose Vooperative


HEAD OffICE1598 Marcelo H. del Pilar corner Dr. J. Quintos Sts.Malate, Malate, ManilaTel. Nos. (02) 522-0000; 551-2200; 450-7001Phonebanking (02) 405-7000

PAGADIAN BRANCHCabato Building, Jamisola St.,Pagadian City, Zamboanga del SurTel. Nos. (062) 214-1405; 214-2265; 214-1591Fax No. (062) 215-2344

www.landbank.comMember of the PDIC

Maximum deposit insurance for each depositor P250,000.00

LANDBANK PHILIPPINESOF THE

Greetings from:Greetings from:

RONELL’STAILOR

No.1inOriginalKingof BarongAlso accept Dry Cleaning / Laundry

Roger Digal - Proprietor / Master CutterMalvar St., cor. Quezon Ave., Dipolog City

Tel. No. 212-8620

First DewReverse Osmosis Purified Drinking Water

Enerio St., Oroquieta CityTel. No. 531-1695

CORPORATE OFFICE MAIn OFFICE BRAnCH OFFICES MICRO-FInAnCE OFFICESQuezon Avenue, Miputak, Quezon Avenue, Miputak, KATIPunAn BRAnCH 1. Katipunan, Zamboanga del Norte Dipolog City, Zanorte Dipolog City, Zanorte Poblacion, Katipunan, Zanorte 2.Sindangan, Zamboanga del NorteTelefax No. (065) 212-9109/ Telefax No. (065)212-6658/ Telefax No.(065)212-9589 3. Ipil,Zamboanga Sibugay212-7647/212-9807 212-7648 Mobile No.0918-914-1301 4. Pagadian City, Zamboanga del Sur Mobile No.0918-918-4435/ Mobile No. 0920-283-3702 CARCAR BRAnCH 5. Oroquieta City, Misamis Occidental0928-504-1444 San Vicente St., Pob. Carcar Cebu 6. Tagbilaran City, BoholGRAnTS: ACCEPTS: Telefax No.(032)487-9997/ 7. Lahug,Cebu City- Agricultural Loans - Savings Deposit LILO-An BRAnCH 8. Ramos, Cebu City- Commercial Loans - Time Deposit Poblacion, Lilo-an, Cebu 9. Talisay City, Cebu- Industrial Loans - Current Account Deposit Telefax No.(032)424-8099 10. Lapu-Lapu City,Cebu- Salary Loans - Special Savings Deposit COMPOSTELA BRAnCH (DepEd, LGUs, National Offices) (Kids & Teens Account) Poblacion, Compstela, Cebu- Micro-Finance Loans Telefax No.(032)425-8383 >Proyekto Ma-asenso OTHER SERVICES: (Grameen and ASA Approach) - Safety Deposit Box MEMBER: >Asenso Loan - G-Cash - Philippine Deposit Insurance Corporation (PDIC)(MABS Approach) - DCWD Bill Payments - Rural Bankers Association of the Philippines (RBAP)- Other Loans - Zamboanga del Norte Federation of Rural Banks (ZNFRB) - Dipolog City Bankers Club (DCBC)

KaTIPuNaN BaNK (ZN),

INC.A Rural Bank

more than the USUAL banking...

Tel. no. (088) 344-8628Contact Persons: Bernie, Elvie or Jake

Offers Quality Clean Ice, Suitable for Fish and Poultry ProductsBRAnCHES: Tabok, Mandaue City * Eastern Looc, Plaridel, Mis. Occ. * Brgy. Kanyuko, Dumanjug, Cebu

Proprietor: SAMMY CHUA

Greetings from:

Greetings from:


Congratulations!Paglaum Multi-Purpose Cooperative

ST. NICHOLAS AUTO PARTS

North Poblacion, Calamba, Mis. Occ.(In front of Calamba Municipal Hall)

