This NHMFC Corporate Governance Report features highlights, transparency and disclosures on material topics required on the Corporate Governance Scorecard for GOCCs.

The information contained herein covers reportorial requirements from January to December 2020.

This report has been prepared in adherence to the best practices and international standards of corporate governance and to serve as reference and guidance for validation of NHMFC Corporate Governance Scorecard 2020.

CY 2020CY 2019CY 2018CY 2017

Governance Scorecard 2020

QUESTION YES NO REFERENCE
I. Stakeholder Relationships (15%)
1. Does the GOCC disclose a policy that:
  1. Stipulates the existence and scope of its effort to address customer’s welfare?
  1. Mission
  2. Vision
  3. Manual of Corporate Governance (page 18-21)
  4. NHMFC Quality Policy Statement

  1. Elaborates its efforts to interact with the communities in which they operate?

  1. Corporate Social Responsibility
  2. NHMFC Quality Policy Statement

  1. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

Corporate Social Responsibility
2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

  1. Customer health and safety

  1. Corporate Social Responsibility
  2. Major Programs, Projects and Activities

  1. Interaction with the communities

Corporate Social Responsibility

  1. Environmentally-friendly value chain

Corporate Social Responsibility

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?
Corporate Social Responsibility
4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

  1. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

  1. Citizens Charter
  2. Contact details for complaints of other Stakeholders
  3. Annual Report 2020
  4. Corporate Governance 2020
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

  1. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?

  1. Code of Ethics
  2. Health and Wellness Programs 2020
  3. Corporate Governance 2020

  1. Does the GOCC publish data relating to health, safety and welfare of its employees?

  1. Health and Wellness Programs 2020
  2. Corporate Governance 2020

  1. Does the GOCC have training and development programmes for its employees?

  1. List of Seminars/Trainings/Workshops 2020
  2. Corporate Governance 2020

  1. Does the GOCC publish data on training and development programs for its employees?

  1. List of Seminars/Trainings/Workshops 2020
  2. Corporate Governance 2020
6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

  1. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

  1. Annual Report 2020
  2. Whistleblowing Policy, pages 6-8
  3. Corporate Governance 2020

  1. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

  1. Annual Report 2020
  2. Whistleblowing Policy, pages 4-5
  3. Corporate Governance 2020
II. Disclosure and Transparency (35%)
7. Quality of the Annual Report
    Does the GOCC’s AR disclose the following items:

  1. Corporate Objectives

Annual Report 2020

  1. Financial performance indicators
Annual Report 2020

  1. Non-financial performance indicators
Annual Report 2020

  1. Details of whistleblowing policy
  1. Annual Report 2020
  2. Whistleblowing Policy

  1. Biographical details (directors)
  1. Annual Report 2020
  2. Corporate Governance 2020

  1. Trainings or continuing education (directors)
  1. Annual Report 2020
  2. Corporate Governance 2020

8. Are the Annual Reports downloadable from the GOCC’s website?

Annual Report 2020
9. Corporate Governance Confirmation Statement
  1. Does the AR contain a statement confirming the company’s full Corporate Governance 2018 and where there is non-compliance, identify and explain reasons for each such issue?
Annual Report 2020
10. Timely filing/release of annual/financial reports
  1. Are the audited annual financial report/statement released within 60 days upon receipt from COA?
Transparency Seal (Section VI. Annual Financial Reports)

Date Posted: 5 July 2021
Date of Receipt from COA: 2 July 2021
  1. Is the Annual Report released within 90 days from the release of the audited financial report?
Annual Report: September 18, 2020
  1. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company?
  1. Audited Financial Report 2020
  2. Corporate Governance 2020
III. Responsibility of the Board (50%)
11. Corporate Vision/Mission
  1. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

Corporate Governance 2020

  1. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. Powers and Functions of the Board (page 3)
  2. Manual of Corporate Governance (page 5)
  3. Corporate Governance 2020
12. Did the GOCC achieve 90% in the PES?

NHMFC PES 2020

(Awaiting NHMFC’s validated scorecard from GCG)

13. Code of ethics or conduct
  1. Are the details of the code of ethics or conduct disclosed?
  1. Code of Conduct
  2. Corporate Governance 2020
  1. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?
  1. Code of Conduct
  2. Corporate Governance 2020
  1. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. Code of Conduct
  2. Corporate Governance 2020
14. Does the Board appoint a Nomination Compensation/Remuneration Committee?

