1. CBL8-O1 OFMPC Monitoring 2 August 11, 2009

2. CBL8-O2 Agreements AgreementPoint PersonDeadline 1. DQ Task ForceSir AllanJuly 29 (Wednesday) 2. Four Saturdays of Past Due Collection (“LABAN”) August 8, 15, 22, 29 Sir JerickWednesday after collection 3. Simulation of LLP and LLRSir DodongFor finalization 4. Loan Prioritization Branch Managers -Sir Biboy -Sir Dodong -Sir Sammy Boy July 31 (Friday) 5. Weekly Submission of PAR report a. Branch level b. Consolidated Branch Managers Sir Dodong Every Monday 6. Monthly FS submission a. Branch level b. Consolidated Sir DodongEvery 8 th day of the month 7. 5 th Saturday of client interview on DQ reasons and solutions (September 5) Sir DodongSeptember 9 (Wednesday)

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 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.

5. CBL8-O5 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.

6. CBL8-O6 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.

7. CBL8-O7 Character and Capacity-Based Lending Client Rating System

8. CBL8-O8 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.

9. CBL8-O9 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. Computation of debt capacity analysis was not completed.

10. CBL8-O10 Color-Coded Bookkeeping There was no client signature at the end part of the schedule. There were erroneous computations or data entries. The proper way of erasing data was not observed.

11. CBL8-O11 Color-Coded Bookkeeping 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.

12. CBL8-O12 Color-Coded Bookkeeping 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.

13. CBL8-O13 Color-Coded Bookkeeping 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.

14. CBL8-O14 Color-Coded Bookkeeping Repayment Behaviour Tracking System Client loans entered are ongoing instead of completed loan cycles.