BOARD OF DIRECTORS REPORT

CY 2014

Introduction

The significant result on the performance of the Cooperative for CY 2014 as glimpsed in the various
report for CY 2014 is a proof that the targets for the year were realized. We believed that this
accomplishment was due to the cooperation, commitment and endless effort and resources contributed
by everyone.

As a part of the continuing commitment in our journey on the path of cooperativism, and as we dream
to grow, we would like to encourage the members to continue supporting and patronizing the
cooperative by participating in the programs and services of the Cooperative.

In behalf of the members of the board we would like to express our heartfelt gratitude to all the
members, officers, and the management staff who were part of the productive operation of the
cooperative.

Above all, we give Glory to God for the blessings he accorded to the BSU Multi-Purpose Cooperative.
Our theme for the year, BSU MPC: Saranay Ken NamnamatiKaaduan may not be fitting at all without
His continuous guidance and intervention.

MABUHAY TAYONG LAHAT!

Highlights of Accomplishments

1. Board Resolutions the Board of Directors passed and adopted fifteen (15) resolutions;
2. The Board conducted twelve (12) regular meetings and three (3) Special Board meetings;
3. Annual Planning the board conducted the Annual Planning at Maryknoll Retreat House, Baguio
City on October 17-18, 2014. Plans and accomplishments for the CY 2014 were reviewed and
prepared plans for CY 2015in accordance with the five year development plans;
4. Impemented the project with DAR.
5. Formulated the policies on:

a. Mutual Assistance for the members to the family of a deceased member:

- Beneficiary/iesare those stated in the membership form of the deceased member is/are the
recognized recipient.
b. Excess Funds,Branching, Research and Development Projects
c. Preferred Share

6. Amendments of Policies on:

a. Scholarship with additional requirements such as Birth Certificate of the applicant and Income
Tax Return of parents.
b. BSU MPC Code of Ethics and Standards
c. Hospital Assistance
d. Interest on Loans from Straight computation to diminishing.
 e. Loans within share capital or savings deposits of members
- No co-maker
- Filing Fee from 4% to 1%
- Interest on loan for short term loan shall apply.
- Loans should be paid in 3 to 12 months only.
7. Property Investment Acquired Lot and building located at Pico, La Trinidad, Benguet.

In closing let me share to you a quotation from Mr. Vince Lombardi which says the achievementsof an
organization are the result of the combined effort of each individual who unceasingly worktogether
with commitment to pursue what is being aimed for.I hope that this will inspire us to be continuously
united with cohesiveness working together to become a gigantic Cooperative in the Cordillera.

SGD. DAVID JOSEPH L. BOGNADON

Chairman of the Board of Directors
 POLICIES APPROVED

1. Policy on EXCESS FUNDS

EXCESS Funds These are liquid funds that waits to be used......

1. All liquid funds should be under the careful administration of the Manager or the Treasurer.
2. The Treasurer at anytime should know:
How much excess funds are available;
How they will eventually be used and when;
How much the placements are making;
Which institutions and instruments they are in.

- Excess Fund are organized in the following manner

2.1 Required Reserves imposed by regulators (CDA)
2.2 Contingency reserves we set for Cooperative (large deposits withdrawal)
2.3 Capital expenditures for:
Expansion ( new branches)
New Projects/products
Cost Savings
Urgent necessities (e.g repairs)

3. BSUMPC only place excess funds into financial institution accredited by BSU MPC. Listing of
accredited institution shall be updated every six months.
4. BSUMPC excess funds shall only be placed in Time Deposits, Mutual Funds or in Trust Banking.
5. The Treasurer can disapproved released if not justified.
6. Investment shall be acted upon based on the following level of authority:
Up to Five Million Pesos (P5,000,000.00) recommendation from the treasurer, approval of the
Manager
P5,000,000.00 to 10,000,000.00 recommendation from the Treasurer approval of the manager
and the chairperson of the board.
P10,000,001.00 and up recommendation from the General Manager approval by the Board of
directors.
7. The treasurer shall keep and updated record of all transactions concerning the administration
of the excess funds.
8. On monthly basis the Treasurer shall render a report to the Manager detailing the amount,
term, location and performance of the investments
9. These policies shall be reviewed and updated by the Treasurer, Manger and the Chairman
annually and shall be approved by the Board of Directors.
 2. Policy on Branching

Objectives:

a. To increase membership
b. To accumulate funds through marketing of savings and loan services
c. To increase net surplus
Policies:
Capitalize the branch based on demands
Demands should be supported by survey results
Set Targets for membership, deposit generations and net surplus
Compare actual results against set targets regularly
Branch is treated as a profit center; excess funds from branch is remitted to the main office
The main office manages the excess funds to maximize profit.

3. Policy on Research & Development (Special Project Management)

What is a Project? Any undertaking by the cooperative other than its regular services (Savings & Credit,
Leasehold ) whether profit or non-profit generating activities with specific time duration (e.g. training,
research and consultancy, leasehold contract improvement, etc.) that benefits the community.

1. Approval Phase
a. A project proposal shall be submitted by the proponents for approval to the cooperative;
b. A project cost of more than P100,000.00 shall be approved by the Board;
c. If cost is less than (P100,000.00 approval shall be at the managers level;
d. A minimum share of the cooperative is 5% of the project cost, to include monitoring of profit
generating project;
e. A profit generating project must have ROI higher than the rate of interest being earned in the
Credit (loan) Service of the Cooperative; and
f. A memorandum of Agreement must be executed by the contracting parties;

2. Implementation Phase

a. A monitoring system and procedure should be installed;

b. A project staff or point person shall be designated to monitor the project; and
c. A Committee shall be assigned by the Board to regularly check the implementation of the
project (monthly, quarterly, semi-annually or annually) as specified in the MOA and submit
status report to the cooperative
3. Evaluation and Documentation
a. Project evaluation shall be conducted by the BOD at the end of the project; and
b. All projects shall be documented as reference for future projects which form part of the official
records of the Cooperative.
 4. Policy on Preferred Share B

Preferred share Investment Service offered by the Cooperative to increase its Capital build-up (CBU)

1. Members of the BSUMPC;

2. Interest on Preferred Share is seven (7%) per annum LOCKED IN for five years. Interest of
Preferred share will be credited as savings deposit which can be withdrawn on its anniversary
date. Should the depositor withdraw Prior the locked In period, a pre-termination of five (5%)
for every past year shall be charge as termination fee. A fraction thereof shall be charge for less
than one (1) year of pre-termination;
3. Any member may subscribe a minimum of ten (10) shares or a maximum of twenty five
thousand (25,000) Share, equivalent to One hundred Pesos (100.00) per share.
 Management Report

The General Assembly:

The management staff would like to report the performance of our cooperative for the year 2014.

The following were achieved as compared to 2013 performance.

I. Membership:

Types of membership 2013 2014 Variance

Regular members 2,989 4,009 1,020
Associate 7,872 11,442 3,570
Total 10,861 15,451 4,590

The increase was attributed by the monthly conduct of Pre-membership seminar by the Education
Committee and the continuous marketing of our coop programs and services by the management staff,
officers and members.

2. Financial Highlights

1. Deposit Generation Total entrusted monies of membersfor the year 2014 increased by
24% compared to 2013 operation. Having a total deposit liabilities
amounting to P253,422,412.85 for the year 2014.This measuresthe
trust and confidence extended by our members in our cooperative.
2. Share Capital Generation Capital infusion of members to the cooperative for the year 2014
amounts to P36,920,208.76. Compared to 2013 operation, there is
an increase of 62%.Based on the net surplus after statutory Funds,
our Share capital has earned 12% Interest based on the average
share capital of member.
3. Loan Releases 75% of our cooperative resources is invested in our loans services.
The total loan releases for the year amounts to P243,833,427.87, an
increaseof P89,422,456.38 compared to 2013 releases.
The cooperative still maintains its 2% delinquency rate for the year
2014.
4. Net Surplus For the year 2014, the cooperative incurred a net surplus of
P23,723,401.31. Compared to 2013, there is an increase of 33%.
5. Liquidity For the year 2014, BSU MPCliquidity rate is 23%, which is above the
coop standard of 15%. This means that the cooperative maintains
sufficient funds or cash needs of savers and following month loan
releases and operational expenses.
6. Human Resource One important factor in the success of our cooperative is our
Development investment to our employee.To enhance more the capabilities of
the management staff in the delivery of the coop services to the
members, management staff attended 12 coop training related to
their job.For the year 2015, we programmed that each employee
attend at least three (3) trainings for the year.
 7. Asset Growth The Cooperatives resources increased by 33% compared to 2013
operation. Total assets for2014 amounts to P404,594,840.49.

