PESO Rating: Performance Standard for Microfinance NGOs (MF-NGOs) in the Philippines

All data refer to microfinance, unless otherwise specified.

Encode data in turquoise cells only.

Name of MFI:
Region of operations: (Luzon, Visayas, or Mindanao) Luzon
Name of Microfinance Loan Product(s):
Month and Year of Rating:
Period Rated (Month/Day/Year to Month/Day/Year):
Beginning/Baseline of Period Rated (Month/Day/Year): _______________ -- All "Beginning" data refer to this baseline date.
Ending of Period Rated (Month/Day/Year): _______________________-- All "Ending" data refer to this baseline date.

I. Portfolio Quality (40%)

a. Portfolio At Risk Ratio

Principal balance of loans with at least one day missed payment, end of period
Principal balance of restructured loans, end of period
Principal balance of refinanced loans, end of period
Gross loans outstanding, end of period
Portfolio At Risk Ratio #DIV/0!

b. Loan Loss Reserve Ratio Principal Balance, Pesos Required Reserve, Pesos Actual Reserve, Pesos
Current = principal balance of current loans 0.00
PAR 1-30 = principal balance of loans with 1-30 days missed payment 0.00
PAR 31-60 and/or loans restructured once= principal balance of loans with 31-60 days
0.00
missed payment + principal balance of loans restructured once
PAR 61-90 = principal balance of loans with 61-90 days missed payment 0.00
PAR 91 and above and/or loans restructured twice= principal balance of loans with 91 or
0.00
more days missed payment + principal balance of loans restructured twice
Total loan loss reserve 0.00
Loan Loss Reserve Ratio #DIV/0!

II. Efficiency (20%)

a. Operating Expense Ratio

Operating costs for the period

Gross loans outstanding, beginning of period
Gross loans outstanding, end of period
Average Gross Loan Portfolio #DIV/0!
Oprating Expense Ratio #DIV/0!

b-i. Loan officer productivity- Individual loans

Active borrowers, Individual loans, end of period
Number of Account Officers, Individual loans, end of period
Loan officer productivity - Individual loans #DIV/0!

b-ii. Loan officer productivity- Group loans

Active borrowers, Group loans, end of period
Number of Account Officers, Group loans, end of period
Loan officer productivity - Group loans #DIV/0!

III. Sustainability (25%)

a. Operational Self-sufficiency

Interest income from loans for the period

Service fees on loans for the period
Filing fees on loans for the period
Fines, penalties, surcharges on loans for the period
Financing cost for the period
Loan loss provision expense for the period
Operating cost for the period
Administrative Expense for the period
Operational self-sufficiency #DIV/0!

b. Financial Self-sufficiency
Operating revenue for the period (interest income, service fees, filing fees and fines,
penalties and surcharges on loans for the period)
Financial expense for the period
Loan loss provision expense for the period
Total operating expense for the period
Fund balance, beginning of period
Fund balance, end of period
Average equity #DIV/0!
Fixed assets, beginning of period
Fixed assets, end of period
 Average fixed assets #DIV/0!
Inflation rate for the period 2.50%
Market interest rate, for the period 7.087%
Total liabilities, beginning of period
Total liabilities, end of period
Average total liabilities #DIV/0!
Actual interest expense, for the period
Other implicit costs
Financial Self-sufficiency #DIV/0!

c. Loan Portfolio Profitability

Inflation rate for the period being rated 2.50%
Net operating income for the period
Net loan portfolio, beginning of period (net of loan loss provision)
Net loan portfolio, end of period (net of loan loss provision)
Average net loan portfolio #DIV/0!
Loan Portfolio Profitability #DIV/0!

d. Return on Assets
Net operating Income for the period
Taxes paid
Assets, beginning of period
Assets, end of period
Average assets #DIV/0!
Return on Assets #DIV/0!

e. Return on Equity
Net Operating Income for the period
Taxes paid
Fund Balance, beginning of period
Fund Balance, end of period
Average Fund Balance #DIV/0!
Return on Equity #DIV/0!

IV. Outreach (15%)

a. Growth in number of active borrowers
Active borrowers, beginning of period
Active borrowers, end of period #DIV/0!
Growth in number of active borrowers

b. Growth in loan portfolio

Loan portfolio, beginning of period
Loan portfolio, end of period #DIV/0!
Growth in loan portfolio

c. Depth of outreach
Gross loan portfolio
Total number of active borrowers
Average loan balance #DIV/0!
GNI per capita for the period 206,104
Depth of outreach #DIV/0!

