I. STAKEHOLDERS RELATIONSHIP

QuestionWebsite Section/Link/LRTA’s Response
1. Does the GOCC disclose a policy that:
a. Stipulates the existence and scope of its effort to address customer’s welfare?It is the responsibility of the Board and Officers of the Authority to run the management and operation of LRTA in a manner that would suffice its stakeholder’s expectations and with due regard to their best interest.

Owing fidelity to the Government, LRTA at all times, promote and protect the best interest of the Government in all its dealings, comply with the laws, rules and regulations, policies and directives by the oversight agency and submit truthful, adequate and timely report as they may prescribe. The Authority also recognizes other stakeholders including, but not limited to its customers/passengers, employees, employees association, concessionaires, suppliers, service providers, contractors, media and the general public.
b. Elaborates its efforts to interact with the communities in which they operate?On Customers
The LRTA maintains an effective and efficient operation, focused on meeting customer objectives with the purpose of providing quality, reliable, safe and convenient service to the public. Over the years, LRTA has been consistent in continuous improvement of processes as well as the skills and competency of the staff to ensure the delivery of quality service.

On Other Stakeholders
In developing relationships with other stakeholders, the Authority continually promotes transparency and access to information and ensures that all of its affairs are in accordance with the existing government policies and procedures. LRTA discloses to the public all material information about its dealings by maintaining a transparency seal in its official website, conducting public consultations and dialogues.

LRTA has developed relationship and improved its networking with business partners and suppliers/contractors and other stakeholders based on mutual trust. Through partnership with these stakeholders, the Authority aims to offer the best combination of state-of-the-art technology and world-class service, strong customer relations and deep industry knowledge and experience, together with the capacity to implement and deliver value-added solutions on time and within budget.
c. Ensures that its value chain is environmentally friendly or is consistent with promoting sustainable development?Publication (“Office Order No. 11 – Policy on Proper Disposal of Solid/Domestic Wastes”)
2. Does the GOCC disclose the activities that it has undertaken to implement the above mentioned policies?
a. Customer health and safetyLRTA Accomplishment Report 2019 (pages 11-15)
b. Interaction with the communitiesLRTA Accomplishment Report 2019 (pages 14-15)
c. Environmentally-friendly value chain
3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?Corporate Social Responsibility
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?Contact Us > Feedback
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.
a. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?Sections 9.9 & 9.10 of the LRTA Revised Manual of Corporate Governance (page 31)
b. Does the GOCC publish data relating to health, safety and welfare of its employeeLRTA Accomplishment Report 2019 (pages 32-35)
c. Does the GOCC have training and development programmes for its employees?On Employees
In recognition of its role, LRTA has continuing employee development discussions and structured training programs based on the operational requirements of the Authority for the personal and professional development of the employee.

LRTA adopts the Civil Service Commission (CSC) approved Strategic Performance Management System (SPMS) which aligns individual performance towards the attainment of LRTA’s strategic priorities including the performance-based incentive plan.
d. Does the GOCC publish data on training and development programs for its employees?LRTA Accomplishment Report 2019 Annex C (pages 57-102)
6. Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.
a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?Protected Disclosure and Reporting (Whistleblowing)
In response to the need for additional mechanisms to prevent graft and corruption, LRTA established these policies and guidelines on protected disclosure, imposing upon employees, officials and service providers of the Authority their duty to disclose and report any wrongdoing of other officials and employees.
These policies and guidelines encourage confidence in reporting any wrongdoing and provide safeguards on the rights of the whistleblower and define the conditions for protecting the whistleblower so as to deter frivolous and false disclosure.
For this purpose, a whistleblower may file a complaint or report acts or omissions that are contrary to laws, rules and regulations and those acts which are unreasonable, unjust, unfair, oppressive or discriminatory, undue or improper exercise of powers and prerogatives.

