2023 Corporate Governance Scorecard

CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 April 2024
Year being assessed: 2023
QUESTION ANSWER/COMPLIANCE SUPPORTING DOCUMENTS
I. STAKEHOLDER RELATIONSHIP
1. Does the GOCC disclose a policy that:
1.a Does the GOCC disclose a policy that: 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 to other groups such as the agencies from the national government.

 

2. The Revised Manual on Corporate Governance also provides for the Communication Policy and System on Accountability to its Stakeholders.

SHFC Revised Manual of Corporate Governance 2015

Certificate of Compliance with the Revised Manual of Corporate Governance

1.b Does the GOCC disclose a policy that: 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.

SHFC Revised Manual of Corporate Governance 2015

Certificate of Compliance with the Revised Manual of Corporate Governance

1.c Does the GOCC disclose a policy that: 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 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:

 

1. Take into consideration the concept of climate change in various phases of its corporate decisions, policy formulations, development plans and corporate strategies;

 

2. 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

 

3. 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.

 

Furthermore, SHFC requires the Developer /Contractor to secure permits such as the Environmental Compliance Certificate (ECC) to make sure that all projects will have no adverse impact to the environment. (Corporate Circular No.23-062, Amended Implementing Guidelines for CGF, pages 12-13 and 18-19).

SHFC Revised Manual of Corporate Governance 2015

Amended Guidelines for CGF (pages 12-13 and 18-19)

Certificate of Compliance with the Revised Manual of Corporate Governance

SHFC's CSR Statement

2. Does the GOCC disclose the activities that it has undertaken to implement the above-mentioned policies?
2.a Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Customer health and safety) Yes.

SHFC ensures that it addresses the customers’ health and safety through the following mandate, programs, policies, and projects:

 

1. 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.

 

2. 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.

 

3. 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.

 

4. Corporate Circular 13-022 (2013) and Corporate Circular CMP No. 17-050 (2017). 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.

Corporate Circular No. 13-022 (2013)

Corporate Circular CMP No. 17-050 (2017)

Covid-related announcements and digital payment channels

SHFC Construction Manual: Construction Safety & Health (page 52/53)

2.b Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities) Yes.

SHFC dedicate time and effort to interact with the communities through the following activities:

 

1. SHFC Awards Land Titles to 45 Laguna Families;

 

2. SHFC Multistory Housing for 10,400 Misamis Oriental Families Breaks Ground; and

 

3.SHFC Turns Over 200 Housing Units to Lucena Community

SHFC Awards Land Titles to 45 Laguna Families

SHFC Multistory Housing for 10,400 Misamis Oriental Families Breaks Ground

SHFC Turns Over 200 Housing Units to Lucena Community

2.c Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (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.

 

Furthermore, SHFC requires the Developer/Contractor to secure permits such as the Environmental Compliance Certificate (ECC) to make sure that all projects will have no adverse impact to the environment. (Corporate Circular No.23-062, Amended Implementing Guidelines for CGF, pages 12-13 and 18-19).

Amended Guidelines for CGF (pages 12-13 and 18-19)
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 Code of Corporate Governance for GOCCs > On Governance Matters > CSR Statement.

 

Furthermore, it is evidenced by the activities conducted by SHFC's Gender and Development.

SHFC's CSR Statement

Gender and Development Reports

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:

 

1. Checking the Feedback and Complaints page of the Citizen's Charter (pages 106-107) which can be accessed in the SHFC’s official website;

 

2. 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.

 

3. Sending a message to SHFC’s Facebook Messenger (www.facebook/shfcph) account to express their feedback, concerns and questions.

 

4. Contact Us/Inquiry Page on the website.

SHFC's Citizen's Charter (2023, 2nd Edition)

Contact Us

5. Performance-enhancing mechanisms for employee participation should be permitted to develop.
5.a Performance-enhancing mechanisms for employee participation should be permitted to develop. 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:

 

1. Memorandum on SHFC Work Arrangement Policy;

 

2. SHFC's Official Advisories for Health and Safety Concern; and

 

3. Memorandum on the Recommendation to Adopt WFH Arrangement Due to Transport Strike

Memorandum on SHFC Work Arrangement Policy

SHFCs Official Advisories for Health and Safety Concern

Memorandum on the Recommendation to Adopt WFH Arrangement Due to Transport Strike

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.