NOTE: External Data (i.e. inflation rate, GNI per Capita and Market interest rate) shall be
sourced from the website provided below. Latest available data shall be used in the computation of the
indicators. MFI-NGOs should indicate the source of data used and the year covered by the data.
1) Inflation rate - www.bsp.gov.ph
2) GNI per capita - www.psa.gov.ph
3) Market interest rate - bank average domestic lending rate for the year (www.bsp.gov.ph/statistics)

Certified by:

Chairman

President

Treasurer
PESO Rating: Performance Standards for all Types of Microfinance Institutions (MFIs) in the Philippines
CRITERIA: VLOOKUP TABLES

Component/Indicators/Weights Score

I. Portfolio Quality (40%)

a. Portfolio At Risk (20%)
0.00% 20
5.01% 15
10.01% 10
15.01% 5
20.01% 0

b. Loan loss reserve ratio (20%)

0.00% 0
30.00% 5
50.00% 10
70.00% 15
100.00% 20

II. Efficiency (30%)

a. Operating Expense Ratio (10%)
0.00% 10
30.01% 6
40.01% 4
50.01% 0

b.1. Loan officer productivity - group loans (5%)

0 0
99.51 1
149.51 3
199.51 5

b.2. Loan officer productivity - individual loans (5%)

0 0
29.51 1
49.51 3
99.51 5

III. Sustainability (15%)

a. Operational Self-sufficiency (10%)
0.00% 0
100.00% 3
105.00% 4
110.00% 5

b. Financial Self-sufficiency (10%)

0.00% 0
80.00% 1
85.00% 2
90.00% 3
95.00% 4
100.00% 5

c. Return on Assets
-100.00% 0
0.00% 3
4.99% 5

d. Return on Equity
-100.00% 0
0.00% 2
0.99% 3
4.99% 4
9.99% 5

IV. Outreach (15%)

a. Growth in no. of active MF Clients

-100.00% 0
0.00% 3
5.00% 5

b. Growth in loan portfolio

-100.00% 0
0.00% 3
5.00% 5

c. Depth of outreach (5%)

0.00% 5
20.00% 4
100.00% 3
150.00% 2
200.00% 1
300.00% 0
PESO Rating: Performance Standard for all Types of Microfinance Institutions (MFIs) in the Philippines

Name of MFI:
Region of operations: (Luzon, Visayas, or Mindanao) Luzon
Name of Microfinance Loan Product(s):
Month and Year of Rating:
Period Rated (Month/Day/Year to Month/Day/Year):
Beginning/Baseline of Period Rated (Month/Day/Year): _______________ -- All "Beginning" data refer to this baseline date.
Ending of Period Rated (Month/Day/Year): _______________________-- All "Ending" data refer to this baseline date.

Highest Possible #
Indicators/Weights Standard MFI's Performance Points for the MFI
of Points
I. Portfolio Quality (40%)
a. Portfolio At Risk (20%) 5% or less #DIV/0! 20 #DIV/0!
b. Loan loss reserve ratio (20%) 100% #DIV/0! 20 #DIV/0!

II. Efficiency (20%)

a. Operating Expense Ratio(10%) 30% or less #DIV/0! 10 #DIV/0!
b1. Loan officer productivity - group loans (5%)a/ 200 or more #DIV/0! 5 #DIV/0!
b2. Loan officer productivity - individual loans (5%)a/ 100 or more #DIV/0! 5 #DIV/0!

III. Sustainability (25%)

a. Operational Self-sufficiency (5%) 110% or more #DIV/0! 5 #DIV/0!
b. Financial Self-sufficiency (5%) 100% or more #DIV/0! 5 #DIV/0!
c. Loan Portfolio Profitability (5%) Greater than inflation rate #DIV/0! 5 #DIV/0!
d. Return on Assets (5%) 5% or more #DIV/0! 5 #DIV/0!
e. Return on Equity (5%) 10% or more #DIV/0! 5 #DIV/0!

IV. Outreach (15%)

a. Growth in number of active borrowers (5%) 5% or more #DIV/0! 5 #DIV/0!
b. Growth in loan portfolio (5%) 5% or more #DIV/0! 5 #DIV/0!
c. Depth of outreach (5%) Less than 20% #DIV/0! 5 #DIV/0!