II. SOCIAL SERVICES

a. Hospital Assistance - Total cash disbursed from this fund for the year 2014 amounts to
P 1,375,094.31. Amount receive by individual members varies based on the years of
membership and the share capital of the member. There were 76 recipients.

b. Mutual Aide Assistance- amount disbursed from this fund is P884,346.94. Same with the
Health Assistance, amount received by beneficiaries varied. There were 18 claimants.

c. Scholarship Grant the cooperative scholars for the year are the following:

Name Year Course

1. Langawan, Rowena 3rd year Bachelor of Science in Forestry
2. Marconi, Alice Sandoy 3rd year Bachelor of Science in Forestry
3. Refuerzo, Billy 3rd year Bachelor of Science in Hotel &
Restaurant Management
4. Dalus, Faith 3rd year Bachelor of Science Elementary
Education

5. Bela-o, Generose 3rd year Bachelor of Science in

Elementary Education
6. Ngayngay, Victoria 3rd year Bachelor of Science in
Elementary Education

With the above accomplishments,We give thanks to the Almighty for all His Blessings; theMembers
continuing trust, confidence and support; the Board of the Directors andOfficers for sharing their
knowledge and time; and to the management staff for thecommitment, dedication in serving our
cooperative. Overall, we were able to attain a strong operating performance. These made Benguet State
University Multi-Purpose Cooperative number one (1)largest cooperative in Benguet, number seven
(7) in the Cordillera Administrative Region and number 105 in the entire Philippines(2013 CDA
report).

GOD BLESS US ALWAYS!

MABUHAY ANG BSU MULTI PURPOSE COOPERATIVE!

SGD.JANE T. ASIONG
Manager
 BSU MULTIPURPOSE COOPERATIVE
2014 Election Committee Report
In view of the need to elect new set of officers for the BSUMPC, the Election Committee guided by the
provisions set thereof in the BSUMPC Election Code and By-Laws, carried out the election during the General
Assembly on February 22, 2014 at the BSU Closed Gymnasium.

To make this possible, the Committee has initially undertaken several activities. To wit:

Determined the positions held by officers whose term of office expires on February 2014 (4 for
Board of Directors, 1for the Election Committee and 1 for the Audit Committee);
Posted the vacant positions and the schedule of filing for candidacy;
Screened the candidates in coordination with management;
Posted the names of qualified candidates;
Selected qualified election deputies; and,
Prepared for the conduct of the election.

The election of qualified officers commenced on February 22, 2014 in line with the General Assembly.
Underscoring the protocol, the activity started with the presentation of candidates which was immediately
followed by the opening of the polling centers and the casting of votes. Strictly, the polling centers were
closed at 3:45pm; followed shortly by the canvassing of ballots.

In light of the above, results were as follows:

No. Name No. of Votes Rank

BOARD OF DIRECTORS

1. BANDA-AY, Philip P. 843 2

2. BULIYAT, Marcos A. 891 1

3. MACASIEB, Genaro Jr. W. 591 5

4. NGIWAS, Sano L. 811 3

5. VICTOR, Lucio B. 631 4

AUDIT COMMITTEE

1. CALABIS, Gerry Ann W. 943 1

ELECTION COMMITTEE

1. ALVARO, Manolita N. 956 1

 Since there are four (4) vacant positions to complete the Board of Directors; Marcos A. Buliyat, Philip
P. Banda-ay, Sano L. Ngiwas and Lucio B. Victor as verified by the number of votes garnered, were declared
winners. In a similar manner, Gerry Ann W. Calabis and Manolita N. Alvaro were declared winners for the
Audit and Election Committees respectively.

Two weeks after the election, during a meeting called for the purpose, all newly elected offices of the
BSUMPC took their oath of office, after having sworn to office, the members of the election committee met to
select among themselves a Chair, Vice-Chair and a Secretary.

During the year, the members of the Election Committee attended the Planning Workshop of the
BSUMPC and Series of Seminars for Officers of Cooperatives.

With regard to the 2014 Election of Officers, the Committee determinedthe following positions vacant
as the term of the incumbent will expire by February 2014: five (5) Board of Directors; two (2) members of the
Audit Committee; and two members of the Election Committee. In preparation, the Election Committee
posted the vacant position and the schedule for filing of candidacy.

5 Board of Directors
2 Audit Committee
2 Election Committee

Prepared by:

Sgd. VICTORIA S. DONA Sgd. MANOLITA N. ALVARO Sgd. MARLENE B. ATINYAO

Secretary Vice-Chair Chair

BENGUET STATE UNIVERSITY MULTI-PURPOSE
COOPERATIVE
BSU Compound, Km. 5, Balili, La Trinidad, Benguet

AUDITED FINANCIAL STATEMENTS

DECEMBER 31, 2014

 BENGUET STATE UNIVERSITY MULTIPURPOSE COOPERATIVE
BSU COMPOUND, KM. 5, BALILI, LA TRINIDAD, BENGUET
CDA REGISTRATION NO. 9520-15000523

STATEMENT OF MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTS

The management of BENGUET STATE UNIVERSITY MULTIPURPOSE COOPERATIVE is responsible for all
information and representations contained in the financial statements for the year ended December 31, 2014. The
financial statements have been prepared in conformity with Financial Reporting Standards applicable to
Cooperatives in the Philippines and reflect amounts that are based on the best estimates and informed judgment of
management with an appropriate consideration to materiality.

In this regard, management maintains a system of accounting and reporting which provides for the necessary
internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against
unauthorized use or disposition and liabilities are recognized.

The Board of Directors reviews the financial statements before such statements are approved and submitted to the
members of the cooperative.

HENSON M. EYEG, CPA, MBA, the independent auditor and appointed by the Board of Directors, has examined the
financial statements of the cooperative in accordance with the Philippine Standards on Auditing and Standard
Audit Systems for Cooperatives and has expressed his opinion on the fairness of presentation upon completion of
such examination, in his report to the members of the cooperative.

SGD. DAVID JOSEPH L, BOGNADON SGD. FONEIY B. CABFIT

Chairperson Treasurer

SGD. JANE T. ASIONG

General Manager
 HENSON M. EYEG, CPA
Board of Accountancy (BOA) Accredited
Cooperative Development Authority (CDA) Accredited
Bureau of Internal Revenue (BIR) Accredited

Room 6, Hillside Square, Km. 4, Central Pico, La Trinidad, Benguet

Contact No. 09295781601; E-mail Address: hensoneyeg@yahoo.com
STATEMENT OF REPRESENTATION
TO THE COOPERATIVE DEVELOPMENT AUTHORITY:

In connection with my examination of the financial statements of the BENGUET STATE UNIVERSITY MULTI-PURPOSE
COOPERATIVE covering the period ended December 31, 2014 that are herewith submitted to the Cooperative Development
Authority, I hereby represent the following:

1. That said financial statements herewith attached are prepared and presented in conformity with the financial reporting
standards applicable to cooperatives in the Philippines;

2. That in conduct of my audit, I adhered to the Philippine Standards on Auditing and the Standard Audit System for
Cooperatives (SASC) as required by the Cooperative Development Authority;

3. That I am qualified as provided for in Section 8 of the Code of Professional Ethics for Certified Public Accountants and Article
81 of R.A. No. 9520 (Cooperative Code of the Philippines);

4. That I am fully aware of my responsibility as an independent auditor for the audit report issued and attached to the financial
statements and the sanctions to be bestowed on me for my misrepresentations that I may have willingly or unwillingly
committed;
5. That I nor any of my immediate family do not have any direct or indirect financial interest with the cooperative;

6. That I am not an employee nor an officer of a secondary cooperative or tertiary cooperative of which this cooperative is a
member;

7. That I am not an employee of the Cooperative Development Authority nor have I engaged an employee of the CDA in the
course of the audit;

8. That I make representation in my individual capacity;

9. That I am a member of the Baguio-Benguet Chapter of the PICPA.

It is however, understood that my accountability is based on matter within the normal coverage of an audit conducted in accordance
with Philippine Standards on Auditing and the Standard Audit Systems for Cooperatives.