Memorandum on SHFC Work Arrangement Policy

Job Description - Nurse II

Memorandum on the Recommendation to Adopt WFH Arrangement Due to Transport Strike

SHFC 2023 Medicine Inventory

SHFCs Official Advisories for Health and Safety Concern

5.c Does the GOCC have training and development programs for its employees? Yes.

SHFC has an approved 2023 Training Development Plan (TDP).

2023-2024 Training Development Plan
5.d Does the GOCC publish data on training and development programs 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.

List of 2023 Seminars and Trainings
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 on 24 March 2021. SHFC also issued its Code of Conduct and Ethical Standards on 18 December 2023.

Board Resolution No. 908, S. 2020 - Approval of SHFC's Whistleblowing Policy and Jurisdiction

SHFC Code of Ethics

SHFC Whistleblowing Policy Page

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 and SHFC Code of Ethics.

 

Under Policy, there is a provision on Protection against Retaliation, which states:

"Protection against retaliation.
Should there be a perceived or actual retaliatory acts directed against the Whistleblower, by reason of the Whistleblowing Complaint/Report he may likewise file a "Complaint on Retaliation"."

Board Resolution No. 908, S. 2020 - Approval of SHFC's Whistleblowing Policy and Jurisdiction

SHFC Code of Ethics

SHFC Whistleblowing Policy Page

CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 April 2024
Year being assessed: 2023
QUESTION ANSWER/COMPLIANCE SUPPORTING DOCUMENTS
II. DISCLOSURE AND TRANSPARENCY
7. Does the GOCC's website disclose the following items:
7.a Does the GOCC's website disclose the following items: Corporate objectives Yes.

SHFC’s mandate is that by 2023, 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 the letter from GCG regarding the Transmittal of 2023 Performance Scorecard.

Transmittal of 2023 Performance Scorecard

Rationale of the 2023 Performance Scorecard Targets

7.b Does the GOCC's website disclose the following items: Financial performance indicators Yes.

SHFC’s financial performance indicators can be verified in the letter from GCG regarding the Transmittal of 2023 Performance Scorecard.

 

Furthermore, the unaudited 2023 Financial Statements submitted to the Commission on Audit are also included in the SHFC's official website.

Transmittal of 2023 Performance Scorecard

Rationale of the 2023 Performance Scorecard Targets

2023 SHFC Unaudited Financial Statements

7.c Does the GOCC's website disclose the following items: Non-financial performance indicators Yes.

1. The Briefer on SHFC’s 2023 Corporate Performance likewise contains the corporation’s non-financial accomplishments like satisfactory ratings on the Harmonized Client Satisfaction Measurement (CSM) for external services; technological shifts and workarounds, increase in corporate competency, quality management system, and turnaround time as prescribed by ARTA.

 

2. SHFC's performance scorecard, likewise, includes the conduct of a Harmonized Client Satisfaction Measurement (CSM) based on Joint Memorandum Circular of ARTA and GCG, wherein SHFC's clients are surveyed through the CSM Questionnaire on SHFC's external services.

Transmittal of 2023 Performance Scorecard

Rationale of the 2023 Performance Scorecard Targets

7.d Does the GOCC's website disclose the following items: Details of whistle-blowing policy Yes.

SHFC has procedures for complaints by employees regarding illegal and unethical behavior, including corruption. The following details can be found in the Whistleblowing Policy:

 

1. Basis and Purpose;

2. Scope;

3. Applicability;

4. Concepts;

5. General Policies;

6. Whistleblowing Cases;

7. Process of complaint investigation and protection against retaliation; and

8. Summary of Jurisdiction

 

In addition, SHFC has also Code of Ethics and Revised Rules of Procedure on Disciplinary and Administrative Cases.

Board Resolution No. 908, S. 2020 - Approval of SHFC's Whistleblowing Policy and Jurisdiction

SHFC Whistleblowing Policy Page

SHFC Code of Ethics

Revised Rules of Procedure on Disciplinary and Administrative Cases

7.e Does the GOCC's website disclose the following items: 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 on the website.

Profiles of Directors
7.f Does the GOCC's website disclose the following items: Training and/or continuing education program attended by each director/commissioner Yes.

