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Internal control checklist for compliance to SPO standards requirements – Dec. 2017

No. Control Points Compliance Comment (evidence of compliance or

comment on non-compliance) Year Cate-

gory

1.1.0.02

Accept announced and unannounced audits and provide requested information to demonstrate compliance with the Fairtrade standards. Check previous audit results: availability of key persons and members for interview and field inspection and documents for reviews

0 M Findings: non-conformity • 15 members were selected from the list of members to be interviewed during the audit, but only 2 members were available. • Some receipts for Fairtrade Development expenses were not available. Suggestion for Corrective Measures: • All members will make a signed declaration to fully participate in announced and unannounced audits • Expenses and receipts will be reconciled and Internal controllers will check and make report.

1.1.0.04 Contact person keeps FLO-CERT updated with contact details and important information Verify copy of email(s) sent to FLO-CERT about change of Board members, new members.

0 C Findings: good practices • Contact person has sent on time to FLO-CERT all information which has impact on Fairtrade certification. Included are list of new members with complete information (land size, miller…), change of Board members, change of contact details of contact person. • Contact person has alerted FLO-CERT of non-receipt of certification invoice • Email messages from FLO-CERT are responded on time. • Copy of emails sent to FLO-CERT are kept in one file

1.1.0.05 The average score for development criteria is equal or above 3. Refer to audit closing report

3 C Finding: good practice • Board members have reviewed the SCORE for Development criteria to reach at least the average SCORE of 3 and have prepared the Objective Evidence and have uploaded them together with the rest of the confirmed Corrective Measures.

1.1.0.06 All non-conformities of the previous audit have been corrected. Check all Objective Evidence for previous audits

1 M Findings: good practices • The list of repeated non-conformities is part of risk assessment • Members were made aware of repeated Non-Conformities and the General Assembly has discussed and planned on

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how to make sure that non-conformities are not repeated.

1.1.0.08 (Only applicable if you receive a complaint related to compliance with requirements of the applicable Fairtrade Standards or a Fairtrade product) You handle and document all complaints and follow-up actions relating to compliance with requirements of the applicable Fairtrade Standards. These records must be made available to the auditor.

1 C Finding: Good practice Non-conformities found by Internal controllers and Environmental Representatives have been corrected and records are available

1.2 Members are Small Producers

1.2.0.01 At least 50% of the members of your organisation are small producers.

0 M Finding: Good practice List of members with land size, and estimate production volume is available

2 Trade

2.1 Traceability

2.1.0.06 Have a written product flow from members to 1st buyer

0 C Finding: Good practice Product flow is updated on a yearly basis

2.3 Contracts

2.1.0.40 (Cane sugar) You have an agreement with other producer organizations delivering to the same mill on how the Fairtrade Premium will be shared amongst the organizations. In case there is no such agreement in place, a mediation process has been concluded and you accept the result of the mediation. If there is no conclusion within 4 weeks after the mediation process has started, you accept that the payer distributes the premium according to the volume of sugar cane delivered by each organization.

0 C Finding: Good practice There is an agreement in place AND All members of the organizations are aware of the distribution criteria.

2.3.0.01 (Only applicable if you were suspended since the last audit and/or any of your buyers was suspended) You do not sign new Fairtrade contracts if you are suspended OR sign new contracts with suspended trade partners. However, you have fulfilled existing Fairtrade contracts during the suspension period. In case of an existing trade partner with whom you have had at least one business transaction in the previous 12

0 M Finding: Best practice Existing contract has been honored AND the organization does not exceed volumes of the contract

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months and with whom you have no written contracts, you have only traded (in the suspension period) up to 50% of the total volume (of each product) traded in the previous 12 months (from date of suspension).

3. Production

3.1. Management of Production Practices

3.1.0.01 Inform at least 80 % of members about the Fairtrade standards for environmental practices and labour practices (only applicable where members employ workers).

