UM TAGUM EMPLOYEES MULTI-PURPOSE COOPERATIVE

UMTC Compound, Mabini St., Tagum City, Davao del Norte /655-6412

MINUTES OF MEETING

(February 21, 2018)

Present:

Chief Audit Executive: John Emmanuel Pondoc

Secretary: Silver Jun Cirpo

Members: Judy Palas

Vian Rey Ilagan

Rodman Pielago

April Rose Viasada

Jaycent Vicada

Doreen Jean Mabaso

Ivan Lee Saligan

Alvin Varquez

Rhislee Pabriga

The Meeting started at 3:30 pm held in front of room 11. The CAE John Emmanuel
Pondoc presented the agendum to the members of the audit committee.

 Create an audit charter.

Ms. Judy Palas accepted the agenda and proceed to the meeting proper.

Mr. Ilagan said that: “We should have a mission that will be a guideline to our audit. I
have a format sample of the audit charter. Let’s just copy some of the content on the
sample and edit the unnecessary contents.”

Mr. Pondoc agreed on Mr. Ilagan’s proposition and said, “We should include in the
audit charter the possible risks that would come up in our audit reports.”

Ms. Mabaso said that: “In the approval of the audit charter, we should know the person
in charge and will be the one to approve the charter.”
 UM TAGUM EMPLOYEES MULTI-PURPOSE COOPERATIVE
UMTC Compound, Mabini St., Tagum City, Davao del Norte /655-6412

Mr. Cirpo said that: “Mr. Marck Lester L. Navales will act as a CEO, being the manager
of the cooperative. As the secretary of this committee, I will be the one to finalize the
audit charter and I will give it to the CAE for some corrections.”

The following alterations are made:

 The name of the Cooperative “UM TEMPCO” was added.

 The following contents were added

o ROLE & SCOPE OF WORK:

 “The scope of work of the Internal Audit department is to
determine whether UM TEMPCO’s system of risk management,
control and governance processes, as designed and represented
by managements, is adequate and functioning in a manner to
ensure that:

 Risks are appropriately identified and managed,

 Control processes and risk management activities are
effective and continually reviewed to determine need for
improvement,
 Significant financial, management and operating
information is accurate, reliable and timely,
 Employees’ actions are in compliance with policies,
standards, procedures and applicable laws and
regulations,
 Resources are acquired economically, used efficiently
and adequately protected, and
 Significant legislative or regulatory issues impacting the
organization are recognized and addressed
appropriately.“

o INTERNAL AUDIT PLAN:

 “At least annually, the Chief Audit Executive will submit to senior
management and the Board an internal audit plan for review and
approval. The internal audit plan will consist of a work schedule
as well as budget and resource requirements for the next
fiscal/calendar year. The Chief Audit Executive will communicate
the impact of resource limitations and significant interim
changes to senior management and the Board.
 UM TAGUM EMPLOYEES MULTI-PURPOSE COOPERATIVE
UMTC Compound, Mabini St., Tagum City, Davao del Norte /655-6412

The internal audit plan will be developed based on a

prioritization of the audit universe using a risk-based
methodology, including input of senior management and the
Board. The Chief Audit Executive will review and adjust the plan,
as necessary, in response to changes in the organization’s
business, risks, operations, programs, systems, and controls.
Any significant deviation from the approved internal audit plan
will be communicated to senior management and the Board
through periodic activity reports.”

 And the following contents were omitted:

o Introduction
o Authority
o Organization

Mr. Pondoc asked the members for the settlement and adjournment of the meeting.

Mr. Saligan moved for the settlement and adjournment of the meeting and seconded
by Mr. Vicada.

As there are no other matters to be discussed, the meeting was adjourned at 3:59 pm.

Prepared by:

SILVER JUN CIRPO

Secretary

Approved by:

JOHN EMMANUEL PONDOC

Chief Audit Executive