The following members of the SHFC Governing Board, both appointive and alternate attended the the Gender-Sensitive Executive Briefing:

 

1. Asec. Glenda Rumohr-Figueroa;

2. Dir. Emiliano C. Reyes;

3. Dir. Lyndon B. Catulong, Sr.,;

4. Dir. Ronald R. Barcena; and

5. President and CEO Federico A. Laxa

 

The Institute of Corporate Directors has no offering for intermediate corporate governance training for Board of Directors since 2021.

2023 Gender-Sensitive Executive Briefing
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 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 B
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 October, 2024
Year being assessed: 2023
QUESTION ANSWER/COMPLIANCE SUPPORTING DOCUMENTS
II. DISCLOSURE AND TRANSPARENCY
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.
SHFC Transparency Seal Page
10.a Are the audited annual financial report/statement uploaded on the website within 60 days upon receipt from COA? Yes.
The Annual Audit Report was received on 30 April 2024 and was published online on 07 March 2024.
2023 COA Audit Report SHFC
10.b Is the annual report released within 90 days from release of audited financial report? 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.

The Annual Audit Report was received on 30 April 2024 and was published online on 07 March 2024.

SHFC Transparency Seal Page
10.c 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? Yes.
The annual financial statements/reports of SHFC are affirmed by its Directors, Management and Officers of the Corporation. SHFC’s Statement of Management’s Responsibility for Financial Statements can be found in the 2023 Audited Financial Report.

Page 17 | Statement of Management's Responsibility for Financial Statements

2023 COA Audit Report SHFC
CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 April 2024
Year being assessed: 2023
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 discussed the Corporate Performance Scorecard for FY 2023 including Corporate Strategies during the 08-2022 Board Meeting last 01 June 2022.

 

The Management reiterated the Corporate Strategies, Strategy Map for 2019-2023, Vision, Mission and Core Values during the 02-2023 Board Meeting last 27 February 2023.

Minutes of the 08-2022 SHFC Board Meeting

Minutes of the 02-2023 SHFC 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 Performance for FY 2023 and commended the Management for the positive financial performance resulting in a net income.

Minutes of the 02-2023 SHFC Board Meeting
13.a Are the details of the code of ethics or conduct disclosed? Yes.

SHFC issued its Code of Conduct and Ethical Standards on 18 December 2023. The Code discussed the details on the following matters:

  1. Norms of Conduct of SHFC Officers and Employees;
  2. Duties of SHFC Officers and Employees;
  3. Prohibited Acts and Transactions;
  4. Disclosure and/or Misuse of Confidential Information;
  5. Solicitation or Acceptance of Gifts;
  6. Statements and Disclosures;
  7. Divestment and Conflict of Interest;
  8. Privacy of Personal Records of SHFC Officers and Employees;
  9. Hiring and Promotion;
  10. Whistleblowing Policy; and
  11. Penalties
SHFC Code of Ethics
13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? Yes.

Under the Policy, there is a provision on the Coverage of the said Code, which states that:

 

"The SHFC Code of Conduct and Ethical Standards shall apply to each and every officer and employee of SHFC. It shall cover all SHFC officers and employees and includes appointive, regular, permanent, temporary, contractual, and coterminous employees. It shall also cover members of the SHFC Governing Board in their capacity as public officials."

SHFC Code of Ethics
13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? Yes.

The SHFC Code of Conduct and Ethical Standards was cascaded to all SHFC officers and employees through the issuance of Memorandum No. OVPHRAG-2023-055 dated 18 December 2023.

SHFC Code of Ethics
14. Does the Board appoint a Nomination Compensation / Remuneration Committee? Yes.

In CY 2023, 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 CY 2021.

Secretary Certificate on BR No. 1006, Series of 2023, Approval of the Board Committees and Membership for CY 2023

Minutes of the 01-2023 SHFC Board Meeting

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

The GPNCom had seven (7) meetings in CY2023.

Attendance of Directors in the Committee Meetings for CY2023
16. If yes, is the report of the Nomination Compensation/ Remuneration Committee publicly disclosed? Yes.

The report of the GPNCom is publicly disclosed.

GPNCom Accomplishment Report for CY2023
17. Does the Board appoint an Audit Committee? Yes.

The SHFC has an Audit Board Committee appointed and approved by the SHFC Governing Board.