Publication (“Policy on Protected Disclosure and Reporting”)
b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?Confidentiality
Any complaint or report against an officer or employee will be treated with utmost care and confidentiality. The LRTA is responsible for the protection of the whistleblower’s identity and wheareabouts from any third party, except, as required by law and necessary or indispensable during the conduct of legal proceedings. The same level of confidentiality shall be observed by the whistleblower.

Publication (“Policy on Protected Disclosure and Reporting”)

II. DISCLOSURE AND TRANSPARENCY

QuestionWebsite Section/Link/LRTA’s Response
7. Quality of Annual Report
Does the GOCC’s annual report disclose the following items:
a. Corporate ObjectivesCorporate Objectives

1. To improve customer satisfaction through the provision of safe, secure, responsive and reliable light rail transportation and related services
2. To provide integrated railway systems at par with international standards
3. To provide a professionally-managed, results-oriented and globally recognized organization in rail management and operation.
b. Financial Performance Indicators
c. Non-financial Performance IndicatorsAs part of LRTA’s continuous improvement, in fact, conducted an annual Customer’s Satisfaction Survey through a 3rd-party to measure customer’s overall satisfaction in each area of service of LRT 2’s operation, identify the system’s strengths and weaknesses and secure actionable customer feedback that can be used to improve the quality of services provided that would enable LRTA to improve customer experience. For the year 2019, LRTA achieved a “very satisfactory” rating.

LRTA Accomplishment Report 2019 (page 13)
d. Details of whistle-blowing policyProtected Disclosure and Reporting (Whistleblowing)

I. Confidentiality

Any complaint or report against an officer or employee will be treated with utmost care and confidentiality. The LRTA is responsible for the protection of the whistleblower’s identity and whereabouts from any third party, except, as required by law and necessary or indispensable during the conduct legal proceedings. The same level of confidentiality shall be observed by the whistleblower.

II. Retaliation and Harassment

The LRTA commit to protect the whistleblower from any criminal, civil or administrative liability arising from the protected disclosure.
On the same note, no retaliatory action shall be taken against a whistleblower such as, but not limited to, discriminatory action, including those made under the guise of policy and procedural determinations designed to avoid claims of victimization, reprimand, punitive transfer and the denial of work necessary for promotion, etc.

Publication (“Policy on Protected Disclosure and Reporting”)
e. Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissionersLRTA Board of Directors CY 2019

The two (2) Appointive Directorts of the LRTA Board, Administrator and Private Sector, respectively, do not have other appointments as Directors in other Boards.
The other seven (7) directors are in Ex-Officio character by virtue of their appointments as Cabinet Secretaries, and that as such Cabinet Secretaries they are Ex-Officio members of Board of Directors of as many as government corporations, bodies, instrumentalities and entities created by law and which their position as Cabinet Secretaries are made Ex-Officio members of said corporations, bodies, instrumentalities and entities.Accordingly, it would be pointless to enumerate one by on all said government corporations, bodies, instrumentalities and entities, in which the Ex-Officio Directors sit because that fact is an operation of law and whichis beyond the control of anyone.
f. Training and/or continuing education programme attended by each director/commissionerLRTA Board of Directors Trainings 2019
8. Are the Annual Reports downloadable from the GOCC’s website?LRTA Annual Reports can be accessed through this link:
www.lrta.gov.ph/transparency
9. Corporate Governance Confirmation Statement
Does the Annual Report contain a statement confirming the company’s full compliance with the code of corporate governance where there is non-compliance, identify and explain reasons for each such issue?The LRTA is fully compliant with the provisions of the Code of Corporate Governance.

Article 2 of the Revised Manual of Corporate Governance (pages 11-12)
10. Timely filing/release of annual/financial reports
a. Are the Audited Annual Financial Report/Statement released within 60 days upon receipt from COA?
b. Is the Annual Report released within 90 days from release of Audited Financial Report?
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?