0 C Finding: Non-conformity Only 50% of members have attended training Suggestion for Corrective Measure: The Board will prepare a calendar plan to organise training for the rest of the members

3.1.0.02 Identify and document the general risks of not complying with the production standards

1 C Finding: Non-conformity The identification of possible risks has important shortcomings, failing to identify important risks Suggestion for Corrective Measure: Internal controllers and Environmental representatives will engage members in identifying all risks in relation to all chapters of the Fairtrade standards

3.1.0.03 The risk identification has been repeated periodically at least every 3 years.

3 D Finding: Best practice Risk assessment is conducted every year

3.1.0.04 A procedure to monitor the performance of members in relation to production standards is in place.

3 D Finding: Compliance A written procedure of Internal control system is in place

3.1.0.05 A procedure to monitor the performance of members in relation to production standards is implemented.

3 D Finding: Non-conformity The cooperative has internal controllers but there is not report on members’ failure to comply with production standards Suggestion for Corrective Measure: The Internal control system will operate by referring to all chapters of the Fairtrade standards and the Cooperative Act and make regular report to the Board and the General Assembly for any Corrective Measures to be implemented

3.1.0.06 (Cane sugar) You report at least once a year on the following monitoring indicators: volumes and yields, kill/mill interval, use of inputs, water management. You send this information to sugar@fairtrade.net

3 C Finding: Compliance Fairtrade indicators template is fully completed.

3.2 Environmental Development

3.2.1 Environmental management

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3.2.1.02 Have person(s) responsible for environmental requirements with clear Terms of Reference Check Terms of reference of the Environmental representative(s)

0 C Findings: Best practice Environmental representatives have clear Terms of Reference (ToR) covering all environmental requirements, and they understand their ToR and have sufficient resources

3.2.2.a Integrated pest management (Pest management)

3.2.2.01 At least 50% of members been trained on integrated pest management, including pest and disease monitoring, alternative ways to control pests and diseases, preventive measures and measures to avoid pests and diseases building up resistance to pesticides.

3 D Finding: Non-conformity 50% of members were trained on integrated pest management but the content of the training has major gaps. Suggestion for Corrective Measure: Training plan will be organised with extension officers from Farmers’ Service Agency, a copy of the training content and training report will be recorded

3.2.2.03 (1 July 2017) 80 % of your members can demonstrate that pesticides are applied based on knowledge of pests and diseases.

6 D Finding: Non-conformity Only 50% of members can explain pest management. Suggestion for Corrective Measure: Updated training will be organized so that all members can explain pest management.

3.2.2.b Proper use and handling of pesticides (Pest management)

3.2.2.05 At least 50% of members and workers who handle pesticides and other hazardous chemicals have been trained about the risks in handling these materials and how to handle them properly. The training contents are in line with the requirements.

3 C Finding: Compliance All pesticide handlers have been trained on safe handling of agrochemicals and training report is available.

3.2.2.07

You have implemented measures to ensure that all people, including members and workers, wear appropriate personal protective equipment (PPE) when handling pesticides or hazardous chemicals.

3 C Finding: Non-conformity 1 sprayer man was seen not wearing PPE when spraying herbicide. Suggestion for Corrective Measure: Members and workers handling herbicides will be trained on the use of PPE and they will be provided with PPE for use.

3.2.2.08 You have made all members and workers -even those not directly handling pesticides and other hazardous chemicals - aware of the hazards and risks related to these materials.

3 D Finding: Good practice All members and workers have been trained and content of training was sufficient, with visual training materials.

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3.2.2.09 You and the members of your organization must not apply pesticides and other hazardous chemicals within 10 meters from ongoing human activity (housing, canteens, offices, warehouses or the like with people present). A buffer zone of at least 10 meters must be kept unless there is a barrier that effectively reduces pesticide drift. Alternatively, appropriate re-entry intervals can be applied so that people are not affected by pesticide drift.

1 C Finding: Non-conformity Members are not aware of the 10 meter buffer zone. Suggestion for Corrective Measure: An awareness raising will be carried out to inform members about the 10 meters buffer zone and its importance

3.2.2.12 If you have a central storage for pesticides and other hazardous chemicals then you maintain it in a way that minimizes the risks and you ensure that it: • Is locked and accessible only to trained and authorized personnel; • Is ventilated to avoid a concentration of toxic vapours; • Has equipment, such as absorbent materials, to handle accidents and spills; • Does not contain food; • Contains pesticides that are clearly labelled indicating contents, warnings, and intended uses, preferably in the original container when possible; and • Contains information on the proper handling of pesticides (safety sheets).

