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.