Aagapay sa Mamamayang Nangangailangan (AGMANA)
Credit Cooperative Cash Management Policy
OBJECTIVE
The purpose of the Cash Management Policy is to document cash
management guidance for the cooperative to ensure effective management of cash
and financial operations encompassing billings, deposits, collections, and
disbursements.
The Management, Treasurer, And Audit Committee of Aagapay sa
Mamamayang Nangangailangan (AGMANA) Credit Cooperative has the
responsibility to safeguard cash and cash equivalents.
This Policy provide guidelines to minimize the risk of loss, prevent theft,
misappropriation use of funds, accelerate and control collections, ensure prompt
deposit of receipts, improve control over disbursement methods, and eliminate idle
cash balances. All staffs, Management and Committees are required to comply with
the standards contained herein.
Policy Statement
The Treasurer, Management and Audit Committee that handle cash and cash
equivalent must both have an awareness of commitment to strong internal controls.
Internal Controls encourage good stewardship, safeguard assets, promote accurate
financial reporting, prevent mishandling and loss of funds and protect employees
from allegations of impropriety.
The cooperative’s objective is to minimize the risk of loss, prevent theft or
misappropriation of funds, whenever practical. The Management and staff that
collect cash and cash equivalent are responsible for implementing strong internal
controls.
I. Maintenance of Safe/Vault
● All Cash receipt must be turn over to the treasurer, Cooperative’s Vault or
deposited into the cooperative’s depository bank.
●Independently establishing bank accounts are strictly prohibited.
●Maintain proper segregation of duties and application of the codified approving and
signing authority as outlined below.
●Establish written, soft copy or hard copies for receiving, recording, depositing and
reconciling cash or checks.
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●Access to cash and checks must be restricted to individuals with authorized
responsibility.
●Accurately record all cash collected at the time of receipt with record of receipt
documentation.
●Safeguard all cash and Checks:
A. Immediately upon receipt by storing in safe/ vault inside the office until the
funds are collected by the treasurer.
II. Segregation of Duties
Summary;
Separate responsibility for receiving cash, maintaining accounting records,
preparing deposit slips, making bank deposits, disbursing cash and reconciling cash
with proper segregation of duties no single person has control over the entire cash
handling process.
Section 1.2: Different individual should:
Duty Person Responsible
a. Receive and record cash and checks. Cashier and bookkeeper
b. Safekeep cash and checks. Cashier and Treasurer
c. record cash payments to receivable Bookkeeper and General Manager
records.
d. Reconcile cash receipts to deposits Bookkeeper and General Manager
and the general Ledger.
e. Bill for goods and services. Bookkeeper and General Manager
f. Follow-up on accounts receivable. Bookkeeper and General Manager
g. issue adjustments credits and Bookkeeper and General Manager
refunds.
Section 1.3: Implement alternating and Compensating controls and additional
supervision by the manager when segregation of duties is not possible, additional
controls may include:
a. Review of records, reconciliations and surprise count at unannounced times.
b. Reassignment of responsibilities after a period of time.
III. Safeguard cash and checks
● Emphasized physical security to those who handle cash and checks.
● Restrict access to cash and checks to as few staff as possible.
● Count cash in a non-public area inside the office with more than one staff present
when possible.
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● Handing over the cash to the treasurer or depositing it on the bank daily.
● Lock cash and check in a secure location and minimize employee access.
●Provide combinations password to only the general manager, treasurer and
secretary.
● Change combinations/password at least annually or with turnover of related
personel.
IV. Cash Monitoring
➢ Implement alternating and compensating controls and additional supervision
by the general manager when segregation of duties.
➢ Maintain daily records on manual and soft copies of the receivables, cash and
check.
➢ Tally the cash received from the collector and the data provided before the
submission of all cash to the cashier.
➢ The recorded data should be kept by the bookkeeper to enter in the book of
accounts.
