2020 Corporate Governance Scorecard
-
I. Stakeholder Relationship
-
II. Disclosure and Transparency
-
III. Responsibilities of the Board
-
IV. Bonus
| CORPORATE GOVERNANCE SCORECARD REPORT A | |
| Name of GOCC: | SOCIAL HOUSING FINANCE CORPORATION |
| Sector: | GOVERNMENT FINANCIAL INSTITUTION |
| Date submitted: | September 30, 2021 |
| QUESTION | ANSWER/COMPLIANCE | SUPPORTING DOCUMENTS |
| I. STAKEHOLDER RELATIONSHIP | ||
| 1. Does the GOCC disclose a policy that: | ||
| 1.a Stipulates the existence and scope of its effort to address customer's welfare? | Yes.
1.) The Revised Manual on Corporate Governance identifies its primary stakeholders such as the: a.) Community Association; and b) Local Government Units. It also provides support groups such as the National Government Agencies. 2.) The Revised Manual on Corporate Governance also provides for the Communication Policy and System on Accountability to its Stakeholders. |
Revised Manual on Corporate Governance,Section 30 |
| 1.b Elaborates its efforts to interact with the communities in which they operate? | Yes.
Communication Policy with stakeholders under the Revised Manual on Corporate Governance is anchored on three (3) key points: a) Transparency; b) Participatory; and c) Developmental. SHFC has communication activities such as corporate press release, investor communications, meetings, speaking engagements, public information materials, and media initiatives, utilized for the corporation's information and other publicity needs. |
Revised Manual on Corporate Governance,Section 30 |
| 1.c Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? | Yes. The Corporate Social Responsibility Statement of SHFC recognizes the detrimental effects of climate change and the dire need to protect and preserve our environment.In response thereto, and in line with the State policy to protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature, SHFC shall:
These can be found in the CSR Statement as declared in the Revised Manual on Corporate Governance. |
Revised Manual on Corporate Governance,Section 27 |
| 2. Does the GOCC disclose the activities that it has undertaken to implement the above-mentioned policies? | ||
| 2.a Customer health and safety | Yes. SHFC ensures that it addresses the customers' health and safety through the following mandate, programs, policies, and projects:
|
Corporate Circular No. 20-54 (2020)
COVID-related announcements and digital payment channels Construction Manual: Construction Safety & Health (page 53/52) |
| 2.b Interaction with the communities | Yes. SHFC dedicate time and effort to interact with the communities through the following activities:
|
Unity, Proactive Leadership Keys to Staying COVID-Free (2020)
Solidarity Outshines Pandemic: The Brave Frontliners of Centennial 1-B HOAI (2020) Bayanihan HOAI Exemplifies Community Spirit During COVID-19 Crisis |
| 2.c Environmentally-friendly value chain | Yes. In recognition of the importance of climate change and disaster risk reduction in creating sustainable communities, SHFC has integrated Climate Change Adaptation, Mitigation, and Disaster Risk Reduction (CCAM-DRR) activities in its program implementation. |
SHFC Accomplishments for the period July 2016 to February 2021 (Page 6)
SHFC Accomplishments for the period July 2016 to February 2021 |
| 3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? | Yes. SHFC's Corporate Social Responsibility Statement can be accessed by clicking the Transparency Seal > CSR Statement. |
CSR Statement |
| 4. Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. 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? | Yes. SHFC's stakeholders can contact the Corporation, give their comments, suggestions, and file complaints by:
|
SHFC's Citizen's Charter |
| 5. Performance-enhancing mechanisms for employee participation should be permitted to develop. | ||
| 5.a Does the GOCC explicitly mention the health, safety and welfare policy for its employees? | Yes. The Health and Safety Policy is currently under review. In the interim, HRDD and Health and Safety Committee have issued health and safety guidelines as deemed necessary especially during this pandemic, namely:
|
Memorandum on Preventive & Control Measures for COVID-19
Memorandum on Additional Precautionary and Response protocols for COVID-19 Memorandum on Four-day Work Week and WFH Arrangement Memorandum on SHFC Work Schedule under Community Quarantine Memorandum on SHFC General Guidelines on Return to Work Areas under GCQ Memorandum on SHFC PCR Testing Contact Tracing Home Quarantine Protocols |