0 C Finding: Compliance Store rooms controlled by organization are locked and accessible only to trained and authorized personnel, ventilated, with labelled materials and do not contain food.

3.2.2.13 Your members store pesticides and other hazardous chemicals in a way that minimizes risks so they cannot be reached by children.

3 C Finding: Compliance Store areas controlled by members are locked and not accessible to any child and only accessible to trained people.

3.2.2.14 Your members have all pesticides and hazardous chemicals clearly labelled.

3 D Finding: Compliance All agrochemicals are labelled

3.2.2.15 Your members have equipment to handle accidents and spills in the areas where they prepare or mix pesticides and other hazardous chemicals, so these do not seep into soil or water.

6 D Finding: Compliance Members have/carry equipment to handle accidents to all places where pesticides are mixed

3.2.2.16 Your members plan their spraying in such a way that no or very little spray solution is left.

6 D Finding: Good practice No considerable amounts of spray solution are left (and stored in spraying equipment, etc or disposed) AND the organization carried out awareness activities.

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3.2.2.17 You and the members of your organisation do not reuse pesticide and other hazardous chemical containers for water or food transport or storage.

0 C Finding: Compliance There are no indications of members reusing pesticide containers and interviewed members know the dangers.

3.2.2.18 You and the members of your organisation always triple rinse and puncture empty pesticide containers properly. All equipment that has been in contact with hazardous materials are cleaned and stored in a way that risks are minimized.

3 D Finding: Compliance Empty containers are punctured and are not dirty. They are stored in a way to minimize risks.

3.2.2.d Choice of pesticides used (Pest management)

3.2.2.19 Have a list of all pesticides used and identify whether they are on the Red or Amber list and you keep it updated.

0 C Finding: Good practice List of agrochemicals is updated based on interviews with members

3.2.2.21 You and the members of your organisation do not use the materials on the Fairtrade International Prohibited Materials List (PML) part 1 (red list) on the Fairtrade crop.

0 M Finding: Compliance No use of Prohibited Materials on the red list was found

3.2.2.22 Prohibited materials (if used/stored) are clearly marked not for use on Fairtrade crops.

0 C Finding: Compliance No use of Prohibited Materials on the red list was found

3.2.2.27 You have developed a procedure to ensure that members do not use on the Fairtrade crops any material that appears on the Fairtrade International Prohibited Materials List part 1 (red list). The procedure includes activities that raise your member’s awareness of the PML.

1 C Finding: Good practice The Cooperative has a continuous awareness campaign on no use of prohibited materials to members and workers

3.2.2.28 You work towards all members who use herbicides minimizing the amount they use by implementing other weed prevention and control strategies

3 D Finding: Non-conformity There is no monitoring of members use of herbicides. Suggestion for Corrective Measure: Environmental representatives will monitor members’ use of herbicides and discuss the results of the monitoring with technicians from Farmers service Agency

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3.2.3. a Soil erosion (Soil and water)

3.2.3.01 You have identified land at risk of soil erosion and already eroded land in the fields where your members plant Fairtrade crops.

3 D Existing and potential general problems of erosion in the area is documented in writing or on a map.

3.2.3.02 You have trained the members of your organisation with identified risk of soil erosion or already eroded land on practices that reduce and/or prevent soil erosion.

6 D Finding: Best practice: 80% of members having risk of soil erosion have been trained AND content of training was sufficient AND training materials are clear and correct.

3.2.3.03 (1 July 2017) You have trained your members on appropriate use of fertilizers. The training is in line with the standard requirements.

6 D Finding: non-conformity No training was organised Suggestion for Corrective Measure: All members will be trained on appropriate use of fertilizers

3.2.3.b Handling fertilizers (Soil and water)

3.2.3.04 You have documented measures that you as an organisation and your members have implemented to improve soil fertility.

3 D Finding; Best practice Organisation evaluated internally its practices and prepared a complete report.

3.2.3.d Sustainable water sources (Soil and water)

3.2.3.05 You have identified and listed all sources of water for irrigation and processing of Fairtrade crops.

3 D Finding: Compliance A map of all sources of water for irrigation is available

3.2.3.06 (1 July 2017) You are informed about the situation of the water sources in your area. In case local environmental authorities or other entities consider your water sources as being depleted, or in a critical situation, you have to engage in a dialogue in order to identify possible ways to be involved in research or solution finding.