Secretary Certificate on BR No. 1006, Series of 2023, Approval of the Board Committees and Membership for CY 2023

Minutes of the 01-2023 SHFC Board Meeting

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

The report of the Audit Board Committee is publicly disclosed.

Audit Committee Accomplishment Report for CY2023
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? Yes.

The Chairperson of the Audit Committee is from DBM Usec. Leo Angelo M. Larcia who is the alternate of the Secretary of the DBM to the SHFC Governing Board presides the Audit Board Committee meetings.

 

Undersecretary Catherine L. Fong and Assistant Secretary Glenda Rumohr-Figueroa are also members of the Audit Board Commitee; and are alternates of the Secretary of the Department of Finance.

Profiles of Directors
20. Did the Audit Committee meet at least four times during the year? Yes.

The Audit Board Committee met four times (4) in CY 2023.

Attendance of Directors in the Committee Meetings for CY2023
21. Does the Board appoint a Risk Management Committee? Yes.

The SHFC has an independent Risk Management Committee.

Secretary Certificate on BR No. 1006, Series of 2023, Approval of the Board Committees and Membership for CY 2023

Minutes of the 01-2023 SHFC Board Meeting

22. If yes, is the report on Risk Management Committee publicly disclosed? Yes.

The report of the Risk Management Committee is publicly disclosed.

Risk Management Committee Accomplishment Report for CY 2023

Highlights of Discussion of the Risk Management Committee CY 2023

23. Does at least one member of the Risk Management Committee have a background in finance and investments? Yes.

The Chairperson of the Risk Management Committee is from DOF. Assistant Secretary Glenda Rumohr-Figueroa who is the alternate of the Secretary of the DOF to the SHFC Governing Board presides the Risk Management Committee meetings.

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.

Notice of Committee and Board Meetings

Secretary Certificate on BR No. 1006, Series of 2023, Approval of the Board Committees and Membership for CY 2023

24.b Does the Board of Directors meet at least monthly? No.

The SHFC Governing Board had twelve (12) Board Meetings in CY2023. Some meetings supposedly scheduled for the months of May, August, and October were moved to an earlier or later date.

List of Board Meeting Attendance in CY2023
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 2023 are ten (10). 83.33% of the scheduled meeting were conducted on schedule.

List of Board Meeting Attendance in CY2023
24.d Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? No.

Not all directors attended 90% of the meetings.

 

However, the following Directors have attended at least 90% of the Board Meetings:

  1. Secretary Jose Rizalino L. Acuzar with his alternate Usec. Lyle Filomeo C. Pasco;
  2. Mr. Federico A. Laxa;
  3. Mr. Lyndon B. Catulong, Sr.;
  4. Atty. Emiliano C. Reyes; and
  5. Mr. Ronald R. Barcena
List of Board Meeting Attendance in CY2023
24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present? Yes.

The SHFC Governing Board met once without the SHFC President and CEO during its 02-2023 Board Meeting.

List of Board Meeting Attendance in CY2023
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.

The SHFC Governing 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 01-2023 SHFC Board Meeting

Secretary Certificate on BR No. 1006, Series of 2023, Approval of the Board Committees and Membership for CY 2023

25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices? Yes.

The Board Secretary is a lawyer.

Profile of Atty. Karoline J. Abello - Tordecilla
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.

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 Audit

 

The endorsement of the removal of internal auditor head will be endorsed by the Audit 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? Yes.

SHFC discloses the internal control procedures by issuing Office Orders such as the following:

 

1. Office Order No. 23-1386, Series of 2023, Express/Priority Lanes for Senior Citizens, Persons with Disability, Special Needs of Medical Conditions, and Pregnant Women;

 

2. Office Order No. 23-1365, Series of 2023, Guidelines for the Transition and Transfer of the Remedial Accounts Department to the Operations Cluster;

 

3. Office Order No. 23-1333, Series of 2023, Interim Rules and Procedures for Handling Highly Delinquent Accounts;

 

4. Office Order No. 23-1381, Series of 2023, Reconstitution of Inventory Committee for Physical Inventory-Taking of Property, Plant and Equipment for CY 2023.

Office Order No. 23-1386, Series of 2023

Office Order No. 23-1365, Series of 2023

Office Order No. 23-1333, Series of 2023

Office Order No. 23-1381, Series of 2023

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.

