Corporate Governance

Question CIAC Compliance File Link
I. STAKEHOLDER RELATIONSHIP
1. Policy disclosure
Does the GOCC disclose a policy that:
1.a. Stipulates the existence and scope of the effort to address customer’s welfare? The existence and scope of the efforts of CIAC to address customer welfare are evidenced by the following:

    • Procedure for addressing Customer Feedback that was adopted since 2016 to present.
    • Passenger Survey Feedback Mechanism Procedure. and
    • CRK Passenger Survey 2018
    • Compliance with the Anti Red Tape Act.

Further, CIAC commits to enhance stakeholder experience through the delivery of exceptional service by meeting stakeholder needs and epectations while achieving high levels of satisfaction. CIAC ensure positive brand awareness and encourages stakeholder participation and loyalty and advocacy.

By constantly achieving high level of stakeholder satisfaction, CIAC ensures positive brand awareness and encourages drivers to achieve efficiency and provide the highest quality of service.

This Internal Process objective outlines the key processes of CIAC including international and domestic passenger facilitation, and all internal operating processes. Attainment of this objective leads to operational excellence as strategies of the organization align with the interest of the stakeholders.

CIAC aims to deliver quality service by championing in organizational management practices. Initiatives to achieve the thrust for quality and continual improvement are developed and implemented are developed and implemented by departments and offices. With the successful migration to ISO 9001:2012 in 2017, the organization maintains this certification until March 0f 2019 by strictly complying with the set standards, thereby assuring effective and efficient processes and promoting the philosophy of continuous improvement and review. Due to the shift in the scope of the business of CIAC, focusing more on the development of the CCAC, fulfilment of the requirement of the ISO 9001:2015 have yet to be revaluated.

The CIAC Quality Office conducted Customer Satisfaction Surveys during the 4th Quarter of 2019. The entire population of locators were surveyed – 42 companies, availing the “Processing of Lease Contract/Agreement” service. The said survey is a requirement of the Governance Commission for GOCCs (GCG).

The survey results showed that the overall level of satisfaction is 86.2%, while the percentage of satisfied customers is 92.86% to which 40.48% of the survey respondents (17 locators) are very satisfied and 52.38% are satisfied (22 locators).

Aiming and realizing this target illustrate the commitment of CIAC in enhancing the CRK experience for its customer.

Further, CIAC revised its Citizen’s Charter for External Services which was submitted to the Anti-Red Tape Authority last December 6, 2019 following their required format. CIAC’s Citizen’s Charter is posted at the CIAC Website (Transparency Seal) as required also by Anti-Red Tape Authority.

1.b. Elaborates its efforts to interact with the communities in which they operate? The posting of CIAC's Corporate Social Responsibility (CSR) statement in its website in a clear and manifest disclosure of its effor to interact with its communities and other stake holders.

In addition, the CSR Statements is reflected in the CIAC Manual on Corporate Governance.

Further, CIAC has a dedicated department called the Community Relations Department which is mandated to plan, implement and monitor holistic programs for specific groups and communities affected by operating the Clark International Airport.

As part of its Corporate Social Responsibility (CSR), CIAC engages in Gender and Development (GAD) mainstreaming programs and a number of the enrichment of the community and all stakeholders.

CSR Statement

Annual Report 2019 (Page 61)

1.c. Policy ensuring that the CIAC value chain is environmentally friendly or is consistent with promoting sustainable development. CIAC has an approved Environmental Policy.

There is also a provision in the CIAC Manual on Corporate Governance which states:

Environment — CIAC should consider that there are investable environmental impacts associated with daily operations. It shall be the goal of CIAC to minimize harmful effects and consider the development and implementation of environmental standards to achieve this to be a of great importance. As such, CIAC should strongly encourage 3 R’s: “Reduce”, “re- use”, and “recycle”.

