October 16, 2021

Structure of Co-operatives Co-operatives Co-operatives are legally registered bodies, in many countries there is a Co-operative Act governed by the National Registrar of Co-operatives, or similar, or they are under the guidance of the government’s business registration body.  Co-operatives are commercial trading organisations; they have limited liability which means that the co-operative, and not the individual members, is liable for any debt.  Co-operatives differ from private business in who the shareholder is, the amount of votes each shareholder has and how profits are distributed.  Shareholders in co-operatives are individuals or other registered co-operatives; they are trading partners, either as an individual or as another registered co-operative. They are called members, who own and control the co-operative.  Each member has one share that carries one vote in any decision making.  Voting is based on one member one vote – regardless of the amount of share value held.  Members invest in the co-operative by purchasing a share, the amount invested and the interest paid will be decided by each co-operative.  Net profits are distributed according to the rules, most co-operatives retain about 25% to 35% that is paid into a reserve fund and the remainder is distributed as dividends to members in proportion to the amount of trade each member has transacted with the co-operative in the year the profit was made and for social and environmental purposes.  There is a definition of a primary co-operative and a secondary co-operative:  The members of a primary co-operative are individual traders and customers  The members of a secondary co-operative are primary co-operatives  One sort of co-operative is the Savings and Loans Co-operative. This co-operative trades in money; it receives savings from members and lends funds to members against the amount saved. Eligibility for membership is based on living or working in a defined geographical area – individuals and other co-operatives can be members of a Savings and Loans Co-operative Society.  When a Co-operative registers itself it does so using a model set of Rules (By-Laws) to which it adds the details of who can be members; the main social and commercial objectives; and the commercial activities it will undertake. How Co-operatives are managed Management structures vary depending on the size of the co-operative: below is a generic diagram for a small to medium sized co-operative using an organisational structure that can be found across Europe, Africa, Asia, the South Pacific and the Caribbean; and to a lesser extent the Americas. In many countries enterprise size is defined as:  Micro: 0 to 5 employees  Small: 6 to 10 employees  Medium: 11 to 50 employees  Large: 51+ employees Members  Members are defined in the Co-operative Rules: they are usually traders and customers who they sell goods to, and buy from, the co-operative.  Sometime members are defined as community citizens, employees and anyone else the co-operative wishes to be members.  Membership is voluntary: no one has to be a member.  Members elect, from the membership, individuals who wish to be Management Committee members. The Management Committee  Any member can be elected onto the Management Committee.  Election is for a two year period after which they have to stand down; but they can stand for re-election for the next period.  It is suggested that the Management Committee should meet, at least, every two months and is responsible for the overall management of the co-operative, strategic planning, investment decisions, governance and managing the manager. The Manager  The manager is recruited and supervised by the Management Committee and reports to that body for his/her actions.  The manager manages the day to day operations of the co-operative and is responsible for financial accounting and all work carried out by the employees.  The manager can be a member of the co-operative. The Employees  Employees are recruited by the manager and are supervised by him/her in their work.  Employees can be members of the co-operative.  

Co-operative Accounting and Audit Toolkit Introduction This Co-op Accounting and Audit Toolkit provides a simple method for identifying, collecting, recording, analyzing and reporting on performance for small scale co-operatives. Co-operatives are owned and controlled by their members and members are individuals, families and other co-operatives who trade with the co-operative. Members receive dividends from the net profit and have a vote in general meetings about any issues that are raised. The impact co-operatives have on their local communities and local economy is far greater than that of private business. Because the members receive the bulk of net profits it is much more widely distributed than the profits from a private business that are just distributed to a few people and often not spent locally. The multiplier effect of profits being distributed by co-operatives to local members/residents means that the impact a co-operative has is felt more acutely than a private business that is why co-operatives should measure and account for their impact more rigorously. The Co-op Accounting and Audit has been designed as a ‘light touch’ approach to what can sometimes be a complex and complicated process for members of small scale co-operatives and provides a way of engaging members more fully in the affairs of the co-operative. All co-operatives should have a Co-operative Business Plan describing what the co-operative does, how it is managed and what the plans are for the future. Co-op Accounting and Audit will measure against this plan. For further information on how to develop your business plan please see our Co-operative Management and Planning Toolkit1 or see your local National Registrar of Co-operatives in the country for advice they should also be able to assist you with developing the plan. The Co-op Accounting and Audit method uses a poster on which all the information is displayed and where progress is written up as it happens. This enables members to write in their thoughts, comments and ideas about the co-operative and how it might be improved. The Co-op Accounting and Audit poster is a tool to use in creating good governance – openness is a key operational principle for good governance. The poster is a way of starting to gather data on a regular and systematic basis, which can be extended over time. Most of the data is already known and most is already collected, however it is often recorded in different forms and can be difficult to bring it all together. The poster is designed to be a single record of the relevant information to help the management and members of co-operatives understand what the plans are for the year and how the co-operative is performing in relation to the plans. Triple Bottom Line The triple bottom line is described using different terminology by different business sectors and agencies; however there are three core elements in common. Social Audit uses the heading commercial, social, and environmental; the UN uses profit, people, and planet; and in this Toolkit the headings of Strong Co-operatives, Strong People, and Strong Communities are used. These headings fundamentally underpin the same inclusive approach, where the interdependence of the parts combine in creating a more responsible and sustainable system of organisational performance and measurement. Co-operatives need to be able to plan and manage these three key parts of a good organisation. Commercial functions need to be profitable but also of good and honest quality; social wealth needs to be developed through common ownership and the members and employees participating in the co-operative, and the opportunities the co-operative provides; and, community and environmental responsibility should be a result of the way the co-operative looks to mitigate their environmental cost to society in the way they operate their processes, package and transport goods, and produce and use energy, and in the effects on the community as a result of the co-operatives’ actions. Co-operative Accounting and Audit is designed to bring together the three dimensions of performance, the triple bottom line, that combine to form best operational practice and good governance: financial, social and environmental, and which provide the foundation for self-assessment. For a fuller description of the triple bottom line please go to Annex 1. Finance Private sector businesses report to their shareholders on their financial performance. Co-operatives report to their members on their financial performance but also need to report on the achievement of social and environmental plans. Shareholders are often removed from the businesses and are unaffected by operational performance, while members of co-operatives are intimately associated with the operations of their co-operatives and as local residents are affected by their impact. It is suggested that the Co-op Accounting and Audit is used at the same time as the financial audit; providing a full picture of performance. The financial audit provides information relevant for shareholders, while social accounting and audit provides information relevant for society.

