1. CBL8-O1 OFMPC Monitoring 3 September 28, 2009

2. CBL8-O2 CBS, CBL and DQ Agreements AgreementPoint PersonDeadline 1. Four Saturdays of Past Due Collection (“LABAN”) August 8, 15, 22, 29 Allan Wednesday after collection 2. Simulation of LLP and LLRDodongFor finalization 3. Loan Prioritization Branch Managers -Biboy -Dodong -Sammy Boy August 13 4. Weekly Submission of PAR report a.Branch level b.Consolidated Branch Managers Dodong Every Monday 5. Monthly FS submission a.Branch level b.Consolidated Dodong Every 8 th day of the month 6. 5 th Saturday for client interview on DQ reasons and solutions (September 5) Dodong September 9 (Wednesday) 7. Submission of a.Revised CBL and CBS forms b.OFMPC forms used to process existing loans c.Subsidiary ledgers in AO folder (green, orange, red) Branch Managers Dodong August 26

3. CBL8-O3 DQ Champion Team NAMEPOSITION Julieto D. CuervoPast Due Officer/DQ Champion Vilma Rosario D. HaltonHR Eduardo C. DanoGeneral Bookkeeper Alicia C. TumaganGeneral Cashier/Fund Custodian Edwin Cornelio E. OmegaBranch Manager-Tabango Sammy Boy MendozaBranch Manager-San Isidro Leonides I. OcubilloBranch manager-Villaba Jesus I. GaliciaAccount Officer Tabango Branch Ma. Carla C. BardaCashier San Isidro Maricel B. DumosBookkeeper-Villaba

4. CBL8-O4 PD Agreements AgreementPoint PersonDeadline 1.Client Exit interview – 10 dropouts per project assistant (PA)October 9 2.Competition Analysis Matrix – 1 competitor MFI per branch manager October 9 3.PRA on Seasonality pattern of income, expenses, savings and credit – 1 FGD per PA October 23 4.PRA on Time Series of Crises – 1 FGD per account officerOctober 23 5.PRA on Life Cycle Events 1 FGD per PAOctober 23 6.Microinsurance research tool – 30 respondents per PANovember 6 7.Remittance research – 5 respondents per account officer plus a table showing the number of remittance receiver clients in each center November 20 8.Impact Assessment – 30 respondents per PADecember 4

5. CBL8-O5 CBL and CBS Monitoring 20 AOs from the Main Branch (11), Villaba (6) and San Isidro (3) submitted the assignments. Only the AOs from Villaba submitted color-coded bookkeeping system forms. Only the Main Branch submitted client rating forms. Most AOs were not able to submit the total number of forms required. There were new AOs hired handling new clients. There were AOs reassigned to handle clients in other branches.

6. CBL8-O6 Character and Capacity Based Lending Account Officers Accomplished Assignment Remarks 1.Enguerra, Ruben HO Loan Application Form New 5/5 Repeat 5/5 -Some items were left unanswered or unmarked instead of putting N/A if not applicable to the client, i.e. utility bills, school tuition fees, and receipts shown -Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity -Some suppliers do not have contact details Cash Flow 10/10 -Conversion used was not encircled -Some items in the debt capacity analysis were left blank -Inaccurate computations Credit and Background Investigation (CI/BI) 10/10 -Name of supplier interviewed was not indicated -Some answers in character assessment inadequately demonstrate client’s reputation in the community, entrepreneurship, stability and responsibility, i.e. “mabait,” and “ok naman siya.” Client Rating 0/10 -Inaccurate computations

7. CBL8-O7 Character and Capacity Based Lending Loan Application Form AO used edited loan application form for new borrowers which does not include surname, given name, middle initial, address, center name, years in the community, number of household members, number of children in school, and number of school- aged children not in school. Common items left unanswered were the center name, savings, organization, date of application, CDO name/sign, loan amount approved, date approved Name of client is included in household members with source of income.

8. CBL8-O8 Character and Capacity Based Lending “Fair,” “stable,” “growing” were among the vague descriptions of business growth and market conditions. Instruction to encircle or mark “yes” or “no” items were not encircled or marked. Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant. The proper way of erasing data was not observed. There was no probing on some answers, i.e., reason why the receipt was not shown, or kind of business of household members listed as businessman by occupation.

9. CBL8-O9 Character and Capacity Based Lending Client Rating System

10. CBL8-O10 Character and Capacity Based Lending Credit and Background Investigation Name and position of the barangay official and the date of interview were not indicated. There was no useful information recorded on the supplier/creditor interview. AO answered “none” in all items except for the date of interview. AO did not follow instruction to interview a barangay official on the second part of the CI/BI. A non-barangay official was interviewed as character reference. “Good” were among the vague answers in the assessment of character. The character reference answered “yes” on the item asking if applicant is reliable or unreliable.

11. CBL8-O11 Character and Capacity Based Lending Cashflow The conversion used was not encircled. The computation of income and expenses was not completed. There were errors in computations. Some items were missed such as raw materials used and other expenses related to the business.

12. CBL8-O12 Character and Capacity Based Lending Cashflow Computation of debt capacity analysis was not completed. The proper way of erasing data was not observed.

13. CBL8-O13 Color-Coded Bookkeeping System AO Accomplished Assignment Remarks 1.Palad, Angelo N Subsidiary Ledger 31/30 -Note: All SLs were classified as green (current loans) -Initial transaction has no PA signature and the amount paid was left blank PAR Report 1/1-No corrections Outreach Report 1/1-No corrections Repayment Behaviour Tracking Sheet 31/30 -Note: All 30 client samples have ongoing first loan cycles

14. CBL8-O14 Color-Coded Bookkeeping System Subsidiary Ledger The date of release and maturity date were not included in the subsidiary ledger form as well as the penalty, tapal and service charge columns. The balance forwarded should be written on the first row below the date and not on the same cell.

15. CBL8-O15 Color-Coded Bookkeeping System Subsidiary Ledger AOs entered “yes” on items with prompt payments and entered “N” on items with delayed payments. The most recent transactions have no delayed/missed entries and no AO signature per transaction. There were out-of-place entries or markings on the delayed/missed and signature columns.

16. CBL8-O16 Color-Coded Bookkeeping System PAR Report Some items were left blank instead of entering “0” or “-” to indicate none Outreach Report Client loans entered are ongoing instead of completed loan cycles.

17. CBL8-O17 Color-Coded Bookkeeping System Repayment Behaviour Tracking System Client loans entered are ongoing instead of completed loan cycles.