Tel. no. 271-3752 or 271-3677

MR. AND MRS. NESTOR PARADAÑASProprietor

Congratulations!Paglaum Multi-Purpose Cooperative

MR. & MRS. KID BULAWAN SPACE RENTAL HOME

M. Taclob St. Don Bernardo A. NeriCalamba, Mis. Occ.

Tel. Nos. 271-3345 (DBAN Calamba)271-3918 (Calaran, Calamba, Mis. Occ)

oGIsLECHoN maNoK and REsTauRaNT

Branch-1 GP Quijano St., Poblacion 2 Oroquieta City

Branch-2 C. Pastrano St., Poblacion 1 Oroquieta City

ACCEPTS ORDERS & LECHON BABOY CoNTaCT # 09088646050; 09084073184

ACCEPT CATERING SERVICES IN ANY OCASSIONS

For inquiries please call:BENJAMIN QUEat 088-856-4120Nickel Agency, Philam Plans, Inc.Cagayan de Oro City

An affordable insurance and savings program that goes a long way for a planholder from retirement to business venture, future travels and even for

any asset or equipment acquisition.

Prodigy Education Plan assures the unbreakable love affair of every family with the importance of securing your child’s future.

Greetings from:

Greetings from:

Greetings from:Greetings from:

MKDPRINTING

PRESS

JOZE JOSE K. ARUELOProprietor

TAnGuB CITy

LILYMART

CORNER BURGOS PINGOL STS., OZAMIZ CITYP.O BOX 176 Telefax; (088) 521 3979; (088) 521 0030

Proprietors:Fiscal Liben Go Medina

and Mrs. Rosalie Mijares Medina

“Sells T-shirts, Textile, Plastics and Modiste”

RURAL BANK OF PLARIDEL(MIS. OCC.) INC.

BENTANMARKETING

YOURONE-STOPCOMPUTERSTORESINCE1992

53-S Bonifacio St., Ozamiz City(In front of Misamis University)Tel.# (088) 521-0421 / 521-3344Telefax # (088) 521-2333Celfone # 0917-7221969 / 0919-3522137Email ID: [email protected]

AUTHORIZED SERVICE CENTER

Marciana E. Monera, President

P A G L A U M 2 0 0 8 A N N U A L R E P O R T�2

BENEfACTORSRURAL BANk Of OROQUIETA (Calamba Branch); ADELIx STORE, PCC (Bernadette Pagalaran)

ONE NETWORk BANk; UNITED COCONUT PLANTERS BANk (Pagadian Branch)ATTY. OSCAR O. ABUZO, Notary Public, Calamba, Mis. Occ.

PLARIDEL SERVICE COOPERATIVE (PLASECO) Plaridel, Mis. Occ.DES APPLIANCE PLAZA – MS. LUZ A. BALASABAS, Manager

S.C.Q. Petron Station, Plaridel, Mis. Occ.; REDELYN MAGSALAY, Member, Board of Directors

SARAH MAY PENSION HOUSENinoy Aquino Boulevard, Barangay Ramon Magsaysay, Sindangan, Zamboanga del Norte

conveniently located * Aircon Rooms with individual toilet and bathcable T.V. in all aircon rooms * accepts catering services for live-in seminars, conferences, birthdays & weddings

standby generator * 24 hour security * also available ordinary rooms with electric fan onlyvery affordable rates * good water supply, etc.

PRoPRiEtoR:Mr. and Mrs. hermenegildo villegas

Tel.# (065) 224-2035 Cell.# 09184646401

OZAMIZ AUTO MARTG/f Casa Esperanza, DABA, Ozamiz CityTel. Nos. (088) 521-0175 (088) 521-0312

OROQUIETA CITY BRANCHUCPB ATM

NOW OPEN 24/7TO SERVE YOU...UCPB Bldg., A. Enerio St., Oroquieta City

(088) 531-1123; (088) 531-1124fax (088) 531-1444

PIOSCongratulations!

Paglaum Multi-Purpose CooperativeCongratulations!

Paglaum Multi-Purpose Cooperative

PlacePlaridel, Misamis Occidental

annual report 2008

Documents

enterprising members

general membership meeting

massspecc cooperative

annual general assembly

laboratory cooperative

credit management report

v pa g

board of directors offcers