IJOMAI Published Article

This study evaluated the internal control practices of new and established cooperatives in the Province of Dinagat Islands using the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework as its foundation. A quantitative descriptive-comparative design was employed, with 40 cooperative officers and members serving as respondents. Data were gathered through a structured survey questionnaire and analyzed using descriptive statistics, t-tests, and ANOVA to determine compliance levels and differences across cooperative profiles. Results revealed that both new and established cooperatives generally complied with internal control practices in the areas of cash handling, inventory management, and machinery and equipment oversight. Established cooperatives demonstrated higher levels of compliance, particularly in inventory management and machinery and equipment oversight, with statistical tests confirming significant differences in these areas. However, gaps were noted in risk assessment, IT system integration, and fraud detection, where both groups showed partial or non-compliance. The findings highlight the importance of continuous improvement and capacity building, particularly for new cooperatives, while encouraging established cooperatives to sustain and upgrade their practices. The study concludes that internal control systems remain central to cooperative sustainability and recommends training programs, policy reviews, and the adoption of technology-driven tools to strengthen governance and operational efficiency. Keywords: Internal Control, Coso Framework, Cooperative Governance, Cash Handling, Inventory Management, Asset Oversight, Dinagat Islands