Included in the functions of Corporate Governance Committee

Manual of Corporate Governance

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

Attendance Record of Directors in Board and Committee Meetings

16. If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed?

Not applicable

17. Does the Board appoint an Audit Committee?
  1. Corporate Governance 2020
  2. Audit Committee:
Chairman:
  • BSP Governor Benjamin E. Diokno
Represented by:
  • Director Silvina Q. Mamaril-Roxas
  • Director Odemma L. Galang
Members:
  • DBM Secretary Wendel E. Avisado
  • Director Ryan S. Lita
  • Director Carmencita P. Mahinay
  • DOF Secretary Carlos G. Dominguez III
  • Undersecretary Grace Karen G. Singson
  • DPO Stephen J. Araneta
  • Assistant Secretary Soledad Emilia J. Cruz
  • Director Joanna P. Castillo
18. If yes, is the report of the Audit Committee publicly disclosed?

Information on Board Committees and their activities CY 2020

19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

1. Ryan S. Lita
2. Carmencita P. Mahinay

20. Did the Audit Committee meet at least four times during the year?

Attendance Record of Directors in Board and Committee Meetings

21. Does the Board appoint a Risk Management Committee?
  1. Corporate Governance 2020
  2. Risk Management Committee:
Charmain:
  • Dr. Felixberto U. Bustos, Jr.
Members:
  • HUDCC Chairperson Eduardo D. Del Rosario
  • Secretary General Marcelino P. Escalada, Jr.
  • DBM Secretary Benjamin E. Diokno (06/30/2016 – 03/03/2019)
  • Director Ryan S. Lita
  • Director Rowena Candice M. Ruiz
  • Director Carmencita P. Mahinay
  • Director Lorenzo C. Drapete
  • DOF Secretary Carlos G. Dominguez III
  • Undersecretary Grace Karen G. Singson
  • Assistant Secretary Soledad Emilia J. Cruz
  • Director Joanna P. Castillo
22. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Information on Board Committees and their activities CY 2020
  2. Corporate Governance 2020
23. Does at least one member of the Risk Management Committee have a background in finance and investments?
  1. Dr. Felixberto U. Bustos, Jr.
  2. Grace Karen Singson
  3. Ryan S. Lita
  4. Carmencita P. Mahinay
24. Board meetings and attendance
  1. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)

As a rule, Board meetings will be scheduled monthly subject to the availability of Board Members.

  1. Corporate Governance 2020
  2. Approved Schedules of Board and Committee Meetings for CY 2020
  1. Does the Board of Directors meet at least monthly?
Attendance Record of Directors in Board and Committee Meetings
  1. Did the Board of Directors meet on at least 75% on their scheduled meetings?
Attendance Record of Directors in Board and Committee Meetings
  1. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?
Attendance Record of Directors in Board and Committee Meetings
  1. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

Corporate Governance 2020

25. Access to information
  1. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

Corporate Governance 2020

  1. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Atty. Dante M. Patapat

26. Internal Audit
  1. Does the company have a separate internal audit function?

Corporate Governance 2020

  1. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?

Manual of Corporate Governance (page 9)

27. Risk Oversight
  1. Does the company disclose the internal control procedures/risk management systems it has in place?

Risk Management Policy

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2020

  1. Does the company disclose how key risks are managed?

Risk Management Policy

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2020

28. Board Chairman
  1. Do different persons assume the roles of Chairman and CEO?

The Chairman is HUDCC Chairperson Eduardo D. Del Rosario, while the Pres. & CEO is Dr. Felixberto U. Bustos, Jr.

29. Board of Directors Development
  1. Does the GOCC have orientation programmes for new Directors?

Corporate Governance 2020

The Office of the Corporate Secretary conducted orientation to new Directors and provided the Briefer materials on 14 October 2020. The Briefer contains the NHMFC’s mandate, major programs, projects, policies, and legal issues.

  1. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?
  1. Manual of Corporate Governance (page 10)
  2. Corporate Governance 2020
  1. Did all Appointive Directors attend at least 1 training for the calendar year?

Corporate Governance 2020

Dr. Felixberto U. Bustos, Jr. is the only appointive among the directors.

