CORPORATE GOVERNANCE SCORECARD FOR GOCCS QUESTIONNAIRE

I. Stakeholder Relationships (15%)

Question Yes No Justifications
  1. Does the GOCC disclose a policy that:
  1. Stipulates the existence and scope of its effort to address customer’s welfare?
  1. 2016 PCSO Manual of Corporate Governance pp.36-41
  2. 2015 Annual Report Fund Provision for Health and other Services
  3. 2014 Annual Report Fund Provision for Nation Building
  4. 2015 Annual Report Non-Financial Highlight-Customers and other Stakeholders
  5. 2014 Annual Report-Retailers and other Gaming Public
  1. Elaborates its efforts to interact with the communities in which they operate?
  1. 2016 PCSO Manual of Corporate Governance pp.13-14
  2. 2015 Annual Report Fund Provision for Health and other Services
  3. List of Institutional Partners
  4. List of Partner Hospital (ASAP Desk)
  5. Mandatory Contributions
  1. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?
  1. 2016 PCSO Manual of Corporate Governance pp.55
  1. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?
  1. Customer health and safety
  1. Activities 2016
  2. Activities 2012-2015
  1. Interaction with the communities
  1. Activities 2016
  2. Activities 2012-2015
  1. Environmentally-friendly value chain?
  1. Activities 2016
  2. Activities 2012-2015
  1. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?
  1. Corporate Social Responsibility page
    (Note: Please refer to “About Us” PCSO Website)
  1. 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 the voice their concerns and/or complaints for possible violation of their rights?
  1. PCSO Contact Center
  1. Performance-enhancing mechanisms for employee participation should be permitted to develop.
  1. Does the GOCC explicity mention the health, safety and welfare policy for its employees?
  1. 2016 PCSO Manual of Corporate Governance, pp.55
  1. Does the GOCC publish data relating to health, safety and welfare of its employees?
  1. Activities 2012-2015
  2. Activities 2016
  3. Manual of Corporate Governance p.55
  4. 2017 Physical Examination of Employees
  5. Lecture on Cervical Cancer
  1. Does the GOCC have training and development programs for its employees?
  1. Training Plan CY 2017 (for Board’s Approval)
  2. Training Plan CY 2016
  3. Training Plan CY 2015
  1. Does the GOCC publish data on training and development programs for its employees?
  1. 2016 PCSO Manual of Corporate Governance, p.47
  2. 2015 Annual Report, pp. 26-27
  1. 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
  1. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior
  1. 2016 PCSO Manual of Corporate Governance, p.11-12
  2. Implementing Rules and Regulations of the PCSO Whistle Blowing Policy
II. Disclosure and Transparency (35%)