6 D Finding: Compliance The organisation can explain if sources of water are sustainable .

3.2.3.e Sustainable water use (Soil and water)

3.2.3.07 You have trained your members on measures to use water efficiently. These measures are in line with the standard requirements.

3 D Finding: Compliance 50% of members have been trained AND content of training was sufficient

3.2.4 Waste

3.2.4.01 keep farms free of hazardous waste (No hazardous waste is found on farms except on designated storage areas)

1 C Finding: Non-conformity Hazardous waste is found on members' farms outside designated storage areas BUT the organisation carried out awareness activities.

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Suggestion for Corrective Measure: Members and sprayer men will be trained to dispose empty containers safely, and environmental representatives will conduct field visit to check compliance.

3.2.4.02 You and the members of your organisation have designated areas for the disposal / storage of hazardous waste.

3 D Finding: Non-conformity Members do not have designated areas for storing hazardous waste before disposal Suggestion for Corrective Measure: Members have designated storage areas on farms or at central areas where risk is minimized.

3.2.4.03 You and the members of your organisation only burn hazardous waste if it is allowed by local regulation and all safety recommendations are followed.

3 D Finding : Compliance Hazardous waste is not burned

3.2.4.04 You have educated your members on re-using organic waste through the implementation of practices that allow nutrients to be recycled. The organic waste is only burned if required by applicable legislation.

3 D Finding : Compliance 50% of members have been informed AND content of information was sufficient.

3.2.5 GMO

3.2.5.01 3.2.5.02

Don’t use GMO Implement prevention measures

0 C Finding : Compliance No GMO is being used

3.2.6 Biodiversity

3.2.6.01 Don’t have negative impacts on protected and High Conservation Value (HCV) Areas

0 C Finding : Non-conformity Members were not aware of HCV areas Suggestion for Corrective Measures: Organisation will informed members of local protected/HCV areas and there are no indications of negative impacts.

3.2.6.03 (1 July 2017) You have documented activities that you or your members carry out to protect and enhance biodiversity.

6 D Finding : Non-conformity There was no report on protecting and enhancing biodiversity. Suggestion for Corrective Measure: A basic report on activities to protect and enhance biodiversity will be made

3.2.6.04 (1 July 2017) You and the members of your organisation have maintained buffer zones around water bodies and watershed recharge areas and between production areas and areas of high conservation value, either protected or not. Pesticides, other hazardous chemicals and fertilizers are not applied

6 D Finding: Compliance Enough distance is maintained around water bodies

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in buffer zones. Ecological corridors are protected or restored with natural vegetation.

3.2.6.06 You have educated your members so that no collection or hunting of rare or threatened species takes place.

3 D Finding: Non-conformity Only 40% of members have been trained Suggestion for Corrective Measure: At least 50% of members will be planned

3.2.6.07 (1 July 2014) You have educated your members so that alien invasive species are not introduced.

3 D Finding: Non-conformity There was no training on alien invasive species Suggestion for Corrective Measures: At least 50% of members will be trained

3.2.7 Energy and GHG emissions

3.2.7.02 (1 July 2017) You have documented practices that you or the members of your organisation carry out to reduce Green House Gas (GHG) emissions and increase carbon sequestration.

Finding: Non-conformity There is no record on practices to reduce Green House Gas (GHG) emissions and increase carbon sequestration. Suggestion for Corrective Measure: Awareness and members’ practices on reducing Green House Gas (GHG) emissions and increase carbon sequestration will be reported

3.3 Labour Conditions

3.3.1.01 You and the members of your organisation do not discriminate on the basis of race, colour, gender, sexual orientation, disability, marital status, age,HIV/AIDS status, religion, political opinion, membership of unions or other workers’ representative bodies, national extraction or social origin in recruitment, promotion, access to training, remuneration, allocation of work, termination of employment, retirement or other activities.

