The study evaluated cooperatives‘ compliance based onthe provisions of the Philippine Cooperative Code and cooperative by-laws on order of distribution, allocation and utilization of their statutory funds [general reserve fund {GRF}, cooperative education and training fund {CETF}, optional fund {OF}, and community development fund {CDF}]. Fifty (50) cooperatives in Baguio and Benguet served as participants. Ninety-eight percent (98%) up to 100% percent complied with the order on distribution of statutory funds in their respective by-laws consistent with the Philippine Cooperative Code. Based on records and interviews, one cooperative sourced the GRF from credit and consumer operations and not from the consolidated financial operations, thus the rate used was lower. From the Audited Financial Statement and other reports submitted to CDA, compliance with funding statutory funds is about 78%-98% with GRF (98%) as the most funded followed by CDF (92%); OF (84%) and CETF (78%) respectively. From interviews, key informants reveal that they directly charge training fees to operational expenses, hence reducing the allocation in the by-laws as observed in the data with only 26 participants that used the 10% maximum provision in their by-laws. Utilization of statutory funds was between fourteen and eighty-two percent (14%-82%) with CETF (82%) as the most utilized and GRF (14%) as the least utilized. The low utilization of the GRF shows compliance with legal provisions of law making it a restricted fund to cover operational losses. There was significant difference on the utilization of statutory funds but not on the order of distribution and funding. Based on interviews, medium and large cooperatives allocate lower rates in their CETF; cooperatives use their OF to acquire real estate properties; other cooperatives deposit their statutory funds in banks and other high yielding investments; for others, they do not know how to treat their optional fund. For the community development fund of three percent, 92 percent of participants complied with the provision of their by-laws and only about 72 percent utilized their community development fund. As explained by key informants, changes in the composition of officers along with background and work experiences affected the full utilization of the community development fund.