NFA CORPORATE GOVERNANCE 2016 QUICKLINKS
| Disclosures | NFA Compliance | Link/s | |
| 1. | Does the GOCC disclose a policy that: | ||
| a. | Stipulates the existence and scope of its effort to address customer's welfare? | The very essence of customer welfare is embodied in the NFA’s mandates of food security and stabilization. | NFA Website, Transparency Seal Page, CGS Document Page 4-6 |
| b. | Elaborates its efforts to interact with the communities in which they operate? | The NFA conducts monitoring and regulatory tasks over grains businesses, licensing and registration of all rice enterprises and regular meetings among its stakeholders. | CGS Document Page 5-6 |
| c. | Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? | NFA uses indigenous or water-based materials in maintaining good warehouse keeping and ensuring safety of buffer stocks pursuant to quality control and food safety act. NFA takes into account the principles of good warehouse keeping and compliance with Rice Quality Management Program. | CGS Document Page 6 |
| 2. | Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? | ||
| a. | Customer health and safety | Activities to ensure customer health and safety are disclosed in the CGS document online. | CGS Document Page 6 |
| b. | Interaction with the communities | The NFA maintains an effective feedback mechanism open to the public's opinions, inquiries, etc. through various media thru TextNFA. The agency also hold "ugnayan" meetings among stakeholders to promote harmonious and productive relationships among all rice and corn stakeholders. | CGS Document Page 5 |
| c. | Environmentally-friendly value chain | CGS Document Page 6 | |
| 3. | Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? | The National Food Authority is mandated to secure this basic human need. NFA Transparency Page, CSR and MRF document. CGS Document, Corporate Social Responsibility, page 15. | |
| 4. | Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. | ||
| a. | 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? | NFA has its contact details available in the world wide web through its official website. | NFA Website Contact Us webpage |
| 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? | NFA ensures that the health and well-being of its employees are maintained through the establishment of the Health Services Unit (HSU). Also, NFA's Grievance Machinery aims to strengthen employee relations and provide a platform to settle work-related complaints and disputes. | CGS Document Page 8-10 |
| b. | Does the GOCC publish data relating to health, safety and welfare of its employees? | The NFA's health services unit has performed over 5000 health service activities for the year 2016. | CGS Document Page 8-10 |
| c. | Does the GOCC have training and development programmes for its employees? | The NFA provides opportunities for its officials and employees to attend internal and external seminars, trainings, conferences, and workshops to address competency gaps, acquire skills, improve productivity and motivation and achieve professional growth. These include managerial, legal, professional and skills training programs. | CGS Document Page 8-10 |
| d. | Does the GOCC publish data on training and development programs for its employees? | In 2016, The NFA GAD and Manpower Development has conducted development program for over 1800 participants nationwide. | |
| 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? | NFA encourages its employees to freely communicate their concern on illegal or unethical practices without compromising their rights. We adopt a Grievance Machinery and GCG’s Whistle Blowing Policy to address employee complaints and concerns. | CGS Document Page 13 |
| b. | Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? | ||
| 7. | Quality of Annual Report Does the GOCC’s Annual Report disclose the following items: | ||
| a. | Corporate Objectives | The agency's corporate objectives are incorporated as an annex in its Annual Report. | Annual Reports Page, Annex 1 Corporate Objectives |
| b. | Financial performance indicators | The agency's financial performance indicators are incorporated as an annex in its Annual Report. | Annual Reports Page, Annex 2 2016 Performance Scorecard |
| c. | Non-financial performance indicators | The agency's non financial performance indicators are incorporated as an annex in its Annual Report. | Annual Reports Page, Annex 2 2016 Performance Scorecard |
| d. | Details of whistleblowing policy | The National Food Authority implements the Whistleblowing program to promote the reporting of wrongdoings in order to protect the public interest. The details are also part of the annexes in the Annual Report. | Annual Reports Page, Annex 3 Whistleblowing Program, CGS Document Page 14 |