Question Yes No Justifications
  1. Quality of Annual Report
    Does the GOCCs annual report disclose the following items:
  1. Corporate objectives
  1. 2015 PCSO Annual Report, p.4
  1. Financial performance indicators
  1. 2015 PCSO Annual Report, p7
  1. Non-financial performance indicators
  1. 2015 PCSO Annual Report, p.18
  1. Details of whistle-blowing policy
  1. 2015 PCSO Annual Report, p.34
  2. Implementing Rules and Regulations of the PCSO Whistle Blowing Policy
  1. Biographical details (at least age, qualifications, date of first appointment, relevant experience, and other directorship of listed companies) of directors/commissioners
  1. 2015 PCSO Annual Report, Board’s Profile p.40-46
  1. Training and/or continuing education program attended by each director/commissioner
  1. 2015 PCSO Annual Report, Board’s Profile p.40-46
  2. Orientation Seminar on Public  Corporate Governance, April 3-4, 2017, Development Academy of the Philippines
  3. Strategic Performance Management  System for Leaders, March 27 and 28, 2017, Civil Service Institute
  4. Risk Management Review and Planning, January 26 and 27, 2017, Guthrie Jensen Consultants to Management
  5. Corporate Governance Orientation Programs for GOCCs, Nov. 21, 2016, Institute of Corporations Directors Inc.
  6. Civil Service Institute Leadership Series “Good Governance of Leaders, Nov. 16, 2016
  7. World Lottery Summit 2016, Nov. 7-9, 2016, Singapore
  8. Operational/Performance Review Seminar, Nov. 3, 2016, Guthrie-Jensen Consultants, Inc. (CSC Accredited Learning Provider)
  1. Are the Annual Reports downloadable from the GOCC’s website
  1. 2015 Annual Report, publish in Transparency Seal on June 30, 2016
  2. 2014 Annual Report, publish in Transparency Seal on May 30, 2015
  3. 2013 Annual Report, publish in Transparency Seal on June 24, 2014
  1. Corporate Governance Confirmation Statement
  1. 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 reason for each such issue?
  1. 2015 Annual Report, p.66
  1. Timely filing/release of annual/financial reports
  1. Are the audited annual financial report/statement released within 60 days upon receipt from COA?
  1. 2014 Audited Financial Statement
    Date of Receipt: Nov. 13, 2015
    Date of Published: January 11, 2016
  1. Is the annual report released within 90 days from release of audited financial report?
  1. Is the true and fairness/fair representation of the Annual Financial Statement/Report affirmed by the Board of Directors/Commissioners and/or the relevant officers of the Company
  1. 2015 Annual Report, p.66
  2. Financial Statement as of December 31, 2016
III. Responsibilities of the Board (50%)

