The National Food Authority fully complies with the provisions of the Code of Corporate Governance.
NFA CORPORATE GOVERNANCE 2019 QUICKLINKS
NFA already submitted it's financial report to the COA last 13 February 2020. NFA is yet to receive the audited financial report for 2019 from COA
| # | Disclosures | NFA Compliance | Reference |
| 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 3-4 |
| 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. |
Code of Corporate Governance, section 38. Suppliers. page 26 |
| 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 the 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 the Rice Quality Management Program. |
Code of Corporate Governance, section 39 - Health and Safety, Section 40 - Environment, page 27. |
| 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. | |
| b. | Interaction with the communities | The NFA maintains an effective feedback mechanism open to the public's opinions, inquiries, etc. through various media through TextNFA. The agency also holds "ugnayan" meetings among stakeholders to promote harmonious and productive relationships among all rice and corn stakeholders. | |
| c. | Environmentally-friendly value chain | NFA has various environmental activities all throughout the year. These include tree planting activities, warehouse inspections, cleaning operations, and the like. | Grains Magazine, Volume 47, Issue 2, page 10-27. |
| 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 16. | |
| 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 about possible violation of their rights? | NFA has its contact details available on 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 7 |
| b. | Does the GOCC publish data relating to the health, safety, and welfare of its employees? | NFA's health services unit has performed over 5700 health service activities for the year 2019. | |
| c. | Does the GOCC have training and development programs for its employees? | The NFA provides opportunities for its officials and employees to attend internal and external seminars, training, 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. | |
| d. | Does the GOCC publish data on training and development programs for its employees? | Yes. In 2019, The NFA GAD and the Manpower Development Division of NFA-HRMD has conducted development program for over 1700 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 concerns 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.
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CGS Document Page 14 |
| b. | Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? | CGS Document Page 15 | |
| 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. | |
| b. | Financial performance indicators | The agency's financial performance indicators are incorporated as an annex in its Annual Report. | |
| c. | Non-financial performance indicators | The agency's non-financial performance indicators are incorporated as an annex in its Annual Report. | |
| 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. | |
| e. | Biographical details (at least age, qualifications, date of the 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. | |
| f. | Training and/or continuing education program attended by each director/commissioner | Appointive council members have attended continuing education/seminar/workshop. | CGS Document, page 15. |
| 8 | Is the annual report downloadable from the GOCC’s website? | Yes, NFA Annual Reports can be downloaded at http://nfa.gov.ph/transparency/accomplishment-report/annual-accomplishment-report | |
| 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 NFA Annual Report fully comply with the provisions of the NFA Code of Corporate Governance. | NFA Annual Report 2019, title page. |
| 10 | Timely filing/release of annual/financial reports | ||
| a. | Are the audited annual financial reports/statement released within 60 days upon receipt from COA? | NFA already submitted it's financial report to the COA last 13 February 2020. NFA received the AAR last September 30, 2020 from COA. | Submission of Financial Report to COA |
| b. | Is the annual report released within 90 days from the release of the audited financial reports? | ||
| 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 19, 2018 both by Assistant Administrator for Finance and Administration- Mr. Gerry J. Ambrosio and NFA Administrator- Lt. Col. Jason Y. L. Aquino (Ret) PA. In addition, a statement of Management's Responsibility for Financial Statements 2019 was signed by DA Secretary William D. Dar and NFA Administrator Judy Carol Dansal. |
Manual of Corporate Governance, page 28-33. Statement of Management's Responsibility for the Financial Statement, 2019 |
| 11 | Corporate Vision/Mission | ||
| a. | Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? | The NFA Chairman and Vice Chairman has signed the approved PES for 2019. | Performance Evaluation Scorecard 2019 Signed by NFA Council Chairman, Sec. Emmanuel Piñol. |
| b. | Does the Board of Directors monitor/oversee the implementation of the corporate strategy | Section 8 of the Specific Functions of the NFA Council: Monitor and evaluate on a regular basis the implementation of corporate strategies and policies, business plans and operating budgets, as well as Management's over-all-performance to ensure optimum results. | Manual of Corporate Governance, page 8. |
| 12 | Did the GOCC achieve 90% in the PES? | *GCG* | |
| 13 | Code of Ethics or Conduct | ||
| a. | Are the details of the Code of Ethics or Conduct disclosed? | ||
| Does the GOCC disclose that all Directors/Commissioner, senior management and employees are required to comply with the Code? | |||
| c. | Does the company disclose how it implements and monitors compliance with the code of ethics or conduct. | ||
| 14 | Does the Board appoint a Nomination Compensation/Remuneration Committee? | The NFA Council appointed its 2019 Governance, Nomination, and Remuneration Committee. | Secretary's Certificate, Resolution No. 811-2016-A |
| 15 | Did the Nomination Compensation Committee meet at least twice during the year? | The Nomination and Compensation Committee did not meet in 2019. | |