In celebration of the Philippine Environment Month, CIAC participated in the 21st Recyclables Collection Event and Disposal of Selected Hazardous Waste on 11 June 2019. CIAC Annually participates on this initiative, which is aimed at promoting awareness on proper hazardous waste management, treatment, and disposal. This initiative was spearheaded by the Clark Development Corporation (CDC) in partnership with the Environmental Practitioners’ Association, (Inc.) (EPA).

In the course of the operations of CIAC, it should identify opportunities to reduce consumption of energy, water and other natural resources. CIAC should also strive to re-use and recycle where possible and dispose non-recyclable items responsibility, thereby minimizing our impact on the environment. In doing so, by adopting simple, environmentally friendly initiatives, CIAC shall raise awareness among the members of the communities it affects.

CIAC also held a Tree Planting Activity at Barangay Mawacat in Floridablanca, Pampanga im coordination with the Department of Environment and Natural Resources (DENR). The said project was planted was attended by CIAC employees who planted more then a hundred seeds in the area as [art of their reforestation program and CSR of CIAC.

Environmental Policy

CIAC Manual on Corporate Governance (Page 29)

Certificate of participation to 21st RCE

Annual Report 2019 (Page 61)

2. Activities implementing abovementioned policies
Does the GOCC disclose the activities it has undertaken to implement the abovementioned policies? To disclose the abovement policies through the following categorizes into three aspects.

  1. Customer health and safety
  2. Interaction with the communities
  3. Environmental-friendly value chaine
  4. Corporate Social responsibility
2.a. Customer health and safety IMPROVED SAFETY AND SECURITY AT CCAC

Maintaining and improving the safety and security at CRK and within the CCAC has always been the corporation's priority. Ensuring strict compliance to ICAO safety and security standards assures passengers, airlines, and all stakeholders of a sage and seamless experience at CRK and CCAC.

To ensure safety and security at the CCAC, all responses to security-related airport incidents are addressed within the ICAO standard reponse time of 10 minutes, all Aircraft Resue and Fire Fighting (ARFF) responses to aircraft emergencies within the Aircraft Movement Area (AMA) are responded to within the ICAO standard reponse time of 3 minutes, and all Airport Medical Emergency Responses within the AMA are addressed within the ICAO standard response time of 3 minutes.

Through the years, CIAC consistently meets the prescribed response times to address aircraft emergencies (three minutes), security-related airport incidents (ten minutes), and medical emergencies (three minutes).

Accomplishing these targets led to the increase in stakeholders’ level of confidence in CIAC in being attentive and responsive to its internal and external environment.

CIAC continually upgrade its security by engaging security

NATIONAL SIMULATION EARTHQUAKE DRILL

On 14 November 2019 the National Simultaneous Earth Drill (NSED) was conducted among the National Disaster Risk Reduction and Management Council (NDRRMC) agencies. Th Ceremonial Venue was held at Calapan City, Oriental Mindoro where the warning buzzer was pressed at 0:00 a.m.

Objectives of the event include testing the efficiency and usefulness of the preparedness, response, and recovery plans, systems, and policies, developed in respective localities, offices, and schools, evaluating the effectiveness of contingency plans, testing the coordination and communication mechanism during response operation, and understanding the command and control mechanism in emergency disaster operations at the Disaster Risk Reduction Management Councils (DRRMCs).

Prior to the day of the NSED, the City Disaster Risk Reduction Management Office of Mabalacat City conducted an orientation on Disaster Preparedness among all CIAC employees. On the day of the NSED, the CIAC Community successfully completed the Drill with an overall rating of Satisfactory granted by the City Disaster Risk Reduction Management Office of Mabalacat City.

Health and Safety Policy

CIAC Annual Report for CY 2019 (Page 30)

2.b. Interaction with the communities The accomplishments and activities pertaining to customer welfare, community relations and sustainable development are integrated into the CIAC Annual Report 2018.