Sgd. HENSON M. EYEG

PTR No. 4020072
January 5, 2015
La Trinidad, Benguet
PRC No. 0120254
BOA Accreditation No. 5414
BIR Accreditation No. 02-005803-1-2014
CDA CEA Accreditation No. 969
TIN No. 277-348-837

January 30, 2015

 HENSON M. EYEG, CPA
Board of Accountancy (BOA) Accredited
Cooperative Development Authority (CDA) Accredited
Bureau of Internal Revenue (BIR) Accredited

Room 6, Hillside Square, Km. 4, Central Pico, La Trinidad, Benguet

Contact No. 09295781601; E-mail Address: hensoneyeg@yahoo.com
INDEPENDENT AUDITORS REPORT
THE GENERAL ASSEMBLY
BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compount, Km. 5, Balili, La Trinidad, Benguet

Report on the Financial Statements

I have audited the accompanying financial statements of BENGUET STATE UNIVERSITY MULTI-PURPOSE
COOPERATIVE, which comprise the statements of financial condition as at December 31, 2014 and 2013, and the
statements of operations, statements of changes in equity and statements of cash flows for the years then ended, and a
summary of significant accounting policies and other explanatory information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Financial Reporting Standards applicable to Cooperatives in the Philippines taking into consideration Cooperative laws,
rules, regulations and principles. 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.

Auditors Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in
accordance with Philippine Standards on Auditing. Those standards require that I comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material
misstatements.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on 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
auditor considers internal control relevant to the entitys 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 entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.

I believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of BENGUET STATE
UNIVERSITY MULTI-PURPOSE COOPERATIVE as of December 31, 2014 and 2013, and if its financial performance,
changes in equity, and its cash flows for the years then ended in accordance with Financial Reporting Standards applicable
to Cooperatives in the Philippines, taking into consideration Cooperative laws, rules, regulations and principles.

Report on the Supplementary Information Required Under Revenue Regulation 15-2010

My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The
supplementary information on taxes, duties and license fees in the Notes to Financial Statements is presented for purposes
of filing with the Bureau of Internal Revenue and is not a required part of the basic financial statements. Such information is
the responsibility of the management. The information has been subjected to the auditing procedures applied in our audit of
the basic financial statements. In my opinion, the information is fairly presented in all material respects in relation to the
basic financial statements taken as a whole.

SGD. HENSON M. EYEG

PTR No. 4020072
January 5, 2015
La Trinidad, Benguet
TIN No. 277-348-837
PRC No. 0120254
BOA Accreditation No. 5414
BIR Accreditation No. 02-005803-1-2014
Issued on January 28, 2014, valid until January 28, 2017
CDA CEA Accreditation No. 0969

January 30, 2015

 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compound, La Trinidad, Benguet
CDA Registration No. 9520-15000523
STATEMENT OF FINANCIAL CONDITION
As of December 31, 2014 and 2013
(Amounts in Philippine Pesos)
Notes 2014 2013
ASSETS
Current Assets
Cash and Cash Equivalents 5 77,954,300.14 110,180,416.18
Loans Receivable (net) 6 216,938,215.44 147,686,073.49
Trade, Non-Trade and Other Receivables 7 568,641.73 1,211,260.48
Unused Supplies 173,459.00 84,235.00
Prepaid Expense 110,045.00 550,055.28
Total Current Assets 295,744,661.31 259,712,040.43
Non-Current Assets
Investments in Non-Marketable Equity Securities 8 7,309,998.89 6,130,833.80
Property and Equipment (Net) 9 92,566,958.34 36,918,662.74
Other Non-Current Assets 10 8,973,221.95 2,165,573.45
Total Non-current Assets 108,850,179.18 45,215,069.99
TOTAL ASSETS 404,594,840.49 304,927,110.42

LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities
Deposit Liabilities 11 253,422,412.85 203,668,146.79
Trade, Non-Trade and Other Payables 12 1,264,115.87 1,297,875.50
Interest on Share Capital Payable 20 9,963,828.55 6,946,369.26
Patronage Refund Payable 20 6,642,552.36 4,630,912.84
Due to Unions/Federations 20 1,447,401.04 918,916.97
Total Current Liabilities 272,740,310.67 217,462,221.36
Non-current Liabilities
Retirement Fund Payable 1,285,296.31 922,112.59
Other Non-Current Liabilities 13 5,653,987.67 2,727,334.60
Total Non-Current Liabilities 6,939,283.98 3,649,447.19
TOTAL LIABILITIES 279,679,594.65 221,111,668.55
EQUITY
Paid Up Share Capital 14 104,825,467.31 64,584,168.68
Deposits for Share Capital Subscription-Common - 3,789,815.83
Statutory Funds 15 20,089,778.53 15,441,457.36
TOTAL EQUITY 124,915,245.84 83,815,441.87
TOTAL LIABILITIES AND MEMBERS' EQUITY 404,594,840.49 304,927,110.42
See accompanying notes to financial statements.
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compound, La Trinidad, Benguet
CDA Registration No. 9520-15000523
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2014 and 2013
(Amounts in Philippine Pesos)
Notes 2014 2013
REVENUES
Income from Credit Operations 16 37,662,835.54 28,750,545.34
Income from Leasing Operations 17 4,153,049.33 3,671,509.94
Other Income 18 2,063,042.59 1,339,574.43
TOTAL REVENUES 43,878,927.46 33,761,629.71
LESS: EXPENSES
Financing Costs 19 7,561,547.66 7,162,593.03
Administrative Costs 19 12,593,978.49 8,787,833.45
Total Expenses 20,155,526.15 15,950,426.48
NET SURPLUS 23,723,401.31 17,811,203.23
ALLOCATED AS FOLLOWS:
General Reserve Fund 20 2,372,340.13 2,671,680.48
Education and Training Fund - Local 20 1,186,170.07 890,560.16
Due to Apex 20 1,186,170.07 890,560.16
Community Development Fund 20 711,702.04 534,336.10
Optional Fund 20 1,660,638.09 1,246,784.23
Interest on Share Capital 20 9,963,828.55 6,946,369.26
Patronage Refund 20 6,642,552.37 4,630,912.84
NET SURPLUS AS ALLOCATED 23,723,401.31 17,811,203.23
See accompanying notes to financial statements.
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compound, La Trinidad, Benguet
CDA Registration No. 9520-15000523
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2014 and 2013
(Amounts in Philippine Pesos)
Notes 2014 2013
CASH FLOW FROM OPERATING ACTIVITIES
Net Surplus 23,723,401.31 17,811,203.23
Adjustments to reconcile net surplus to net cash
provided by operating activities
Depreciation 19 2,874,530.38 1,673,461.19
Provision for Probable Losses 19 541,666.70 499,999.96
Provision for Coop Guarantee Fund 19 437,813.53 368,502.61
Provision fo Retirement Benefit 19 363,183.72 360,850.39
Change in assets and liabilities
Decrease (Increase) in:
Loans Receivable 6 (69,793,808.65) (37,754,596.99)
Trade and Other Receivables 7 642,618.75 334,982.87
Unused Office & Store Supplies (89,224.00) 38,279.00
Prepaid Expenses 440,010.28 (354,227.92)
Increase(Decrease)
Increase(Decrease)in:in:
Deposit Liabilities 11 49,754,266.06 66,594,336.91
Trade and Other Payables 12 (33,759.63) (1,313,935.61)
Due to Unions/Federations 19 (657,686.00) (630,500.00)
Net cash provided by operating activities 8,203,012.45 47,628,355.64
CASH FLOW FROM INVESTING ACTIVITIES
(Increase) Decrease in:
Investment 8 (1,179,165.09) (4,932,357.68)
Property and Equipment 9 (58,522,825.98) (17,078,249.29)
Other Non-Current Assets 10 (6,807,648.50) 2,008,589.04
Net cash used in investing activities (66,509,639.57) (20,002,017.93)
CASH FLOW FROM FINANCING ACTIVITIES
Increase
Payment (Decrease)
of Loans in:
Payable
Paid Up Share Capital 14 40,241,298.63 20,094,030.08
Statatutory Funds 15 (1,282,529.16) (188,101.46)
Deposit for Share Capital Subscription-Common (3,789,815.83) 3,789,815.83
Interest on Share Capital (6,946,369.26) (4,980,404.07)
Patronage Refund (4,630,912.85) (3,320,269.38)
Other Non-Current Liabilities 13 2,488,839.54 475,914.57
Net cash provided by financing activities 26,080,511.10 15,870,985.59
NET INCREASE IN CASH & CASH EQUIVALENTS (32,226,116.02) 43,497,323.30
ADD: CASH AND CASH EQUIVALENTS, JANUARY 1 110,180,416.18 66,683,092.89
CASH AND CASH EQUIVALENTS, DECEMBER 31 77,954,300.14 110,180,416.18
See accompanying notes to financial statements.
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compound, La Trinidad, Benguet
CDA Registration No. 9520-15000523
STATEMENT OF CHANGES IN EQUITY
For the Years Ended December 31, 2014 and 2013
(Amounts in Philippine Pesos)
Notes 2014 2013
PAID UP SHARE CAPITAL-COMMON 14
Beginning Balance 64,000,000.00 44,490,138.60
Add: Net Increase During the Year 36,499,549.31 19,509,861.40
Total Share Capital 100,499,549.31 64,000,000.00
PAID UP SHARE CAPITAL-PREFERRED 14
Beginning Balance 584,168.68 -
Add: Addition 3,741,749.32 584,168.68
Total Share Capital 4,325,918.00 584,168.68
DEPOSIT FOR SHARE CAPITAL SUBSCRIPTION-COMMON
Beginning Balance 3,789,815.83 -
Add: Addition for the Period - 3,789,815.83
Less: Deductions for the Period (3,789,815.83) -
Ending Balance - 3,789,815.83
STATUTORY FUNDS
RESERVE FUND 15,19
Beginning Balance 8,534,826.36 5,849,488.59
Add (Less):
Provisions 2,372,340.13 2,671,680.48
Addition - 13,657.29
Deductions (2,500,000.01) -
Ending Balance 8,407,166.49 8,534,826.36
EDUCATION AND TRAINING FUND 15,19
Beginning Balance 1,423,182.86 933,009.44
Add (Less):
Provisions 1,186,170.07 890,560.16
Deductions (1,147,774.40) (400,386.73)
Ending Balance 1,461,578.52 1,423,182.86
COMMUNITY DEVELOPMENT FUND 15,19
Beginning Balance 1,505,460.97 772,496.87
Add (Less):
Provisions 711,702.04 534,336.10
Deductions (134,754.75) 198,628.00
Ending Balance 2,082,408.26 1,505,460.97
OPTIONAL FUND 15,19
Beginning Balance 3,977,987.17 2,731,202.95
Add (Less):
Provisions 1,660,638.09 1,246,784.23
Additions 2,500,000.01 -
Ending Balance 8,138,625.26 3,977,987.17
TOTAL EQUITY 124,915,245.83 83,815,441.87
See accompanying notes to financial statements.
BENGUET STATE UNIVERSITY MULTI PURPOSE COOPERATIVE
BSU COMPOUND, KM. 5, LA TRINIDAD, BENGUET
CDA REGISTRATION NO. 9520-15000523

