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RISK MANAGEMENT AND INTERNAL CONTROL
 
TRANSPARENCY SEAL
  RISK MANAGEMENT SYSTEM
 
     The incumbent Board of Directors does not have a Risk Management Committee.  However, the Audit Committee's function already includes the assessment and management of enterprise risks.  As provided for in Section 16.3 of Code of Corporate Governance for the GOCC sector, it does not preclude the Governing Board of the GOCC from combining the functions of the committees into such combinations that will best serve the interest of the GOCC.
 
 
 
   
  Risk Policy
 
     The main risk arising from the Company's financial instruments is liquidity risk.  The Board of Directors and Management review and approve the polices for managing this risk.
GOVERNANCE SEAL
 
   
Risk Exposure
Risk Management Policy and Objectives
 
   
Liquidity Risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and short-term deposits.  The Company also monitors its risk to shortage of funds through monthly evaluation of the projected and actual cash flow information.  
       
       
       
   
  Control System Set Up
PRESIDENT'S CORNER
   
Risk Exposure
Risk Assessment
Risk Management & Control
 
 

   
Liquidity Risk
Monitors risk to shortage of funds through monthly evaluation of the projected and actual cash flow information
Coordinates with appropriate Board Committee should any matter relating to this be referred to them by Management for policy formulation and implementation by Management.
 
            
       
       
         
           
        The Audit and Finance Committees is in charge of laying down and supervising the control mechanism:
       
Committee/Unit
Control Mechanism
Details of its Function
 
   
Audit and Finance
Assist the Board in the development and oversight of the company's risk management program
  
Generally oversees the risk management process to be an integral part of planning ang operations of the Company to meet corporate goals and objectives
 
       
       
         
         
 
CONTACT US
     
Assists the Board in fulfilling its oversight responsibilities for financial reporting process, system of internal control, audit process
Responsible for recommending the report of external auditors to the Board; monitor the system of internal controls
 
 
       
     
     
         
         
INTERNAL AUDIT AND CONTROL
Internal Control System
 
     While policies are set by the Board, Management is primarily responsible for the implementation and maintenance of the internal control system of the company. The Board through its Audit Committee oversees the actions of Management and monitors the effectiveness of the Internal Control System put in place.  Recommendations are provided by Management and/or the Board, and in some cases by the External Auditor - Commission on Audit (COA) to address certain issues and concerns of the company.

    The Board established an internal control audit system that can reasonably assure the Board, Management and stockholders that the company's key organizational and operational controls are faithfully complied with, effective and adequate.
 
 
 
 
 
 
  Internal Audit
 
Role
Provides reliable and timely analysis, appraisals, recommendations and pertinent comments on the conformance / compliance of financial and business operations to established laws, norms, controls, rules and regulations to determine their integrity, effectivity and efficiency.
 
Scope
 
Compliance with established prevailing government policies, plans, procedures, rules and regulation
 Corporate assets and other resources
  Reliability and integrity of the financial anf operating information
 
Reporting Process
Submits report to the Audit Committee for their review and recommends resolution
   
 
     The appointment and/or removal of the Internal Auditor require the approval of the Audit Committee.
 
     The Board has established and identified the reporting line of the Internal Auditor to enable him to properly fulfill his duties and responsibilities. He shall functionally report directly to the Audit Committee. The Audit Committee shall ensure that, in the performance of the work of the Internal Auditor, he shall be free from interference by outside parties.
 

   

  Audit Control Policies and Procedures
   
Policies and Procedures
Implementation
 
   
Manages activities to ascertain the extent of compliance with established prevailing government policies, plans, procedures, rules and regulations
 
Whenever applicable, the company adopts audit recommendations on issues and findings by the Commission on Audit, since no Internal Auditor has been appointed to date.
 
   
Ascertains the extent to which assets and other resources of the company are properly accounted for and safegarded from loss or abuse
 
   
Reviews the degree of reliability and integrity of the financial and operating information developed within the company
 
   
Appraising the economy and efficiency with which company resources are employed and develops / recommend effective controls at reasonable costs
 
   
Reviewing the operations and programs to ascertain whether results consistent with established management objectives and whether the operations or programs are being carried out as planned
 
   
  Mechanisms and Safeguards
 
As a GOCC, the financial statements of the Company is statutorily mandated to be audited by Commission on Audit. The Company does not engage the service of Financial Analysts and Investment Banks. No restrictions on trading of the Company's shares in the Philippine Stock Exchange has been implemented because trading of shares has been suspended since May 2008.
 
Chairman Elpdio C. Jamora, Jr. and President Luis F. Sison are the officers who will have to attest to the Company's full compliance with the SEC Code of Corporate Governance.
   
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