| 5.b Does the GOCC publish data relating to health, safety and welfare of its employees? | Yes. SHFC through its HRD Department has issued Official Advisories, Memoranda, Special Orders, and Health Monitoring Survey Forms, related to health and safety of its employees. HR also facilitated the presentation of Medical Utilization Report (which discussed among others the common illnesses of SHFC employees) by the HMO provider. |
Memorandum on Preventive Control Measures for COVID-19
Memorandum on Additional Precautionary and Response Protocols for COVID-19 Memorandum on Four-day Workweek-cum- Work from Home Arrangement Memorandum on SHFC's Work Schedule under Community Quarantine Memorandum on SHFC's General Guidelines on Return to Work in arear under GCQ Memorandum on SHFC's PCR Testing Contract Tracing Home Quarantine Protocols Annex A SHFC's Official Advisories for Health and Safety Concern |
| 5.c Does the GOCC have training and development programmes for its employees? | Yes. SHFC has an approved 2020 Training Development Plan (TDP). |
2020 Training Development Plan |
| 5.d Does the GOCC publish data on training and development programms for its employees? | Yes. For the trainings/webinars, HRDD has issued Special Orders, Memoranda, and Advisories (posted in official Group Chats), sent emails, and announced via company intranet to fully inform employees/participants of the upcoming learning and development activities and other pertinent details. |
SHFC's Official Advisories for Webinars for Health and Safety Concerns
SHFC's Official Advisories for Internal Webinars for CY 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. |
||
| 6.a 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. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior? | Yes. The Board of Directors approved the Whistleblowing Policy last 10 December 2020 which provides for the procedures on the handling of complaints. The Board likewise approved the jurisdiction on other administrative cases. Pursuant to the board approval, the Revised Rules of Procedure on Disciplinary and Administrative and Administrative cases was issued in 24 March 2021. |
Board Resolution No. 908 s. 2020
Revised Rules of Procedure on Disciplinary and Administrative Cases |
| 6.b Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? | Yes. The procedures are laid down in the Whistleblowing Policy |
Board Resolution No. 908 s. 2020 |
| CORPORATE GOVERNANCE SCORECARD REPORT A | |
| Name of GOCC: | SOCIAL HOUSING FINANCE CORPORATION |
| Sector: | GOVERNMENT FINANCIAL INSTITUTION |
| Date submitted: | September 30, 2021 |
| QUESTION | ANSWER/COMPLIANCE | SUPPORTING DOCUMENTS |
| II. DISCLOSURE AND TRANSPARENCY | ||
| 7. Does the GOCC's website disclose the following items: | ||
| 7.a Corporate objectives | Yes.
SHFC's mandate is that by 2022, SHFC shall have provided 530,000 organized homeless and low- income families with Flexible, Affordable, Innovative, and Responsive (FAIR) shelter solutions to their housing needs. Further, the Corporate targets and objectives can be found in:
|
1. Annual Report 2019:2020 Outlooks & Targets (Page 7)
2. 2020 Corporate Accomplishment Report: |
| 7.b Financial performance indicators | Yes.
SHFC's financial performance indicators can be verified on the:
|
1. Annual Report 2019: Statements of Comprehensive Income (Page 11)SHFC's Annual Report 20192. 2020 Corporate Accomplishment Report : Audited Statement of Comprehensive Income (Page 18)2020 Corporate Accomplishment Report3. FY 2019: Audited Financial StatementSHFC's Annual Report 20194. FY 2020: Audited Financial Statement (Page 19) |
| 7.c Non-financial performance indicators | Yes.
The 2020 Corporate Accomplishment report likewise contains the corporation's non-financial accomplishments. It contains SHFC Bayanihan Response to COVID-19 |
2020 Corporate Accomplishment Report: SHFC Bayanihan Response to COVID-19 (Page 11) |
| 7.d Details of whistle-blowing policy | Yes.
Yes. SHFC has procedures for complaints by employees regarding illegal and unethical behavior, including corruption. The procedure can be found in the Whistleblowing Policy. |
Board Resolution No. 908 s. 2020
Revised Rules of Procedure on Disciplinary and Administrative Cases |
| 7.e Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners | Yes.