NOTES TO FINANCIAL STATEMENTS

As of December 31, 2014 and 2013
(Amounts in Philippine Pesos)
1. GENERAL INFORMATION

The BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE was formed as a cooperative pursuant to
Republic Act. 9520 and 6938 and duly registered with the office of the Cooperative Development Authority on
September 16, 1999 and re-registered with the office of the Cooperative Development Authority on October 13,
2009, the primary purpose of which is: to engage in economic activities such as Capital formation, granting of
loans for productive and providential purposes to members, and other human endeavors that may improve the
social and economic well-being of the members and their families, to undertake agricultural and/or industrial
production purposes; to engage in agri-business ventures like farm input trading, marketing and importation of
farm machineries/agri-inputs for the use of members; to enter into contracts with government and non-
government entities for the funding and implementation of various infrastructure projects like potable water
systems, irrigation, roads, bridges, building, etc.; to engage in any of the following services: medical, dental care,
commercial space for rent/lease, transportation, housing, market management and consumer store
organization/entities in the promotion and development of cooperatives in carrying out government policies; to
promote the cooperative as a way of life for improving the social and economic well-being of the people; to
undertake other activities for the effective and efficient implementation of the provisions of the Cooperative
Code.

Under RA 9520, the cooperative is exempt from payment of income and sales taxes provided that a substantial
portion of its net income is returned to members in the forms of interest and/or patronage refund.

The Cooperative has CIN-0103150134 and it was last issued a Certificate of Good Standing on April 2, 2013.

The cooperatives area of operation is within the Cordillera Administrative Region and adjoining provinces and
its principal office is located at BSU Main Campus, Km. 5, Balili, La Trinidad, Benguet, with sub-offices at Loo,
Buguias, Benguet and other areas as may be provided for in the Manual of Policies of the Cooperative.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

To facilitate the understanding of the financial statements, the more significant accounting policies and practices
of the Cooperative are summarized as follows:

Basis of Preparation/Partial Adoption of New/Revised Philippine Standards

The financial statements have been prepared in conformity with Financial Reporting Standards applicable to the
Philippine cooperatives.

PAS 1 - Presentation of Financial Statements

Provides framework of financial statements presentation. It requires more specific balance sheet line items (tax
liabilities, provisions, non-current interest bearing note, among others; financial statements must be
comparative; and, has a number of new disclosure requirements. The standard also requires presentation of
comparative information.
PAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The standard is applied in the accounting for, and disclosure of events after balance sheet date.

PAS 10 - Events After Balance Sheet Date

The standard is applied in the accounting for, and disclosures of events after balance sheet date.

PAS 16 - Property, Plant and Equipment

PAS 16 provides additional guidance and clarification on recognition and measurement of property, plant and
equipment; requires capitalization of the costs of asset dismantling, removal or restoration; and requires
measurement of an item of property and equipment acquired in exchange for a non-monetary asset or a
combination of monetary and nonmonetary assets at fair value, unless the exchange transaction lacks
commercial substance. The standard also provides guidelines for derecognition (e.g. disposal).

PAS 19 - Employee Benefits

Prescribes the accounting and disclosure for employee benefits, including short-term benefits (wages, annual
leave, sick leave, annual profit-sharing bonuses, and non-monetary benefits); pensions, post employment life
insurance and medical benefits, other long-term employee benefits (long-service lease, disability, deferred
compensation, long-term profit sharing and bonuses, and equity compensation).

PAS 24 - Related Party Transactions

This standard applies in (a) identifying related party relationships transactions; (b) identifying outstanding
balances between an entity and its related parties; identifying the circumstances in which disclosures to be
made about these items.

PAS 36 - Impairment of Assets

This standard applies in accounting for the impairment of assets other than those covered by separate
standards.

PAS 7 - Cash Flow Statements

Prescribes the provision of information about the historical changes in cash and cash equivalents of an entity by
means of a cash flow statement which classifies cash flows during the period from operating, investing and
financing activities.

PAS 18 - Revenue
Prescribe the accounting treatment for revenue arising from certain types of transaction and events.

PASE 38 - Intangible Assets

Prescribes the accounting treatment for Intangible Assets not dealt with specially in another Standard.

PAS 32, 39 - Financial Instruments

Prescribes the accounting treatment, presentation and disclosure requirements for Financial Instruments.

PAS 40 - Investment Property

Prescribes the accounting treatment and disclosure requirements for Investment Property.

Managements Use of Judgments and Estimates

The financial statements are prepared in conformity with the above-mentioned accounting principles accepted
in the Philippines which requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Those estimates and assumptions used in the
financial statements are based on managements evaluation of relevant facts and circumstances as of date of
the financial statements. Actual results could differ from estimates.
The key estimate/assumptions concerning the future hat have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimated Useful Lives

The useful life of each of the Cooperatives property or equipment is estimated based on the period.

Asset Impairment

PFRS requires that an impairment review be performed when certain impairment indicators are present.
Determining the value of property and equipment, which require the determination of future cash flows
expected to be generated from the continued use and ultimate disposition of such assets, requires to
Cooperative to make estimate and assumptions that can materially affect its statement of assets, liabilities and
stockholders equity. Future events could cause the Cooperative to conclude that the property and equipment
are impaired. Any resulting impairment loss shall be charged to operations.

The carrying amounts of the Cooperatives non-current assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such indication exists, the assets recoverable
amount is estimated.

An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds
its recoverable amount.

Functional and Presentation Currency

Items included in the Cooperatives financial statements are measured using the currency of the primary
economic environment in which the entity operates (the functional currency). The financial statements are
presented in Philippine Peso, which is the Cooperatives functional and presentation currency.

Revenues Recognition
Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow
to the Cooperative and the amount of revenue can be measured reliably. Revenues from transactions of the
Cooperative are recognized on a modified accrual basis.

Cash and Cash Equivalents

Cash includes cash on hand and cash in banks. Cash equivalents are short-term, highly liquid investments that
are readily convertible to known amounts of cash and with original maturities of three months or less and that
are subject to an insignificant risk of change in value.

Financial Assets Receivables

Receivables, if any, are valued at face value, net of allowance for doubtful accounts and any anticipated
adjustments that will reduce the amount to its estimated realizable value. The allowance for doubtful accounts
is determined after as study of the estimated collectability of the receivable balances and evaluation of such
factors as aging of the accounts, collection expense of the Cooperative in relation to the particular receivable,
past and expected loss experiences and identified doubtful accounts.