Section 3.1: Funds on Subscribe share, Membership and Receivables
➢ All members subscribe at least 6,000 pesos for regular members and 500
pesos for associate.
➢ The members must pay 300.00 pesos for membership fee.
➢ The subscribe share and membership fee must have a receipt in which we will
base the data recorded in the book of accounts.
➢ The installment paid for the capital build-up must also had an issuance of
receipt every time the members will pay their monthly subscription of shares.
➢ The accumulated cash from the share, membership and prepaid share must be
submitted to the treasurer before the closing time of the cooperative.
➢ The data and cash must tally before the treasurer accepts the cash for
safekeeping.
Section 3.2: Credit, Loans and Payments
➢ Before the loans are released the Management staff and BOD must affirm the
released of loans.
➢ The Loan application form must be approved by the BOD.
➢ The Management staff must produce a total budget of loan for release.
➢ Budget for loan release must be submitted to the treasurer for the cash
release, the cashier must receive the cash together with the general manager.
➢ Loan releasing must be done inside the cooperative’s office premises.
➢ an issuance of receipt together with the loan information from the member
must be attached to the files of the member.
Section 3.3: Credit Collection
➢ The collector must issue a receipt after the payment was collected, No
payment, No Receipt.
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➢ The collector must have a daily record for collection, He/She must write the
serial no. of receipt and the amount paid before passing it to the management.
➢ The collected payments will be submitted to the cashier to tally the recorded
data and the cash accumulated within the day.
➢ After the affirmation of the cashier the cash accumulated will be submitted to
the treasurer for safekeep while the data recorded within the day will be
submitted to the secretary for the update of the accounts.
➢ The Secretary then will produce a confirmation to be sign by the treasurer,
collector and general manager that the cash and data was accurate.
Section 3.4: Savings Collection
➢ Savings from the members can only be collected by the Cashier and collector.
➢ Issuance of receipt after the collection of cash is a must.
➢ The Cashier can only collect the cash within the premises of the cooperative.
➢ The collector can only collect the cash within the area of his assigned place.
Section 3.5: Overdue Collection Payment
➢ The members that had an overdue balance must only pay at the premises of
the cooperative.
➢ The cashier can be the only person to receive a payment for the overdue.
➢ The reconstructed contract of balance for extension of loan payments can be
collected by either the cashier or the collector.
➢ Each payment for the overdue and process must have an issuance of receipt.
➢ No receipt will be considered null.
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Section 3.6 Best Practice on finance
Practices in Finance 1 2 3 4 5
• The treasurer, cashier and other limited staff are
authorized to handle Cash.
• The Bookkeeper must the only one to handle the book
of accounts and adjust entries.
• All cash receipts can only be acknowledged with the
pre-numbered of the official receipt.
• Collection within the day must be turn over to the
treasurer not later than the next banking day.
• Employees other than the treasurer/cashier authorized
to receive cash turnover daily to the latter all collections
together with copies of the issued official receipts and the
unused ones
• The treasurer/cashier prepares a collection report
covering all collections during the day
• Post-dated checks are accepted as payment but official
receipt is issued only at the date of check.
• A petty cash /revolving fund is set up for minor
disbursements consisting of day-to-day expenses limited
to a certain amount in accordance with board po
• Bank reconciliation is done monthly
• The audit committee audits all disbursement
transactions.
• Disbursement from the petty cash are covered by a pre-
numbered petty cash voucher and supported by
documents.
• A surprise audit by the audit committee of the petty
cash
• All loan transactions are made in accordance with the
duly approved loan policy
• All loan applications are approved by the loan officer
and recommended by the General manager before the
approval of Board.
• All loan disbursements are covered by a promissory
note signed by the borrower and a co-make
• Aging of accounts receivable is monthly done
• Invoices are checked for accuracy before payment.
