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Corporate Governance Scorecard 2020

 

COMPONENTGOCC SUBMISSION
GRPITEMQUESTIONCITEM COMPLIANCEREFERENCE LINK/SUPPORTING DOCUMENTS
I. Stakeholder Relationship
I 1.a Does the GOCC disclose a policy that: Stipulates the existence and scope of its effort to address customer's welfare? YES
Section 52 of the CITEM's Manual of Corporate Governance (Recognizing the Stakeholders and Nature of their Interests) identified its various stakeholders as follows:
  1. Government
  2. SMEs
  3. General Public
  4. Partner government agencies and other external agencies
  5. Private Corporations having similar nature of business as CITEM
Section 55 of the manual also stated CITEM's policies on dealings with its customers as follows:
  1. CITEM should operate a highly effective and efficient organization, focused on meeting customer objectives with the aim of providing services which give fair value and consistent quality, reliability, and safety in return for the price paid for the same.
  2. CITEM should implement policies of continual improvement, of both processes and skills of the staff, to take best advantage of advances in all aspect of society in order to ensure that it continues to add value to its customer's businesses.
  3. CITEM should have a clear and strong line of communication which allow them to respond quickly and efficiently to customer and market requirements, and the government for the customers to receive consistent service in order to successfully and consistently deliver what CITEM is mandated to do.
CITEM Manual of Corporate Governance, Section 52 and 55, page 15

https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=15
I 1.b Does the GOCC disclose a policy that: Elaborates its efforts to interact with the communities in which they operate? YES
CITEM's policy on interacting with the communities around it can be found in the following sections of CITEM's Manual of Corporate Governance:
  1. Section 47. Corporate Social Responsibility. As an integral part of the National Government, GOCCs are inherently mandated to be socially responsible, to act and operate as good corporate citizens. (page 14)
  2. Section 49. Relationship with Stakeholders, of the revised CITEM's Manual of Corporate Governance stated its policy on interacting with its stakeholders. It was also mentioned that the Governing Board of CITEM shall recognize and perform its obligations towards the National Government, together with the employees, suppliers, customers, and other stakeholders, and to communities in which it operates. (page 14)
Revised Manual of Corporate Governance, Section 47 and 49, page 14

https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=14
I 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
Section 48, Environment, of the CITEM's Manual of Corporate Governance under 'Corporate Social Responsibility' stated that in the course of the operations of CITEM, it should identify opportunities to reduce consumption of energy, water and other natural resources. CITEM should also strive to re-use and recycle where possible and dispose of non-recyclable items responsibly, thereby minimizing our impact on the environment, in doing so, by adopting simple, environmentally friendly initiatives, CITEM will raise awareness among the community.
CITEM Manual of Corporate Governance, Section 48, page 14.

https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=14
I 2.a Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Customer health and safety)

YES
The CITEM Annual Report 2020 disclosed CITEM’s activities relative to customer health and safety. Due to the health restrictions caused by the pandemic, CITEM canceled three signature events and 12 out of 18 Overseas Trade Fair (OTF) participations set for 2020. Moreover, due to the limitation brought by the pandemic, this year’s CAEXPO held on November 27-30 was significantly affected. Only four (4) companies with China-based counterparts, distributors, or retailers could join and feature their products in the physical show while 26 non-CN-based companies joined the ONLINE Platform developed by the CAEXPO Secretariat.

CITEM prepared Infographics (dated 23 September 2020) on: CITEM WORKPLACE PREPAREDNESS Advisory which contains the guidelines and safety measures for Employees before work and at work as well as safety of visitors and guests at work. It was stated on page 1 of the Infographics that "Guests and visitors must undergo the same health screening protocols and should only be met at the lobby".

CITEM Annual Report 2020, page 5
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=5

CITEM Annual Report 2020, page 30
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=30

CITEM Workplace Preparedness Advisory, page 1
https://citem.com.ph/transparency-seal/2021/september/21/CITEM%20Workplace%20Preparedness%20Advisory%20092320.pdf

I 2.b Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities) YES
CITEM gave back to those who are struck by calamities in 2020. The Agency extended financial assistance to MSMEs in Cagayan and Albay who were affected by Typhoon Ulysses and Rolly last November 2020. The affected MSMEs are homeworker communities from the Home, Lifestyle, and Food Sectors that produce or manufacture exportable products, or who are integral in the supply chain for export companies. Details of this and other CSR activities are available on the agency’s website and Annual Report 2020.