30. Board Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors assessment?
  1. Board and Committee Appraisal System
  2. Corporate Governance 2020
  1. Does the GOCC disclose the process followed in conducting the Board?
  1. Board Appraisal System
  2. Corporate Governance 2020
  1. Does the GOCC disclose the criteria used in the Board assessment?
  1. Board Appraisal System
  2. Corporate Governance 2020
31. Committee Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors Committees?
  1. Board Appraisal System
  2. Corporate Governance 2020

BONUS

Stakeholder’s Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

GRI Sustainability Report

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

Date Posted: July 5, 2020

Date of Receipt from COA: July 2, 2020

PENALTY
Responsibilities of the Board
  1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

None

  1. Is there non-compliance with Good Governance Conditions?

None

Governance Scorecard 2019


QUESTION YES NO REFERENCE
I. Stakeholder Relationships (15%)
1. Does the GOCC disclose a policy that:
  1. Stipulates the existence and scope of its effort to address customer’s welfare?
  1. Mission
  2. Vision
  3. Manual of Corporate Governance (page 18-21)
  4. NHMFC Quality Policy Statement

  1. Elaborates its efforts to interact with the communities in which they operate?

  1. Corporate Social Responsibility
  2. NHMFC Quality Policy Statement

  1. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

Corporate Social Responsibility
2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

  1. Customer health and safety

  1. Corporate Social Responsibility
  2. Major Programs, Projects and Activities

  1. Interaction with the communities

Corporate Social Responsibility

  1. Environmentally-friendly value chain

Corporate Social Responsibility

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?
Corporate Social Responsibility
4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

  1. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

  1. Citizens Charter
  2. Contact details for complaints of other Stakeholders
  3. Annual Report 2019
  4. Corporate Governance 2019
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

  1. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?

  1. Code of Ethics
  2. Health and Wellness Programs 2019
  3. Corporate Governance 2019

  1. Does the GOCC publish data relating to health, safety and welfare of its employees?

  1. Health and Wellness Programs 2019
  2. Corporate Governance 2019

  1. Does the GOCC have training and development programmes for its employees?

  1. List of Seminars/Trainings/Workshops 2019
  2. Corporate Governance 2019

  1. Does the GOCC publish data on training and development programs for its employees?

  1. List of Seminars/Trainings/Workshops 2019
  2. Corporate Governance 2019
6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

  1. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

  1. Annual Report 2019
  2. Whistleblowing Policy, pages 6-8
  3. Corporate Governance 2019

  1. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

  1. Annual Report 2019
  2. Whistleblowing Policy, pages 4-5
  3. Corporate Governance 2019
II. Disclosure and Transparency (35%)
7. Quality of the Annual Report
    Does the GOCC’s AR disclose the following items:

  1. Corporate Objectives

Annual Report 2019

  1. Financial performance indicators
Annual Report 2019

  1. Non-financial performance indicators
Annual Report 2019

  1. Details of whistleblowing policy
  1. Annual Report 2019
  2. Whistleblowing Policy

  1. Biographical details (directors)
  1. Annual Report 2019
  2. Corporate Governance 2019

  1. Trainings or continuing education (directors)
  1. Annual Report 2019
  2. Corporate Governance 2019

8. Are the Annual Reports downloadable from the GOCC’s website?

Annual Report 2019
9. Corporate Governance Confirmation Statement
  1. Does the AR contain a statement confirming the company’s full Corporate Governance 2018 and where there is non-compliance, identify and explain reasons for each such issue?
Annual Report 2019
10. Timely filing/release of annual/financial reports
  1. Are the audited annual financial report/statement released within 60 days upon receipt from COA?
Transparency Seal (Section VI. Annual Financial Reports)

Date Posted: September 9, 2020
Date of Receipt from COA: August 20, 2020
  1. Is the Annual Report released within 90 days from the release of the audited financial report?
Annual Report: September 18, 2020
  1. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company?
  1. Audited Financial Report 2019
  2. Corporate Governance 2019
III. Responsibility of the Board (50%)
11. Corporate Vision/Mission
  1. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

Corporate Governance 2019

  1. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. Powers and Functions of the Board (page 3)
  2. Manual of Corporate Governance (page 5)
  3. Corporate Governance 2019
12. Did the GOCC achieve 90% in the PES?

NHMFC PES 2019

13. Code of ethics or conduct
  1. Are the details of the code of ethics or conduct disclosed?
  1. Code of Conduct
  2. Corporate Governance 2019
  1. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?
  1. Code of Conduct
  2. Corporate Governance 2019
  1. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. Code of Conduct
  2. Corporate Governance 2019
14. Does the Board appoint a Nomination Compensation/Remuneration Committee?