The profiles of the ex-officio, their alternates and appointive directors are provided in the website |
Board of Directors |
| 7.f Training and/or continuing education programme attended by each director/commissioner | Yes.
SHFC provides information on the training and/or continuing education programme attended by its directors. |
Training Certificates of the Board |
| 8. Are the Annual Reports downloadable from the GOCC's website? | Yes.
SHFC uploads its Annual Report and it is readily accessible and downloadable by the public. Further, SHFC's Accomplishment Report may be found in the Transparency Seal Page of SHFC's official website. |
Transparency Seal Page (Section XI) |
| 9. Does the GOCC's website contain a statement confirming the company's full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue? | Yes.
SHFC's website and Annual Reports contain statement confirming its full compliance with the code of corporate governance. |
2020 Corporate Accomplishment report |
| 10. Timely filing/release of annual/financial reports | ||
| 10.a Are the audited annual financial report/statement released within 60 days upon receipt from COA? | The Annual Audit Report was received on May 05, 2021 and was published online. The interim financial statement was also uploaded in the GCG ICRS on 02 June 2021. | 2020 Audited Financial Statement |
| 10.b Is the annual report released within 90 days from release of audited financial report? | ||
| 10.c Is the true and fairness/fair representation of the annual financial statements/reports affirmed by the directors/ commissioners and/or the relevant officers of the company? | Yes.
The annual financial statements/reports of SHFC are affirmed by its directors, management and offidfscers of the company. SHFC's Statement of Management's Responsibility for Financial Statements can be found in the 2020 Audited Financial Report |
Statement of Management's Responsibility for Financial Statements (Page 23) |
| CORPORATE GOVERNANCE SCORECARD REPORT A | |
| Name of GOCC: | SOCIAL HOUSING FINANCE CORPORATION |
| Sector: | GOVERNMENT FINANCIAL INSTITUTION |
| Date submitted: | September 30, 2021 |
| QUESTION | ANSWER/COMPLIANCE | SUPPORTING DOCUMENTS |
| III. BOARD RESPONSIBILITY | ||
| 11.a Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year? | Yes.
The Board during the presentation of the Corporate Workplan and Performance Report discusses the strategies for FY2020 during the 03-2019 Board Meetings last 16 April 2019. |
Minutes of the 03-2019 Board Meeting |
| 11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy? | Yes.
The Board of Directors assessed the Corporate Workplan for FY2020 submitted to GCG last 2019 to determine whether the targets are feasible. In its Governance Policy and Nomination Committee Meeting on 4 March 2020, the targets were then reviewed by the Directors and recommended the actions to be undertaken by the Management. |
02-2020 GPNCom Report dated 04 March 2020 |
| 12. Did the GOCC achieve 90% in the PES? | ||
| 13.a Are the details of the code of ethics or conduct disclosed? | Uploaded/posted in SHFC’s official website is the Professional’s Creed | Professional's Creed |
| 13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? | Uploaded/posted in SHFC’s official website is the Professional’s Creed | Professional's Creed |
| 13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? | Uploaded/posted in SHFC’s official website is the Professional’s Creed | Professional's Creed |
| 14. Does the Board appoint a Nomination Compensation / Remuneration Committee? | Yes.
At the start of the CY2020, the Board merged different Committees for efficiency. One of the committees is the Governance, Policy and Nomination Committee (GPNCom) which includes the Nomination Compensation/ Remuneration Committee provided in the GCG Code of Corporate Governance. |
Board Resolution No. 830 s. 2020 |
| 15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year? | Yes.
The GPNCom had sixteen (16) meeting in CY2020. |
Attendance of Directors in the Committee Meetings |
| 16. If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? | Yes.
The report of the Nomination Committee is publicly disclosed. |
GPNCom Accomplishment CY2020 Report |
| 17. Does the Board appoint an Audit Committee? | Yes.
The Board likewise merged the functions of the Audit and Risk Management Committees into one committee at the start of the CY2020 for efficiency. |
Board Resolution No. 830 s. 2020 |
| 18. If yes, is the report of the Audit Committee publicly disclosed? | Yes.
