Strengths:

1. Checking of existing credits as well as verifying the ability to pay of the

person applying for the loan is being done before the approval of the loan
application. This reduces the credit risk of the cooperative.
2. For larger amounts of credit, more people are required to authorize and
approve the transaction.
3.
Weaknesses:
1. The cooperative does not have their own CCTV and does not employ their
own security guard, they only rely on the security measures being done for
the whole building.
2. The entitys employees do not undergo trainings or attend seminars to
enhance their skills and knowledge about the cooperative industry.
3. There is no segregation of duties with respect to the authorization of
purchase of goods, with a maximum amount of Php 5,000.00, and the
custody of the goods purchased. Both of these duties are done by the clerk.
4. Documents are organized and stored in an area where different people,
including customers of the consumer store, can even enter.
5. The clerk records his own time in and time out in his daily time record. The
manager only monitors the attendance of the clerk through checking whether
the clerk is in the office premises. The manager does not check if the clerk
has entered the correct time in his DTR.
6. In all the processes being made by the cooperative, they do not prepare
multiple copies of documents.
7. Some of the duties presented in the organizational structure and defined in
the by-laws are not followed religiously.
RECOMMENDATIONS:
Weakness #1: The cooperative must install their own CCTV mainly on the office
area of the clerk in order to reduce the risk of theft and robbery of assets, especially
of cash. However, the cooperative can still rely on the service provided by the
security guard of the whole building they are currently renting.
#2: In order to minimize cost, the BODs can just invite in their office an expert in
the cooperative industry.
#3: The clerk must always prepare a purchase requisition to be forwarded to the
manager for approval. No matter how costly the item is, the manager must always
have the authority.
#4: Documents of the cooperative, whether used in a day to day basis or not, must
be secured properly through moving the steel drawers in an area where customers
do not have access.
#5: The manager must affix his signature immediately after the clerk has recorded
his time in the DTR.
#6: The different people involved in the transactions must prepare at least two
copies of documents for future references.