Included in the functions of Corporate Governance Committee

Manual of Corporate Governance

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

No Governance Meeting held for CY 2019

16. If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed?

Not applicable

17. Does the Board appoint an Audit Committee?
  1. Corporate Governance 2019
  2. Audit Committee:
Chairman:
  • BSP Governor Benjamin E. Diokno
  • BSP Governor Nestor Espenilla, Jr.
Represented by:
  • Director Silvina Q. Mamaril-Roxas
  • Director Odemma L. Galang
  • Director Diwa C. Guinigundo
  • Director Laura L. Ignacio
  • Director Elaine C. Calleja
Members:
  • DBM Secretary Wendel E. Avisado
  • DBM Secretary Benjamin E. Diokno (06/30/2016 – 03/03/2019)
  • Director Ryan S. Lita
  • Director Carmencita P. Mahinay
  • DOF Secretary Carlos G. Dominguez III
  • Undersecretary Grace Karen G. Singson
  • Assistant Secretary Soledad Emilia J. Cruz
  • Director Joanna P. Castillo
18. If yes, is the report of the Audit Committee publicly disclosed?

Information on Board Committees and their activities CY 2019

19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

1. Diwa C. Guinigundo
2. Ryan S. Lita
3. Carmencita P. Mahinay

20. Did the Audit Committee meet at least four times during the year?

Attendance Record of Directors in Board and Committee Meetings

21. Does the Board appoint a Risk Management Committee?
  1. Corporate Governance 2019
  2. Risk Management Committee:
Charmain:
  • Dr. Felixberto U. Bustos, Jr.
Members:
  • HUDCC Chairperson Eduardo D. Del Rosario
  • Secretary General Marcelino P. Escalada, Jr.
  • DBM Secretary Benjamin E. Diokno (06/30/2016 – 03/03/2019)
  • Director Ryan S. Lita
  • Director Rowena Candice M. Ruiz
  • Director Carmencita P. Mahinay
  • Director Lorenzo C. Drapete
  • DOF Secretary Carlos G. Dominguez III
  • Undersecretary Grace Karen G. Singson
  • Assistant Secretary Soledad Emilia J. Cruz
  • Director Joanna P. Castillo
22. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Information on Board Committees and their activities CY 2019
  2. Corporate Governance 2019
23. Does at least one member of the Risk Management Committee have a background in finance and investments?
  1. Dr. Felixberto U. Bustos, Jr.
  2. Grace Karen Singson
  3. Ryan S. Lita
  4. Carmencita P. Mahinay
24. Board meetings and attendance
  1. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)
  1. Corporate Governance 2019
  2. Approved Schedules of Board and Committee Meetings for CY 2019
  1. Does the Board of Directors meet at least monthly?
Attendance Record of Directors in Board and Committee Meetings
  1. Did the Board of Directors meet on at least 75% on their scheduled meetings?
Attendance Record of Directors in Board and Committee Meetings
  1. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?
Attendance Record of Directors in Board and Committee Meetings
  1. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

Corporate Governance 2019

25. Access to information
  1. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

Corporate Governance 2019

  1. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Atty. Dante M. Patapat

26. Internal Audit
  1. Does the company have a separate internal audit function?

Corporate Governance 2019

  1. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?

Manual of Corporate Governance (page 9)

27. Risk Oversight
  1. Does the company disclose the internal control procedures/risk management systems it has in place?

Risk Management Policy

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2019

  1. Does the company disclose how key risks are managed?

Risk Management Policy

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2019

28. Board Chairman
  1. Do different persons assume the roles of Chairman and CEO?

The Chairman is HUDCC Chairperson Eduardo D. Del Rosario, while the Pres. & CEO is Dr. Felixberto U. Bustos, Jr.

29. Board of Directors Development
  1. Does the GOCC have orientation programmes for new Directors?

Corporate Governance 2019

  1. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?
  1. Manual of Corporate Governance (page 10)
  2. Corporate Governance 2019
  1. Did all Appointive Directors attend at least 1 training for the calendar year?

Corporate Governance 2019

Dr. Felixberto U. Bustos, Jr. is the only appointive among the directors. Below are the seminars and trainings he has attended for CY 2019:

30. Board Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors assessment?
  1. Board and Committee Appraisal System
  2. Corporate Governance 2019
  1. Does the GOCC disclose the process followed in conducting the Board?
  1. Board Appraisal System
  2. Corporate Governance 2019
  1. Does the GOCC disclose the criteria used in the Board assessment?
  1. Board Appraisal System
  2. Corporate Governance 2019
31. Committee Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors Committees?
  1. Board Appraisal System
  2. Corporate Governance 2019

BONUS

Stakeholder’s Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

GRI Sustainability Report

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

Date Posted: September 09, 2020

Date of Receipt from COA: August 20, 2020

PENALTY
Responsibilities of the Board
  1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

None

  1. Is there non-compliance with Good Governance Conditions?

None

Governance Scorecard 2018

QUESTION YES NO REFERENCE
I. Stakeholder Relationships (15%)
1. Does the GOCC disclose a policy that:
  1. Stipulates the existence and scope of its effort to address customer’s welfare?