0 M Finding: Compliance

3.3.1.02 No tests during recruitment 0 C Finding: Compliance

3.3.1.03 No corporal punishment, mental or physical coercion or verbal abuse.

0 M Finding: Compliance

3.3.1.04 No sexual harassment 0 M Finding: Compliance

3.3.2.01 No forced labour, bonded labour or involuntary prison labour

0 M Finding: Compliance

3.3.2.03 No conditional working for spouses 0 C Finding: Compliance

3.3.3 Child labour and child protection

3.3.3.01 Don’t employ children under 15 0 M Finding: Best practice The Cooperative is participating in child protection project

3.3.3.03 Ensure that children under 18 do not work in exploitative, unsafe or unhealthy situations.

0 C N/A

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3.3.4 Freedom of association

3.3.4.01 You and the members of your organization have ensured that all workers are free to join the workers’ organisation that each worker chooses and that they are free to participate in group negotiation of their working conditions.

0 M Finding: Non-conformity Workers have not been informed on freedom of association Suggestion for Corrective Measure: All workers providing services to members to be informed on workers’ organization

3.3.5.07 (Only applicable for organizations and/ or individual members with more than 20 workers that are present for one month or more during a year; or fewer workers where the local law has defined a lower number) Workers are provided with pay slips.

0 C Finding: Non-conformity Workers did not have a copy of pay slip Suggestion for Corrective Measures: Contractors will be requested to provide payslips to workers

3.3.5.14 (Only applicable for organizations and/ or individual members with more than 20 workers that are present for one month or more during a year; or fewer workers where the local law has defined a lower number) You give local, migrant, seasonal and permanent workers the same or equivalent benefits and employment conditions for the same work performed.

6 D Finding: Non-conformity There was no document available to track whether migrant and local workers are given equivalent benefits. Suggestion for Corrective Measure: Contractors will be requested to provide the list of their workers and their pay slip

3.3.6.04 (Only applicable for organizations and/ or individual members with more than 20 workers that are present for one month or more during a year; or fewer workers where the local law has defined a lower number) You and your members have accessible first aid boxes and equipment and a sufficient number of people trained in first aid in the workplace at all times.

0 C Finding: Non conformity There was a first aid box but the content is incomplete Suggestion for Corrective Measures: First aid box will be equipped with basic items.

3.3.6.05 (Only applicable for organizations and/ or individual members with more than 20 workers that are present for one month or more during a year; or fewer workers where the local law has defined a lower number) You and your members provide clean drinking water, clean toilets with hand washing facilities close by, and clean showers (showers only for workers who handle pesticides).

0 C Finding: Non conformity There is no shower on-site Suggestion for Corrective Measures: Potable water will be supplied in central place AND at least one hand washing facility at close distance from toilets and place for eating (so workers do use them).

3.3.6.08 (Only applicable for organizations and/ or individual members with more than 20 workers that are present for one month or more during a year; or fewer

3 C Finding: Non-conformity There was no training on the risks of hazardous work Suggestion for Corrective Measure:

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workers where the local law has defined a lower number) You and your members have trained workers who carry out hazardous work regarding the risks to their health and environment because of this work.

Training of workers performing other hazardous work (than handling pesticides) will be organised, focusing on preventive measures.

3.3.6.16 (Cane Sugar) You and the members of your organization ensure that all field workers have clean drinking water.

0 C Finding: compliance

4.1 Development Potential

4.1.0.01 Develop a Fairtrade Development Plan (FDP) with the descriptions, objectives, timelines, responsibilities and budget of all planned activities.

1 C Finding: Non-conformity Objectives, timeline and Responsibilities were not specified in the Fairtrade Development Plan. Suggestion for Corrective Measures: Fairtrade Development plan will be reviewed to include detailed information

4.1.0.05 You have included all the Fairtrade premium funded activities in the Fairtrade Development Plan before implementation of the activities.

1 C Finding: Non-conformity The Cooperative has spent Premium money that is not included in the plan (Payment of the Fairtrade certification fee) Suggestion for Corrective Measures: This payment of certification fee will be presented to the next GM for approval. The Board will make a signed declaration that all activities which are intended to be paid by the Fairtrade premium shall be included in approved Fairtrade Development Plan.

4.1.0.06 You have presented the Fairtrade Development Plan to the General Assembly for approval before implementation. All decisions made are documented.

1 M Finding: Non-conformity The Fairtrade Development Plan was not presented to the General Assembly. Board members including president were not aware of the content of the plan. Suggestion for Corrective Measures: A new Fairtrade Development Plan will be prepared in consultation with members and approved in a General Meeting.