III. RESPONSIBILITIES OF THE BOARD

QuestionWebsite Section/Link/LRTA’s Response
11. Corporate Vision/Mission
a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year?Yes
Board Resolution 064-2019 (Vision-Mission)
b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?Section 3.8, Item 3 of the LRTA Revised Manual of Corporate Governance (page 15)
12. Did the GOCC achieve 90% in the PES?LRTA Accomplishment Report 2019 (pages 16-19) indicates that the agency achieved a PES rating of 77.41%

LRTA Accomplishment Report 2019
13. Code of ethics or conduct
a. Are the details of the code of ethics or conduct disclosed?Publication (“Code of Conduct for Officials and Employees of the LRTA”)
b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?Rules I, II, and III of Code of Conduct for Officials and Employees of the LRTA (pages 1-2)

Publication (“Code of Conduct for Officials and Employees of the LRTA”)
c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?Rule IX of the Code of Conduct for Officials and Employees of the LRTA (page 5)

Publication (“Code of Conduct for Officials and Employees of the LRTA”)
14. Does the Board appoint a Nomination and Compensation/Remuneration Committee?Yes.
The Nomination and Remunerations Committee is responsible for installing and maintaining a process to ensure that Officers nominatedor appointed meet and possess the qualification and none of the disqualifications mandated by law, rules and regulations.

The Committee is also responsible for commmending to the GCG nominees for the shortlist in line with the LRTA’s Board composition and succession plan and qualified under the Fit and Proper Rule adopted by the GCG, including thereto as reference the qualifications provided under the Authority’s Charter.

The Committee is composed of four (4) members headed by the Private Sector Representative and members from the DBM, LRTA, and MMDA.

Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings

LRTA Committee of the Board of Directors CY 2019
15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year?Yes.

The Nomination and Remunerations Committee held meetings on 18 February 2019 and 09 August 2019 respectively.

LRTA Committee of the Board of Directors CY 2019
16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed?LRTA Board Committee Report CY 2019
17. Does the Board appoint an Audit Committee?Yes.

The Audit Committee oversees, monitor and evaluate the sufficiency and effectiveness of the Authority’s internal control system, engage and provide oversight of the LRTA’s internal and external auditors. The Committee also reviews and approves the Authority’s internal audit plan and financial statements before submission to the Board. Lastly, it is the responsibility of the Audit Committee to develop a transparent financial management system that will ensure the integrity of internal control activities of LRTA through procedures and policies handbook that will be used by the entire Authority.

The Committee is composed of three (3) members headed by the DOF representative to the LRTA Board and members from the NEDA and the Private Sector.

Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings.

LRTA Committee of the Board of Directors CY 2019
18. If yes, is the report of the Audit Committee publicly disclosed?LRTA Board Committee Report CY 2019
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?By virtue of the fact that seven (7) out of nine (9) Directors of the LRTA Board are Ex-Officio members, and that membership in the Board was same by law along the line of the specific mandates of the cabinet departments concerned, the Board deemed that membership in the LRTA Board Committees be based on said specific mandate of the cabinet departments concerned.
20. Did the Audit Committee meet at least four times during the year?Yes.

The Audit Committee held meetings on 30 January 2019, 20 May 2019, 12 September 2019, and 13 November 2019 respectively.

LRTA Committee of the Board of Directors CY 2019
21. Does the Board appoint a Risk Management committee?Yes.

The Committee performs oversight risk management functions specifically in the areas of managing credit, market, liquidity, operational, legal, reputation and other risks of the LRTA. It is also the responsibility of the Committee to develop the Risk Management Policy of the Authority and ensure that risk management process and compliance are embedded in LRTA operations more especially at the Board and Management levels. Lastly, the Committee provides quarterly report and update to the Board on the key risk management issues and evaluation on investment proposals.

The Committee is composed of four (4) members headed by the Private Sector Representative and members from the DBM, LRTA and MMDA.Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings.