  1. Mission
  2. Vision
  3. Manual of Corporate Governance (page 18-21)
  4. NHMFC Quality Policy Statement

  1. Elaborates its efforts to interact with the communities in which they operate?

  1. Corporate Social Responsibility
  2. Annual Report 2018
  3. NHMFC Quality Policy Statement

  1. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

  1. Corporate Social Responsibility
  2. Annual Report 2018
2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

  1. Customer health and safety

  1. Annual Report 2018
  2. Corporate Social Responsibility
  3. Major Programs, Projects and Activities
  • NHMFC Moratorium Program
  • One Stop Shop
  • E-payment Program for Juan and Juana
  • Earthquake and Fire Drill

  1. Interaction with the communities

  1. Corporate Social Responsibility
  2. Annual Report 2018

  1. Environmentally-friendly value chain

  1. Corporate Social Responsibility
  2. Annual Report 2018

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?
  1. Corporate Social Responsibility
  2. Annual Report 2018
4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

  1. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

  1. Citizens Charter
  2. Contact details for complaints of other Stakeholders
  3. Annual Report 2018
  4. Corporate Governance 2018
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

  1. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?

  1. Code of Ethics
  2. Health and Wellness Programs 2018
  3. Corporate Governance 2018

  1. Does the GOCC publish data relating to health, safety and welfare of its employees?

  1. Health and Wellness Programs 2018
  2. Corporate Governance 2018

  1. Does the GOCC have training and development programmes for its employees?

  1. Corporate Governance 2018
  2. Trainings and Development

  1. Does the GOCC publish data on training and development programs for its employees?

  1. Corporate Governance 2018
  2. Trainings and Development
6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

  1. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

  1. Annual Report 2018
  2. Whistleblowing Policy, pages 6-8
  3. Corporate Governance 2018

  1. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

  1. Annual Report 2018
  2. Whistleblowing Policy, pages 4-5
  3. Corporate Governance 2018
II. Disclosure and Transparency (35%)
7. Quality of the Annual Report
    Does the GOCC’s AR disclose the following items:

  1. Corporate Objectives
Annual Report 2018

  1. Financial performance indicators
Annual Report 2018

  1. Non-financial performance indicators
Annual Report 2018

  1. Details of whistleblowing policy
  1. Annual Report 2018
  2. Whistleblowing Policy

  1. Biographical details (directors)
  1. Annual Report 2018
  2. Corporate Governance 2018

  1. Trainings or continuing education (directors)
  1. Annual Report 2018
  2. Corporate Governance 2018

8. Are the Annual Reports downloadable from the GOCC’s website?

Annual Report 2018
9. Corporate Governance Confirmation Statement
  1. Does the AR contain a statement confirming the company’s full Corporate Governance 2018 and where there is non-compliance, identify and explain reasons for each such issue?
  1. Annual Report 2018
  2. Corporate Governance 2018
10. Timely filing/release of annual/financial reports
  1. Are the audited annual financial report/statement released within 60 days upon receipt from COA?
Transparency Seal (Section VI. Annual Financial Reports)

Date Posted: 23 May 2019
Date of Receipt from COA: 14 May 2019
  1. Is the Annual Report released within 90 days from the release of the audited financial report?
Audited Financial Report 2018: 23 May 2019

Annual Report: October 2018
  1. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company?
  1. Audited Financial Report 2018
  2. Corporate Governance 2018
III. Responsibility of the Board (50%)
11. Corporate Vision/Mission
  1. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

Corporate Governance 2018

  1. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. Powers and Functions of the Board (page 3)
  2. Manual of Corporate Governance (page 5)
  3. Corporate Governance 2018
12. Did the GOCC achieve 90% in the PES?

NHMFC PES 2018 rating is 42.87%

13. Code of ethics or conduct
  1. Are the details of the code of ethics or conduct disclosed?
  1. Code of Conduct
  2. Corporate Governance 2018
  1. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?
  1. Code of Conduct
  2. Corporate Governance 2018
  1. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. Code of Conduct
  2. Corporate Governance 2018
14. Does the Board appoint a Nomination Compensation/Remuneration Committee?