Property and Equipment

Property and Equipment are carried at cost less accumulated depreciation and impairment in value.
Depreciation is computed using the straight-line method over the estimated useful lives of the properties.
Land Improvements
 Building
Building Improvements
Office Equipment
Office Furniture and Fixture
Transportation Equipment
Consumer Equipment

Financial Liabilities
Financial liabilities include bank loans, trade and other payables, as well as Interest on Share Capital and
Patronage Refund Payable to the cooperatives members. These are recognized when the Cooperative becomes
a party to the contractual agreements of the instrument. All interest related charges are recognized at
Statement of Operations under the caption Finance Costs.

Trade payables are recognized at their nominal values. Interest on Share Capital and Patronage Refund Payable
are recognized as financial liabilities based on the Cooperatives By laws as well as Cooperative.

Financial liabilities are derecognized from the balance sheet only when the obligations are extinguished either
through discharge, cancellation or expiration.

Costs and Expenses

Costs and expenses, not directly attributable to capitalizable assets or projects, are recognized and charged to
operations as incurred.

Accounting Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the
Philippines requires the Cooperative to make estimates and assumptions that affect the reported amounts on
income, expenses, resources, liabilities and disclosure of contingent resources and liabilities. Actual results
could differ from those estimates.

ACCOUNTS PECULIAR TO COOPERATIVES

The following accounts are peculiar to a Cooperative due to its nature as well as adherence to Cooperative laws,
issued policies, rules and regulations, as well as cooperative principles and practices.

ASSETS
Cash in Cooperative Federation-refers to money deposited in federation which is unrestricted and readily
available when needed. These are treated as cash and other cash equivalents.

Due from Accountable Officers and Employees-refers to total collectibles from shortages and other losses due
from accountable officers and employees that are subject to immediate settlement/sanction. These are
recognized at cost, less allowance for impairment, if any.

Cooperative Development Cost-refers to expenses incurred prior to the actual operations of the cooperative.
These are recognized at cost, subject to amortization for a period not exceeding 3 years.

Other Funds and Deposits-refers to restricted funds set aside for funding of reserves (Statutory and Other
Reserves) established by the cooperative such as retirement, Mutual Benefit and other Funds.

LIABILITIES
Interest on Share Capital Payable-refers to liability of the cooperative to its members for interest on share
capital, which can be determined only at the end of every fiscal year.

Patronage Refund Payable-is the liability of the cooperative to its members and patrons for patronage refund,
which can be determined only at the end of every fiscal year.
Due to Union/Federation (CETF)-is an amount set aside for the educai9on and training fund of an apex
organization, which is 50% of the amount allocated, by the cooperative in accordance with the provision of the
cooperatives by-laws and the cooperative code. The apex organization may either be a federation or union of
which the cooperative is a member.

Revolving Capital Payable-is the deferred payment of interest on share capital and patronage refund whose
payment has been withheld, which should be agreed upon in the General Assembly.

Project Subsidy Fund Payable-Unused portion of the donation/grant for training, salaries & wages.

Mutual Benefit and Other Funds Payable-are funds for special purposes such as members welfare & benefits,
i.e. loan protection, hospitalization, death, scholarship assistance, etc. including KBGF/CGF, provision for
accidents not taken from net income.

EQUITY
Donations/Grants-are amounts received by the cooperative as awards, subsidies, grants, aids and others. This
shall not be available for distribution as interest on share capital and patronage refund, and shall form part of
the members equity of the Statement of Financial Condition.

Statutory Funds-are Mandatory funds established/set up in accordance with Articles 86 and 87 of the
Cooperative Code. They are as follows:

Reserve Fund-amounts set aside annually for the stability of the cooperative and to meet net losses in its
operations. It is equivalent to at least 10% of the net surplus. A corresponding fund should be set up either in
the form of time deposit with local banks or government securities. Only the amount in excess of the paid up
share capital may be used for the expansion and authorized investment of the cooperative as provided for in its
by-laws.

Education and Training Fund-an amount retained by the cooperative out of the mandatory allocation as
stipulated in the cooperatives by-laws.

Community Development Fund-This is computed as at least 3% of cooperatives net surplus. This is used for
projects or activities that will benefit the community where the cooperative operates.

Optional Fund-fund set aside from the net surplus (should not exceed 7% of net surplus) for future use such as
land and building, community developments, etc.

EXPENSES
General Assembly Expenses-expenses incurred in the conduct of regular/special general assembly.

Members Benefits-all expenses incurred for the benefit of the members.

Affiliation Fee-amount incurred to cover membership or registration fees and annual dues to a federation or
union.

Social and Community Service-expenses incurred by the cooperative in its social community involvement
including solicitations and donations to charitable institutions.

Provision for CGF (KBGF)-amount set up for the provision of CDG (KBGF).

Provision for Members Future Benefits-amount set up for future benefit of members, such as pension of
members, etc. not taken from net surplus.
 OTHER ITEMS
Project Subsidy-refers to the amount deducted from Project subsidy fund to subsidize project expenses. This
shall appear in the statement of operation as a contra account to Subsidized Project Expenses.

Donation and Grant Subsidy-refers to an amount deducted from Donations and Grants account to subsidize
depreciation funded by donations and grants.

Optional Fund Subsidy-refers to an amount deducted from Optional Fund to subsidize depreciation funded by
Optional Fund and /or community development expense.

Subsidized Project Expenses-refers to a portion of the Project Subsidy Fund expended for training, salaries and
wages and other activities subsidized by donations and grants.

INCOME TAXES
The Cooperative Code states that a Cooperative transacting business only with its members is exempt from all
government taxes, and therefore cannot apply the PAS for income taxes because of its tax-exempt nature.
However, should the cooperative exceed the limits as set forth in the cooperative code, it will adopt the
accounting standards for income taxes as stated in PAS 12.

INCOME RECOGNITION
As a rule, cooperatives adopt the accrual basis of accounting. However, for credit an other cooperatives,
recognition of revenue is on a modified accrual basis; i.e. interest income, fines, penalties and surcharges shall
be recognized when earned and actually collected. This is so because only interest income, fines, penalties and
surcharges on loans receivable that has been realized (i.e., earned and collected) shall be the basis of the income
available for distribution to its members through interest on share capital and patronage refund.

Also, due to the cash-based income distribution scheme of a cooperative as well as the inherent limitations of
small-scale countryside credit cooperatives, it cannot adopt the effective interest method.

3. MANAGEMENTS SIGNIFICANT ACCOUNTING JUDGMENT AND ESTIMATES

Judgments
The preparation of the Cooperatives financial statements in conformity with Financial Reporting Framework (in
reference to the Generally Accepted Accounting Principles of the Philippines) requires management to make
estimates and assumptions that affect the amounts reported in the Cooperatives financial statements and
accompanying notes. The estimates and assumptions used in the Cooperatives financial statements are based
upon managements evaluation of relevant facts and circumstances as of the date of the Cooperatives financial
statements. Actual results could differ from such estimates, judgments and estimates are continually evaluated
and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstance.

Estimates
In the application of the Cooperatives accounting policies, management is required to make judgments,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current and future periods.
The following represents a summary of the significant estimates and judgments and related impact and
associated risks in the Cooperatives financial statements.

Allowance for Doubtful Accounts

The Cooperative assesses whether objective evidence of impairment exist for receivables and due from related
parties that are individually significant and collectively for receivables that are not individually significant.
Allowance for doubtful accounts is maintained at a level considered adequate to provide for potentially
uncollectible receivables.
There are allowances for doubtful accounts because they are potentially collectible on their historical
collections.

Impairment of Available-for-sale Financial Assets

The Cooperative follows the guidance of PAS 39 in determining when an asset is other-than-temporarily
impaired. This determination requires significant judgment. In making this judgment, the Cooperative
evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its
cost; the financial health of and near-term business outlook of the investee, including factors such as industry
and sector performance, changes in technology and operational and financing cash flow.

If the assumption made regarding the duration that, and extent to which the fair value is less than cost, the
Cooperative would suffer an additional loss in its financial statements, representing the write down of cost at its
fair value.

Estimated Useful Lives of Property, Plant and Equipment

The Cooperative estimates the useful lives of property, plant and equipment based on the period over which the
property, plant and equipment are expected to be available for use. The estimated useful lives of the property,
plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates
due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the
property, plant and equipment. In addition, the estimation of the useful lives of property, plant and equipment
is based on the collective assessment of industry practice, internal technical evaluation and experience with
similar assets. It is possible, however, that future financial performance could be materially affected by changes
in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded
expenses for any period would be affected by changes in these factors and circumstances.

