Midterm: #4 Net surplus

• NET SURPLUS

  • The net surplus shall not be construed as  profit but an excess of payments made by the  members for the loans borrowed or goods and  services availed by them and which shall be  deemed to have been returned to them if the  same is distributed as prescribed herein.
• Every cooperative shall determine its net  surplus at the close of every fiscal year.
• Reserve Fund

  at least 10% of net surplus.  Provided, That, in the first 5 years of operation after  registration, this amount shall not be less than 50%  of the net surplus.
• Education and Training Fund

  shall not be more  than 10% of the net surplus.
• Community Development Fund

  shall not be less  than 3% of the net surplus.
• Optional Fund (Land and Building)

  shall not  exceed 7% of the net surplus.
• The remaining net surplus shall be made available  to the members in the form of

  • Interest on share capital
  • Patronage refund