TOTAL SCORE: #DIV/0!

If the MFI uses only one lending methodology, add 5 points to either b1 or b2 under Points for the MFI.
a/

Certified by:

Chairman

President

Treasurer
Social Performance Standards
Name of MICROFINANCE NGO:

YES (1)/NO (0)

DEFINE AND MONITOR SOCIAL GOALS
1.     The MF-NGO has a vision/mission statement that clearly states the low-income
people as target clientele.

2.     The MF-NGO circulates the vision/mission to both management and staff.

3.     The MF-NGO has a strategy that clearly defines the specific characteristics of
the target clientele.

4.     The MF-NGO has identified specific indicators that measures its progress
towards attaining its social goals, including gender and environment.

SUB-TOTAL 0
ENSURE BOARD, MANAGEMENT AND EMPLOYEE COMMITMENT TO THE SOCIAL
GOALS
5.     The members of the board, are given orientation on the social goals of the MF-
NGO
6.     The management is given orientation on the social goals of the MF-NGO
7.     The employees are given continuing orientation on the social goals of the MF-
NGO

8.     The MF-NGO adopts a Code of Ethics for employees that guide them to
actively participate in the realization of the organization's Vision, Mission and
Social, Financial and Governance Goals. Code of Ethics should include among
others upholding its stand against corruption, unethical behavior, poverty and
inequality.

9.     The board uses social performance data to provide strategic direction
considering both social and financial goals.
SUB-TOTAL 0
DESIGN PRODUCTS, SERVICES AND DELIVERY CHANNELS THAT MEET THE
CLIENT’S NEEDS AND PREFERENCES
10.   The MF-NGO conducts market research before introducing or modifying
products and services.
11.   The MF-NGO conducts client satisfaction surveys and exit surveys.
12.   The MF-NGO uses the result of the client satisfaction and exit surveys in
designing/improving its products and services.
SUB-TOTAL 0
ABIDE BY CLIENT PROTECTION PRINCIPLES
Prevention of over indebtedness

13.   To prevent over indebtedness among clients, MF-NGO adopts a loan policy
that defines the maximum percentage of a borrower’s disposable income that can
be applied to debt service, including debt from the MF-NGO and other lenders.
This amount is used to determine the maximum loan amount and terms.

14.   The MF-NGO submits and access credit data of all borrowers to and from the
CIC and/or MIDAS
15.   The MF-NGO conducts repayment capacity analysis of each clientele prior to
loan approval
Transparency
16.   Policy and documented processes on the transparency in product terms,
conditions and pricing are in place.
17.   The MF-NGO discloses to clients all relevant costs related to the financial
products and services it offers.
18.   The MF-NGO gives clients adequate time to review the terms and conditions
of financial products, ask questions and receive additional information prior to
signing of contracts.

19.   The MF-NGO complies with the Truth in Lending Act by clearly stating the
amount and method of interest rate computation in the disclosure statement. The
Truth in Lending Act is prominently displayed and posted in the premises of the
MF-NGO.
Fair and respectful treatment of clients
20.   The MF-NGO has a code of conduct that promotes the fair and respectful
treatment of clients.
21.   A policy that clearly defines appropriate and inappropriate collection practices
by both staff and collection agents is in place and enforced.
22.   The MF-NGO trains its staff and third party collection agents on debt
collection practices and loan recovery procedures.
Mechanism for Complaint Resolution
23.   The MF-NGO has an effective mechanism in place to receive and resolve
complaints from clients.
24.   The MF-NGO informs its clients about their rights to complain and how to
submit a complain.
Privacy of Client Data
25.   Client data (personal, transactional and financial) is kept secure and
confidential through an established policy and documented processes.
26.   Clients are informed about data privacy and the need for consent prior to the
use of client-related data and information.
SUB-TOTAL 0
TREAT EMPLOYEES RESPONSIBLY
27.   A written human resource policy compliant with the Labor Code, Gender-
related and Persons with disability laws is in place and is made available to all
employees.
28.   The MF-NGO complies with the minimum wage law.