CITEM CSR Activities CY 2020
https://citem.com.ph/transparency-seal/2021/april/30/CITEM%20CSR%20Activities%20CY%202020.pdf

CITEM Annual Report 2020, page 31
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=31

I 2.c Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Environmentally-friendly value chain)

YES
To spread awareness on sustainability, CITEM also conducted roadshows for its stakeholders in key regions, namely Davao del Sur (Jan. 20-21); South Cotabato (Jan. 22-23); Agusan del Norte and Agusan Del Sur (Jan. 22-24); La Union, Ilocos Sur and Pangasinan (Jan. 27-30); Cagayan de Oro (Jan. 28-30); Tuguegarao and Isabela (Feb. 10-12); and Cebu (Feb. 17-20).

CITEM Annual Report 2020, page 21 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=21
I 3 Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?

YES
CITEM has a CSR section on its 2020 Annual Report as well as a CSR report uploaded on the agency's website.

CITEM gave back to those who are struck by calamities in 2020. The Agency extended financial assistance to MSMEs in Cagayan and Albay who were affected by Typhoon Ulysses and Rolly last November 2020. The affected MSMEs are homeworker communities from the Home, Lifestyle, and Food Sectors that produce or manufacture exportable products, or who are integral in the supply chain for export companies.

Details of the above and other activities are available in the agency’s website and Annual Report 2020.

CITEM Annual Report 2020, page 31 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=31

CITEM CSR Activities CY 2020
https://citem.com.ph/transparency-seal/2021/april/30/CITEM%20CSR%20Activities%20CY%202020.pdf

I 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
CITEM has contact details dedicated for complaints/concerns:
CITEM-Citizen-Charter.pdf, p. 173

Feedback and Redress Mechanisms
To promote transparency and constant improvement, CITEM encourages stakeholders to express their feedback, concerns, complaints, and suggestions, as indicated in the Citizen’s Charter at CITEM’s official website:
  • Talking to the Customer Relations Officer at the CITEM Lobby
  • Filling out the Feedback Form available at the CITEM Information Desk and dropping it in the Suggestion Box located at the lobby
  • Contacting CITEM through phone at +(63 2) 831-2201; through fax no. 832-3965; or via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.
CITEM-Citizen-Charter, p. 173
https://citem.com.ph/transparency-seal/CITEM-Citizen-Charter.pdf#page=173
I 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
CITEM's policy on employee health, welfare, and safety is available in the following:
  1. Employees' Manual (pages 16-17)
  2. Revised-Manual of Corporate Governance: Section 39. Training and Development for CITEM Employees; Section 40. Health and Safety, page13 - CITEM shall have development discussions and structured training programs for personal and professional development for CITEM employees.
Employee-Handbook, pages 16-17
https://citem.com.ph/transparency-seal/Corporate-Governance/Employee-Handbook.pdf#page=16

CITEM Manual of Corporate Governance, VII. Section 40. Health and Safety, p.13
http://citem.com.ph/transparency-seal/revised-manual.pdf#page=13
I 5.b Does the GOCC publish data relating to health, safety and welfare of its employees? YES
CITEM implemented several programs related to the health, safety, and welfare of its employees which are available in the following documents:
  1. Wellness Programs CY 2020
  2. CITEM Clinic Report
  3. CITEM Workplace Preparedness Advisory
  4. CITEM Annual Report 2020

Wellness Program CY 2020
https://citem.com.ph/transparency-seal/2021/april/30/Wellness%20Programs%20CY%202020.pdf

CITEM Clinic Report 2020
https://citem.com.ph/transparency-seal/2021/september/21/CITEM%20Clinic%20Report%202020.pdf

CITEM Workplace Preparedness Advisory
https://citem.com.ph/transparency-seal/2021/september/21/CITEM%20Workplace%20Preparedness%20Advisory%20092320.pdf#page=9

CITEM Annual Report 2020, pages 32 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=32

I 5.c Does the GOCC have training and development programmes for its employees? YES
CITEM has a list of Training Programs attended by CITEM Employees in 2020. The list includes objectives/brief description of the training programs.

Training Programs CY 2020
https://citem.com.ph/transparency-seal/2021/001010/000100/000001/Training%20Programs%20CY%202020_.pdf

I 5.d Does the GOCC publish data on training and development programms for its employees? YES
Data on training and development programs for CITEM employees are available in CITEM Annual Report as well as in the document 'Training Programs CY 2020'. Data includes training/program title, the number of participants per program, average hours per training held, and sex-disaggregated data.