Application of ICT in Everyday Life ICTs have become a way of life in the present day world. We are using various ICTs in our day-to-day life for reading e-newspapers, e-magazines and e-books, online shopping, paying bills for food, using mobile apps, getting online appointments from doctors and so on. Application of ICT in Education a. Teaching, Learning and Assessment: ICT finds presence and expression in almost all the functions of the schools, such as admission, time table, classroom instruction, evaluation, laboratory management, learning resources management, examination and certification. It is also being used for office automation. E‑resources like websites, e-books, e-newsletters, Open Educational Resources (OERs), etc., are used by most of the schools. b. Inclusive Education: ICT is used for catering to the educational needs of every section of the society, including children with special needs. Various assistive devices and technologies are being developed which play an important role in fulfilling the specific needs of these children. For example, talking books, talk back feature of mobile phones, GPS inbuilt walking sticks, etc., are making substantial changes in people’s lives. 3. Application of ICT in Art: Creative construction and connection are being done in various domains with the advent of ICT. Creative composition, compilation and communication can be done quickly by compatible ICTs. The role of ICT is vital in disseminating various art forms popular in one area to another. The appreciation of Art and Culture gained popularity through ICT. ICT has made it possible to showcase the creative works to the larger audience. Application of ICT in Science and Technology a. Health: The use of ICT in surgeries has made them less invasive, highly precise and automated. Due to this the recovery time has reduced many folds. Robotic technology has got a positive impact on present medical sciences. Now‑a‑days distance is not a constraint for any complicated medical intervention to be done jointly by doctors located at different places through networking. b. Telecommunication: The field of Information Technology has seen a lot of advancement with the help of ICT. The satellite communication has advanced a lot and reached a number of people belonging to different setups. Low‑cost smartphones and very cost‑effective services have made the availability of these to almost everybody in the society. App based services available in different areas have made people’s life easy. c. Agriculture and Natural Resources: Frequent and almost accurate weather updates have revolutionised the agriculture sector. Early prediction of rains or other weather conditions by Metrological Department has equipped the farmers in getting better yield. The sustainable use of natural resources has also become possible due to ICT integration; now it is possible to locate the oil wells, coal mines, etc., with the help of satellite technology. Application of ICT in Business Transportation ICT is used very effectively in the area of transportation. The GPS system is installed in vehicles, to provide security and easy navigation to the commuters. Airplanes and trains use RADAR systems for their control and path finding. Application-based services have revolutionised the experience of transport system by their users. Online reservations of flights, trains, buses and other services have further made our lives easier. a. Marketing: Online marketing through various websites and mobile applications is very popular in today’s world. People find them useful and hassle free. They are not only cost effective but also saves a lot of time and effort of the people. The online sales and services have generated a new type of employment, which require very less investment at the source. b. Tourism: Various online hotel booking systems have provided a great experience to the users. With the advancement of ICT even checking the overall scenario of a place before planning a visit has become feasible. Also, online payment facilities have simplified the travel experience. 6. Application of ICT in Administration a. Public Safety and Security: Deployment of ICT makes it possible for the police departments to collect, store and rapidly disseminate the information to enhance public safety. ICT can also be used for the identification of criminals by tracing their digital footprints. b. e-Governance and Public Administration: e-Governance is generally understood as the use of Information and Communication Technology (ICT) at all the level of the Government in order to provide services to the citizens, interaction with business enterprises and communication and exchange of information between different agencies of the Government in a speedy, convenient efficient and transparent manner.