Corporate Governance Scorecard for COCCS – Social Housing Finance Corporation

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2021 Corporate Governance Scorecard

CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC:	SOCIAL HOUSING FINANCE CORPORATION
Sector:	GOVERNMENT FINANCIAL INSTITUTION
Date submitted:	01 April 2022
Year being assessed:	2021

QUESTION	ANSWER/COMPLAINCE	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. 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. 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 Certificate of Compliance with the Revised Manual on Corporate Governance
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 Certificate of Compliance with the Revised Manual on Corporate Governance
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: Take into consideration the concept of climate change in various phases of its corporate decisions, policy formulations, development plans and corporate strategies; Support sound environmental policies and encourage private groups, local governments, and community based organizations to prevent and reduce the adverse impacts of climate change; and Endeavor to create a positive impact in addressing climate change and cooperate with the global community in the resolution of climate change issues, including disaster risk reduction. These can be found in the CSR Statement as declared in the Revised Manual on Corporate Governance	Revised Manual on Corporate Governance, Section 27 CSR Statement
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: SFHC is mandated to be the lead government agency to undertake social housing programs that will cater to the formal and informal sectors in the low-income bracket and shall take charge of developing and administering social housing program schemes, particularly the CMP and the AKPF Program (amortization support program and developmental financing program). In view of its mandate, SHFC’s project applications for CMP, in securing the program’s requirements, basically addresses the program beneficiaries’ welfare or quality of life improvement. COVID-related announcements and digital payment channels wherein SHFC’s SAs/MBs can conveniently and securely pay online and access SHFC’s services within the comforts of their homes or wherever they are, anytime. Construction Manual: Construction Safety & Health (page 53/52) which states that for projects undertaken by contractors, monitoring, implementation, and enforcement of construction safety and health shall be in accordance with the provisions of the Labor Code of the Philippines and its Implementing Rules and Regulations, inclusive of the Occupational Safety and Health Standards, DOLE D.O. No. 13 s. 1998 and its governing employer-employee relationships, contracting, and subcontracting arrangements. Corporate Circular 13-022 (2013) This circular provides the policy for mandated SHFC program beneficiaries, the informal settler families, in expediting CMP financing assistance in times of evictions, demolition and disasters.	COVID-related announcements and digital payment channels Construction Manual: Construction Safety & Health (page 53/52) Corporate Circular 13-022 (2013)
2.b Interaction with the communities	Yes. SHFC dedicate time and effort to interact with the communities through the following activities: SHFC Turns Over Permanent Houses to 120 Marawi Families (Press Release, July 25, 2021); and Various Articles in the Hinabi, SHFC’s Official Magazine from January to December 2021	SHFC Turns Over Permanent Houses to 120 Marawi Families, Press Release Various Articles in the Hinabi, SHFC’s Official Magazine
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-Iligan office joins tree planting for fallen Marawi siege heroes (Hinabi April-June 2021 Issue)	Social Housing Finance Corporation Accomplishments for the period July 2016 to February 2021 (Page 6) Building Climate and Disaster Resilient Shelter Program for the Poor Hinabi April –June 2021 Issue, p. 24
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 and Policies.	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: Checking the Feedback and Complaints page of the Citizen's Charter (p. 280) which can be accessed in the SHFC’s official website; Sending an email to crcd.shfc@gmail.com. A confirmation message shall be sent to concerned party that the email has been received and properly forwarded to the concerned division, department, or branch. Sending a message to SHFC’s Facebook Messenger (www.facebook/shfcph), Twitter and Instagram (@shfcph) accounts to express their feedbacks, concerns and questions. Contact Us/Inquiry Page in the website.	SHFC's Citizen's Charter Contact Us
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.Through its HRD Department, Official Advisories and Memoranda were issued related to health and safety of its employees especially during this pandemic: Memorandum on SHFC Protocols on Contact Tracing, Home Quarantining and Swab/RT-PCR Testing; Memorandum on General Guidelines on Work Arrangements under the Different Community Quarantine Classifications; Memorandum on General Guidelines on Work Arrangements for the Period of March 15 to 31 2021; Memorandum on Work Arrangement for the period March 28-April 4, 2021; Memorandum on Work Arrangement pursuant to Malacanang Memorandum Circular; Memorandum on Updates on SHFC Work Arrangement, Protocols on Swab RT-PCR Testing and Home Quarantining; Advisories Related to Health and Safety for CY 2021	Memorandum on SHFC Protocols on Contact Tracing, Home Quarantining and Swab/RT-PCR Testing; Memorandum on General Guidelines on Work Arrangements under the Different Community Quarantine Classifications; Memorandum on General Guidelines on Work Arrangements for the Period of March 15 to 31 2021; Memorandum on Work Arrangement for the period March 28-April 4, 2021; Memorandum on Work Arrangement pursuant to Malacanang Memorandum Circular; Memorandum on Updates on SHFC Work Arrangement, Protocols on Swab RT-PCR Testing and Home Quarantining; Advisories Related to Health and Safety for CY 2021
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 (through Intellicare) has facilitated the presentation of Medical Utilization Report on 11 May 2021. (The medical utilization report for June to December 2021 will be presented in August 2022)	Memorandum on SHFC Protocols on Contact Tracing, Home Quarantining and Swab/RT-PCR Testing; Memorandum on General Guidelines on Work Arrangements under the Different Community Quarantine Classifications; Memorandum on General Guidelines on Work Arrangements for the Period of March 15 to 31 2021; Memorandum on Work Arrangement for the period March 28-April 4, 2021; Memorandum on Work Arrangement pursuant to Malacanang Memorandum Circular; Memorandum on Updates on SHFC Work Arrangement, Protocols on Swab RT-PCR Testing and Home Quarantining; Advisories Related to Health and Safety for CY 2021
5.c Does the GOCC have training and development programmes for its employees?	Yes. SHFC has an approved 2021 Training Development Plan (TDP).	2021 Training Development Plan
5.d Does the GOCC publish data on training and development programms for its employees?	Yes. In all trainings / webinars conducted, 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.	SHFCs Official Advisories for Internal Webinars for CY 2021
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 - Approval of SHFC's Whistleblowing Policy and Jurisdiction SHFC Whistleblowing Policy 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 Whistleblowing Policy

CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC:	SOCIAL HOUSING FINANCE CORPORATION
Sector:	GOVERNMENT FINANCIAL INSTITUTION
Date submitted:	01 April, 2022
Year being assessed:	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. 2020 Corporate Accomplishment Report: 2021 Corporate Performance Targets; and 2. Audited 2021 Performance Scorecard	Briefer on SHFC’s 2021 Corporate Performance Audited 2021 Performance Scorecard
7.b Financial performance indicators	Yes. SHFC’s financial performance indicators can be verified on the:1. Briefer on SHFC’s 2021 Corporate Scorecard; and2. FY 2021: Performance Scorecard	Briefer on SHFC’s 2021 Corporate Performance Audited 2021 Performance Scorecard
7.c Non-financial performance indicators	Yes. 1. Briefer on SHFC’s 2021 Corporate Performance likewise contains the corporation’s non-financial accomplishments like satisfactory ratings on the Client Satisfaction Survey for pre and post-takeout; technological shifts and workarounds, and increase in corporate competency.2. SHFC's performance scorecard, likewise, includes the conduct of a Customer Satisfaction Survey (CSS) based on GCG's standard methodology, wherein SHFC's clients are surveyed on SHFC's pre-takeout and post-takeout services. SHFC's CSS rating could be found in the SHFC-Audited 2021 Performance Scorecard.	Briefer on SHFC’s 2021 Corporate Performance Audited 2021 Performance Scorecard
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 BR SC 908 S. 2021 (APPROVAL OF SHFC'S WHISTLEBLOWING POLICY AND JURISDICTION) SHFC Whistleblowing Policy Revised Rules of Procedure on Disciplinary and Administrative Cases Amended Rules of Procedure
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	Directors’ Profiles (Board of Directors)
7.f Training and/or continuing education programme attended by each director/commissioner	Yes. SHFC has provided the Advanced Corporate Governance Training to its Directors.	Training Certificates of Board of Directors
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. Further, SHFC website contains sections on Transparency Seal, Whistleblowing Policy, Freedom of Information, etc. The state of SHFC's Corporate Governance could be inferred from these sections, which are likewise in compliance with the GCG's instructions on corporate governance.

CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC:	SOCIAL HOUSING FINANCE CORPORATION
Sector:	GOVERNMENT FINANCIAL INSTITUTION
Date submitted:	01 April, 2022
Year being assessed:	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 Performance Report in FY2020 discussed the Corporate Enabling Strategies for FY2021 during the 02-2021 Board Meeting last 19 February 2021 and the updated Corporate Performance during the 03-2021 Board Meeting.The Management likewise reiterated the Mandate and Corporate Strategies during the presentation for the 2022 Corporate Workplan last 04-2021 Board Meeting	Minutes of the 02-2021, 03-2021 & 04-2021 Board Meetings
11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy?	Yes. The Board of Directors assessed the Corporate Performance for FY2020 and instructed the management to undertake the following: 1. Present next Board Meeting the projection on the catch up plan for the loss to breakeven in real term and SHFC’s cash position; and 2. The Management is also directed to undertake the following: a. Improve Collection Efficiency Rate; and b. Follow up the PhP300 Million funding from the National Government.	Minutes of the 03-2021 Board Meeting
12. Did the GOCC achieve 90% in the PES?
13.a Are the details of the code of ethics or conduct disclosed?	Yes. Uploaded/posted in SHFC's website are the Professional's Creed, copy of R.A. No. 6713 Republic Act (R.A.) No. 6713, An Act Establishing a Code of Conduct and Ethical Standards for Public; and R.A. No. 6713 Implementing Rules and Regulations.	Professional Creed Republic Act (R.A.) No. 6713 An Act Establishing a Code of Conduct and Ethical Standards for Public R.A. No. 6713 Implementing Rules and Regulations
13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?	Yes. Uploaded/posted in SHFC's website are the Professional's Creed, copy of R.A. No. 6713 Republic Act (R.A.) No. 6713, An Act Establishing a Code of Conduct and Ethical Standards for Public; and R.A. No. 6713 Implementing Rules and Regulations.	Professional Creed Republic Act (R.A.) No. 6713 An Act Establishing a Code of Conduct and Ethical Standards for Public R.A. No. 6713 Implementing Rules and Regulations
13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?	Yes. Uploaded/posted in SHFC's website are the Professional's Creed, copy of R.A. No. 6713 Republic Act (R.A.) No. 6713, An Act Establishing a Code of Conduct and Ethical Standards for Public; and R.A. No. 6713 Implementing Rules and Regulations.	Professional Creed Republic Act (R.A.) No. 6713 An Act Establishing a Code of Conduct and Ethical Standards for Public R.A. No. 6713 Implementing Rules and Regulations
14. Does the Board appoint a Nomination Compensation / Remuneration Committee?	Yes. In 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. This was adopted at the start of CY2021	Board Resolution No. 919, Series of 2021
15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?	Yes. The GPNCom had fourteen (14) meetings in CY2021	Attendance of Directors in the Committee Meetings for CY2021
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 Report for CY2021
17. Does the Board appoint an Audit Committee?	Yes. The Board likewise merged the functions of the Audit and Risk Management Committees (ARCom) into one committee at the start of the CY2020 for efficiency. This was adopted at the start of CY2021	Board Resolution No. 919, Series of 2021
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.	Audit and Risk Management Committee Accomplishment Report for CY2021
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 is also a member of the ARCom. Usec. Agabin is from the Department of Finance.	Profiles of Directors
20. Did the Audit Committee meet at least four times during the year?	Yes. The Audit Committee met four (4) times in CY 20201.	Attendance of Directors in the Committee Meetings for CY2021
21. Does the Board appoint a Risk Management Committee?	Yes. The Board merged the Risk Management Committee with the Audit Committee.	Board Resolution No. 919, Series of 2021
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.	Audit and Risk Management Committee Accomplishment Report for CY2021
23. Does at least one member of the Risk Management Committee have a background in finance and investments?	Yes. Undersecretary Bayani H. Agabin is a member of the ARCom. Usec. Agabin is from the Department of Finance (DOF).	Profiles of Directors
24.a Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)	Yes. The Board Meetings are scheduled at the beginning of the year and approved by the Board.	Board Resolution No. 919, Series of 2021 List of Board Meeting Attendance in CY2021 submitted to SEC
24.b Does the Board of Directors meet at least monthly?	Yes. The Board had fourteen (14) Board Meetings in CY2021. Some 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 Attendance in CY2021 submitted to SEC
24.c Did the Board of Directors meet on at least 75% on their scheduled meetings?	Yes. The proposed number of Board Meetings is twelve (12) at the start of the year. The actual Board Meetings conducted in CY 2020 are fourteen (14), therefore, 117% of the scheduled meetings.	Board Resolution No. 919, Series of 2021
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 in CY2021
24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present?	Yes, the Board conducted a meeting without the President last 01-2021 Board Meeting last 27 January 2021	Minutes of the 01-2021 Board Meeting
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. In 2021, the Board directed the Management to submit the materials for the Board & Committee meetings as follows: 1. Committee Meeting: 3 working days in advance 2. Board Meeting: 5 working days in advance	Minutes of the 01-2021 Board Meeting
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 SHFC's Senior Management
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 - 2010 Organizational Structure Organizational Chart as of December 12, 2017, Approved per BR No. 620, s. 2017 Current Staff Complement
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: 1. Corporate Treasurer; 2. Corporate Secretary; 3. Compliance Officer; 4. Chief Finance Officer; and 5. Head of Internal AuditThe 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?	No disclosure
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?	No disclosure, 2021 Annual Report is being finalized
27c Does the company disclose how key risks are managed?	No disclosure
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?	No disclosure, 2021 Annual Report is being finalized
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.	Director’s Profile
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 for 2021
29.c Did all Appointive Directors attend at least 1 training for the calendar year?	No. Three (3) Appointive Directors and one (1) alternate ex-officio attended at least 1 training in 2021	Certificate of Attendance of four (4) 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.	GCG Memorandum Circular No. 2014-03 GCG MC 2014-03 (4th Issue)
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.	GCG Memorandum Circular No. 2014-03 GCG MC 2014-03 (4th Issue)
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.	GCG Memorandum Circular No. 2014-03 GCG MC 2014-03 (4th Issue)
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.	GCG Memorandum Circular No. 2014-03 GCG MC 2014-03 (4th Issue)

2021 Corporate Governance Scorecard

I. Stakeholder Relationships

II. Disclosure and Transparency

III. Responsibilities of the Board