Training Programs CY 2020
https://citem.com.ph/transparency-seal/2021/001010/000100/000001/Training%20Programs%20CY%202020_.pdf

CITEM Annual Report 2020, pages 35-36
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=35

I 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
CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments. Under the said policy, it shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. CITEM's Whistleblowing Policy also states that Retaliation actions against a whistleblower or any personnel for any report will be taken cognizance of by the CITEM Integrity Monitoring Committee if the report is made in good faith, and the GCG shall extend all possible assistance to the whistleblower under the law and given the circumstances.

Said policy is also incorporated and part of the existing CITEM Employees Manual/Handbook as well as included in CITEM’s Annual Report 2020.

Whistle-blowing-policy
https://citem.com.ph/transparency-seal/Corporate-Governance/Whistle-blowing-policy.pdf

Employee Handbook, page 9
https://citem.com.ph/transparency-seal/Corporate-Governance/Employee-Handbook.pdf#page=9

CITEM 2020 Annual Report, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33

I 6.b Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? YES
CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments.Under the said policy, It shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. CITEM's Whistleblowing Policy also states that Retaliation actions against a whistleblower or any personnel for any report will be taken cognizance of by the CITEM Integrity Monitoring Committee if the report is made in good faith, and the GCG shall extend all possible assistance to the whistleblower under the law and given the circumstances."

Said policy is also incorporated and part of the existing CITEM Employees Manual/Handbook as well as included in CITEM’s Annual Report 2020.

Whistle-blowing-policy
https://citem.com.ph/transparency-seal/Corporate-Governance/Whistle-blowing-policy.pdf

Employee Handbook, page 9
https://citem.com.ph/transparency-seal/Corporate-Governance/Employee-Handbook.pdf

CITEM 2020 Annual Report, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33

II. Disclosure and Transparency
II 7.a Does the GOCC's website disclose the following items: Corporate objectives YES
CITEM's corporate objectives are available on CITEM website as well as on page 3 of CITEM's 2020 Performance Scorecard - CITEM 2020 Charter Statement and Strategy Map.

CITEM Website
https://citem.gov.ph/home/vision-and-mission
https://citem.gov.ph/home/mandates-functions

2020 Performance Scorecard Strategy Map, page 3
https://citem.com.ph/transparency-seal/Corporate-Governance/2020-Performance-Scorecard-Strategy-Map.pdf#page=3

II 7.b Does the GOCC's website disclose the following items: Financial performance indicators YES
CITEM's Financial performance indicators are included in the 2020 Annual and Audited Annual Financial Reports. Likewise, the agency's financial strategic measures are available on page 4 of CITEM's 2020 Performance Scorecard (SM1 - CRR; SM2- Budget Utilization Rate)

2020 Performance Scorecard Strategy Map, page 4
https://citem.com.ph/transparency-seal/Corporate-Governance/2020-Performance-Scorecard-Strategy-Map.pdf#page=4

2020 Annual Financial Report
CITEM 2020 Annual Financial Report, pages 22-26
https://citem.com.ph/transparency-seal/2021/july/16/2020%20AFR.pdf#page=22

CITEM Annual Report 2020, pages 9-10 and 37
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=9

II 7.c Does the GOCC's website disclose the following items: Non-financial performance indicators YES
CITEM's non- financial performance indicators are included in the 2020 annual report. Likewise, the agency's non-financial strategic measures are available on pages 4-6 of CITEM's 2020 Performance Scorecard
2020-Performance-Scorecard-Strategy-Map.pdf, page 4-6
https://citem.com.ph/transparency-seal/Corporate-Governance/2020-Performance-Scorecard-Strategy-Map.pdf#page=4

CITEM Annual Report 2020, pages 9, 11-13
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=9
II 7.d Does the GOCC's website disclose the following items: Details of whistle-blowing policy YES
CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments.Under the said policy, It shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. CITEM's Whistleblowing Policy also states that Retaliation actions against a whistleblower or any personnel for any report will be taken cognizance of by the CITEM Integrity Monitoring Committee if the report is made in good faith, and the GCG shall extend all possible assistance to the whistleblower under the law and given the circumstances."

Said policy is also incorporated and part of the existing CITEM Employees Manual/Handbook as well as included in CITEM’s Annual Report 2020.

CITEM Whistleblowing Policy
https://citem.com.ph/transparency-seal/Corporate-Governance/Whistle-blowing-policy.pdf

CITEM Employees Handbook/Manual, page 9
https://citem.com.ph/transparency-seal/Corporate-Governance/Employee-Handbook.pdf

CITEM 2020 Annual Report, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33

II 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 Biographical Details of the CITEM Board of Governors are available in the following:
  1. CITEM Website – BOG Executive Profile
  2. CITEM Annual Report 2020

CITEM Board of Governors-Executive Profile
https://www.citem.com.ph/transparency-seal/2021/april/22/BOG-Executive%20Profile.pdf

CITEM Annual Report 2020, pages 38-39 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=38

II 7.f Does the GOCC's website disclose the following items: Training and/or continuing education programme attended by each director/commissioner YES
CITEM's Appointive Director, Ms Pauline Suaco-Juan attended a training in FY 2020. Details are available on CITEM website as well as in CITEM Annual Report 2020.