LRTA Committee of the Board of Directors CY 2019
22. If yes, is the report on Risk Management Committee publicly disclosed?LRTA Board Committee Report CY 2019
23. Does at least one member of the Risk Management Committee have a background in finance and investments?By virtue of the fact that seven (7) out of nine (9) Directors of the LRTA Board are Ex-Officio members, and that membership in the Board was same by law along the line of the specific mandates of the cabinet departments concerned, the Board deemed that membership in the LRTA Board Committees be based on said specific mandate of the cabinet departments concerned.
24. Board meetings and attendance
a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)LRTA Board Meetings are scheduled every third (3rd) Friday of every month, subject however to availability of members necessary to achieve quorum.

LRTA Board Meeting Schedule CY 2019
b. Does the Board of Directors meet at least monthly?The 16 August 2019, 15 November 2019, and 29 November 2019 LRTA Board meeting failed to achieve the required number of Board Members present for purpose of quorum, the said members present as a matter of practice constituted themselves into an Executive Committee to discuss and pass upon the items of the Agenda and make recommendations for approval of the Board during its next Meeting in which quorum is achieved.

LRTA Board Meeting Schedule CY 2019
c. Did the Board of Directors meet on at least 75% on their scheduled meetings?Yes.

LRTA Board of Directors met on twelve (12) out of thirteen (13) scheduled Board meeting dates. (92.31%)

LRTA Board Meeting Schedule CY 2019
d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?LRTA Board Meeting Schedule CY 2019
e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?Yes.
LRTA Administrator Gen. Reynaldo I. Berroya did not join the LRTA Board of Directors Meeting on 22 March 2019 in compliance to GCG MC. No. 2014-03 – 26 October 2015. (GCG standard requirement that the Board meet at least once a year without the President/CEO)

LRTA Board Meeting Schedule CY 2019
25. Access to Information
a. Does the GOCC have a policy that stipulated 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?All documents included in the agenda of the LRTA Board Meeting are provided to the Board of Directors three (3) days before the scheduled meeting.
b. Is the Board Secretary trained in legal, accountancy or company secretarial practices?Yes.

Atty. Hernando T. Cabrera
LRTA Corporate Board Secretary / Compliance Officer

HTC Trainings as of 2019
26. Internal Audit
a. Does the company have a separate internal audit function?Internal Audit

To add value and to further improve the day-to-day operation of LRTA, the Internal Audit Department provides an independent and objective assurance and advisory services to LRTA. It likewise provides assurance to the Board, Management and other stakeholders that LRTA has appropriate and effective organizational and procedural controls.

The conduct of internal audit activities is in accordance with the Standards for the Professional Practice of Internal Auditing
b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?The Audit Committee is properly guided by existing government accounting and auditing rules, regulations and procedures.

The Internal Auditor is likewise subject to Civil Service rules and regulations. The appointment/removal of the Internal Auditor is governed by Civil Service rules and regulations.
27. Risk Oversight
a. Does the company disclose the internal control procedures/risks management systems it has in place?LRTA Risk Management Guidelines
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?Yes.

Statement on LRTA’s Risk Management Systems
c. Does the company disclose how key risks are managed?LRTA Risk Management Guidelines
LRTA Management of Key Risks
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.

Statement on LRTA’s Internal Control Systems
28. Board Chairman
Do different persons assume the roles of Chairman and CEO?Yes.

LRTA Board of Directors Chairman: Sec. Arthur P. Tugade (DOTr)

LRTA Administrator: Gen. Reynaldo I. Berroya

LRTA Board of Directors CY 2019
29. Board of Directors Development
a. Does the GOCC have the orientation programmes for new Directors?All newly appointed Directors undergo orientation program about the overall aspects of LRTA and on matters relative to their duties and functions as Board Member. They are also required on annual basis to attend seminars, trainings and programs relative to Corporate Governance.
b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?Yes.

Board Resolution 065-2019 (Continuing Education)
c. Did all Appointive Directors attend at least 1 training for the calendar year?Yes.

LRTA Appointive Directors Trainings 2019
31. Committee Appraisal
Is an annual performance assessment conducted of the Board of Directors Committees?