| e. | Biographical details (at least age, qualifications, date of first appointment, relevant experience and any other directorships of listed companies) of directors/commissioners | The Council's biographical details are incorporated as an annex in the Annual Report. | Annual Reports Page, Annex 4 Council Biographical Details |
| f. | Training and/or continuing education programme attended by each director/commissioner | ||
| 8. | Is the annual report downloadable from the GOCC’s website? | NFA Website, Annual Reports Webpage | |
| 9. | Corporate Governance Confirmation Statement | ||
| a. | 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? | The Code of Corporate Governance is attached as an annex in the 2016 Annual Report. | Annual Reports, Annexes, Annex V. Code of Corporate Governance |
| 10. | Timely filing/release of annual/financial reports | ||
| a. | Are the audited annual financial report/statement released within 60 days upon receipt from COA? | The Audited Annual Financial Report for 2016 was received from COA on July 24, 2017 and posted on August 7, 2017 and was posted on the COA Website on July 26, 2017. | NFA Website, Transparency Webpage, III. Financial and Operational Matters |
| b. | Is the annual report released within 90 days from release of audited financial report? | The 2016 Annual Report was posted on March 6, 2017. | NFA Website, Annual Reports Webpage |
| 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? | The Statement of Management’s Responsibility for Financial Statements was signed on March 27, 2017 both by Assistant Administrator for Finance and Administration- Mr. Ruben J. Reside and NFA Administrator- Lt. Col. Jason Y. L. Aquino (Ret) PA. | Annual Audit Report on the National Food Authority by the Commission on Audit for the Year Ended December 31, 2016, Page 39 |
| 11. | Corporate Vision/Mission | ||
| a. | Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? | The Board of Directors reviewed the vision and mission/strategy as stated in the Performance Agreement between GCG and NFA on Feb. 10, 2016. | Transparency Webpage, Performance Agreement and Strategy Map |
| b. | Does the Board of Directors monitor/oversee the implementation of the corporate strategy | The Board of Directors monitor/oversee the implementation of the corporate strategy. | |
| 12. | Did the GOCC achieve 90% in the PES? | The NFA achieved 94% in the PES. | Transparency Webpage, IV. Governance Matters, Performance Scorecard |
| 13. | Code of Ethics or Conduct | ||
| a. | Are the details of the Code of Ethics or Conduct disclosed? | The National Food Authority observes the highest form of professionalism and fidelity to its employees, clients and to the public as a whole. | CGS Document, page 14. |
| Does the GOCC disclose that all Directors/Commissioner, senior management and employees are required to comply with the Code? | The National Food Authority observes the highest form of professionalism and fidelity to its employees, clients and to the public as a whole. | CGS Document, page 13 | |
| c. | Does the company disclose how it implements and monitors compliance with the code of ethics or conduct. | The agency issues memoranda to remind and ensure that all employees adhere to its code of ethics/conduct provisions. | CGS Document, page 13 |
| 14. | Does the Board appoint a Nomination Compensation/Remuneration Committee? | The NFA Council appointed its 2016 Governance, Nomination and Remuneration Committee. | CGS Document reference, Secretary's Certificate |
| 15. | Did the Nomination Compensation Committee meet at least twice during the year? | The Governance, Nomination, and Remunerations Committee meet on June 21, 2016. | Transparency Webpage, II. Board and Officers, d. Attendance Record and Activities for 2016 |
| 16. | If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? | ||
| 17. | Does the Board appoint an Audit Committee? | The NFA Council appointed its 2016 Audit and Risk Management Committee. | CGS Document reference, Secretary's Certificate |
| 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)? | The Chairman for Audit/Risk Management Committee has a degree of MBA, Advanced Bank Management Program, among others. | CGS Document, NFA Council members and attached resume, page 17 (attachment profile) |
| 20. | Did the Audit Committee meet at least four times during the year? | The Audit and Risk Management Committee met twice, on June 21 and August 16, 2016. | Transparency Webpage, II. Board and Officers, d. Attendance Record and Activities for 2016 |
| 21. | Does the Board appoint a Risk Management Committee? | The NFA Council appointed its 2016 Audit and Risk Management Committee. | CGS Document reference, Secretary's Certificate |
| 22. | If yes, is the report of Risk Management Committee publicly disclosed? | - | |