The Clark International Airport Corporation (CIAC) actively participated in the following:

  1. 2019 SEA GAMES
    The country hosted the 2019 Southeast Asian Games from 30 November to 11 December 2019.More than 700 delegates of the Southeast Asian Games were welcomed at the Clark International Airport by the Department of Tourism Region 3, Philippines Southeast Asian Games Organizing Committee (PHILSGOC), and LIPAD.
  2. APPROVED BLUE TAXI AT CLARK
    On the last quarter of 2019, Mabuhay Car Rentals signed a sublease agreement with CIAC to oprate Blue Taxi – a metered taxi service based at Clark International Airport with various terminals around Pampanga.The Blue Taxi fleet if the first taxi to service Pampanga. There are around 100 Blue Taxis deployed around the area with flag down rate starting at PhP 40.00.
Activities - Communities

Annual Report 2019 (page 49)

2.c. Environmentally-friendly value chain CIAC undertakes the following activities in compliance with its Environmental Policy:

  • Certificate of Environmental Compliance issued by Clark Development Corporation
  • Fire Safety Inspection Certificate
  • Sanitary Permit
  • Annual Self Monitoring Report being submitted to the Department of Environment and Natural Resources (DENR) – Environmental Management Bureau (EMB)
Activities - Environment

3. Corporate Social Responsibility
Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? Yes, CIAC has a distinct department called the Community Relations Department created to deliver the following mandate as a matter of regular course of operations:

Mandate:

“We take the lead to promote and project a welcoming environment for the Clark International Airport and its stakeholders (particularly passengers, airlines and locators, local governments, media, and other aviation-related entities) and spearhead the conceptualization, development and implementation of programs and projects reflective of the corporate social responsibilities (CSR) of the Corporation toward its stakeholders and host communities. The “welcoming environment” covers provision of passenger assistance desk services designed to help enhance the integrity of operations and services at the Airport and the facilitation of cultural and tourism-related activities, both accomplished through a strategic collaboration with partner-agencies to meet customer satisfaction. The “corporate social responsibilities” cover airport facilities and services responsive to the needs of women, men and children passengers and those travelling with special needs. CSR likewise covers socio-economic programs for families left behind by OFW-mothers, victims of human trafficking, communities, marginalized group and other socially-inclusive initiatives.

As part of its Corporate Social Responsibility (CSR), CIAC engages in Gender and Development (GAD) mainstreaming programs and a number of community-oriented initiatives for the enrichment of the community and all stakeholder of CIAC.

CIAC supported and celebrated the 18-day Campaign to End Violence Against Women (VAW) held from 25 November to 12 December 2019.

The activity was also conincided with a Special Flag Raising Ceremony themed VAW Free Community. CIAC Employees wore the VAW Free Community Polo Shirts during celebration in support of culitivating an environment where both men and women feel safe and empowered to stand up against all forms of violence.

At the same time, a two-day Gender Sensitivity Training was held for CIAC employees at Xenia Hotel from 5 to 6 December 2019. This tackled the importance of Gender Sensitivity between sexes in bringing mutual understanding and respect to society. The training was facilitated by speakers accredited by the Department of Transporation (DOTr).

CIAC also held a feeding program at the Munting Tahanan Ng Nazareth in Mabalacat, Pampanga on 05 December 2019. CIAC employees fed 40 children of the Munting Tahanan Ng Nazareth and distributed grocey items such as soap, and toothpaste, among others in support of giving back to the community. Tha Munting Tahanan Ng Nazareth is a facility for the poor, surrendered and abandoned, and mentally challenged children with special needs.

CIAC also held a Tree Planting Activity at Barangay Mawacat in Floridablanca, Pampanga in coordination with the Department of Environment and Natural Resources (DENR). The said project was attended by CIAC employees who planted more than a hundred seeds in the area as part of their reforestation program and CSR of CIAC.

CIAC Management has always been in support of promoting work-life balance and nourishing the wellbeing of its employees. As such, the annual Recollection at CIAC was held on 12 April 2019. On Valentine’s Day, then Officer-in-Charge Jaime Alberto C. Melo, together with a number of male officers, distributed roses to the ladies of CIAC. On 29 March 2019, Women’s Moth was celebrated by treating all lady employees of CIAC to a massage at the Lohas Hotel, Clark; an orientation on Essential Oils was also administered to the CIAC Ladies.