Question Yes No Justifications
  1. Corporate Vision/Mission
  1. Has the Board of Directors reviewed the Vision and Mission/corporate strategy in the last financial year?
  1. Undertaken during the Annual Corporate Strategic Planning Seminar
  1. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. 2016 Manual of Corporate Governance, pp.62-63
  1. Did the GOCC achieve 90% in the PES
  1. 2015 Performance Report
  2. Performance Agreement for CY 2015
  1. Code of ethics or conduct
  1. Are the details of the code of ethics or conduct disclosed?
  1. 2016 Manual of Corporate Governance pp. 56-57
  2. PCSO “No Gift” Policy
  3. Revised Rules on Administrative Cases in the Civil Service
  1. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to  comply with the code?
  1. 2016 Manual of Corporate Governance pp. 56-57
  1. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. 2016 Manual of Corporate Governance pp. 56-57
  1. Does the Board appoint a Nomination and Compensation / Remuneration Committee?
  1. PCSO Board Resolution No. 76, Series of 2016 dated February 24, 2016
  2. PCSO Board Resolution No. D-0008, Series 2016  (approving the new composition of the Committee)
  1. Did the Nomination and Compensation / Remuneration Committee meet at least twice during the year?
  1. Board and Governance Committee meetings (January – June 2016)
  2. Board and Governance Committee meetings (July – December  2016)
  1. If yes, is the report of the Nomination and Compensation / Remuneration Committee publicly disclosed?
Verify
  1. Does the Board appoint an Audit Committee?
  1. PCSO Board Resolution No. D-0008, Series 2016
  1. If yes, is the report of the Audit Committee publicly disclosed?
Verify
  1. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?
  1. 2015 Annual Report p. 42 (Profile of Dir. Betty Nantes)
  1. Did the Audit Committee meet at least four times during the year?
  1. Directors Attendance Report:
    1. Board and Governance Committee meetings (January – June 2016)
    2. Board and Governance Committee meetings (July – December  2016)
  1. Does the Board appoint a Risk Management Committee?
  1. PCSO Board Resolution No. D-0008, Series 2016 dated October 7, 2016
  1. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Notice of Meeting of Risk Management Committee (Report of the Committee)
  1. Does at least one member of the Risk Management Committee have a background in finance and investment?
Verify
  1. Board meetings and attendance
  1. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)
  1. Board and Governance Committee meetings (January – June 2016)
  2. Board and Governance Committee meetings (July – December 2016)
  1. Does the Board of Directors meet at least monthly?
  1. Board and Governance Committee meetings (January – June 2016)
  2. Board and Governance Committee meetings (July – December 2016)
  1. Did the Board of Directors meet on at least 75% on their scheduled meeting?
  1. Board and Governance Committee meetings (January – June 2016)
  2. Board and Governance Committee meetings (July – December 2016)
  1. Has each of the Directors/commissioners attended at least 90% of all the Board meetings held during the year?
Verify
  1. Did the Board of Directors meet separately at least once during the year without the President/CEO present?
Verify
  1. Access to information
  1. 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?
  1. Board Resolution No. 88, Series of 2016
  1. Is the Board Secretary trained in legal, accountancy or company secretarial practices?
  1. 2015 Annual Report p.47 (Profile of Atty. Adbiel Dan Elijah S. Fajardo)
  2. For the present PCSO Administration: Profile of Atty. Michael Alfonso A. Medado
  1. Internal Audit
  1. Does the company have separate internal audit function?
  1. 2016 Manual of Corporate Governance, pp 22-23
  1. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?
  1. 2016 Manual of Corporate Governance, pp. 22-23
  1. Risk Oversight
  1. Does the company disclose the internal control procedures/risk management systems it has in place?
  1. 2016 Annual Audit Program (BR  No. 14, Series 2016)
  2. 2015 Internal Audit Plan and Review (BR No. 489, Series 2014)
  3. 2015 PCSO Annual Report p. 66
  1. Does the Annual Report disclose that the Board of Directors/Commissioners has overseen a review of the company’s material controls (including operational, financial and compliance controls) and risk management system?
  1. 2015 PCSO Annual Report p. 66
  1. Does the company disclose how key risks are managed?
  1. PCSO Risk Management Plan
  1. 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?
  1. 2015 PCSO Annual Report p. 66
  1. Board Chairman
  1. Do different persons assume the roles of Chairman and CEO?
  1. 2015 Annual Report p. 49
  2. For the present Administration: Profile of:
    1. Chairman Jose Jorge E. Corpuz
    2. General Manager Alexander F. Balutan
  1. Board of Directors
  1. Does the GOCC have orientation programs for new Director?
  1. Corporate Governance Orientation Programs for GOCCs, Nov. 21, 2016, Institute of Corporations Directors Inc.
  2. Civil Service Institute Leadership Series “Good Governance of Leaders, Nov. 16, 2016
  3. World Lottery Summit 2016, Nov. 7-9, 2016, Singapore
  4. Operational/Performance Review Seminar, Nov. 3, 2016, Guthrie-Jensen Consultants, Inc. (CSC Accredited Learning Provider)
  1. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs?
  1. 2016 Manual of Corporate Governance, 77
  1. Did all appointive Directors attend at least 1 training for  the calendar year?
  1. Report on Training Attended by Officials and Employees CY 2015
  1. Board Appraisal
  1. Is an annual performance assessment conducted of the Board of Directors?
  1. 2016 PCSO Manual of Corporate Governance, p,28
  1. Does the GOCC disclose the process followed in conducting the Board assessment?
  1. 2016 PCSO Manual of Corporate Governance, pp. 28-29
  1. Does the GOCC disclose the criteria used in the Board assessment?
  1. 2016 Manual of Corporate Governance, pp. 28-29
  1. Committee Appraisal
  1. Is an annual performance conducted of the Board of Directors Committees?
  1. Governance Committee
  2. Risk Management Committee
Bonus

Question Yes No Justifications
Stakeholder Relationship
  1. Does the GOCC practice Global Reporting Index (GRI) on its annual reports
Verify
Disclosure and Transparency
  1. Quality of Annual Report
    Are the audited annual financial report/statement released within 30 days upon the receipt from COA?
Verify
Penalty

Question Yes No Justifications
Responsibilities of the Board
  1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?
  1. Is there non-compliance with Good Governance Conditions?