A reduction in the estimated useful lives of the property, plant and equipment would increase the recorded
expenses and decrease the noncurrent assets.
Depreciation is computed on a straight-line method over the estimated useful lives of the assets as follows:
Property and Equipment Estimated useful life in years
Building 25 years
Leasehold Improvements 5-10 years
Furniture and Fixtures 3-5 years
Office Equipment 3-5 years
Motor Vehicle 5 years
The Cooperative assesses the value of the property, plant and equipment which require the determination of
future cash flows expected to be generated from the continued use and ultimate disposition of such assets, and
require the Cooperative to make estimates and assumptions that can materially affect the financial statements.
Future events could cause the Cooperative to conclude that property, plant and equipment and other long-lived
assets are impaired. Any resulting impairment loss could have a material adverse impact on the Cooperatives
financial condition and results of operations.

The preparation of the estimated future cash flows involves significant judgment and estimations. While the
Cooperative believes that its assumptions are appropriate and reasonable, significant changes in these
assumptions may materially affect the Cooperatives assessment of recoverable values and may lead to future
additional impairment charges.
 Revenue Recognition
The Cooperatives revenue recognition policies require the use of estimates and assumptions that may affect the
reported amounts of revenues and receivables. Differences between the amounts initially recognized and
actual settlements are taken up in the accounts upon reconciliation. However, there is no assurance that such
use of estimates may not result to material adjustments in the future periods.

4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Cooperative is exposed to credit, liquidity, and other risks that arise in the normal course of its business. Its
risk and control framework includes a focus on minimizing negative effects on the Cooperatives financial
performance due to unpredictability of financial markets that drives the risks.

Credit Risk
Generally, the maximum credit risk exposure of financial assets is the carrying amount of the financial assets as
shown on the face of the statement of financial condition.

The Cooperative continuously monitors defaults of customers and other counterparties, and incorporate this
information into its credit risk controls. The Cooperatives policy is to deal only with creditworthy
counterparties.

The Cooperatives management considers that all the above financial assets that are not impaired or past due
for each balance sheet dates are of good credit quality.

With respect to trade3 and other receivables, the Cooperative is not exposed to any significant credit risk
exposure to any single counterparty or any group of counterparties having similar characteristics. Based on
historical information about customer default rates management consider the credit quality of trade receivables
that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, money market funds, debenture and derivative financial
instruments is considered negligible, since the counterparties are reputable banks with high quality external
credit ratings.

Liquidity Risks
Liquidity or funding risk is the risk that an entity will incur difficulty in raising funds to meet commitments
associated with financial instruments. Liquidity risk may result from either the inability to sell financial assets
quickly at their fair values; or counterparty failing on repayment of contractual obligation; or inability to
generate cash flows as anticipated.

In order to minimize liquidity risk, the Cooperative maintains sufficient cash and has the availability of funding
through an adequate amount of committed credit facilities.

NOTE 5: CASH AND CASH EQUIVALENTS

This account consists of the following:
2014 2013
Cash on Hand 415,201.52 168,945.55
Revolving Fund 200,000.00 70,000.00
Cash in Banks
Cooperative Bank of Benguet 356,891.84 907,377.63
Cooperative Bank of Benguet-Abatan 3,200,293.82 1,884,934.46
Land Bank of the Philippines 70,353.34 58,190.75
Land Bank of the Philippines 813,661.11 639,691.23
Land Bank of the Philippines-Current(Abatan) 207,418.24 2,464,758.03
 China Bank 66,686,279.48 85,978,341.90
Metro South 1,760,591.56 14,093,269.98
BDO 839,593.38 786,960.10
PNB 133,641.23 -
Metro Bank 14,987.26 -
Cash in Other Cooperatives-NATCCO 3,255,387.36 3,127,946.55
Total Cash and Cash Equivalents 77,954,300.14 110,180,416.18
Cash in banks earn interests at rates based on daily bank deposit rates.

NOTE 6: LOANS RECEIVABLE

This account consists of the following:
2014 2013
Loans Receivable
Current 219,242,399.17 148,521,074.97
Past Due 4,350,121.14 2,270,789.80
Total 223,592,520.31 150,791,864.77
Less: Allowance for Probable Losses (5,885,119.24) (3,105,791.28)
Unearned Interest Income (769,185.63) -
Total Loans Receivable (Net) 216,938,215.44 147,686,073.49

Past Due Ratio 1.95% 1.51%

Allowance for probable losses should be maintained at a level considered adequate to
provide for potential losses on loans and other resources. The allowance is increased by
provision charged to operations and reduced by net write-offs and reversals. The level
of allowance should be set up at the higher of the amount determined based on
management's evaluation of potential losses after consideration of the prevailing
anticipated economic conditions.

NOTE 7: TRADE, NON-TRADE AND OTHER RECEIVABLES

This account consists of the following:
2014 2013
Receivable from Accountable Officers and Employees 131,334.12 134,814.96
Other Receivables 3,338,840.07 3,225,874.14
Receivable from Western Union - 404,887.14
Total 3,470,174.19 3,765,576.24
Less: Allowance for Probable Losses (3,357,258.26) (2,807,286.69)
Total- net 112,915.93 958,289.55
Accounts Receivable 379,239.00 236,490.93
Advances 76,486.80 16,480.00
Total Trade and Other Receivables 568,641.73 1,211,260.48
The fair values of trade and other receivables have not been disclosed as due to their short
term duration, management considers the carrying amounts recognized in the balance
sheet to be reasonable approximation of their fair values.
NOTE 8: INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES
This account consists of the following:
2014 2013
Metro South Cooperative Bank 1,007,431.53 936,666.29
NATCCO 124,975.41 110,972.71
CLIMBS 127,264.69 27,264.69
INVESTMENT PROPERTY - 1,228,000.00
NORLU 108,998.48 100,223.44
PNB 1,000,000.00 1,100,000.00
COCOLIFE 2,500,000.00 2,500,000.00
Cooperative Bank of Benguet 302,706.67 127,706.67
Metro Bank 2,138,622.11 -
Total Long-Term Investments 7,309,998.89 6,130,833.80
Management considers these amounts the fair values of the said investments.

NOTE 9: PROPERTY AND EQUIPMENT

This account consists of the following:
2014 2013
Land and Building 84,881,818.39 28,524,200.11
Less: Accumulated Depreciation (1,304,941.19) (747,307.51)
Building 10,812,393.58 10,612,820.08
Less: Accumulated Depreciation (3,591,558.67) (2,936,223.64)
Building Improvements 931,633.30 262,033.00
Transportation Equipment 1,259,872.35 1,259,872.35
Less: Accumulated Depreciation (734,925.45) (482,951.01)
Office Equipment 708,690.01 653,690.01
Less: Accumulated Depreciation (566,536.46) (414,140.83)
Furnitures and Fixtures 1,408,557.34 1,348,455.59
Less: Accumulated Depreciation (1,238,044.86) (1,161,785.41)
Total Book Value 92,566,958.34 36,918,662.74

NOTE 10: OTHER NON-CURRENT ASSETS

2014 2013
Computerization Costs 665,699.30 499,699.30
Less: Accumulated Depreciation (473,807.16) (375,071.16)
Other Land 8,606,443.00 468,138.50
Assets Acquired in Settlements of Loans 155,659.60 1,483,431.74
Miscellaneous Assets 294,986.71 175,796.71
Less: Accumulated Depreciation (275,759.50) (86,421.64)
Total Other Non-Current Assets 8,973,221.95 2,165,573.45
The carrying values of these assets are believed to be a reasonable approximation.

NOTE 11: DEPOSIT LIABILITIES

This account consists of the following:
2014 2013
Savings Deposits 103,156,000.64 94,356,003.33
Time Deposits 150,266,412.21 109,312,143.46
Total 253,422,412.85 203,668,146.79
NOTE 12: TRADE, NON-TRADE AND OTHER PAYABLES
This account consists of the following:
2014 2013
Loans Payable
Accounts Payable 168,010.30 235,505.00
SSS, PHIC & HDMF Payable 8,313.80 6,473.80
Withholding Tax Payable 17,633.15 14,695.17
Documentary Stamp Tax Payable 668.45 977.37
Insurance Payable 97,522.35 75,347.93
Unearned Income - 225,807.23
Other Payables-Main 482,434.86 318,364.00
Other Payable-Western Union 51,033.00 115,705.00
Other Payable-Alumni 139,000.00 141,000.00
Other Payable-Buyagan 71,000.00 86,000.00
Other Payable- Pico 92,500.00 -
Other Payables-Betag 135,999.96 78,000.00
Total 1,264,115.87 1,297,875.50
The fair values of trade and other payables have not been disclosed as, due to their short
duration, management considers the carrying amounts recognized in the balance sheet to
be a reasonable approximation of their fair values.