29.   The MF-NGO communicates to its employees the terms of their employment.

30.   The MF-NGO provides continuous training to its staff and employees.
SUB-TOTAL 0

TOTAL POINTS 0

Certified by:

Chairman

President

Treasurer
NAME OF MICROFINANCE NGO:

GOVERNANCE GOOD PRACTICES REQUIRED FOR SOURCE OF INFORMATION YES/NO REMARKS

THE BOARD'S GOVERNANCE RESPONSIBILITIES

ESTABLISHING A COMPETENT BOARD
Principle 1: The Microfinance NGO should be headed by a competent, working board to foster the long-term success of the organization, and to sustain its consistent growth and
operation in a manner aligned with its Vision, Mission and Social, Financial and Governance Goals and the long-term best interests of its members, clients, and other
stakeholders.

1.1(a) Is the organization’s board composed of

trustees with a collective working knowledge, Notice to Members’ meeting
experience or expertise that is relevant to the Mandatory for All (Should include the nominees for
Microfinance NGO and its Vision, Mission and trustees and their qualifications)
Social, Financial and Governance Goals (VMSFGG)?

1.1(b) Does the Board ensure that it has an

appropriate mix of competence, expertise and
concern for the poor and the marginalized to Notice to Members’ meeting
enable it to fulfill its roles, responsibilities and Mandatory for All (Should include the nominees for
social advocacies and respond to the needs of the trustees and their qualifications)
organization based on its stated purpose or
mission?

1.2(a) Is the Board composed of a majority of non-

executive trustees who possess the necessary
qualifications to effectively participate and help
secure objective, independent judgment on the Mandatory for All General Information Sheet
Microfinance NGO’s Vision, Mission and Social,
Financial and Governance Goals (VMSFGG)?

1.2(b) Is twenty percent (20%) of the Board At least 1 member-client for

composed of member-clients of the Microfinance SMALL General Information Sheet
NGO who possess the necessary qualifications and mandatory for LARGE
none of the disqualifications?
1.3 Do the Microfinance NGO’s Board Charter and
Manual on Good Governance have a policy:
1.3(a) On training of trustees, particularly on its Board Charter and Manual on
social, financial and governance goals? Mandatory for All Good Governance

1.3(b) On having an orientation program for first-

time trustees and relevant annual continuing Mandatory for All Board Charter and Manual on
Good Governance
training for all trustees and key officers?

1.4 Does the organization have a policy on board Board Charter and Manual on
diversity, including social consciousness and Mandatory for All
gender diversity? Good Governance

1.5 Is the organization’s Board assisted in its

duties by a Corporate Secretary, who annually
attends relevant trainings, including those on good Mandatory for All General Information Sheet
governance?

1.6 Is the organization’s Board assisted in its

duties by a Compliance Officer, who annually
attends relevant trainings, including those on good Mandatory for All General Information Sheet
governance?
SUB-TOTAL 0
ESTABLISHING CLEAR ROLES AND RESPONSIBILITIES OF THE BOARD
Principle 2: The fiduciary roles, responsibilities and accountabilities of the Board as provided under the law, the Microfinance NGO’s articles and by-laws, and other legal
pronouncements and guidelines, particularly those in relation to its social goals, objectives and activities, should be clearly made known to all trustees and key officers as well
as to members and other stakeholders.
2.1 Does the organization's Board act on a fully
informed basis, in good faith, with due diligence
and care and in the best interest of the MF-NGO Mandatory for All Presumption of Regularity
and all its members and other stakeholders?

2.2(a) Does the organization’s Board oversee the

development of and approve the Microfinance
NGO’s Vision, Mission, Social and Financial and Mandatory for All Reports
Governance Goals (VMSFGG), focusing on the low
income and marginalized sectors as target
clientele?

2.2(b) Does the organization’s Board regularly

review the VMSFGG and monitor the
Mandatory for All Reports
implementation of the Goals, in order to sustain
the organization’s long-term viability?

2.3 Does the Board ensure compliance with all

applicable laws and their mechanisms, such as on
the Magna Carta for Women and all environmental Mandatory for All Reports
laws?
2.4 Is the Board headed by a competent and Curriculum Vitae of the
Mandatory for All
qualified Chairperson? Chairperson
2.5(a) Has the Board been responsible for
ensuring and adopting an effective succession
planning program for trustees and management to
Mandatory for All Succession Planning Program
ensure the Microfinance NGO’s sustainability and
continued assistance to its chosen
sector/community?