Included in the functions of Corporate Governance Committee

Manual of Corporate Governance

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

No Governance Meeting held for CY 2018

16. If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed?

Not applicable

17. Does the Board appoint an Audit Committee?
  1. Corporate Governance 2018
  2. Audit Committee:

Chairman: Deputy Governor Diwa C. Guinigundo
Members: DBM Secretary Benjamin E. Diokno
Director Ryan S. Lita
Director Rowena Candice M. Ruiz
Director Carmencita P. Mahinay
Director Lorenzo C. Drapete
DOF Secretary Carlos G. Dominguez III
Undersecretary Grace Karen G. Singson
Assistant Secretary Soledad Emilia J. Cruz
Director Joanna P. Castillo

18. If yes, is the report of the Audit Committee publicly disclosed?

Information on Board Committees and their activities CY 2018

19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

1. Diwa C. Guinigundo
2. Ryan S. Lita
3. Carmencita P. Mahinay
4. Rowena Candice M. Ruiz

20. Did the Audit Committee meet at least four times during the year?

Attendance Record of Directors in Board and Committee Meetings

21. Does the Board appoint a Risk Management Committee?
  1. Corporate Governance 2018
  2. Risk Management Committee:

Chairman: Dr. Felixberto U. Bustos, Jr.
Members: HUDCC Chairperson Eduardo D. Del Rosario
Secretary General Falconi V. Millar
DBM Secretary Benjamin E. Diokno
Director Ryan S. Lita
Director Rowena Candice M. Ruiz
Director Carmencita P. Mahinay
Director Lorenzo C. Drapete
DOF Secretary Carlos G. Dominguez III
Undersecretary Grace Karen G. Singson
Assistant Secretary Soledad Emilia J. Cruz
Director Joanna P. Castillo

22. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Information on Board Committees and their activities CY 2018
  2. Corporate Governance 2018
23. Does at least one member of the Risk Management Committee have a background in finance and investments?
  1. Dr. Felixberto U. Bustos, Jr.
  2. Grace Karen Singson
  3. Falconi Millar
  4. Ryan S. Lita
  5. Lorenzo C. Drapete
  6. Carmencita P. Mahinay
  7. Rowena Candice M. Ruiz
24. Board meetings and attendance
  1. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)
  1. Corporate Governance 2018
  2. Approved Schedules of Board and Committee Meetings for CY 2018
  1. Does the Board of Directors meet at least monthly?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2018
  1. Did the Board of Directors meet on at least 75% on their scheduled meetings?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2018
  1. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2018
  1. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

Corporate Governance 2018

25. Access to information
  1. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

Corporate Governance 2018

  1. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Corporate Governance 2018

26. Internal Audit
  1. Does the company have a separate internal audit function?

Organizational Chart

Corporate Governance 2018

  1. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?

Manual of Corporate Governance (page 9)

Corporate Governance 2018

27. Risk Oversight
  1. Does the company disclose the internal control procedures/risk management systems it has in place?

Risk Management Policy

Corporate Governance 2018

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2018

Corporate Governance 2018

  1. Does the company disclose how key risks are managed?

Risk Management Policy

Corporate Governance 2018

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report 2018

Corporate Governance 2018

28. Board Chairman
  1. Do different persons assume the roles of Chairman and CEO?

The Chairman is HUDCC Chairperson Eduardo D. Del Rosario, while the Pres. & CEO is Dr. Felixberto U. Bustos, Jr.

29. Board of Directors Development
  1. Does the GOCC have orientation programmes for new Directors?

Corporate Governance 2018

  1. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?
  1. Manual of Corporate Governance (page 10)
  2. Corporate Governance 2018
  1. Did all Appointive Directors attend at least 1 training for the calendar year?

Corporate Governance 2018

Dr. Felixberto U. Bustos, Jr. is the only appointive among the directors. Below are the seminars and trainings he has attended for CY 2018:

  • Philippine Investment Conference 2018
  • 9th Annual Convention on Sustaining Housing Growth Amidst Changing Times
30. Board Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors assessment?
  1. Board and Committee Appraisal System
  2. Corporate Governance 2018
  1. Does the GOCC disclose the process followed in conducting the Board?
  1. Board Appraisal System
  2. Corporate Governance 2018
  1. Does the GOCC disclose the criteria used in the Board assessment?
  1. Board Appraisal System
  2. Corporate Governance 2018
31. Committee Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors Committees?
  1. Board Appraisal System
  2. Corporate Governance 2018

BONUS

Stakeholder’s Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

Date Posted: 23 May 2019

Date of Receipt from COA: 14 May 2019

PENALTY
Responsibilities of the Board
  1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

None

  1. Is there non-compliance with Good Governance Conditions?

None

Governance Scorecard 2017

QUESTION YES NO REFERENCE
I. Stakeholder Relationships (15%)
1. Does the GOCC disclose a policy that:
  1. Stipulates the existence and scope of its effort to address customer’s welfare?