CITEM BOG Trainings 2020
https://citem.com.ph/transparency-seal/2021/april/22/CITEM%20BOG%20Trainings%202020.pdf

CITEM Annual Report 2020, page 39 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=39

II 8 Are the annual reports downloadable from the GOCC's website? YES
CITEM's 2020 Annual Reports and Financial Statements are downloadable from the website.

COA-Audited 2020 Annual Financial Report
https://citem.com.ph/transparency-seal/2021/july/16/2020%20AFR.pdf

CITEM Annual Report 2020
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf

II 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? CITEM’s website contains a statement confirming the agency’s full compliance with the Code of Corporate Governance. This is available as well in CITEM Annual Report 2020.

CITEM Website - Statement of Full Compliance with the Code of Corporate Governance
https://citem.com.ph/transparency-seal/Statement-of-Full-Compliance-2020.pdf

CITEM Annual Report 2020, page 9 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=9

II 10.a Are the audited annual financial report/statement uploaded on the website within 60 days upon receipt from COA? YES
COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published online: 16 July 2021
COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published on Line: 16 July 2021

https://citem.gov.ph/corporate-governance

https://citem.gov.ph/corporate-governance#:~:text=16%20July%202021,23%20June%202021
II 10.b Is the annual report released within 90 days from release of audited financial report? NO
COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Annual Report Date Published online: 28 Sept 2021
CITEM Website
https://citem.gov.ph/corporate-governance#:~:text=September%2028%2C%202021,2020
II 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
Statement of Management's responsibility for Financial Statement is located on page 21 of the COA-Audited 2020 Financial report
COA-Audited 2020 Annual Financial Report
https://citem.com.ph/transparency-seal/2021/july/16/2020%20AFR.pdf#page=21
III. Responsibilities of the Board
III 11.a Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year? YES
The Board of Directors reviewed the CITEM Vision and Mission/strategy for the FY 2020.
Reference:
  1. 28 Nov 2019 Minutes of the Meeting stated in page 5 lines 261-263
28 Nov 2019 Minutes of the Meeting stated in page 5 lines 261-263
https://citem.com.ph/transparency-seal/2021/september/28/28%20Nov.%202019_Minutes%20of%20the%20Meeting.pdf
III 11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy? YES
As a matter of policy in the Section 14 of CITEM's Manual of Corporate Governance, the Board oversees the implementation of the corporate strategy. This is also exhibited by the CITEM 2020 Strategy Map approved by the Board.

References:
  1. CITEM 2020 Strategy Map
  2. Sec. 14 of the Revised Manual of Corporate Governance
  3. Statement of the Role of the Board in Corporate Strategy in the Website
CITEM 2020 Strategy Map
https://citem.com.ph/transparency-seal/2020_PES_Performance_Scorecard_and_Strategy_Map.pdf

Sec.14 of the Revised Manual of Corporate Governance
https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=4

Website: Statement of the Role of the Board in Corporate Strategy
https://citem.gov.ph/corporate-governance#:~:text=Role%20of%20the,Corporate%20Operating%20Budget
III 12 Did the GOCC achieve 90% in the PES? CITEM's 2020 Performance Scorecard is still under evaluation of GCG N/A
III 13.a Are the details of the code of ethics or conduct disclosed? YES
The details of the Code of Conduct and Ethical Standards are stated in Sections 1-12.

References:
  1. Sections 1-12 of Code of Conduct and Ethical Standards of CITEM Officials and Employees
Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees
https://citem.com.ph/transparency-seal/Corporate-Governance/Code-Of-Conduct.pdf
III 13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? YES
As stated in the Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees, the board directors, the management, and the employees of CITEM should comply with the code.

References:
  1. Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees

CITEM Code of Conduct
https://citem.com.ph/transparency-seal/Corporate-Governance/Code-Of-Conduct.pdf

 

III 13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? YES
CITEM discloses the process, implementation, and the monitoring of compliance as stated in the CITEM Code of Conduct and the New Employee Orientation Report. The CITEM Code of conduct is readily available in the company intranet.

