2017 Corporate Governance | National Irrigation Administration

NIA Corporate Governance Scorecard (CY 2017)
#	QUESTION		YES	NO	LINK SOURCE
I. Stakeholder Relationships (15%)
1	Does the GOCC disclose a policy that:
	a.	Stipulates the existence and scope of its effort to address customer’s welfare?			Refer to Presidential Decree 552, Amending Certain Sections of Republic Act Numbered Thirty Six Hundred and One, Entitled, “Act Creating the National Irrigation Administration”, 11 September 1974 and MC No. 13 series 2017, “Guidelines on Free Irrigation Service”
	b.	Elaborates its efforts to interact with the communities in which they operate?			Refer to Presidential Decree 552, Amending Certain Sections of Republic Act Numbered Thirty Six Hundred and One, Entitled, “Act Creating the National Irrigation Administration”, 11 September 1974 and MC No. 13 series 2017, “Guidelines on Free Irrigation Service” and Manual of Corporate Governance
	c.	Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?			See 2017 Annual Report page 38, NIA’s Tree Planting Program
2	Does the GOCC disclose the activities that it has undertaken to implement the above mentioned policies?
	a.	Customer health and safety			Refer to MC No. 52 series 2015, “Creation of Task Force Calamity and the guidelines on the reporting of calamity damages and implementation of Repair/Restoration Works”
	b.	Interaction with the communities			See Institutional Development Program, Other Project Components in Coordination with Government Agencies and Entities
	c.	Environmentally-friendly value chain			See 2017 Annual Report page 17, “Climate Change Adaptation Works”, page 20, “Coconet Slope Protection Project in NIS/CIS”, and page 27, “Energy Conservation Program”
3	Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section
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?			See Contact Us in NIA website, Filing of Complaint at NIA-Central Office Committee on Discipline (COD) and NIA Facebook
5	Performance-enhancing mechanisms for employee participation should be permitted to develop.
	a.	Does the GOCC explicitly mention the health, safety, and welfare policy for its employees?			Refer to MC No. 68 series 2016 “Policies and Guidelines in Formulating and Implementing a Comprehensive Drug-Free Workplace Program under the Pertinent Provisions of Republic Act (RA) No. 9165 otherwise known as the Comprehensive Dangerous Drugs Act of 2002, the Dangerous Drugs Board (DDB) Regulation No.2 Series of 2004, the Civil Service Commission (CSC) Resolution No. 101359, and the CSC Memorandum Circular (MC) No. 13, Series of 2010.”, MC No. 56 series 2016, “Creation of a drug-free workplace committee”; and MC No. 48 series 2016, “House rules to be observed at the NIA Building complex”
	b.	Does the GOCC publish data relating to health, safety, and welfare of its employees?			See 2017 Medical and Dental Services Accomplishment
	c.	Does the GOCC have training and development programmes for its employees?			See 2017 Annual Report page 22, Capability Development Programs and page 23, Foreign and Local Trainings/Meetings
	d.	Does the GOCC publish data on training and development programs for its employees?			See 2017 Annual Report page 22, Capability Development Programs and page 23, Foreign and Local Trainings/Meetings
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.
	a.	Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?			Refer to MC No. 83 series 2007, “Rules on Internal Whistleblowing and Reporting”
	b.	Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?			Refer to “Rights of Whistle Blower” and “Protection against Retaliatory Actions” on page 2-3 of MC No. 83 series 2007, “Rules on Internal Whistleblowing and Reporting”
II. Disclosure and Transparency (35%)
7	Quality of Annual Report Does the GOCC’s Annual Report disclose the following items:
	a.	Corporate objectives			See 2017 Annual Report page i, Objectives
	b.	Financial performance indicators			See 2017 Annual Report pages 28-32, Financial Management
	c.	Non-financial performance indicators			See 2017 Annual Report page iii, The Administrator’s Report and page 33, GCG NIA’ Performance Scorecard and pages 11-20, Operations and Maintenance of Irrigation Systems
	d.	Details of whistle-blowing policy
	e.	Biographical details (at least age,qualifications, date of first appointment,relevant experience, and any other directorships of listed companies) of directors/commissioners			See 2017 Annual Report pages 45-50
	f.	Training and/or continuing education programme attended by each director/commissioner			See 2017 Annual Report pages 45-50
8	Are the Annual Reports downloadable from the GOCC’s website?				See Annual Report in NIA website
9	Corporate Governance Confirmation Statement
		Does the Annual Report 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 issue?