  1. Mission
  2. Vision
  3. Manual of Corporate Governance (page 18-21)
  4. NHMFC Quality Policy Statement

  1. Elaborates its efforts to interact with the communities in which they operate?

  1. Corporate Social Responsibility
  2. Annual Report 2017
  3. NHMFC Quality Policy Statement

  1. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

  1. Corporate Social Responsibility
  2. Annual Report 2017
2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

  1. Customer health and safety

  1. Annual Report 2017
  2. Corporate Social Responsibility
  3. Major Programs, Projects and Activities
  • NHMFC Moratorium Program
  • One Stop Shop
  • E-payment Program for Juan and Juana
  • Earthquake and Fire Drill

  1. Interaction with the communities

  1. Corporate Social Responsibility
  2. Annual Report 2017

  1. Environmentally-friendly value chain

  1. Corporate Social Responsibility
  2. Annual Report 2017

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?
  1. Corporate Social Responsibility
  2. Annual Report 2017
4. Where stakeholders interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights

  1. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders ( e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

  1. Citizens Charter
  2. Contact details for complaints of other Stakeholders
  3. Annual Report 2017
  4. Corporate Governance 2017
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.

  1. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?

  1. Code of Ethics
  2. Health and Wellness Programs 2017
  3. Corporate Governance 2017

  1. Does the GOCC publish data relating to health, safety and welfare of its employees?

  1. Health and Wellness Programs 2017
  2. Corporate Governance 2017

  1. Does the GOCC have training and development programmes for its employees?

  1. Corporate Governance 2017
  2. Trainings and Development

  1. Does the GOCC publish data on training and development programs for its employees?

  1. Corporate Governance 2017
  2. Trainings and Development
6. Stakeholders including individual employee and their representative bodies should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

  1. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

  1. Annual Report 2017
  2. Whistleblowing Policy, pages 6-8
  3. Corporate Governance 2017

  1. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

  1. Annual Report 2017
  2. Whistleblowing Policy, pages 4-5
  3. Corporate Governance 2017
II. Disclosure and Transparency (35%)
7. Quality of the Annual Report
    Does the GOCC’s AR disclose the following items:

  1. Corporate Objectives
Annual Report 2017

  1. Financial performance indicators
Annual Report 2017

  1. Non-financial performance indicators
Annual Report 2017

  1. Details of whistleblowing policy
  1. Annual Report 2017
  2. Whistleblowing Policy

  1. Biographical details (directors)
  1. Annual Report 2017
  2. Corporate Governance 2017

  1. Trainings or continuing education (directors)
  1. Annual Report 2017
  2. Corporate Governance 2017

8. Are the Annual Reports downloadable from the GOCC’s website?

Annual Report 2017
9. Corporate Governance Confirmation Statement
  1. Does the AR contain a statement confirming the company’s full Corporate Governance 2017 and where there is non-compliance, identify and explain reasons for each such issue?
  1. Annual Report 2017
  2. Corporate Governance 2017
10. Timely filing/release of annual/financial reports
  1. Are the audited annual financial report/statement released within 60 days upon receipt from COA?
Transparency Seal (Section VI. Annual Financial Reports)

Date Posted: 4 July 2018
Date of Receipt from COA: 27 June 2018
  1. Is the Annual Report released within 90 days from the release of the audited financial report?
Audited Financial Report 2017: 27 June 2018

Annual Report: October 2018
  1. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company?
  1. Audited Financial Report 2017
  2. Corporate Governance 2017
III. Responsibility of the Board (50%)
11. Corporate Vision/Mission
  1. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

Corporate Governance 2017

  1. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. Powers and Functions of the Board (page 3)
  2. Manual of Corporate Governance (page 5)
  3. Corporate Governance 2017

12. Did the GOCC achieve 90% in the PES?

NHMFC PES 2017 rating is 48.71%

13. Code of ethics or conduct
  1. Are the details of the code of ethics or conduct disclosed?
  1. Code of Conduct
  2. Corporate Governance 2017
  1. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?
  1. Code of Conduct
  2. Corporate Governance 2017
  1. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. Code of Conduct
  2. Corporate Governance 2017
14. Does the Board appoint a Nomination Compensation/Remuneration Committee?

Included in the functions of Corporate Governance Committee

Manual of Corporate Governance

15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?