References:
  1. CITEM Code of Conduct
  2. CITEM 2020 New Employee Orientation (NEO) Report
CITEM Code of Conduct
https://citem.com.ph/transparency-seal/Corporate-Governance/Code-Of-Conduct.pdf

CITEM 2020 New Employees Orientation (NEO) Report
https://citem.com.ph/transparency-seal/2021/september/28b/New%20Employee%20Orientation%202020%20Report.pdf
III 14 Does the Board appoint a Nomination Compensation / Remuneration Committee? YES
The members of the Governance and Nomination and Remuneration Committee are the following:
  1. National Food Authority
    Ms. Maria Merceds G. Yacapin
    Ms. Elsa Asuncion-Lim
  2. Department of Trade and Industry
    USEC. Abdulgani M. Macatoman
  3. CITEM
    Ms. Paulina Suaco Juan

References:
  1. CITEM Website: Corporate Governance
  2. Committees in the CITEM Board, functions and appraisal
  3. Board Meeting Policy, Scheduled and Actual meeting and attendance
  4. Sec Cert_Board Committees Nomination (Res No. BM 2020-01-11)
CITEM Website: Corporate Governance
https://citem.gov.ph/corporate-governance#:~:text=Governance%20and%20Nomination%20and%20Remuneration%20Committee%20Members,CITEM

Committees in the CITEM Board, Functions and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28b/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf

Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28b/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance%281%29.pdf

Secretary's Certificate Board Committees Nomination
https://citem.com.ph/transparency-seal/2021/september/28b/Sec%20Cert_board%20committees%20nomination%281%29.pdf
III 15 Did the Nomination Compensation/Remuneration Committee meet at least twice during the year? YES
The governance and nomination and remuneration committee met more than the required meetings for year 2020.

References:
Board Meeting Policy, Scheduled and Actual meeting and attendance
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28b/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance%281%29.pdf
III 16 If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? YES
The Summary of the actions of Governance and Nomination and Remuneration Committee is publicly disclosed.

References:
  1. CITEM Board Committees Accomplishment Report CY2020
CITEM Board Committees Accomplishment Report CY2020
https://citem.com.ph/transparency-seal/2021/september/28b/CITEM%20Board%20Committee%20Accomplishment%20Report%20CY2020%281%29.pdf
III 17 Does the Board appoint an Audit Committee? YES
The members of the Audit and Risk Management Committee are the following:
  1. Bangko Sentral ng Pilipinas
    Mr. Thomas Benjamin B. Marcelo
  2. Landbank of the Philippines
    Ms. Judy O. Kis-Ing
  3. CITEM
    Ms. Paulina Suaco Juan

References:
  1. CITEM Website: Corporate Governance
  2. Committees in the CITEM Board, functions and appraisal
  3. Board Meeting Policy, Scheduled and Actual meeting and attendance
  4. Sec Cert_Board Committees Nomination (Res No. BM 2020-01-11)
CITEM Website: Corporate Governance
https://citem.gov.ph/corporate-governance#:~:text=Governance%20and%20Nomination%20and%20Remuneration%20Committee%20Members,CITEM

Committees in the CITEM Board, Functions and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28b/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf

Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28b/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance%281%29.pdf

Secretary's Certificate Board Committees Nomination
https://citem.com.ph/transparency-seal/2021/september/28b/Sec%20Cert_board%20committees%20nomination%281%29.pdf
III 18 If yes, is the report of the Audit Committee publicly disclosed? YES
The Summary of the actions of Risk and Audit Management Committee is publicly disclosed.

References:
  1. CITEM Board Committee Accomplishment Report CY2020
CITEM Board Committee Accomplishment Report CY2020
https://citem.com.ph/transparency-seal/2021/september/28b/CITEM%20Board%20Committee%20Accomplishment%20Report%20CY2020%281%29.pdf
III 19 Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? YES
Mr. Thomas Benjamin Marcelo has an educational background in economics and economic development. He has experience as a Senior Advisor to IMF, and International Relations Department of Bangko Sentral ng Pilipinas.

References:
CITEM Board of Governors Executive Profile
CITEM Board of Governors Executive Profile
https://citem.com.ph/transparency-seal/2021/april/22/BOG-Executive%20Profile.pdf#page=11
III 20 Did the Audit Committee meet at least four times during the year? YES
The Risk and Audit Management Committee held five (5) meetings for 2020.