In Celebration of the Philippine Environment Month, CIAC participated in the 21st Recyclables Collection Event and Disposal of Selected Hazardouse Wastes on 11 June 2019. CIAC annually participcates in the initiative, which is aimed at promoting awareness on proper hazardous waste management, treatment, and disposal. This initiative was spearheaded by the Clark Development COrporaiton (CDC) in partnership with Environmental Practitioners Association, Inc. (EPA).

Annual Report 2019 (Pages 61-62)
4. Stakeholders' effective redress for violation of rights
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? CIAC has Feedback and Redress Mechanisms as embodied in its Citizen Charter.

Also, the following information can be obtained at CIAC's official website:

  1. Business
    • Bid Opportunities
    • Request for quotation
    • Procurement Monitoring
    • List of observers
    • OWWA Processing Center
    • Park and Fly
    • 5 Steps to be a locator of CIAC
    • Things to do
  2. Clark Airport
    • About CRK
    • Vision Mission
    • Contact CRK
    • Passenger Guide
    • Careers
    • Frequently asked questions
    • Feedback
    • Developments
    • News
    • Operational Statistics
  3. Transparency Seal
  4. Corporate Governance
Citizens Charter

www.ciac.com.ph

5. Performance-enhancing mechanisms for employee participation
5.a. Does the GOCC explicitly mention the health, safety and welfare policy for its employees? CIAC has Board-approved Health and Safety Policy, as well as Employee Welfare Policy. The same is cascaded to the employees in the form of Inter-Office Memorandum. Employee Health, Safety and Welfare Policy
5.b. Does the GOCC publish data relating to health, safety and welfare of its employees? CIAC has always given importance in taking care of its most importance asst – its human capital. In relation hereto, the following health and illness prevention programs were conducted in 2019:

  1. Voluntary Blood Donation (19 June)
  2. Voluntary Donation of Whole Blood to Employees’ Dependents (September and November 2019)
  3. Annual Physical Examination (APE) from 22 Oct – 24 Oct. Date started: May 2018 up to present
  4. Distribution of free medicines to employees with Hypertension and Diabetes through the Philippine Package of Essential Non-communicable Disease Intervention.

In compliance with the CIAC Drug-Free Workplace Policy, HRD in coordination with the CIAC Drug Assessment Team successfully facilitated drug testing to a total of 206 employees on 30 June 2017.

Annual Report 2019 (Page 62)
5.c. Does the GOCC have training and development programmes for its employees? Enriched Employee Performance and Development

Managing any organization entails the over increasing need for capital investment where people and knowledge from the core of the organization. This leading and growth objective focuses on human, organizational, and informational capital management vital in ensuring successful achievement of the core processes of the organization.

With the aim to enhancing the performance and productivity of each CIAC employee, required competencies for all positions are identified to be able to apply necessary intervention resulting to enriched employee performance and development.

The Competency Framework of CIAC was successfully approved by its Board of Directors on December 2018. Through the Framework, functional competencies of each position in the organization were identified. By the end of 2019, competencies of CIAC employees increase by 10 percent – registering a year-end figure of 74 percent.

CIAC utilizes the Office Performance and Commitment Review (OPCR) and Individual Performance and Commitment Review (IPCR) evaluating tools in ensuring department and individual performance are in accord with the corporate strategy, and in assessing department and individual performances.

Annual Report 2019 (Page 30)
5.d. Does the GOCC publish data on training and development programs for its employees? As every organization recognizes the importance of its most valued asset, CIAC invests in the learning and growth of its employees through conduct of and participation in a number of trainings facilitated by esteemed professionals and organizations. This investment is also aimed at reconciling the competency gaps to further improve, maximize, and optimize employees’ skills and competencies.