The report of the Audit and Risk Management Committee is publicly disclosed. |
ARCom Accomplishment Report for CY2020 |
| 19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? | Yes.
The Chairman of the Audit and Risk Management Committee is Director Ryan S. Lita, who is the alternate of the Secretary of the DBM to the SHFC Board. Undersecretary Bayani H. Agabin and Director Felixberto Bustos Jr. are also a members of the ARCom. Usec. Agabin is from the DOF while Director Bustos has a long career in banking and finance. |
Board of Directors |
| 20. Did the Audit Committee meet at least four times during the year? | The Audit Committee met three (3) times in CY 2020. | List of Committee Meetings Attendees |
| 21. Does the Board appoint a Risk Management Committee? | Yes.
The Board merged the Risk Management Committee with the Audit Committee. |
Board Resolution No. 830 s. 2020 |
| 22. If yes, is the report on Risk Management Committee publicly disclosed? | Yes.
The report of the Audit and Risk Management Committee is publicly disclosed. |
ARCOm Accomplishment Report CY2020 |
| 23. Does at least one member of the Risk Management Committee have a background in finance and investments? | Yes.
Undersecretary Bayani H. Agabin and Director Felixberto Bustos Jr. are also a members of the ARCom. Usec. Agabin is from the Department of Finance (DOF) while Director Bustos has a long career in banking and finance. |
Board of Directors |
| 24.a Are the Board of Directors meetings scheduled at he beginning of the year? (end of Q1) | Yes.
The Board Meetings are scheduled at the beginning of the year and approved by the Board in its 02-2020 Board meeting last 26 February 2020. |
Board Resolution No. 837 s. 2020 |
| 24.b Does the Board of Directors meet at least monthly? | Yes.
The Board had sixteen (16) Board Meetings in CY 2020. Meetings, supposedly scheduled for the months of July and September, were moved to an earlier or succeeding month due to the schedule of meetings of the directors. |
List of Board Meeting Attendees |
| 24.c Did the Board of Directors meet on at least 75% on their scheduled meetings? | Yes.
The proposed number of Board Meetings is eighteen (18) at the start of the year. The actual Board Meetings conducted in CY 2020 are sixteen (16), therefore, 88% of the scheduled meetings. |
Minutes of the Board Meetings for CY 2020 (1-2 pages) |
| 24.d Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? | Not all directors attended 90% of the meetings. | List of Board Meeting Attendance |
| 24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present? | During the Audit and Risk Management Committee, the President is not a member but is invited as resource person for some matters. | |
| 25.a 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? | Yes.
SHFC follows the Memo from HUDCC that the materials should be submitted at least seven (7) days in advance. |
HUDCC Memo dated 17 March 2014 |
| 25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices? | Yes.
The Board Secretary is a lawyer. |
Profile of Atty. Melanie Valenciano |
| 26.a Does the company have a separate internal audit function? | Yes.
SHFC has a separate internal audit function. The SHFC Table of Organization proves the existence of the Internal Audit Department (IAD). It is directly reporting to the Board or the Audit Committee. It is composed of four (4) plantilla positions. To date, IAD has two (2) additional staff members that are agency-hired. |
Internal Audit Department Organizational Structure |
| 26.b Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee? | Yes.
The revised By-Laws of the Corporation provides that: Section 7. Term of Office. – The President/Chief Executive Officer shall have a term of one (1) year and until his successor is duly elected and qualified. The following Officers may be removed from office by the majority vote of the members of the Board:
The endorsement of the removal of internal auditor head will be endorsed by the Audit & Risk Management Committee. |
Minutes of the 07-2020 Board Meeting |
| 27.a Does the company disclose the internal control procedures/risk management systems it has in place? | ||
| 27.b 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? | Yes.
SHFC’s 2020 Audited Financial Statement will disclose that the Board has approved and authorized its issue. |
2020 Audited Financial Statement (Page 28-29) |
| 27c Does the company disclose how key risks are managed? | ||
| 27.d Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting on the adequacy of the GOCC's internal controls/risk management systems? | Yes. | 2020 Corporate Accomplishment Report |
| 28. Do different persons assume the roles of Chairman and CEO? | Yes.