• The bookkeeper is the only person doing posting in the
subsidiary ledge
• Schedules of payables are periodically prepared
• expenses are monthly computed
Grand Mean
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Section V: Surprise Cash Count
• To ensure that the cash is still available and is tallied with the data recorded in
the books of accounts.
➢ Surprise cash counts have to schedule by General Manager, Audit committee
together with the treasurer at least once a month.
➢ Cash count will be the treasurer’s duty.
➢ As an affirmation that the cash and the data recorded are equal, the secretary
will produce a confirmation letter with their signature, for internal audit
purposes.
Section VI: Cash Reconciliation
• Each month the cashier together with the bookkeeper will reconcile the assets and
general ledger of asset accounts investigate any discrepancies and take action in
correcting the data gathered.
Section VII: Maximum Holding Period
Authorize personnel Maximum holding period
Cashier Within a day before the closing time
of the cooperative.
Collector Within a day before the closing time
of the cooperative.
General Manager Within a day before the closing time
of the cooperative.
Treasurer ➢ CETF before the November
every year.
➢ Statutory funds within a year.
➢ Daily Loan collection within a
month to safekeep a budget
for new release.
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Educational and Training
Aagapay sa Mamamayang Nangangailangan (AGMANA) Credit
cooperative acknowledges that enhancing employee skills are crucial to the
success of the cooperative. The educational assistance and programs will help
the employees to further develop their skills through seminars and training so
that they can improve their ability to be professionals in their field.
Aagapay sa Mamamayang Nangangailangan (AGMANA) Credit
cooperative provide educational assistance for the training and seminars of
the for staff to be full-time employee of the cooperative. The employees
assigned to different fields must at least take a training/ seminar of more than
48 hours if the subject training is available within a year. The seminar
requested by the employee must be approved by the Board of Directors, hence
the approval must first be recommended by the General Manager to further
certify that the training that is needed to be taken by the employee is related to
the work of the staff.
The Board of directors will normally consider the following factors in
evaluating the request for an educational program:
➢ The Nature and course of the program.
➢ The benefits of the staff that will take the course.
➢ If the course is related to the work.
➢ The employee’s level of responsibility and length of service.
➢ The estimated cost and
➢ Any potential lost time or productivity while the staff attends the program.
I. Educational Program Financial Plan
➢ The Cooperative aims to affiliate with a federation within Region 2 in order to
attain an additional benefit for the Management staff, Committees, and Board
of directors in educational seminars and training to improve the skills and
enhance our knowledge in the cooperative.
Membership 1,000
Minimum Paid-up Share Capital 20,000
Annual Dues 1,000
Cooperative Education and training fund 5% portion
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o Educational Reimbursement
The reimbursement will be eligible if the employee completed the training
successfully and with the certificate of completion.
II. Educational Training Program and Target Sector
The educational training that is needed to comply within a year must be taken such
as the basics of the micro-cooperative. To prioritize the training courses to be taken
by the officers of the cooperative to further enhance their ability to comprehend what
was within their scope of work and to gain wisdom through cooperative ways.
Officers Training to take within this Year 2023
Board of Directors • Basic cooperative course
• Cooperative Management and
Governance
• Financial Management
• Policy Development
• Leadership and Value Re-orientation
Secretary • Basic cooperative course
• Records Management
• Basic Computer Program
Treasurer • Basic cooperative course
• Records Management
• Financial Transaction
• Basic Accounting for non-accountant
• Financial Management
Audit Committee • Basic cooperative course
• Cooperative standards
• Internal Control Including inventory
• Basic Accounting for non-accountant
• Financial Management
Election Committee • Basic Cooperative Course
• Rules formulation
• Leadership and values Re-
orientation
Mediation/Conciliation Committee • Basic Cooperative Course
• Conflict Management
• Leadership and values Re-
orientation
General Manager/ Chairperson • Basic cooperative course
• Cooperative Management and
Governance
• Cooperative Standards
• Policy Development
• Strategic Planning and Management