| 16 | If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? | The Nomination and Compensation Committee did not meet in 2019. Therefore, there is nothing to disclose | |
| 17 | Does the Board appoint an Audit Committee? | The NFA Council appointed its 2019 Audit and Risk Management Committee. | Secretary's Certificate, Resolution No. 811-2016-A |
| 18 | If yes, is the report of the Audit Committee publicly disclosed? | The Audit Committee did not meet in 2019. Therefore there are no reports to be disclosed. | Secretary's Certificate |
| 19 | Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? | Ms. Cecilia Borromeo, a member of the NFA Council Audit Committee underwent the Master in Business Administration program of the De La Salle Business School. She is also a graduate of the Advanced Bank Management Course of the Asian Institure of Management and the Pacific Rim Bankers Program at the University of Washington Executive Foster School of Business. | Borromeo, Cecilia - Attached Biographical Details - NFA Council webpage. |
| 20 | Did the Audit Committee meet at least four times during the year? | The Audit Committee did not meet in 2019. | Secretary's Certificate |
| 21 | Does the Board appoint a Risk Management Committee? | The NFA Council appointed its 2019 Audit and Risk Management Committee. | Secretary's Certificate, Resolution No. 811-2016-A |
| 22 | If yes, is the report of Risk Management Committee publicly disclosed? | The Audit Committee did not meet in 2019. Therefore there are no reports to be disclosed. | Secretary's Certificate |
| 23 | Does at least one member of the Risk Management Committee have a background in finance and investments? | Mr. Carlos Dominguez, a member of the NFA Council Risk Management Committee has a Master's Degree in Business Administration from Ateneo De Manila University and attended the Executive Management Program at the Stanford University. | Domingues, Carlos - Attached resume - NFA Council webpage. |
| 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. | Secretary's Certificate, Resolution No 921-2019-C |
| b. | Does the Board of Directors meet at least monthly? | The NFA Council meet at least monthly as shown in the 2019 Regular and Special Meeting Attendance Record. | Secretary's Certificate, Resolution No 921-2019-C |
| c. | Did the Board of Directors meet on at least 75% on their scheduled meetings? | The Board of Directors did not meet on at least 75% on their scheduled meetings. | |
| d. | Has each of the Directors/commissioners attended at least 90% of all the board meetings held during the year? | All of the Appointive Directors attended at least 90% of all the board meetings held during the year. Note: The NFA Administrator was appointed only and assumed office only on June 18, 2019. | |
| e. | Did the Board of Directors meet separately at least once during the year without the President/CEO present? | The Board of Directors did not meet seperately at least once during the year without the presence of the Chairperson. | |
| 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? | The Agenda folder together with the materials for the NFA Council Regular and Special Council Meetings are furnished to the members at least three(3) working days in order for them to study and make the necessary comments. | Secretary's Certificate |
| b. | Is the board secretary trained in legal, accountancy or company secretarial function? | Atty. Irwin L. Peña is currently designated as the Acting Board secretary V of the NFA Council. He earned his law degree at San Beda University College of Law in 2012. | Peña, Irwin L. - CGS Document profile attachment |
| 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. | Does the appointment and removal of the internal auditor require the approval of the Audit Committee? | The appointment and removal of NFA employees, internal auditors included, are subject to CSC rules and regulations on appointments and removal. | Qualification Standards - NFA Internal Auditor |
| 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 9-10 |
| 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 9-10 | |
| 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? | There is no statement from the NFA Council or Audit Committee commenting on the adequacy of the GOCC's internal controls/risk management system. | |
| 28 | Board Chairman | ||
| a. | Do different persons assume the roles of Chairman and CEO? | The NFA Council does not have a position for CEO. | GCG Memorandum Circular No. 2012-08, Alternates for Ex-Officio Members of the GOCC Governing Boards. Manual of Corporate Governance, p. 9 |
| 29 | Board of Directors Development | ||
| a. | Does the GOCC have orientation programmes for new Directors? | ||
| b. | Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes? | The Governance Committee of the NFA council is responsible for recommending continuing education of Council Members, assignment to Council Committees, succession plan for the Executive Officers, and their remuneration commensurate with corporate and individual performance. | Code of Corporate Governance, Section 16, 16.2.4.c Governance Committee, page 16 |
| c. | Did all appointive Directors attend at least 1 training for the calendar year? | Appointive council members have attended continuing education/seminar/workshop for 2019. | CGS Document, page 18 |
| 30 | Board Appraisal | ||
| a. | Is an annual performance assessment conducted of the Board of Directors? |
NFA use the IPED of GCG.
NFA Council uses only Internet Based Performance Evaluation for Directors (IPED) |
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| 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 | ||
| 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? | NFA received the AAR last September 30, 2020 from COA. | |
| Responsibilities of the Board | |||
| 1 | Are there members of the Board of Directors who hold more than five positions in GOCCs and PLCs? | None | |
| 2 | Is there non-compliance with Good Governance Conditions? | ||
For the Corporate Governance 2016 Quicklinks, click here.
NFA PBB Checklist (in progress)
