COOPERATIVE DEVELOPMENT ADMINISTRATION

LEGAL BASIS: Law No. 89 of June 21, 1966, as amended, creates the Cooperative Development Administration. Reorganization Plan No. 4 of June 22, 1994, creates the Department of the Economic Development and Commerce and includes the Administration as an operating component.

MISSION: Aid in the social and economic development of Puerto Rico through the promotion and participation in cooperative activities.

ORGANIZATIONAL STRUCTURE:

The Cooperative Development Administration is attached to the Department of Economic Development and Commerce and has the following offices:

GEOGRAPHICAL STRUCTURE:

The Cooperative Development Administration has Regional Offices located in:

PROGRAM STRUCTURE:

The Cooperative Development Administration has the following program:

SUMMARY OF AVAILABLE AGENCY RESOURCES

CONSOLIDATED BUDGET

(In thousands of dollars)

Program

1997

1998

1999

2000

Operating Expenditures

Expended

Expended

Current

Recommended

Promotion and Development of the Cooperative Movement

2,740

2,665

2,791

2,769

Subtotal, Operating Expenditures

2,740

2,665

2,791

2,769

Total, Consolidated Budget

2,740

2,665

2,791

2,769

Revenues by Source

Operating Expenditures

Joint Resolution General Budget

2,731

2,656

2,766

2,753

State Funds

9

9

25

16

Total, Revenues

2,740

2,665

2,791

2,769

Operating Budget by Concept

Payroll and Related Costs

2,140

2,068

2,174

2,174

Facilities and Public Service Payments

467

496

503

494

Subcontracted Services

30

8

20

16

Donations, Subsidies, and Distributions

0

0

0

4

Transportation Costs

59

56

55

55

Information Systems

0

0

1

1

Other Expenditures

44

37

38

25

Total, Operating Expenditures

2,740

2,665

2,791

2,769

Filled and Proposed Positions

Total Amount of Positions

112

105

98

105

Average Cost per Position (in thousands)

19

20

22

21

ADDITIONAL STATISTICAL DATA (In dollars)

Concept

1997

1998

1999

2000

Publicity Expenses

1,000

0

0

2,000

Training Expenses

15,000

17,000

0

10,000

PROGRAM

PROGRAM: Promotion and Development of the Cooperative Movement

Description of the Program: This program is responsible for rendering the necessary aid and services in order to ease the set up process of cooperatives and improve the development and performance of the ones already in existence. In this manner, the educational, promotional, and developmental work of the cooperative movement is exercised.

Purpose: Promote and develop the set up for cooperative movements in different sectors of the economy.

Goal:

Clients: The cooperative movement, as a consumer as well as an investor and provider of befitting results to community problems, makes up an important element in the economic social and democratic development effort of our society, considered as a genuine alternative to may of our social-economic problems. This program attends to a total of 296 cooperatives and 40 cooperatives groups . Out of which, 163 belong to the Cooperative of Savings and Credit (Law No. 6 of January 15, 1990, of Savings and Credit Cooperative Partnerships) and 133 to diverse types (Law No. 50 of August 4, 1994-General Law of Cooperative Partnerships).

Type of Clients

1997

1998

1999

2000

Potential

317

324

369

336

Serviced

317

324

369

336

ACTIVITIES:

Activity: Guidance to groups interested in the cooperative set up process

Objective of the Activity: Offer 275 guidelines including the creation of cooperative philosophy and postulates educational and promotional material, where the minimum requirements to incorporate a cooperative, set up and operational tasks, and other general elements of cooperatives are noted, through this program's new strategies framed by the New Economic Development Model.

Summary of Indicators:

Indicators and Unit

1997

1998

% of change

1999

2000

% of change

Input Indicator: (In thousands $) Activity budget

190

209

10

193

195

1

Output Indicator: (Units) Guidances offered

280

290

4

280

275

(2)

Efficiency Indicator: ($) Cost per guidance offered

679

721

6

689

709

3

Effectiveness Indicator: (Percent) Guidances offered

100

100

0

97

98

1

Comments / Trend Explanations:

The production indicator presents a 2% minimum reduction in the 2000 projection, this is because they have proposed to evaluate the agency's economical and the human resources; to reassign input, according to current program's necessities, as written in the New Model of Economic Development and the laws that run the cooperative movement.

Activity: Education and Capability Services to Cooperative Groups Information, Cooperative's Employees and Directorate Body.

Objective of the Activity: Offer 150 training and seminar workshops in cooperative education covering the following services: cooperative legislation, tasks, duties and responsibilities, merger requirements, auditing reports from the Cooperative Inspector's and the PROSAD COOP, preparation of assemblies, parliamentary procedures, borrowing rules, drafting of quarterly management reports and work plans.

Summary of Indicators:

Indicators and Unit

1997

1998

% of change

1999

2000

% of change

Input Indicator: (In thousands $) Activity budget

143

158

10

387

390

.8

Output Indicator: (Units) Offered Training

171

173

1

170

150

(12)

Efficiency Indicator: ($) Cost per Offered Training

836

913

9

2,276

2,600

14

Effectiveness Indicator: (Percent) Offered Training

100

100

0

98

88

(10)

Comments / Trend Explanations:

For the 2000 a reduction a 12% in activity corresponding to Educative Services is observed. This responds to reduction of clients, and to cooperative legislation directly the Law no. 50 of August 4, 1994-General Law of Cooperative Partnerships, that provides mechanism expedite organizational process of cooperatives permitting some cases to obviate our intervention.

Activity: Follow-up visits to cooperative groups in set up process, and cooperatives

Objetive of the Activity: Make 300 follow-up visits to cooperative groups in set up process to provide continuation services of the work started in areas referring to financial statement organization, administrative phases, and affairs related to the Cooperative Inspector's Office. For the already settled cooperatives, follow-up visits are made so that their administration may assume corrective measures in those needed areas.

Summary of Indicators:

Indicators and Unit

1997

1998

% of change

1999

2000

% of change

Input Indicator: (In thousands $) Activity budget

237

262

11

580

586

1

Output Indicator: (Units) Visits made

365

375

3

310

300

(3)

Efficiency Indicator: ($) Cost per visit made

649

699

8

1,871

1,953

4

Effectiveness Indicator: (Percent) Visits made

100

100

0

83

97

17

Comments / Trend Explanations:

The 2000 projection show reduction of 3% in follow up visits caused by credit and savings cooperative sector decrease. This reduction is caused in by 30 cooperatives have abdicated their juridical personality merging into other cooperatives. These merges respond to a normal process inside the market trends that obeys to deregulation of financial markets to fortify the economy of the institution and to provide a place of equally with the competence.

AVAILABLE AND PROPOSED PROGRAM RESOURCES

Human Resources

Positions Filled

12/92

3/94

9/94

9/95

9/96

9/97

9/98

9/99

Managerial and Administrative Personnel

15

15

15

15

15

15

15

15

Specialists, Promotion Officials, and Agronomits

41

40

40

40

41

34

27

34

Other Personnel

66

65

65

64

56

56

56

56

Total Positions Filled

122

120

120

119

112

105

98

105

Program Budget – Refer to the previous "Consolidated Budget" chart; it contains the same information.

Recommended Budget 2000: The recommended budget for the 2000 is appropriate for fulfill with programmatic commitments of promote and encourage cooperative organization, offer educational services and assistance in cooperatives. In addition, promote youthful cooperative organizations at student level, and communal to induce teachers, advisors, director scholastic and cooperative leaders active participation in promotion and operation. Also, obtain organization of cooperatives of work (industrialists), housing and other services.