The Chairman of the Board is the Secretary of the DHSUD, Sec. Eduardo Del Rosario while the CEO/President is Atty. Arnolfo Ricardo Cabling. |
Board of Directors |
| 29.a Does the GOCC have orientation programs for new Directors? | Yes.
The Office of the Board Secretary conducts a brief orientation on the programs of SHFC for the new directors |
|
| 29.b Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs? | Yes.
Trainings and Seminars of the Directors is part of the Office of the Board Secretary Budget |
Office of the Board Secretary Procurement Plan |
| 29.c Did all Appointive Directors attend at least 1 training for the calendar year? | Four (4) Appointive Directors attended at least 1 training in 2020 | Certificate of Attendance of 4 appointive directors |
| 30.a Is an annual performance assessment conducted of the Board of Directors? | The performance of the SHFC’s Board is assessed annually by the GCG pursuant to and in accordance with the Memorandum Circular No. 2014-03.
The BOD participated in the 2020 iPED. GCG released the Results of the 2020 iPED Assessment dated 17 September 2021 through electronic mail dated 24 September 2021. |
GCG MC 2014-03 |
| 30.bDoes the GOCC disclose the process followed in conducting the Board assessment? | The performance of the SHFC’s Board is assessed annually by the GCG pursuant to and in accordance with the Memorandum Circular No. 2014-03.
The BOD participated in the 2020 iPED. GCG released the Results of the 2020 iPED Assessment dated 17 September 2021 through electronic mail dated 24 September 2021. |
GCG MC 2014-03 |
| 30.c Does the GOCC disclose the criteria used in the Board assessment? | The performance of the SHFC’s Board is assessed annually by the GCG pursuant to and in accordance with the Memorandum Circular No. 2014-03.
The BOD participated in the 2020 iPED. GCG released the Results of the 2020 iPED Assessment dated 17 September 2021 through electronic mail dated 24 September 2021. |
GCG MC 2014-03 |
| 31. Is an annual performance assessment conducted of the Board of Directors Committees? | The performance of the SHFC’s Board is assessed annually by the GCG pursuant to and in accordance with the Memorandum Circular No. 2014-03.
The BOD participated in the 2020 iPED. GCG released the Results of the 2020 iPED Assessment dated 17 September 2021 through electronic mail dated 24 September 2021. |
GCG MC02014-03 |
| CORPORATE GOVERNANCE SCORECARD REPORT A | |
| Name of GOCC: | SOCIAL HOUSING FINANCE CORPORATION |
| Sector: | GOVERNMENT FINANCIAL INSTITUTION |
| Date submitted: | September 30, 2021 |
| QUESTION | ANSWER/COMPLIANCE | SUPPORTING DOCUMENTS |
| IV. BONUS | ||
| 1. Stakeholder Relationship | ||
| Does the GOCC practice Global Reporting Index (GRI) on its annual reports? | ||
| 2. Timely release of annual financial report | ||
| Is the audited annual financial report/statement released within 30 days upon receipt from COA? | The Annual Audit Report was received on May 05, 2021 and was published online. The interim financial statement was also uploaded in the GCG ICRS on 02 June 2021. | |
| V. PENALTY | ||
| Responsibilities of the Board | ||
| Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? | No appointive directors hold more than 5 positions in other GOCCs | Profiles of Directors |
| Is there non-compliance with Good Governance Conditions? | ||
-
V. Supporting Documents
-
VI. Accomplishment Report
- Memo from HUDCC regarding Distribution of Board Materials
- DAP Training Certificates Board
- Revised Manual of Corporate Governance
- Committee Attendance 2014
- Committee Attendance 2016
- Certificate of Attendance to Board Meeting 2014
- Certificate of Attendance to Board Meeting 2016
- CIP Professionalism Launching
- Professionals Creed/Code of Ethics
- Conduct of Corporate Sportsfest or Corporate Team Building
- Teambuilding Chairperson's Report
- Corporate Governance Confirmation Statement
- The Appointment and removal of the Internal Auditor must require the approval of the Audit Committee (Page 13, Item 13.1.2 of the Revised Manual of Corporate Governance)
- Whistleblowing Policy
- GCG MC 2014-03 (4th Issue)