10	Timely filling/release of annual/financial reports.
	a.	Are the audited annual financial report/statement released within 60 days upon receipt from COA			Date Published: August 27, 2018 Date Receipt from COA: June 29, 2018 Year of the Report: 2017
	b.	Is the annual report released within 90 days from release of audited financial report?
	c.	Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or relevant officers of the company?
III. Responsibilities of the Board (50%)
11	Corporate Vision/Mission
	a.	Has the Board of Directors reviewed the vision and mission/strategy in the last financial year?			The Board reviewed and approved the NIA CY 2017 Performance Scorecard and Revised Strategy Map including its vision, mission, and strategy during the 920th Regular Board meeting held on January 24, 2017 per Board Resolution No. 8397-17, S. 2017 (see Board Resolution No. 8397-17, S. 2017)
	b.	Does the Board of Directors monitor/oversee the implementation of the corporate strategy?			Implementation of the corporate strategy is being monitored through a report on Updates/Status on the Resolutions approved by the Board which is part of the Board Agenda. See Updates/Status on the Resolutions Approved by the Board and page 6 (c) Functions of the NIA Board (see Executive Brief for the Board of Directors
12	Did the GOCC achieve 90% in the PES?				See Transparency Seal – GCG MC 2012-07, CY 2017 GCG Validated Result of the Performance Scorecard
13	Code of ethics or conduct
	a.	Are the details of the code of ethics or conduct disclosed?			See Transparency Seal, NIA Rules and Compendium of Anti Graft Laws
	b.	Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?			See Transparency Seal, NIA Rules and Compendium of Anti Graft Laws Refer to Rule I of MC No. 85 series 2007, “Code of Conduct for Officials and Employees of the National Irrigation Administration”
	c.	Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?			See Transparency Seal, NIA Rules and Compendium of Anti Graft Laws and refer to MC No. 23 series 2000, page 1-2, item 2 – Function “Creation of NIA Committee on Discipline (COD)”
14	Does the Board appoint a Nomination and Compensation/Remuneration Committee?				See Transparency Seal – GCG MC 2012-07, page 3 & 5 of CY 2017 Government Corporate Information Sheet (GCIS)
15	Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year?
16	If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed?
17	Does the Board appoint an Audit Committee?				See Transparency Seal – GCG MC 2012-07, page 3 & 4 of CY 2017 Government Corporate Information Sheet (GCIS) and page 2 of Information on Board Committees and their activities
18	If yes, is the report of the Audit Committee publicly disclosed?
19	Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?				See page 4 of Board Profile and Transparency Seal – GCG MC 2012-07, 2017 Board of Directors and Officers, Board and Officers Dir. Gregorio G. Sarmiento
20	Did the Audit Committee meet at least four times during the year?				The Audit Committee met only once on March 9, 2017. The Members Present: Chairman Audit Committee Usec. Rolando G. Tungpalan, NEDA Alteranate Member Members Manuel I. Monteverde, NPC Representative Sylvestre B. Bonto, Sr Rice & Corn Sector Representative (see Board Profile and Minutes and Attendance)
21	Does the Board appoint a Risk Management Committee?				See Transparency Seal – GCG MC 2012-07, page 3 & 4 CY 2017 Government Corporate Information Sheet (GCIS) and page 2 of Information on Board Committees and their activities