Included in the functions of Corporate Governance Committee

Manual of Corporate Governance

16. If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed?

Not applicable

17. Does the Board appoint an Audit Committee?
  1. Corporate Governance 2017
  2. Audit Committee:

Chairman: Deputy Governor Diwa C. Guinigundo
Members: Director Lorenzo C. Drapete
Undersecretary Grace Karen G. Singson
Asst. Sec. Soledad Emilia J. Cruz
Director Joanna P. Castillo
Undersecretary Bayani H. Agabin
Atty. Cristina Mia S. Pineda

18. If yes, is the report of the Audit Committee publicly disclosed?

Information on Board Committees and their activities CY 2017

19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

Diwa C. Guinigundo

20. Did the Audit Committee meet at least four times during the year?

Audit Committee Meetings held twice a year.
First Audit Meeting : 01 March 2017
Second Audit Meeting: 29 November 2017

21. Does the Board appoint a Risk Management Committee?
  1. Corporate Governance 2017
  2. Risk Management Committee:

Chairman: Dr. Felixberto U. Bustos, Jr.
Members: HUDCC Chairperson Eduardo D. Del Rosario
Secretary General Falconi V. Millar
Cabinet Secretary Leoncio B. Evasco, Jr.
Deputy Secretary General Avelino D. Tolentino III
Director Lorenzo C. Drapete
Undersecretary Grace Karen G. Singson
Assistant Secretary Soledad Emilia J. Cruz
Director Joanna P. Castillo
Undersecretary Bayani H. Agabin
Atty. Cristina Mia S. Pineda

22. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Information on Board Committees and their activities CY 2017
  2. Corporate Governance 2017
23. Does at least one member of the Risk Management Committee have a background in finance and investments?
  1. Dr. Felixberto U. Bustos, Jr.
  2. Grace Karen Singson
  3. Falconi Millar
  4. Avelino Tolentino, III
  5. Lorenzo C. Drapete
24. Board meetings and attendance
  1. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)
  1. Corporate Governance 2017
  2. Approved Schedules of Board and Committee Meetings for CY 2017
  1. Does the Board of Directors meet at least monthly?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2017
  1. Did the Board of Directors meet on at least 75% on their scheduled meetings?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2017
  1. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?
  1. Attendance Record of Directors in Board and Committee Meetings
  2. Corporate Governance 2017
  1. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

Corporate Governance 2017

25. Access to information
  1. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

Corporate Governance 2017

  1. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Corporate Governance 2017

26. Internal Audit
  1. Does the company have a separate internal audit function?

Organizational Chart

Corporate Governance 2017

  1. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?

Manual of Corporate Governance.(page 9)

Corporate Governance 2017

27. Risk Oversight
  1. Does the company disclose the internal control procedures/risk management systems it has in place?

Risk Management Policy.

Corporate Governance 2017

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report

Corporate Governance 2017

  1. Does the company disclose how key risks are managed?

Risk Management Policy

Corporate Governance 2017

  1. Does the Annual Report disclose that the board of Directors/Commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?

Annual Report

Corporate Governance 2017

28. Board Chairman
  1. Do different persons assume the roles of Chairman and CEO?

The Chairman is HUDCC Chairperson Eduardo D. Del Rosario, while the Pres. & CEO is Dr. Felixberto U. Bustos, Jr.

29. Board of Directors Development
  1. Does the GOCC have orientation programmes for new Directors?

Corporate Governance 2017

  1. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?
  1. Manual of Corporate Governance (page 10)
  2. Corporate Governance 2017
  1. Did all Appointive Directors attend at least 1 training for the calendar year?

Corporate Governance 2018

Dr. Felixberto U. Bustos, Jr. is the only appointive among the directors. Below are the seminars and trainings he has attended for CY 2018:

  1. Seminar on Corporate Governance (August 29-30, 2017)
  2. Paralegal Training Program (September 30-December 9, 2017)
  3. GAD Seminar (October 16-17,2017)
30. Board Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors assessment?
  1. Board and Committee Appraisal System
  2. Corporate Governance 2017
  1. Does the GOCC disclose the process followed in conducting the Board?
  1. Board Appraisal System
  2. Corporate Governance 2017
  1. Does the GOCC disclose the criteria used in the Board assessment?
  1. Board Appraisal System
  2. Corporate Governance 2017
31. Committee Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors Committees?
  1. Board Appraisal System
  2. Corporate Governance 2017

BONUS

Stakeholder’s Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?

Date Posted: 4 July 2018

Date of Receipt from COA: 27 June 2018

PENALTY
Responsibilities of the Board
  1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?

None

  1. Is there non-compliance with Good Governance Conditions?

None