4.1.0.14 You have put in place an accounting system that accurately tracks the Fairtrade Development Plan expenses, and in particular identifies the Fairtrade Premium transparently.

1 C Finding: Non-conformity There are records of income and expenditures but supporting receipts for expenditure were not available during the audit Suggestion for Corrective Measure: Internal controllers will be assigned to check Fairtrade premium use, and make report on findings

4.1.0.16 After completing your planned activities you have updated the Fairtrade

1 C Finding: Non-conformity

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Development Plan by planning at least one additional activity.

Fairtrade Development Plan was not updated after completion of activities as the General Assembly of the Cooperative was delayed Suggestion for Corrective Measure: Members will be consulted to identify additional activity and the Fairtrade Development Plan will be updated for approval at the next General Assembly

4.1.0.17 You report the results of the Fairtrade Development Plan to the General Assembly annually. The presentation of the results is documented.

3 C Finding: Non-conformity The results of the Fairtrade Development plan was not reported at the Annual General Assembly Suggestion for Corrective Measure: The report of Fairtrade development plan will be amended and presented to the General Assembly

4.1.0.19 Workers benefit from at least one activity in your Fairtrade Development Plan.

3 D Finding: Non-conformity Workers are distributed with Personal Protective Equipment bought from Fairtrade premium money. Providing PPE to workers, though using Fairtrade premium is compliance to Health and Safety but not benefits for workers. Suggestion for Corrective Measure: Workers’ needs will be identified and responded based on resources. Workers will be invited to attend training with members to strengthen their capacities.

4.1.0.20 Workers’ representatives are invited to the General Assembly to observe and participate in the discussion of the topics that relate to them.

3 D Finding: Non-conformity Workers’ representatives were invited in the General Assembly as shown in the list of participants, but there is no mention of participation to the discussion in the minutes of the General Meeting. Suggestion for Corrective Measure: Worker representative’s will be encouraged to take part in the discussion during the General Meeting, and this will be reported in the minutes of the General Meeting

4.1.0.21 (1 July 2017) You have an activity that maintains or improves sustainable production practices within your eco-

6 D

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system in your Fairtrade Development Plan.

4.1.0.22 (1 July 2017) You have designed and started implementing a process that collects and analyzes the development needs of your organisation.

6 D

4.1.0.23 There is no evidence of misuse in the management of the Fairtrade premium.

0 M Finding: Non-conformity Expenditures for some Fairtrade premium projects cannot be accounted for (receipts missing) Suggestion for Corrective Measure: The receipts will be reconciled and the Fairtrade Development Plan reporting will be amended

4.1.0.28 (Cane Sugar) When planning for the Fairtrade Development Plan, you discuss if investing the Fairtrade Premium in activities that increase quality and productivity would help your members to have more secure incomes.

0 C Finding: Non-conformity Although there were projects related to production, there was no evidence of discussion due to low attendance of members Suggestion for Corrective Measure: Members will be motivated to participate in the discussion on increasing quality and productivity and it will be recorded in the minutes

4.1.0.29 Cane sugar) You present the results of this discussion to the General Assembly before approving the Fairtrade Development Plan.

Finding: Non-conformity There was no evidence of discussion on increasing quality and productivity Suggestion for Corrective Measure: Members will be motivated to participate in the discussion on increasing quality and productivity and it will be recorded in the minutes. The results of the discussion will be presented to the General Assembly before approving the Fairtrade Development Plan.

4.2 Democracy. Participation and Transparency

4.2.0.01 The General Assembly is the highest decision-making body where all major decisions are discussed and all members have equal voting rights.

0 M Finding: Non-conformity Although the statutes define the General Assembly as the highest decision making, major decisions regarding premium use is made by the Board and ratified at the GA. Some Board members are not aware of the premium accounts and expenditures. Suggestion for Corrective Measure: Our Board members will make a declaration of engagement to abide by the statutes and take all major decisions

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in the General Assembly including decisions on the premium use.

4.2.0.08 You have a member list in place that at least includes information on name, location, land size, production volume, number of (permanent / temporary) workers and membership status.