In-House Trainings

In relation to the changes in the strategic direction brought about by the privatization of the operations and maintenance of the Clark International Airport (CRK) and a number of leasable properties of CIAC, two seminars on Organizational Change were participated by all CIAC Employees.

To ensure awareness and proper disposition in times of untoward incidences, the Disaster Preparedness Orientation and Earthquake Drill were attended by 112 employees. This is in partnership with the City Disaster Risk Reduction Management Office of Mabalacat City.

Lastly, a Pre-Security License Training and an Aviation Security Training were attended by all security personnel of CIAC.

The extent to which the organization engages in in-house trainings ultimately goes to show how management is dedicated in enhancing employee competency.

External Trainings

Apart from in-house trainings, CIAC employees also participate in a significant number of external trainings every year. As efforts to address competency gaps are underway and will further be addressed in the coming years, the organization produced a total of 51 employee participation in 34 external trainings.

Below is a summary of trainings (total of 24) attended by 123 employees of CIAC.

2019 TRAINING PROGRAMS ATTENDEES
ACI Certificate in Airside Operations 1
Basic Essential for Successful Leadership 11
Laws and Rules on Government Expenditures 3
PAGBA 2019 2nd Quarterly Seminar and Meeting 2
Seminar/Workshop on Strategic Planning for Gender Planning and Budgeting 1
GACPA Inc Induction Ceremony and Seminar 4
One Common Language Track 1 14
UAP National Convention 2
Upgrading Your Writing and Speaking Skills to Thrive in the Workplace 1
Cash Management and Its Internal Control System 1
2019 AGAP inc. National Convention 2
IATA Behavioral Analysis and Predictive Screening 1
What to Know About Procurement Law 2016 and Relevant Updates 4
Brand Innovation Ateneno Graduate School 6
Seminar on Expanded Maternity Leave Law 3
PAP Annual Convention 2019 1
PHIC updates, DOLE, OSHL, SSS, expanded Maternity Law, Organizational Development 3
Work Relatedness of Diseases 2
Strategic Performance Management System 3
Data Privacy Act 7
2nd Scientific Meeting & 22nd Midyear Conference 1
DICT Social Media Seminar 1
Mentoring & Coaching for Leaders 1
Earthquake Drill Orientation & Disaster Preparedness Seminar 112
2019 Annual Report, page 59-60
6. Whistleblowing Policy
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.
6.a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior? CIAC has a Whistleblowing Policy approved by the Board of Directors. CIAC Whistleblowing Policy

https://ciac.gov.ph/wp-content/uploads/2020/09/ciac-whistleblowing-policy.pdf

6.b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? The procedures to protect an employee/person who reveals illegal/unethical behaviour from retaliation are stipulated in the CIAC Whistleblowing Policy. CIAC Whistleblowing Policy

https://ciac.gov.ph/wp-content/uploads/2020/09/ciac-whistleblowing-policy.pdf

Question CIAC Compliance File Link
II. DISCLOSURE AND TRANSPARENCY
7. Quality of Annual Report
Does the GOCC's annual report disclose the following items:
7.a. Corporate objectives The corporate objectives of CIAC are discussed in the 2019 Annual Report. 2019 Annual Report (pages 27-28)
7.b. Financial performance indicators The 2019 Annual Report of CIAC contains the financial performance indicators. 2019 Annual Report (pages 12-1869-87)
7.c. Non-financial performance indicators The 2019 Annual Report contains the non-financial performance indicators. 2019 Annual Report (pages 07-1017-62)
7.d. Details of whistle-blowing policy The Whistleblowing Policy is uploaded at http://www.ciac.com.ph/wp-content/uploads/2020/09/whistleblowing-policy.pdf. CIAC Whistleblowing Policy
7.e. Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners The profiles of the members of the Board are uploaded at http://www.ciac.com.ph/transparency-seal and are published in the 2019 Annual Report of CIAC. 2019 Annual Report (pages 63-68)
8. Downloadable Annual Reports
Are the annual reports downloadable from the GOCC's website? CIAC Annual Reports are available at https://ciac.gov.ph/annual-report Annual Report CY 2019
9. Corporate Governance Confirmation Statement
Does the Annual Report contain a statement confirming the company's full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue? Yes Statement Confirming CIAC’s full compliance with the Code of Corporate Governance.
10. Timely filing/release of annual/financial reports
10.a. Are the audited annual financial report/statement released within 60 days upon receipt from COA? On 01 July 2020, CIAC received its Audited Annual Financial Statement for CY 2019 from COA. This was subsequently released or disseminated to all of the employees on 07 July 2020