References:
  1. Board Meeting Policy, Scheduled and Actual meeting and attendance
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28b/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance%281%29.pdf
III 21 Does the Board appoint a Risk Management Committee? YES
The member of the Audit and Risk Management Committee are the ff:
  1. Bangko Sentral ng Pilipinas
    Mr. Thomas Benjamin B. Marcelo
  2. Landbank of the Philippines
    Ms. Judy O. Kis-Ing
  3. CITEM
    Ms. Paulina Suaco Juan

References:
  1. CITEM Website: Corporate Governance
  2. Committees in the CITEM Board, functions and appraisal
  3. Board Meeting Policy, Scheduled and Actual meeting and attendance
  4. Sec Cert_Board Committees Nomination (Res No. BM 2020-01-11)
CITEM Website: Corporate Governance
https://citem.gov.ph/corporate-governance#:~:text=Governance%20and%20Nomination%20and%20Remuneration%20Committee%20Members,CITEM

Committees in the CITEM Board, Functions and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf

Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf

Secretary's Certificate Board Committees Nomination
https://citem.com.ph/transparency-seal/2021/september/28d/Sec%20Cert_board%20committees%20nomination.pdf
III 22 If yes, is the report on Risk Management Committee publicly disclosed? YES
The Summary of the actions of Risk and Audit Management Committee is publicly disclosed.

References:
  1. CITEM Board Committee Accomplishment Report CY2020
CITEM Board Committee Accomplishment Report CY2020
https://citem.com.ph/transparency-seal/2021/september/28d/CITEM%20Board%20Committee%20Accomplishment%20Report%20CY2020.pdf
III 23 Does at least one member of the Risk Management Committee have a background in finance and investments? YES
Mr. Thomas Benjamin Marcelo has an educational background in economics and economic development. He has experience as a Senior Advisor to IMF, and International Relations Department of Bangko Sentral ng Pilipinas.

References:
CITEM Board of Governors Executive Profile
CITEM Board of Governors Executive Profile
https://citem.com.ph/transparency-seal/2021/april/22/BOG-Executive%20Profile.pdf#page=11
III 24.a Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) YES
The schedule of the Board Meetings is stated at the beginning of the year in the CITEM Board of Governors Regular Board Meetings & Policy.

References:
  1. Board Meeting Policy, Scheduled and Actual meeting and attendance
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf
III 24.b Does the Board of Directors meet at least monthly? NOT APPLICABLE
Be held on a quarterly basis or four (4) times a year. Nonetheless, Board meet more than four times in 2020 as shown in the attendance.

Reference:
  1. Section 3 of the Rules on the Conduct of CITEM Board of Governors Meeting
  2. Committees in the CITEM Board, functions and appraisal
Sec. 3 of the Rules of Conduct of CITEM Board of Governors Meeting
https://citem.com.ph/transparency-seal/2021/september/28d/Rules%20of%20Conduct%20of%20CITEM%20Board%20of%20Governors%20Meeting.pdf 

Committees in the CITEM Board, Functions and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
III 24.c Did the Board of Directors meet on at least 75% on their scheduled meetings? YES
CITEM held the Board Meetings at least 75% of the scheduled meetings for 2020. The reference document shows the actual meetings held and the date of the scheduled meetings.

Reference:
Board Meeting Policy, Scheduled and Actual meeting and attendance
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf
III 24.d Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? YES
Each of the directors/commissioners attended at least 90% of all board meetings held in 2020.

Reference:
CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf
III 24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present? YES
CITEM held a separate meeting without the President/CEO on 17 January 2020 pursuant to GCG Memorandum Circular 2012-07.

References:
  1. CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance
  2. CITEM 17 January 2020 Minutes of the Meeting without the CEO
Board Meeting Policy, Scheduled and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf

CITEM 17 January 2020 Minutes of the Meeting without the CEO
https://citem.com.ph/transparency-seal/2021/september/28d/Minutes%20of%20the%20Meeting%20Without%20CEO%2017%20Jan%202020.pdf
III 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
CITEM Board must be provided with board papers for the upcoming meeting at least 3 working days in advance as indicated under the CITEM Board of Governors Regular Board Meetings' policy.