2.5(b) Has the Board set up rules/guidelines in Mandatory for All By-Laws
case of cessation of any trustee from the board?
2.6(a) Does the Board align the remuneration of
management with the nature, objectives and long Mandatory for All Payroll/Remuneration Policy
term interests of the Microfinance NGO?
2.6(b) Does the Board not give its Trustees any Mandatory for All Payroll/Remuneration Policy
remuneration other than reasonable per diem?

2.7(a) Does the Board disclose in its Manual on

Corporate Governance a formal and transparent
board nomination and election policy, which Mandatory for All Nomination and Election Policy
includes how it accepts and reviews nominated
candidates?
election policy include an assessment of the
effectiveness of the processes and procedures -

Result of Assessment – Based on

(i) In the nomination or election of a trustee? Mandatory for All the Nomination and Election
Policy
Result of Assessment – Based on
(ii) In the replacement of a trustee? Mandatory for All the Nomination and Election
Policy

2.7(c) Is the organization's process of identifying

the quality of trustees aligned with its Vision, Internal Policies and Board
Mandatory for All
Mission and Social, Financial and Governance Minutes and Resolutions
Goals (VMSFGG) and strategic direction?

2.8 Is the Board primarily responsible for

approving

(i) the selection of Key Management Officers? Mandatory for All Internal Policies and Board
Minutes and Resolutions
Internal Policies and Board
(ii) the assessment of Key Management Officers? Mandatory for All Minutes and Resolutions

2.9 Does the Board oversee that an appropriate

internal control system is in place, including
setting up a policy and mechanism for monitoring
and managing potential conflicts of interest in
situations and transactions-

(i) of Management? Mandatory for All Internal Policies

(ii) of the Board of Trustees? Mandatory for All Internal Policies
(iii) of members Mandatory for All Internal Policies

2.10(a) Does the Board oversee that a sound risk Risk Management
management framework is in place to effectively Mandatory for LARGE
identify, monitor, assess and manage key risks? Framework/Policy

2.10(b) Does the risk management framework

Risk Management
guide the Board in identifying the effectiveness of Mandatory for LARGE
risk management strategies? Framework/Policy

2.11(a) Does the Board have a Board Charter that

formalizes and clearly states its roles,
By-Laws
responsibilities and accountabilities in carrying Mandatory for All
out its fiduciary duties, particularly in relation to Board Charter
social, financial and governance goals?

2.11(b) Does the Board Charter serve as a guide to

Mandatory for All Minutes of the Meeting
the trustees in the Performance of their functions?

2.11(c) Is the Board Charter publicly available and

posted on the Microfinance NGO’s website, social Mandatory for All Website/Social Media Account
media account of the MF-NGO or the website of the
alliance/association to which it belongs?

SUB-TOTAL 0
ESTABLISHING BOARD COMMITTEES
Principle 3: Board committees should be set up to the extent possible to support the effective performance of the Board’s functions, particularly with respect to audit, finance
and risk and other key governance concerns, such as nomination and remuneration. The composition, functions and responsibilities of all committees established should be
contained in a publicly available Committee Charter.

3.1 Does the Board establish board committees

that focus on specific board functions to aid in the
optimal performance of its roles and Board Charter and Manual on
responsibilities? For a Microfinance NGO with Mandatory for All
relatively small and lean operations, does the Good Governance
board identify specific members of the Board who
shall be responsible for specific board functions?
3.2(a) Does the organization’s Board have an
Audit Committee to enhance its oversight
capability over the organization’s financial Committee Charter and Manual
Mandatory for All
reporting, internal control system, internal and on Good Governance
external audit processes, and compliance with
applicable laws and regulations?

3.2(b) Is the Audit Committee composed of at

least three (3) appropriately qualified non- Mandatory for All Committee Charter
executive trustees?
3.2(c) Does the Audit Committee have at least one
member who -

(i) Has relevant background in social welfare? Mandatory for All Committee Charter
(ii) Has relevant background, knowledge, skills
and/or experience in the areas of accounting, Mandatory for All Committee Charter
auditing and finance?

3.3(a) Does the organization’s Board have a

Governance Committee to assist the Board in the Board Charter and Manual on
performance of its good governance Mandatory for LARGE
responsibilities, including the functions of a Good Governance
Nomination and Remuneration Committee?

3.3(b) Is the Governance Committee composed of Mandatory for LARGE Committee Charter
at least three (3) members of the Board?
3.3(c) Does the organization’s Compliance Officer
provide technical support to the Governance Mandatory for LARGE Committee Charter
Committee?