In its Financial Report submitted to the Commission on Audit and in SHFC's 2023 Interim Annual Report, it states thein that:

 

"The Board of Directors is responsible for overseeing the Social Housing Finance Corporation's financial reporting process. The Board of Directors reviews and approves the financial statements, including the schedules attached therein. and submits the same to the stockholders or members."

SHFC 2023 Interim Annual Report
27.c Does the company disclose how key risks are managed? No.
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.

The statement on the adequacy of SHFC's internal control is disclosed in SHFC's 2023 Interim Annual Report.

SHFC 2023 Interim Annual Report
28. Do different persons assume the roles of Chairman and CEO? Yes.

The Chairman of the Board is the Secretary Jose Rizalino L. Acuzar of the DHSUD, while the SHFC President and CEO is Mr. Federico A. Laxa.

Profiles 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.

Orientation and Continuing Education
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 2023
29.c Did all Appointive Directors attend at least 1 training for the calendar year? Yes.

The following members of the SHFC Governing Board, both appointive and alternate attended the Gender-Sensitive Executive Briefing:

 

1. Asec. Glenda Rumohr-Figueroa

2. Dir. Emiliano C. Reyes

3. Dir. Lyndon B. Catulong, Sr.,

4. Dir. Ronaldo R. Barcena

5. President and CEO Federico A. Laxa

 

The Institute of Corporate Directors has no offering for intermediate corporate governance training for Board of Directors since 2021.

2023 Gender-Sensitive Executive Briefing
30.a Is an annual performance assessment conducted of the Board of Directors? Yes.

The SHFC has its separate assessment that evaluates the performance of its Governing Board. The SHFC Governing Board is scheduled to conduct the assessment of the previous year's performance every first (1st) quarter of the year or on the date decided upon the by the SHFC Governing Board.

Guidelines on the Annual Performance Review of SHFC Board
30.b Does the GOCC disclose the process followed in conducting the Board assessment? Yes.

The process in conducting the Annual Performance Review of the SHFC Board is laid down in the Guidelines.

Guidelines on the Annual Performance Review of SHFC Board
30.c Does the GOCC disclose the criteria used in the Board assessment? Yes.

The following are the criteria used during the annual performance review of the SHFC Board:

  1. Leadership;
  2. Knowledge and Personal Development; and
  3. Teamwork and Communication.
Guidelines on the Annual Performance Review of SHFC Board
31. Is an annual performance assessment conducted of the Board of Directors Committees? Yes.

The annual performance review of the SHFC Board includes the appraisal and review of Board Committees and is conducted on the same schedule as that of the SHFC Board assessment.

Guidelines on the Annual Performance Review of SHFC Board
CORPORATE GOVERNANCE SCORECARD REPORT B
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 October 2024
Year being assessed: 2023
QUESTION ANSWER/COMPLIANCE SUPPORTING DOCUMENTS
III. BOARD RESPONSIBILITY
12 Did the GOCC achieve 90% in the PES? No.
The GCG-validated result of SHFC's 2023 Performance Scorecard is 47.08%.
2023 GCG-validated Performance Scorecard
CORPORATE GOVERNANCE SCORECARD REPORT A
Name of GOCC: SOCIAL HOUSING FINANCE CORPORATION
Sector: GOVERNMENT FINANCIAL INSTITUTION
Date submitted: 01 October 2024
Year being assessed: 2023
QUESTION ANSWER/COMPLIANCE SUPPORTING DOCUMENTS
IV. BONUS
1. Stakeholder Relationship
Does the GOCC practice Global Reporting Index (GRI) on its annual reports? No.

SHFC has yet adopted the integrated reporting based on GRI framework for disclosure.

2. Timely release of annual financial report
Is the audited annual financial report/statement released within 30 days upon receipt from COA? Yes.

The Annual Audit Report was received on 30 April 2024 and was published online on 07 March 2024.

SHFC Transparency Seal Page
V. Penalty
1. Responsibilities of the Board
Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? No.

No appointive directors hold more than 5 positions in other GOCCs

2. Responsibilities of the Board
Is there non-compliance with Good Governance Conditions? Yes.

SHFC is non-compliant with the one (1) Good Governance Conditions: Mandatory Disclosure Requirements.

2023 PBB status of Social Housing Finance Corporation
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