References:
  1. Section 6 (b) of the Rules on the Conduct of CITEM Board of Governors Meeting
  2. CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance
Sec. 6 (b) of the Rules on the Conduct of CITEM Board of Governors Meeting
https://citem.com.ph/transparency-seal/2021/september/28d/Rules%20of%20Conduct%20of%20CITEM%20Board%20of%20Governors%20Meeting.pdf 

Board Meeting Policy, Schedules and Actual Meetings, and Attendance
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Meeting%20Policy%2C%20Schedules%20and%20Actual%20Meeting%20and%20attendance.pdf
III 25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices? YES
Atty. Anna Grace I. Marpuri is a lawyer. She attended seminars and trainings. (see attached certifications)

References:
  1. CITEM Corporate Secretary Profile
CITEM Board Secretary Profile
https://citem.com.ph/transparency-seal/2021/september/28d/CITEM%20Board%20Secretary%20Profile.pdf
III 26.a Does the company have a separate internal audit function? YES
References:
  1. CITEM Website Key Officers List
  2. Office Order of Ms. Karla Grace Dinglasan and Mr. Jaime Antonio Sandoval
Website: CITEM Key Officers
https://citem.gov.ph/home/key-officers#:~:text=Internal%20Audit%20Service,2201%20local%20207

Office Order of Ms. Karla Grade Dinglasan and Mr. Jaime Antonio Sandoval
https://citem.com.ph/transparency-seal/2021/september/28d/Office%20Order%20No%202020141%20-%20Karla%20Dinglasan_Jaime%20Sandoval.pdf 

DBM Approved CITEM Organizational Chart
https://citem.com.ph/transparency-seal/2021/september/28d/DBM%20Approved%20Org%20Chart.pdf
III 26.b Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee? YES
As stated in page 2 (no. 5) of the Functions of the Risk and Audit Committee, it is explicitly stated that the Risk and Audit Management Committee has the power to recommend an internal audit.
The committee has the function to appoint/ remove an internal auditor

References:
  1. Stated in page 2 (no. 5) of the functions of the Risk and Audit Committee
Committee in the CITEM Board and appraisal -Functions of the Risk and Audit Committee
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
III 27.a Does the company disclose the internal control procedures/risk management systems it has in place? YES
References:
  1. CITEM Risk Management System
  2. Annual Report 2020

CITEM Risk Management System
https://citem.com.ph/transparency-seal/Corporate-Governance/Risk-Management-System.pdf

CITEM Annual Report 2020, Risk Assessment, page 32 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=32

III 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
CITEM’s Annual Report 2020 disclosed that the board of directors has conducted a review of the company's material controls
CITEM Annual Report 2020, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33
III 27.c Does the company disclose how key risks are managed? YES
References:
  1. CITEM Risk Management System
  2. Annual Report 2020

CITEM Risk Management System
https://citem.com.ph/transparency-seal/Corporate-Governance/Risk-Management-System.pdf

CITEM Annual Report 2020, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33

III 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
CITEM’s Annual Report 2020 contains a statement from the Board of Governors on the adequacy of the agency’s internal controls/risk management system

CITEM Annual Report 2020, page 33 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=33

III 28 Do different persons assume the roles of Chairman and CEO? YES
Hon. Ramon M. Lopez is the chairman while the Alternate Chairman is Hon. Abdulgani M. Macatoman and the CEO for CITEM is ED Paulina Suaco-Juan. As stated in EO 989, the DTI is the chairman of the Board., while the appointive member representing the private sector is occupied by the CITEM Executive Director.

References:
  1. Key Officers
  2. Sec. 3, EO 989 of the Ministry of the Trade and Industry.
  3. Board Paper appointment as ED and appointive member to the CITEM Board with secretary Certificate
Website: CITEM Key Officers
https://citem.gov.ph/home/key-officers

Sec.3 of Executive Order 989 of the Ministry of the Trade and Industry
https://www.citem.com.ph/downloads/EO_989.pdf#page=2

Board Paper – Appointment as ED and Appointive member to the CITEM Board with Secretary’s Certificate
https://citem.com.ph/transparency-seal/2021/september/28d/Board%20Paper-Appointment%20as%20ED%20and%20Appointive%20member%20to%20the%20CITEM%20Board%20with%20Sec%20cert.pdf
III 29.a Does the GOCC have orientation programs for new Directors? YES
References:
  1. Website: Orientation for New Board Members
  2. Sec 66 of the Revised Manual of Corporate Governance
Website: Orientation for New Board Members
https://citem.gov.ph/corporate-governance#:~:text=Orientation%20for%20New,activities%20and%20operations.%C2%A0%C2%A0

Sec. 66 of the Manual of Corporate Governance
https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=17
III 29.b Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs? YES
CITEM has a policy that encourages directors/commissioners to attend educational programs and CITEM allocated budget for the Board of Governors' trainings.