3.4(a) Does the organization’s Board have a

Finance and Risk Committee that is tasked with Board Charter and Manual on
the continuing review of the financial affairs and Mandatory for LARGE
determination and management of potential risks Good Governance
of the Microfinance NGO?

3.4(b) Is the Finance and Risk Committee

composed of at least three (3) members of the Mandatory for LARGE Committee Charter
Board?
3.4(c) Does the Finance and Risk Committee have
at least one member who-
(i) Has relevant knowledge and experience in
Mandatory for LARGE Committee Charter
finance?
(ii) Has relevant knowledge and experience in
Mandatory for LARGE Committee Charter
risk management?
3.4(d) Does the organization’s Risk Officer provide
technical support to the Risk and Finance Mandatory for LARGE Committee Charter
Committee?

3.5(a) Are all established Committees required to

have Committee Charters stating in plain terms its
purposes, memberships, structures, operations, Mandatory for All Committee Charter
reporting processes, resources and other relevant
information?

3.5(b) Do the Charters provide the standards for Mandatory for All Committee Charter
evaluating the performance of the committees?

3.5(c) Are the Charters fully disclosed on the

website, social media of the Microfinance NGO or Mandatory for All Website/Social Media Account
the alliance/association to which it belongs?
SUB-TOTAL 0
FOSTERING COMMITMENT
Principle 4: To show full commitment to the organization, the trustees should devote the time and attention necessary to properly and effectively perform their duties and
responsibilities, including sufficient time to be familiar with the Microfinance NGO’s Vision, Mission and Social, Financial and Governance Goals.
participate -

(i) In at least 50% of Board and Committee Corporate Secretary’s Certificate

meetings? Mandatory for All on Attendance of the Board

(ii) In all Annual/Special Membership meetings

in person or through
tele-/videoconferencing conducted in accordance Corporate Secretary’s Certificate
with the rules and regulations of the Commission, Mandatory for All
except when justifiable causes, such as, illness, on Attendance of the Board
death in the immediate family and serious
accidents, prevent them from doing so?

4.1(b) Do the trustees review meeting materials

and if called for, ask the necessary questions or Mandatory for All Minutes of the Meeting
seek clarifications and explanations?

4.2 Do trustees notify the Board where he/she is

an incumbent trustee before accepting a Disclosure Statement of the
trusteeship/ directorship in another Mandatory for All
organization/company, particularly if there is a Board Member
potential conflict of interest?
SUB-TOTAL 0
REINFORCING BOARD INDEPENDENCE
Principle 5: The Board should endeavor to exercise an objective and independent judgment on all affairs of the Microfinance NGO.
5.1(a) Do the Board’s trustees serve for a total of Minutes of the Annual Members
nine (9) cumulative years from the date of first Mandatory for All meeting/ General Information
appointment? Sheet
5.1(b) Does the MF-NGO provide for a minimum
cooling-off period of one (1) year before a trustee
can be reelected after serving a total of nine (9) Mandatory for All Policies/Board Charter
cumulative years from date of first appointment?

5.2(a) Are the positions of Chairperson of the

Board and Executive Director/General Mandatory for All Policies/Board Charter
Manager/President held by separate individuals?

5.2(b) Do the Chairperson of the Board and

Executive Director/General Manager/President Mandatory for All Policies/Board Charter
each have clearly defined responsibilities?
5.3 Does a trustee with a material interest in any
transaction affecting the Microfinance NGO abstain
from taking part in the deliberation/s for the Mandatory for All Policies/Board Charter
same?
SUB-TOTAL 0
ASSESSING BOARD PERFORMANCE
Principle 6: The best measure of the Board’s effectiveness is through an assessment process. The Board should regularly carry out evaluations to appraise its performance as a
body, and assess whether it possesses the right mix of backgrounds and competencies.
6.1 Does the Board conduct an annual assessment
of -

(i) itself (Board) as a whole? Mandatory for All Assessment Results

(ii) Of the individual trustees?
Mandatory for All Assessment Results
(iii) Of the committees? Mandatory for All Assessment Results
provides, at the minimum, criteria and process to
determine the performance-