NOTE 13: OTHER NONCURRENT LIABILITIES

This account consists of the following:
2014 2013
Mutual Benefit Fund Payable 1,426,677.84 709,436.29
Loan Guarantee Fund 588,078.20 731,191.13
Health Fund Payable 2,996,376.97 521,503.81
Cooperative Guarantee Fund 642,854.66 765,203.37
Total 5,653,987.67 2,727,334.60

NOTE 14: PAID UP SHARE CAPITAL

This account consists of the following:
2014 2013
Paid-up Share Capital-Common 100,499,549.31 64,000,000.00
Paid Up Share Capital-Preferred A 471,918.00
Paid Up Share Capital-Preferred B 3,854,000.00 584,168.68
Total 104,825,467.31 64,584,168.68
This account represents the paid up share capital of the Cooperative for the period
ended. The Authorized share capital is Php. 200,000,000.00 with breakdown as follows:
a. One Hundred Ninety Thousand (190,000) common share with par value of
of Php. 1,000.00 per share.
b. Ten Thousand (100,000) preferred shares with par value of Php. 100.00 per share.

NOTE 15: STATUTORY FUNDS

This account consists of the following:
2014 2013
Reserve Fund 8,407,166.49 8,534,826.36
Education and Training Fund - Local 1,461,578.52 1,423,182.86
 Community Development Fund 2,082,408.26 1,505,460.97
Optional Fund 8,138,625.26 3,977,987.17
Total Statutory Funds 20,089,778.53 15,441,457.36

NOTE 16: INCOME FROM CREDIT OPERATIONS

2014 2013
Interest Income from Loans 26,452,408.56 21049043.93
Filing Fees 9,898,933.67 6,872,176.83
Fines, Penalties and Penalties 1,311,493.31 829,324.58
Total 37,662,835.54 28,750,545.34

NOTE 17: INCOME FROM LEASING OPERATIONS

2014 2013
Transport Service Income 98,970.67 74,778.44
Rent Income 4,054,078.66 3,596,731.50
Total 4,153,049.33 3,671,509.94

NOTE 18: OTHER INCOME

2014 2013
Income/Interest from Investment/Deposits 1,950,642.59 1,026,461.98
Membership Fee 112,400.00 95,800.00
Miscellaneous Fee - 217,312.45
Total 2,063,042.59 1,339,574.43

NOTE 19: EXPENSES

2014 2013
Financing Costs
Interest Expense on Deposits 1,359,248.49 1,272,724.75
Interest Expense on Time Deposits 6,152,536.82 4,282,820.76
Interest Expense on Borrowings 17,459.53 1,595,300.88
Other Financing Costs 32,302.82 11,746.64
Total Financing Costs 7,561,547.66 7,162,593.03
Administrative Costs
Salaries and Wages 2,225,729.28 1,508,782.82
Employees' Benefits 185,888.52 206,334.58
SSS/ ECC/ Philhealth, Pag-ibig Contributions 157,795.00 114,835.30
Officers' Honorarium and
215,000.00
Allowances 383,150.00
Retirement Benefit Expense 363,183.72 360,850.39
Office Supplies 327,671.57 258,399.16
Power, Light and Water 118,252.61 80,882.82
Travel and Transportation 597,573.81 222,073.47
Members' Benefit 802,748.25 240,000.00
Repairs and Maintenance 204,496.69 87,302.92
Taxes, Fees and Charges 24,882.61 50,789.57
Communication Expense 68,745.75 46,936.50
General Assembly Expense 499,224.75 204,292.00
Meetings and Conferences 1,616,586.98 1,238,432.11
 Periodicals, Magazines & Subscriptions 3,059.00 3,098.00
Collection Expense 441,564.24 372,829.63
Insurance Expense 24,090.00 25,364.86
Social Services Expense 28,980.00 24,000.00
Advertising and Promotion 18,948.00 12,444.00
Rental 35,500.00 37,500.00
Representation 115,296.15 86,633.21
General Support Services 633,268.32 644,653.55
Depreciation and Amortization 2,874,530.38 1,673,461.19
Provision for Probable Losses on
541,666.70
Loan 499,999.96
Provision for CDF/KBGF 437,813.53 368,502.61
Miscellaneous Expenses 31,482.63 36,284.80
Total Administrative Costs 12,593,978.49 8,787,833.45
Total Expenses 20,155,526.15 15,950,426.48

NOTE 20. ALLOCATION AND DISTRIBUTION OF NET SURPLUS

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

a. General Reserve Fund ten percent (10%) of the net surplus which shall be used for the stability of
the cooperative and to meet future net losses in its operations.

b. Education and Training Fund ten percent (10%) of the net surplus; half of this amount is credited
to the education and training fund which may be spent by the cooperative for education and training and
other educational purposes; while the other half is credited as payable to APEX.

c. Community Development Fund three percent (3%) of net surplus which shall be used for projects or
activities that will benefit the area of operation of the cooperative.

d. Optional fund computed at seven percent (7%) percent of the cooperatives net surplus. This is set
aside for land and building, Retirement Benefit fund of Management Staff, etc.

e. Interest on Share Capital and Patronage Refunds the remaining net surplus is distributed to the
cooperatives members/shareholders in the form of interest not to exceed the normal rate of return on
investments and patronage refunds. Interest on Share Capital shall be allocated in proportion to the
individual members monthly average share, while patronage refund is divided according to their
individual patronage.

NOTE 21: EVENTS AFTER BALANCE SHEET DATE

There were no events after balance sheet date that would require a disclosure or adjustment on the financial
statements of the Cooperative.

NOTE 22: AUTHORIZATION FOR ISSUANCE OF FINANCIAL STATEMENTS

The Cooperatives financial statements were reviewed and authorized for issue by the Board of Directors on their
meeting on February 5, 2015.
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU Compound, La Trinidad, Benguet
CDA Registration No. 9520-15000523

Performance Standards for Credit and Other Types of Cooperatives

with Credit Services in the Philippines
(Rating Sheet)
As of December 31, 2014

Weight Maximum Actual Rating 1/

Raw Score Score

COOP 20%
C 20 20
O 26 25
O 40 40
P 14 14
Total COOP Points 100 99 19.8

PESOS 80%
P 25 25.0
E 20 19.5
S 30 22.0
O 10 10.0
S 15 12.0
Total PESOS Points 100 88.5 70.8

COOP-PESOS Total
(Crating x.20 + Prating x .80)
Raw Score 90.6

Overall Rating (GOOD) 2

Only Credit Service was considered in the computation of PESOS

Equivalent rating of overall actual raw score:

1 96 to 100 -VERY GOOD, Strong performance that consistently provides safe and sound operations
2 90 to 95 - GOOD, Shows satisfactory performance that consistently safe and sound operations
3 80 to 89 - FAIR, flawed to some degree and is of supervisory concern.
4 70 to 79 - POOR, poor performance and is of serious supervisory concern
5 below 70 - VERY POOR, unsatisfactory performance and is in need of remedial attention. Credit
cooperatives in this group have high probability of failure and will likely
require liquidation.
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU COMPOUND, LA TRINIDAD, BENGUET
CDA Registration No. 9520-15000523

ADMINISTRATIVE COMPLIANCE AND MANAGEMENT STRUCTURE (COOP Indicators)

As of December 31, 2014

STANDARD COOP
SCORE SCORE
Compliance with administrative and legal requirements
1. Cooperative Development Authority (CDA) 9 9
2. Bureau of Internal Revenue (BIR) 5 5
3. Local Government Unit (LGU) 1 1
4. Department of Labor and Employment (DOLE) 5 5
Sub-total 20 20

Organizational Structure and Linkages

1. Governance and Membership Participation 15 15
2. Conduct of regular pre-membership education 2 2
3. Affiliation/Linkages 9 8
Sub-total 26 25

Operation and Management

1. Manual of Operational Policies with specific provisions 24 24
2. Board of Directors/Committees 8 8
3. Management 8 8
Sub-total 40 40

Plans and Programs

1. Presence of VMG 7 7
2. Performance Review vis--vis Projections 7 7
Sub-total 14 14

TOTAL (COOP Indicators) 100 99

 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU COMPOUND, LA TRINIDAD, BENGUET
CDA Registration No. 9520-15000523