0 C Finding: Non-conformity List of members does not contain the basic information required. Suggestion for Corrective Measure: List of members will be updated to include information on name, location, land size, production volume, number of (permanent / temporary) workers and membership status.

4.2.0.09 You follow your own rules and regulations (constitution, by-laws and internal policies, including election and membership processes)

0 C Finding: Non-conformity The Cooperative is not following rules and

regulations:

- Irregular Board meeting (Art; 17.8.1)

- Art. 6.4 is not implemented (new

members should submit written

application).

-Article 7.3 states that no member shall

become member of another society of the

same type and area of operation without

prior approval of the Registrar.

- Register of members not updated

according to each member status (esp.

termination Art. 11)

- Art. 11.1 (h): concerning termination of

membership for not transacting with the

coop for a period of 2 years.

- Decisions are taken under A.O.B item ;

- Not following statutes regarding external

financial audits

- The organisation does not grant

members access to records which are

retained by accountant/Secretary - this is

according the Constitution (40.1).

- Delayed submission of final accounts to

the Registrar or Auditor ;

- Internal controllers is not ensuring his role of submitting reports (quarterly reports) - The termination of membership (Section 11 of the Rules) is not applied (death and ceasing of activities) - Rotation Panel system as stipulated in section 18. 1 and 18.2 of the Rules is not

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established and not followed. - Section 19.2 of the rules says no person shall hold the office of president for a continuous period of more than 3 years but the president is has been at this post since more than 10 continuous years.

Suggestion for Corrective Measures: During General Assembly, members will confirm their engagement to adhere to Rules and implementation thereof

4.2.0.13 You inform your members in good time when the General Assembly will take place.

0 C Finding: Non-conformity It was found during interviews that some members did not receive any invitation letters. This situation occurs because it's the relatives who receives the invitation and do not communicate to the other family members who are also members by inheritance Suggestion for Corrective Measure: Members will be requested to sign a dispatch book upon receipt of invitation letter. Registered letter will also be posted to members who are not reachable.

4.2.0.14 Minutes of the General Assembly are documented and signed by the president of the Board and at least one other member.

0 C Finding: compliance

4.2.0.15 The minutes contain a signed list of participants of the General Assembly.

0 C Finding: Non-conformity When cross-checked, signatures on the list of participants do not correspond to the signature in the members’ book

4.2.0.16 You present the annual report, budgets and accounts to the General Assembly for approval.

0 C Finding: Non-conformity According to the minutes of the General Assembly, report, budgets and accounts were presented to the members for approval. However, when interviewed, members, including some Board members were not aware of the expenses on the Fairtrade Development projects and remaining Fairtrade premium money. Suggestion for Corrective Measure: A copy of the annual report, including budgets and accounts will be shared among members who will acknowledge receipt.

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4.2.0.18 You keep records and books. All members have access to these records and books.

0 C Finding: Non-conformity Records and books are not kept in order and members do not feel comfortable to access the books Suggestion for Corrective Measure: An internal control team will be set up to ensure proper record keeping and to facilitate the members' access to the books

4.2.0.22 You have explained to your members the ways they can participate in the organization so that they can have more control over it.

3 D Finding: Non-conformity The members are not aware of the functioning of the Internal Control System of the Cooperative and do not fully participate in its functioning in controlling the cooperative activities Suggestion for Corrective Measure: During General Assembly and meetings, internal controllers will explain to members about the importance of implementing the Internal control system

4.2.0.26 You share audit results with your members, in a format and language accessible to them.

3 D Finding: Non-conformity Audit results were explained to members only during the General Assembly, and members who have been interviewed have forgotten them. Suggestion for Corrective Measure: Audit results will be summarised in local language and explained to members on every possible occasion.

4.3 Non-discrimination

4.3.0.05

Disadvantaged/ minority groups have been identified.

3 D Finding: Non-conformity The Cooperative did not identify disadvantaged/minority groups Suggestion for Corrective Measure: Needy people among the members and the community will be identified

4.3.0.06 You have put in place programmes that improve the social and economic positions of the minority/disadvantaged groups.

6 D Finding: Non-conformity No programme have been developed as the Cooperative has not identified disadvantaged/minority groups Suggestion for Corrective Measure: Needy people among the members and the community will be identified and prioritisation in addressing their needs will be discussed and decided during General Assembly.