References:
  1. Section 66 of Manual of Corporate Governance of CITEM
  2. Page 5 of HRD Budget 2020 - BOG allocation trainings and programs and 2021
  3. CITEM BOG Trainings 2020 and ICD Certificates
Sec. 66 of the Manual of Corporate Governance
https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corproate-Governance.pdf#page=17

HRD Budget 2020 - BOG Allocation Trainings and Programs
https://citem.com.ph/transparency-seal/2021/september/28d/HRD%20Budget%202020-BOG%20allocation%20trainings%20and%20program.pdf

CITEM BOG Trainings 2020 and ICD Certificates
https://citem.com.ph/transparency-seal/2021/september/28d/CITEM%20BOG%20Trainings%202020%20and%20Certificates.pdf
III 29.c Did all Appointive Directors attend at least 1 training for the calendar year? YES
Ms. Paulina Suaco-Juan is the only Appointive Director of CITEM. She attended a training seminar as evidenced by the link.

References:
  1. CITEM 2020 Board of Governor's Training Program
  2. ICD Certificate of Ms. Pauline Suaco-Juan
  3. Sec. 66 of Manual of Corporate Governance
  4. Annual Report 2020

CITEM 2020 Board of Governor's Training Program
https://citem.com.ph/transparency-seal/2021/april/22/CITEM%20BOG%20Trainings%202020.pdf

ICD Certificate of Ms. Pauline Suaco-Juan
https://citem.com.ph/transparency-seal/2021/september/28d/ICD%20Certificate%20of%20Ms.%20Pauline%20Suaco-Juan.pdf

Sec. 66 of the Manual of Corporate Governance
https://citem.com.ph/transparency-seal/Corporate-Governance/Manual-of-Corporate-Governance.pdf#page=17

CITEM Annual Report 2020, page 39 of 41
https://citem.com.ph/transparency-seal/2021/september/28/CITEM-ANNUAL-REPORT-2020.pdf#page=39

III 30.a Is an annual performance assessment conducted of the Board of Directors? YES
References:
  1. Board Committees in the Board and appraisal
Board Committees in the Board and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
III 30.b Does the GOCC disclose the process followed in conducting the Board assessment? YES
The Board of Directors conducts an annual assessment of its performance through GCG’s Performance Evaluation for Directors (iPED) System following the criteria set under GGC Memorandum Circular 2014-03.

References:
  1. Website: Board Appraisal System/Annual Performance Assessment
  2. Revised Manual of Corporate Governance, Sec. 26, page 9
  3. Board Committees in the Board and appraisal
Website: Board Appraisal System/ Annual Performance Assessment
https://citem.gov.ph/corporate-governance#:~:text=Board%20Appraisal%20System%20/%20Annual%20Performance%20Assessment

Section 26 of the Revised Manual of Corporate Governance
https://citem.com.ph/transparency-seal/revised-manual.pdf#page=9

Board Committees in the Board and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
III 30.c Does the GOCC disclose the criteria used in the Board assessment? YES
CITEM stated the criteria for Board Appraisal. The criteria for assessing the performance of the company is based in the following 5 matrix: Financial, Governance, Performance, Process and Management.

References:
  1. Board Committees in the Board and appraisal
Board Committees in the Board and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
III 31 Is an annual performance assessment conducted of the Board of Directors Committees? YES
CITEM conducted an annual performance assessment of the Board Committees.

References:
  1. Board Committees in the Board and appraisal
Board Committees in the Board and Appraisal
https://citem.com.ph/transparency-seal/2021/september/28d/COMMITTEES%20IN%20THE%20CITEM%20BOARD%20and%20appraisal.pdf
IV. Bonus
IV 1 Stakeholder Relationship Does the GOCC practice Global Reporting Index (GRI) on its annual reports?  NO  
IV 2 Timely release of annual financial report Is the audited annual financial report/statement released within 30 days upon receipt from COA? YES
COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published on Line: 16 July 2021
 

COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published online: 16 July 2021

https://citem.gov.ph/corporate-governance

https://citem.gov.ph/corporate-governance#:~:text=16%20July%202021,23%20June%202021

V. Penalty
V 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
All of the Board members did not exceed 5 positions in other GOCC and PLCs. Reference: BOG's positions and designation
https://citem.com.ph/transparency-seal/2021/september/28d/BOARD%20OF%20DIRECTORS_DESIGNATION.pdf
V 2 Responsibilities of the Board Is there non-compliance with Good Governance Conditions? NO
CITEM is not included in the initial list of non-compliant GOCCS covered by RA 10149 as per the report uploaded in the Development Academy of the Philippines website
Development Academy of the Philippines – Initial List of Non-Compliant GOCCs covered by RA 10149
https://rbpms.dap.edu.ph/news/initial-list-of-non-compliant-goccs-covered-by-ra-10149-on-good-governance-conditions-procurement-requirements-and-common-sto-and-gass-indicators-for-fy-2020-pbb/