As of December 31, 2014

Maximum Actual
Score
I. Administrative Compliance and Management Structure Coop
(COOP Indicators)
Compliance with administrative and legal requirements
1. Cooperative Development Authority (CDA) 9 9
a. Updated Bond of Accountable Officers 1 1
b. Registration of amendments, if any 1 1
c. Allocation of Net Surplus 1 1
d. Issuance of Share Capital Certificates 1 1
e. Submission of Annual Report, audited financial statements and
5 5
information sheet within the prescribed period
2. Bureau of Internal Revenue (BIR) 5 5
a. Registration as non-EVAT 1 1
b. Filing of Account Information 1 1
c. Withholding of Appropriate Taxes (includes taxes on honorarium)
1 1
2/
d. Certificate of Tax Exemption 1 1
e. Registration of Books of Accounts 1 1
3. Local Government Unit (LGU) 1 1
a. Business Permit/License 1 1
4. Department of Labor and Employment (DOLE) 5 5
a. Minimum Wage & 13th Month Pay 1 1
b. SSS 1 1
c. Philhealth 1 1
d. HDMF (Pag-ibig) 1 1
e. Retirement Benefits 1 1
Sub-total 20
Organizational Structure and Linkages
1. Governance and Membership Participation 15 15
a. Gender Integration (presence of sex-disaggregated 1 1
data on officers and staff, loan borrowers, depositors
b. Attendance of the majority of members in:
- Annual General Assembly 2 2
- Membership Education/Consultation 2 2
c. Capital Build-up and Savings Mobilization
- 70% of members (regular & associate) 2 2
regularly contribute to share capital
- at least 70% of the total members are depositors 2 2
d. Acceptance of Audited Financial Statements by the GA 2 2
 e. Approval of Development Plan by the General Assembly 2 2
f. Adoption of Proper Procedures for the election of the Board of
Directors 2 2
2. Conduct of regular pre-membership education 2 2
3. Affiliation/Linkages 9 8
3/
a. - Laboratory Cooperative 1 0
- Community Services/Involvement 3 3
b. Participated actively in federation/union 1 1
activities/programs
c. Paid annual dues, CETF, loans and other accounts 1 1
to the federation/union
d. Business alliance with
- federation 1 1
- other cooperatives 1 1
e. Submission of audited Financial Statements using SCA and Annual
1
Report to thefederation/union 1
Sub-total 25
Operation and Management
1. Manual of Operational Policies with specific 24 24
provisions on the following: 10 10
a. Membership 2 2
b. Loaning 4 4
c. Savings/Time Deposits 4 4
d. Financial Management 9 9
- Asset/Liability 2 2
- Accounting 3 3
- Internal Control 4 4
e. Human Resource Development 5 5
- Hiring, Promotion and Firing 1 1
- Staff Development 1 1
- Compensation/Benefits 1 1
- Performance Appraisal 1 1
- Job Description 1 1
2. Board of Directors/Committees 8 8
a. Board composition in accordance with by-laws 2 2
b. Meetings of the Directors 1 1
c. Meetings of the Committees 1 1
d. Periodic Review of Policies 2 2
e. Updated Minutes of Meetings 1 1
f. Updated Committee Reports 1 1
 3. Management 8 8
a. Full-time qualified manager 3 3
b. Policy on succession of manager and other top 3 3
positions
c. Personnel File 1 1
d. Organizational Structure 1 1
Sub-total 40
Plans and Programs
1. Presence of 7 7
a. Vision, Mission and Goal 1 1
b. Developmental Plan 2 2
c. Approved Annual Plan and Budget 2 2
d. Code of Ethics 2 2
2. Performance Review vis--vis Projections 7 7
Sub-total 14
TOTAL (COOP Indicators) 99
 BENGUET STATE UNIVERSITY MULTI-PURPOSE COOPERATIVE
BSU COMPOUND, LA TRINIDAD, BENGUET
CDA Registration No. 9520-15000523

P.E.S.O.S. Financial Ratios

As of December 31, 2014
STANDARDS COOPERATIVE
RATIOS POINTS
PORTFOLIO QUALITY RATIOS (25%)
R1 Portfolio At Risk Ratio 5% or Less 2% 15
R2 Allowance for Probable Loan Losses
(over 12 months) 100% 100% 5
(1-12 months) 35.00% 100% 5

PORTFOLIO QUALITY EQUIVALENT POINTS 25

EFFICIENCY RATIOS (20%)

R3 Asset Yield At least Inflation 7% 4

R4 Operational Self-Sufficiency >100% 187% 4

R5 Rate of Return on Members' Share Higher than inflation rate 12% 4
R6 Loan Portfolio Profitability >20% 21% 4

R7 Cost per Peso Loan Php0-10perP1.00 loan Php0.11 2

R8 Administrative Efficiency 3-10% 4% 2

EFFICIENCY EQUIVALENT POINTS 20
STABILITY RATIOS (30%)
R9 Solvency >110% 108% 8
R10 Liquidity Not less than 15% 23% 10
R11 Net Institutional Capital At least 10% 3% 4
STABILITY EQUIVALENT POINTS 22

OPERATIONS (10%)
R12 Growth in Membership 75-100% 102% 5
R13 Trend in External Borrowings Decreasing to 0% 0% 5
OPERATIONS EQUIVALENT POINTS 10

STRUCTURE OF ASSETS (15%)

R14 Asset Quality Not more than 5% 5% 5
R15 Asset Structure
1 55-65% 63% 5
2 70-80% 54% 1.0
3 35-45% 26% 1
STRUCTURE OF ASSETS EQUIVALENT POINTS 12.0
TOTAL PESOS POINTS 88.5
 P.E.S.O.S. Financial Ratios
As of December 31, 2014
CDA Registration No. 9520-15000523

COOP STANDARD
COMPUTATION RATIOS RATIOS POINTS
PORTFOLIO QUALITY RATIOS (25%)

R1 Portfolio At Risk Ratio Past Due Loans = 4,350,121 1.95% 5% or Less 15.0
Total Outstanding Loans 223,592,520
R2 Allowance for Probable Loan Losses
(over 12 months) Loan Loss Reserve / = 428,436 100% 100% 5
Total Oustanding Loans Over 12 months 428,436
(1-12 months) Loan Loss Reserve / = 3,921,686 100% 35.00% 5.0
Total Oustanding Loans 1 - 12 months 3,921,686

PORTFOLIO QUALITY EQUIVALENT POINTS 25.0

EFFICIENCY RATIOS (20%)

R3 Asset Yield Undivided Net Surplus = 23,723,401 7% At least Inflation 4.0

Average Total Assets 354,760,975 Rate

R4 Operational Self-Sufficiency Int. on Loans+SF+FCF+Fines = 37,662,836 187% >120% 4.0

Financing Cost+Admin Cost 20,155,526
R5 Rate of Return on Members' Share Interest on Share Capital = 9,963,829 12% Higher than 4.0
Average Share Capital 86,599,726 Inflation Rate
R6 Loan Portfolio Profitability Interest On Loans+FCF+Fines = 37,662,836 21% >20% 4.00
Average Total Outstanding Loans 182,312,144

R7 Cost per Peso Loan Fin. Cost+(Admin Cost-Members' Benefit) = 19,352,778 Php0.11 Php 0-.10 per 1.5
Average Total Outstanding Loans 182,312,144 Php 1.00 loan

R8 Administrative Efficiency Administrative Cost = 12,593,978 4% 3-10% 2.0

Average Total Asset 354,760,975

EFFICIENCY EQUIVALENT POINTS 19.5

 P.E.S.O.S. Financial Ratios
As of December 31, 2014
CDA Registration No. 9520-15000523

COOP STANDARD
COMPUTATION RATIOS RATIOS POINTS

STABILITY RATIOS (30%)

R9 Solvency (Asset+Allowance)-(Total Liabilities-Dep. 108% >110% 8

+PD Loans+Restructured+Loans under

Litigation) = 383,999,100.68
Deposit + Share Capital 353,921,962
R10 Liquidity Liquid Assets - Short Term Payables = 58,636,402 23% Not less than 10.0
Total Deposits 253,422,413 15%
R11 Net Institutional Capital (Reserves+Allowance)-PD+Problem Asset = 10,598,434 3% at Least 10% 4.0
Total Assets 404,594,840

STABILITY EQUIVALENT POINTS 22.0

OPERATIONS (10%)

R12 Growth in Membership Actual Increase in Membership = 1,020 102% 75-100% 5.0
Target Increase in Membership 1,000
R13 Trend in External Borrowings Net Increase(Decrease) in External Borrowing = 0 0% Decreasing 5.0
Beg. External Borrowings 0 towards Zero
OPERATIONS EQUIVALENT POINTS 10.0
STRUCTURE OF ASSETS (15%)

R14 Asset Quality Non-Earning Assets = 18,460,615 5% Not more than 5.0
Total Assets 404,594,840 5.00%
R15 Asset Structure

1 Total Deposits = 253,422,413 63% 55-65% 5

Total Assets 404,594,840
2 Net Loans Receivable = 216,938,215 54% 70-80% 1.0
Total Assets 404,594,840
3 Total Members' Share Capital = 104,825,467 26% 35-45% 1.0
Total Assets 404,594,840

STRUCTURE OF ASSETS EQUIVALENT POINTS 12.0

TOTAL PESOS POINTS 88.5