| 23. | Does at least one member of the Risk Management Committee have a background in finance and investments? | The Chairman for Audit/Risk Management Committee has a degree of MBA, Advanced Bank Management Program, among others. | CGS Document, NFA Council, page 17, attachment profile. |
| 24. | Board meetings and attendance | ||
| a. | Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) | The NFA Council meets every third Tuesday of every month. | CGS Document, NFA Council, page 17, reference. |
| Does the Board of Directors meet at least monthly? | |||
| c. | Did the Board of Directors meet on at least 75% on their scheduled meetings? | Transparency Webpage, II. Board and Officers, d. Attendance Record and Activities for 2016 pages 1-3 | |
| d. | Has each of the Directors/commissioners attended at least 90% of all the board meetings held during the year? | ||
| e. | Did the Board of Directors meet separately at least once during the year without the President/CEO present? | ||
| 25. | Access to information | ||
| a. | Does the GOCC have a policy that stipulates that board papers for Board of Directors meetings be provided to the Board at least 3 working days in advance of the board meeting? | ||
| b. | Is the board secretary trained in legal, accountancy or company secretarial function? | Atty. Hermila C. Banayat is the Chief Legal Officer for a private renewable Energy firm in Ortigas as was a policy and research staff at the Constituency Research Unit of the Office of the Political Adviser in Malacañang. | CGS Document, NFA Council Members, Board Secretary's CV, attachment profile. |
| 26. | Internal Audit | ||
| a. | Does the company have a separate internal audit function? | The National Food Authority has its own Internal Audit Services Department directly under the NFA Council. | Transparency Webpage, IV. Governance Matters, d. Organizational Chart |
| b. | Is the head of the internal audit identified or if outsourced, the name of the external firm is disclosed? | The Internal Audit Services Department of the NFA is headed by a Department Manager | NFA Website, Management Committee webpage |
| c. | Does the appointment and removal of the internal auditor require the approval of the Audit Committee? | ||
| 27. | Risk Oversight | ||
| a. | Does the company disclose the internal control procedures/risk management system it has in place? | NFA follows its standard operating procedures in its operations for internal control and risk management. | CGS Document, page 11-12 |
| 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? | ||
| c. | Does the company disclose how key risks are managed? | CGS Document, page 11-12 | |
| 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 control/risk management systems? | ||
| 28. | Board Chairman | ||
| a. | Do different persons assume the roles of Chairman and CEO? | GCG Memorandum Circular No. 2012-08, Alternates for Ex-Officio Members of the GOCC Governing Boards, Directory of Council Officials. | |
| 29 | Board of Directors Development | ||
| a. | Does the GOCC have orientation programmes for new Directors? | The Board Secretary prepare an orientation manual and met with new members one by one to orient them. | Orientation Materials for New Directors: Organizational Structure, Council Composition, Powers and Functions. |
| b. | Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes? | ||
| c. | Did all appointive Directors attend at least 1 training for the calendar year? | ||
| 30 | Board Appraisal | ||
| a. | Is an annual performance assessment conducted of the Board of Directors? | User Manual, Performance Evaluation for Directors System (iPED) | |
| 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? | GCG Memorandum Circular No. 2014-03, Performance Evaluation for Directors. | |
| 31 | Committee Appraisal | ||
| a. | Is an annual performance assessment conducted of the Board of Directors Committees? | ||
| Stakeholder Relationships | |||
| 1. | Does the GOCC practice Global Reporting Index (GRI) on its annual reports? | The NFA does not practice the Global Reporting Index. | |
| Disclosure and Transparency | |||
| Quality of Annual Report | |||
| 2. | Are the audited financial report/statement released within 30 days upon the receipt from COA? | The Audited Annual Financial Report for 2016 was received from COA on July 24, 2017 and posted on August 7, 2017, 14 days upon receipt from COA. | NFA Website, Transparency Webpage, III. Financial and Operational Matters |
| Responsibilities of the Board | |||
| 1. | Are there members of the Board of Directors who hold more than five positions in GOCCs and PLCs? | None | NFA Council Members with attached resume, CGS Document, page 17 |
| 2. | Is there non-compliance with Good Governance Conditions? | Compliance to Good Governance Conditions are regularly updated at the NFA Good Governance Conditions checklist. | NFA Good Governance Conditions Checklist. |
NFA PBB Checklist (in progress)