Its date of publication at CIAC's website was on 09 July 2020.

Audited AFS 2019
10.b. Is the annual report released within 90 days from release of audited financial report? The 2019 Annual Report was released or disseminated to all of the employees on 29 June 2020.

Its date of publication at CIAC's website was on 16 June 2020.

Annual Report 2019
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? The CIAC Board issued a Statement Confirming the Truth and Fairness of the CY 2019 Financial Statement of CIAC. Statement confirming the Truth and fairness of the CY 2019 FS

Question CIAC Compliance File Link
III. RESPONSIBILITIES OF THE BOARD
11. Corporate Vision/Mission
11.a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? On 24 August 2018, the Board approved the proposed Charter Statement and Strategy Map, and the Performance Scorecard and other related forms. Secretary’s Certificate on Resolution No. RM-08-06, Series of 2018.
11.b. Has the Board of Directors monitor/oversee the implementation of the corporate strategy? The CIAC Board monitor and evaluates on a regular basis the implementation of corporate strategies and policies, business plans and operating budgets, as well as the Management’s over-all performance. CIAC Manual on Corporate Governance (Page 8)
12. Performance Evaluation System
Did the GOCC achieve 90% in the PES? CIAC achieves a PES rating of 94.12% PES
13. Code of Ethics/Conduct
13.a. Are the details of the code of ethics or conduct disclosed? Standards of conduct are embodied in the CIAC Table of Offenses and Corrective Actions. Table of Offenses
13.b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? Section 10.1 of the CIAC Manual on Corporate Governance provides that the CIAC Board of Directors, the senior management officers and employees shall stricly observe and adhere to the CIAC Employee's Conduct and Discipline and the Table of Offenses and Corrective Actions. CIAC Manual on Corporate Governance (Page 31)
13.c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? Administration and enforcement of employee discipline, the procedures in imposing disciplinary action and the application of disciplinary/corrective action may be found at the CIAC Table of Offenses. Table of Offenses
Nomination and Compensation/Remuneration Committee
14. Does the Board appoint a Nomination Compensation / Remuneration Committee? Section 4.2.1 of the CIAC Manual on Corporate Governance states that “The Executive Committee shall also function as the Governance Committee, Nomination and Remunerations Committee and Risk Management Committee.”

In 2016, the Board created a separate Nomination and Remunerations Committee

CIAC Manual on Corporate Governance (Page 16)

List of Committees as of 26 October 2018 approved by the Board.

Charter of Nomination and Remunerations Committee

15. Did the Nomination and Compensation / Remuneration Committee meet at least twice during the year? Yes, The Nomination and Remuneration Committee met twice (2) times in 2019. Attendance Ledger for Nomination and Remuneration Committee meetings in 2019.
16. If yes, is the report of the Nomination and Compensation / Remuneration Committee publicly disclosed? Yes. The reports of the Nomination and Remunerations Committee are available at https://ciac.gov.ph/wp-content/uploads/2020/09/2019.pdf. Activities – Nomination and Remuneration Committee 2019.
Audit Committee
17. Does the Board appoint an Audit Committee? The Board appointed an Audit Committee. The members of the Audit Committee are as follows:

  • Edgardo B. Panlilio
  • Manuel C. Morales
  • Atty. Anne Lorraine C. Adorable-Inton
Board Committees and their Composition
18. If yes, is the report of the Audit Committee publicly disclosed? Yes. The reports of the Audit Committee are available at https://ciac.gov.ph/wp-content/uploads/2020/09/2019.pdf. GCG-Corporate Website
Activities – AuditCom 2019
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? Dir. Edgardo B. Panlilio is a graduate of AB Economics and he was engaged in banking and finance for over forty (40) years. Before he retired in 2006, he was the Assistant Vice President of Prudential Bank, San Fernando Branch. Dir. Panlilio's Profile
20. Did the Audit Committee meet at least four (4) times during the year? The Audit Committee conducted six (6) meetings in 2019. Attendance Ledger of Audit Committee
Risk Management Committee
21. Does the Board appoint a Risk Management Committee? Section 4.2.1 of the CIAC Manual on Corporate Governance states that “The Executive Committee shall also function as the Governance Committee, Nomination and Remunerations Committee and Risk Management Committee.” CIAC Manual on Corporate Governance (Page 16)
22. If yes, is the report on Risk Management Committee publicly disclosed? No, There was no Executive Committee in 2019.
23. Does at least one (1) member of the Risk Management Committee have a background in finance and investments? Dir. Anne Lorraine C. Adorable-Inton was a former member of the Committee on Small Business and Entrepreneurship Development and the Committee on Banks and Financial Intermediate. She was instrumental in the drafting of landmark legislations like the Magna Carta for Micro, Small, and Medium Enterprises and the Credit Surety Fund Act. Dir. Inton's profile.
24. Board meetings and attendance
24.a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) Yes, the monthly schedule of Board meeting was set before the beginning of the year. Proposed Board Meeting for 2019
24.b. Does the Board of Directors meet at least monthly? In 2019, a total of thirteen (13) Board meetings were held. Attendance Ledger – Board meetings for CY 2019.
24.c. Did the Board of Directors meet on at least 75% on their scheduled meetings? Yes, a total of thirteen (13) Board meetings were held. Attendance Ledger – Board meetings for CY 2019.
24.d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? Five (5) directors has attended at least 90% of all the Board meetings in 2019. Summary of Attendance-Board and Committee Meetings CY 2019.
24.e. Did the Board of Directors meet separately at least once during the year without the President and CEO present? Yes, on 26 July 2019, the CIAC Board held a meeting without the President and CEO. Attendance of the 26 July 2019 CIAC Board Meeting
25. Access to information
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? One of the duties of the Corporate Secretary is to provide the members of the Board with Board papers and materials for the Board of Directors' meeting at least three (3) days in advance of the scheduled Board meeting. CIAC Manual on Corporate Governance (Page 13)
25.b. Is the Board Secretary trained in legal, accountancy or company secretarial practices? Atty. Misheena Joyce Tiatco, the Acting Corporate Secretary is a Juris Doctor graduate and an Attorney-at-law. Profile - Atty. Misheena Joyce Tiatco
26. Internal Audit
26.a. Does the company have a separate internal audit function? The CIAC has an Internal Audit Department which is mandated to provide independent and objective appraisal on the integrity, adequacy and effectiveness of the organization's compliance to government rules and regulations, risk management system, system of internal control, management reporting process and the quality in carrying out assigned responsibilities to achieve the organization's goals and objectives. Organizational Chart

Mandate of the Internal Audit Department

26.b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee? One of the functions of the Audit Committee include the approval of the appointment and removal of the internal auditors of the Internal Audit Department. Audit Committee Charter (Page 1)
27. Risk Oversight
27.a. Does the company disclose the internal control procedures/risk management systems it has in place? CIAC has a procedure in addressing observation and opportunities for improvement. QMS-P-005
27.b. 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 systems? The contents of the Annual Report were presented to the Board on 21 February 2020. After incorporating the proposed revisions, the Board approved the same on 06 April 2020 through an ad-referendum. The Board ratified the ad-referendum approval on 30 April 2020 prior to its publication. Board Resolution RM-03-06, Series of 2020
27.c. Does the company disclose how key risks are managed? Yes. Mechanisms on risk management are posted in the CIAC's website
https://ciac.gov.ph/wp-content/uploads/2020/09/risk-factor-2018.pdf
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? No
28. Board Chairman
Do different persons assume the roles of Chairman and CEO? The Secretary of Department of Transportation is the Ex-officio Chairperson of CIAC.