22	If yes, is the report on Risk Management Committee publicly disclosed?
23	Does at least one member on Risk Management Committee have a background in finance and investments?				See page 4 of Board Profile and Transparency Seal – GCG MC 2012-07, 2017 Board of Directors and Officers, Board and Officers Dir. Gregorio G. Sarmiento
24	Board meetings and attendance
	a.	Are the Board of Directors meetings scheduled at the beginning of the year (end of Q1)			See page 6, Functions of the NIA Board in the Executive Brief for the Board of Directors. The Board held their first (1st) scheduled regular meeting for FY 2017 on January 24, 2017. (see 920th Regular Board meeting Agenda)
	b.	Does the Board of Directors meet at least monthly?			See 2017 Attendance record of Directors and their committee meetings
	c.	Did the Board of Directors meet on at least 75% on their scheduled meetings?			The Board met regularly at least once every month in FY 2017. See 2017 Attendance record of Directors and their committee meetings
	d.	Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?			See 2017 Attendance record of Directors and their committee meetings
	e.	Did the Board of Directors meet separately at least once during the year without the President/CEO present?			Without the presence of Admin. Peter T. Laviῆa, the NIA Board of Directors met on February 28, 2017 for the 921st Regular Board meeting. See 2017 Attendance record of Directors and their committee meetings and Attendance page of the Minutes of the 921st Regular Board meeting
25	Access to information
	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?			See Memorandum dated July 21, 2011 “Submission of Subject-Matters for NIA Board of Director’s Approval/Action and receiving copy of the agenda showing that the NIA BODs received the Agenda on January 19, 2017 for the 920th Regular Board meeting scheduled on January 24, 2017
	b.	Is the Board Secretary trained in legal, accountancy or company secretarial practices?			Atty. Pepito L. Padilla Acting Corporate Board Secretary Concurrent Manager, Legal Services
26	Internal Audit
	a.	Does the company have a separate internal audit function?			See page 4 of Internal Audit Services Operations Manual and NIA’s Organizational Structure, page 3 of Executive Brief for the Board of Directors
	b.	Does the appointment and removal of the internal auditor require the approval of the Audit Committee?			The appointment of the Internal Audit Services Manager is under a plantilla position. Appointment of the aforesaid position follows the Civil Service Rules and Regulations in processing its appointment. See Position Description of the Workforce of the Office of the Department Manager, Internal Audit Services
27	Risk Oversight
	a.	Does the company disclose the internal control procedures/risk management systems it has in place?
	b.	Does the Annual Report disclose that the Board of Directors/Commissioners has overseen a review of the company’s materials controls (including operational, financial and compliance controls) and risk management systems?
	c.	Does the company disclose how key risks are managed?
	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?
28	Board Chairman
		Do different person assume the roles of Chairman and CEO?			The Acting Chairman of the Board is Secretary Leoncio B. Evasco, Jr. while the NIA Administrator is Mr. Peter T. Laviῆa until replaced by Gen. Ricardo R. Visaya (Ret) on March 28, 2017 under Board Resolution 8417-17, S. 2017.
29	Board of Directors Development
	a.	Does the GOCC have orientation programmes for new Directors?			Upon the assumption of the newly appointed NIA Board Members, Ex-Officio & Appointive Director, the Corporate Board Secretary sends Welcome Letter with attached Briefing Materials to be used by the Board Member as an advance reading materials aside from a scheduled briefing upon the request of the new Board Member. See Executive Brief and Board Profile and Welcome Letter to the newly appointed Board Member
	b.	Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?			The NIA Board of Directors are encouraged to attend on-going or continuous professional education programs by informing them about the invitation from the Accredited Provider by the GCG through inclusion in the Board Agenda. See page 2 Agenda of the 929th Regular Board Meeting
	c.	Did all Appointive Directors attend at least 1 training for the calendar year?			The two (2) Appointive Directors attended the Corporate Governance Orientation Program conducted by the Institute of Corporate Directors (ICD) on May 24, 2017 & September 28, 2017. See Certificate of Attendance of Dir. Gregorio G. Sarmiento and Admin. Ricardo R. Visaya
30	Committee Appraisal
	a.	Is an annual performance assessment conducted of the Board of Directors?			The Board of Directors conducted its annual performance assessment for 2017 from July 24 to August 20, 2018 through the Performance Evaluation for Directors System (GCG MC No. 2014-03) developed by the GCG. Directors are made to answer the self-appraisal form and peer-appraisal form through the iped.gcg.gov.ph which increases the level of confidentiality of Director Performance Review results.
	b.	Does the GOCC disclose the process followed in conducting the Board assessment?
	c.	Does the GOCC disclose the criteria used in the Board assessment?
31	Committee Appraisal
		Is an annual performance assessment conducted of the Board of Directors Committees?
BONUS Stakeholder Relationships
1	Does the GOCC practice Global Reporting Index (GRI) on its annual reports?
Disclosure and Transparency
2	Quality of Annual Report
		Are the audited annual financial report/statement released within 30 days upon receipt from COA?
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?
2	Is there non-compliance with Good Governance Conditions?