SORECO II’s Financial Performance


It would be interesting to know if Soreco II is not part of the list in this article. From my understand, there was a point in time that the said cooperative was in debt.

Can somebody share some information of the financial situation of SORECO II?

Dios Mabalos!

 

 

 

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This entry was posted in Point of View of a Sorsoganon, Utilities and tagged . Bookmark the permalink.

2 Responses to SORECO II’s Financial Performance

  1. Anonymous Sorsoganon says:

    if somebody should check this website from NEA – http://www.nea.gov.ph/index.php/downloads/ec-statistics/financial-a-statistical-data/category/15-annual, there’s no records for SORECO II for 2011. And for 2010, there was a loss of PHP18M.

    FInally, on 2009, there was a loss also of PHP25.4M! I didn’t check the rest, it will just ruin my day.

    If it’s any consolation, Albay is under threat of getting disconnected from the Luzon grid. At least Soreco II is not on the list yet…. Not yet…

  2. alberto e. dimaano says:

    IF SORECO II IS INDEED LOSING, WHERE DID THE MONEY GO?
    I am in disbelief why SORECO II is/or has been submerged in debt. This is the very reason therefore why it could not meet its financial obligation to suppliers and service providers—hence, bankruptcy is in the offing. Operating at a loss should not be the case because the electric coop business is just a “reimbursement-type” kind of business, i.e. Coop charges to member-consumers what are actually spent or projected to be spent (based on approved annual budget) for cost of power purchased, non-power cost (production overhead) and coop admin overhead expenses plus the 12% VAT. Of course the manner by which the breakdown of billing is presented in the statement of account or billing statement must be in accordance with the coop regulatory agency –NEA?
    For sure by strictly following the foregoing, the Coop Cash flow and the Profit and Loss Statement would show a break-even result of operation or no excess or deficit cash. This is the proper way of charging the member- consumers since the coop is a non-stock non-profit corp. I have no idea yet about the electricity coop charter but I agree that coop should not make money out of this business as the proprietors here are the member-consumers therefore the coop should not make money at their expense. Right?
    Why SORECO operation has been on the red or deficit?
    1. Inefficiency. The management could not even provide up-to-date financial statements with which the board of directors and management could base their decisions/actions on a timely manner, the latest reports displayed, sans balance sheet —where we could possibly see and know the financial condition or status of the Coop–, on SORECO II website was just November 2014. My God, we’re almost in the second half of year 2016 and no financial reports yet? Based on the said simple financial report, which showed very limited information, SORECO II incurred a Net Margin Loss of P18.86 million from its 9 months of operation in 2014. And unbelievably, SORECO II reported an enormous amount of accounts payable to PSALM and PNGCP of Php544.612M and Php3.323M, respectively. Why did SORECO II incur these payables? How can the coop pay this if its collectibles as of the above mentioned date was just Php77. 07K. I don’t have an idea on the remaining inventory. Probably it could settle its obligations if the Coop has an available cash of half a billion (Php 500M) in its coffer as of November 2014. The problem is it has no information on its available cash balance. But, I doubt if it has.
    I urge the member-consumers to insist on the submission of the latest audited financial statements. They have no reason why they could not comply with these mandatory reports, SORECO employs 307 employees (because of political accommodations?) bigger than other Bicol Region’s properly managed Electric Coop which has 91,291 served connections compared to SORECO II’s 70,715 only. In addition, ask also for the yearly approved budget submitted to the member-consumers during the annual/general assembly meeting, together with the employees’ table of organizational report in support of the salaries & wages and other salary tied expenses which are quite big. As far as I know hiring employees not in the approved budget or plantilla is not proper or legal hence, subject to a lot of explaining by the GM. Likewise, ask the general manager and its accountant this very simple question: where did they bring or spend the money. There must be a complete aid detailed accounting of cash collected and cash disbursed every year for the member-consumers to know why the coop has been submerged in enormous financial obligations. If the management and BOD ignore the request on the submission of the audited financial statements and just buying time for their promise to submit, anyone of the member-consumer should initiate the filing of charges in court to enforce the submission of reports.
    2. Incompetence. Probably the people running the affairs of the coop have no extensive experience in this kind of electric coop business which is quite complex. The people sitting as BOD and the GM should possess engineering and financial background to efficiency manage the affairs of the business. Have found that some of the BODs are not college graduate and their courses are not business related. What can we expect from them to contribute to the betterment of the coop. we’re not belittling anyone here.

    Note: I am very much concerned about the present condition of our Sorsogon Electric Cooperative, submerged in financial debts, because I am a true blue Sorsoganon presently living in Manila but used to visit my birthplace so often to see my relatives and attend yearly high school reunion. This blogger is a CPA and has had extensive accounting experience in mining, project and real estate accounting which includes corporate accounting and taxation and my last work assignment was property management as Head of the Accounting Dept./Comptroller and sit as one of the interim board of directors, representing the finance side, of all high end-condominium corporations and homeowners associations completed by one of the biggest real estate developer. Last year I availed of the early retirement program offered by the company because of health reason.

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