From 26 October 2018 to 30 September 2019, the Officer-in-Charge/Acting President is Jaime Alberto C. Melo.

From 1 October 2019 to 28 May 2020, the Officer-in-Charge/Acting President is Joshua M. Bingcang

Executive Order No. 14, Series of 2017.

Board’s resolution on Mr. Melo’s appointment.

Board’s resolution on Mr. Bingcang’s appointment.

29. Board of Directors Development
29.a. Does the GOCC have orientation program for new Directors? CIAC has an Orientation Program for newly-appointed directors. CIAC Directors' Orientation Program
29.b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs? Sec. 3.11 and Sec 3.12 of the CIAC Manual on Corporate Governance provides the policy on director's attendance to on-going or continuous professional education programs. CIAC Manual on Corporate Governance Page 12.
29.c. Did all Appointive Directors attend at least one (1) training for the calendar year? In 2019, the following Appointive Directors attended a various Training:

  1. 2019 Revised Corporation Code of the Philippines
    • Dir. Manuel C. Morales
  2. What you must know about the 2016 Procurement Law IRR:
    • Dir. Anne Lorraine C. Adorable-Inton
    • Dir. Goldwin Z. Posadas
    • Dir. Edgardo B. Panlilio
    • Dir. Julius N. Raboca
Certificate of Training
30. Board Appraisal
30.a. Is an annual performance assessment conducted of the Board of Directors? The CIAC Board of Directors conducts an annual performance assessment through the Performance Evaluation for Directors (PED). CIAC Manual on Corporate Governance (Page 17)
30.b. Does the GOCC disclose the process followed in conducting the Board assessment? The performance of the members of the CIAC Board are evaluated based on based on the criteria set forth under the GCG Memorandum Circular No. 2014-03 [Performance Evaluation for Directors (PED) in the GOCC Sector]. CIAC Manual on Corporate Governance (Page 17)
30.c. Does the GOCC disclose the criteria used in the Board assessment? The GCG MC 2014-03, which sets out the criteria in the evaluation of the performance of the directors, is also being published in CIAC's website GCG MC 2014-03
31. Committee Appraisal
Is an annual performance assessment conducted of the Board of Directors Committees? Yes, the members of the Board Committees conduct a peer appraisal every year, pursuant to Section 4.7 of the Manual on Corporate Governance. Board Committee members' appraisal forms

Question CIAC Compliance File Link
IV. STAKEHOLDER RELATIONSHIPS AND DISCLOSURE & TRANSPARENCY
Stakeholder Relationships
1. Does the GOCC practice Global Reporting Index (GRI) on its annual reports? Yes, other than the financial conditions, CIAC’s 2019 Annual Report highlights the activities of CCAC that impacts the social and economic aspects of its operations. 2019 Annual Report (Page 62)
Disclosure and Transparency
2. Quality of Annual Report:

Are the Audited financial report/statement released within 30 days upon the receipt from COA?

Yes, the Audited Annual Financial Statemenet for FY 2019 was published on 09 July 2020, after having received the same from COA on 01 July 2020. https://ciac.gov.ph/wp-content/uploads/2020/09/audited-fs-2019.pdf

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Penalty Questions

Question CIAC Compliance File Link
V. RESPONSIBILITIES OF THE BOARD
1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? No member of the CIAC Board of Directors is holding more than five (5) positions in GOCCs and PLCs.
2. Is there non-compliance with Good Governance Conditions? CIAC is compliant with all GCG Good Governance Conditions resulting to a rating of 94.12% in the PES 2018. https://ciac.gov.ph/wp-content/uploads/2020/09/validated-PES-2018.pdf