(i) Of the Board? Mandatory for All Board Policy

(ii) Of the individual trustees?
Mandatory for All Board Policy
(iii) Of the committees? Mandatory for All Board Policy
6.2(b) Does the Board have in place a system that
allows for a feedback mechanism from the Mandatory for All Board Policy
members?
SUB-TOTAL 0
STRENGTHENING BOARD ETHICS
Principle 7: Members of the Board are duty-bound to apply high ethical standards, taking into account the interests of all members and other stakeholders.
7.1(a) Does the Board adopt a Code of Conduct
and Ethics, which provides standards for
professional and ethical behavior, as well as Mandatory for All Code of Conduct and Ethics
articulate acceptable and unacceptable conduct
and practices in internal and external dealings?
7.1(b) Is the Code properly disseminated-

(i) To the Board? Mandatory for All Company Policy

(ii) To management and all employees? Mandatory for All Company Policy
7.1(c) Is the Code disclosed and made available to
the public through the website, social media
Mandatory for All Website/Social Media Account
account of the organization or of the
alliance/association to which it belongs?

7.2 Does the Board ensure the proper and efficient

implementation and monitoring of compliance-

Minutes of the
(i) With the Code of Conduct and Ethics? Mandatory for All Meetings/Resolutions/
Certification from Compliance
Officer

Minutes of the
(ii) With internal policies? Mandatory for All Meetings/Resolutions/
Certification from Compliance
Officer
SUB-TOTAL 0
DISCLOSURE AND TRANSPARENCY
ENHANCING ORGANIZATION DISCLOSURE POLICIES AND PROCEDURES

Principle 8: A Microfinance NGO should establish disclosure policies and procedures that are practical and in accordance with best practices and regulatory expectations.

8.1 Does the organization’s Board establish

disclosure policies and procedures to ensure a
comprehensive, accurate, reliable and timely Mandatory for All Disclosure Policy / Minutes of
disclosure to its members and other stakeholders the AMM / Agenda of the AMM
of the organization’s financial condition, results
and operations?
8.2(a) Does the organization accurately, efficiently
and timely account and disclose all its transactions
especially -

Mandatory for All Sworn Statement & Audited

(i) On receipts of donations, grants, contributions? Financial Statement (AFS)
(ii) On loans made by the management on behalf
of the organization? Mandatory for All Sworn Statement & Audited
Financial Statement (AFS)

(iii) On the disbursement and/or investment of

Sworn Statement & Audited
donations, grants, contributions and loans made Mandatory for All
by the management on behalf of the organization? Financial Statement (AFS)
8.2(b) Does the board practice fair presentation
and preparation of its financial statements that are Mandatory for All Auditor’s Report of the AFS
free from material misstatements?

8.3 Does the Microfinance NGO fully disclose all Disclosure Policy / Non-financial
relevant and material information on individual Information/ Notice of
members of the Board of Trustees and key officers Mandatory for All Members’s Meeting (with
including disclosure of any family member background on Nominees to the
working as a staff/volunteer in the organization? Board)
Manual on Good Governance its policies and
procedures governing any actual or potential
conflict of interest that involves -

Disclosure Policy / Conflict of

(i) Its trustees Mandatory for All Interest Policies/ Manual on
Good Governance
Disclosure Policy / Conflict of
(ii) Its management Mandatory for All Interest Policies/ Manual on
Good Governance
Disclosure Policy / Conflict of
(iii) Its employees Mandatory for All Interest Policies/ Manual on
Good Governance
8.4(b) Does the Microfinance NGO disclose in its
Manual on Good Governance its policies and
procedures governing any actual or potential
conflict of interest that involves -

Disclosure Policy / Conflict of

(i) Its partners Mandatory for All Interest Policies/ Manual on
Good Governance
(ii) Its donors Disclosure Policy / Conflict of
Mandatory for All Interest Policies/ Manual on
Good Governance
Disclosure Policy / Conflict of
(iii) Its clients Mandatory for All Interest Policies/ Manual on
Good Governance
8.5 Does the Microfinance NGO provide in its
Manual on Good Governance clear disclosure of
policies and procedures in setting -

(i) The per diem of its trustees Policy Disclosure/ Manual on

Mandatory for All
Good Governance
(ii) The remuneration of management
taking into consideration the Mandatory for All Policy Disclosure/ Manual on
existing regulatory requirement on the level of Good Governance
administrative expenses?
8.6(a) Does the Microfinance NGO clearly define
and disclose its Microenterprise Development Mandatory for All Microenterprise Development
Programs and Services - Plan
(i) To the regulators?
Mandatory for All Reports

(ii) In its website, social media account or in the

website of the alliance/association to which it
belongs? For small Microfinance NGO, does the
organization post its Microenterprise Mandatory for All Website/Social Media Account
Development Programs and Services in public
markets and other public places where the
Microfinance clients are located?
8.7 Are the organization’s governance policies,
programs and procedures -

(i) contained in its Manual on Good Governance

and submitted to regulators? Mandatory for All Manual on Good Governance

(ii) posted on the organization’s website, social

media account or the website of the Mandatory for All
alliance/association to which it belongs? Website/Social Media Account

SUB-TOTAL 0
INCREASING FOCUS ON NON-FINANCIAL AND SUSTAINABILITY REPORTING
Principle 9: A Microfinance NGO should ensure that material and reportable non-financial and sustainability issues are disclosed.

** 9.1 Do the trustees have a clear and focused

policy on the disclosure of non-financial
information, with emphasis on the management of
economic, environmental, social and governance
(EESG) issues of its operations, which underpin
sustainability?

** For future compliance

SUB-TOTAL 0
PROMOTING A COMPREHENSIVE AND COST EFFICIENT ACCESS TO RELEVANT INFORMATION
Principle 10: A Microfinance NGO should maintain a comprehensive and cost-efficient communication channel for disseminating relevant information.
10.1 For larger Microfinance NGOs, does the
organization have a working and accessible
website to ensure a comprehensive, cost-efficient,
transparent and timely manner of disseminating
relevant information to the public? For smaller Mandatory for All Website/Social Media Account
Microfinance NGO, does the organization have a
social media account to ensure a comprehensive,
cost-efficient, transparent and timely manner of
disseminating relevant information to the public?

10.2 Does the organization have a process that

provides regular updates, advisories and all other
Mandatory for All Manual on Good Governance
relevant information to its members and all
stakeholders?
SUB-TOTAL 0
INTERNAL CONTROL SYSTEM AND RISK MANAGEMENT FRAMEWORK
STRENGTHENING THE INTERNAL CONTROL SYSTEM AND RISK MANAGEMENT FRAMEWORK
Principle 11: To ensure the integrity, transparency and proper governance in the conduct of its operation, a Microfinance NGO should have separate adequate and effective
internal control and risk management systems.
11.1 Does the organization have a separate,
adequate and effective -

(i) Internal control system Mandatory for All Internal Control Policy/ Manual
on Good Governance

(ii) Risk management system Mandatory for LARGE Risk Management Policy/
Manaual on Good Governance

specifically designed to address its peculiar set up

or structure taking into account its size, risk
profile and complexity of operations.
11.2 Does the organization have in place an -

(i) Internal audit function Mandatory for All Internal Control/Audit Policy/
Manual on Good Governance

(ii) A risk management function Internal Control/Audit Policy/

Mandatory for LARGE Manual on Good Governance

that provides independent and objective

identification, assessment and monitoring of key
risk exposures?
SUB-TOTAL 0
CULTIVATING A SYNERGIC RELATIONSHIP WITH MEMBERS
PROMOTING MEMBER RIGHTS
Princple 12: A Microfinance NGO should treat all members fairly and equitably. It should recognize, facilitate the exercise of their rights.
rights of a member are disclosed -

(i) in the Manual Mandatory for All Manual on Good Governance

of Good Governance?
(ii) Its website, social media account or the
website of the alliance/association to which it Mandatory for All Website/Social Media Account
belongs?

12.2 Does the Board send out and post on its

website, social media account or on the website of
the alliance/association to which it belongs, the Mandatory for All Website/Social Media Account
Notice of Annual and Special Membership
Meetings with suffient and relevant information at
least 21 calendar days before the meeting?

12.3 Does the Board make available the Minutes

of Annual and Special Membership Meetings
within ten (10) business days from the date of the
meeting by posting it on its website, social media Mandatory for All Website/Social Media Account
account or the website of the alliance/association
which it belongs, or by posting it in any public
place in the community?

12.4(a) Does the Board make available, at the

option of a member, an alternative dispute Mandatory for All Manual on Good Governance
mechanism to resolve intra-corporate disputes in
an amicable and effective manner?

12.4(b) Is the alternative dispute mechanism

included in the organization’s Manual on Good Mandatory for All Manual on Good Governance
Governance?
SUB-TOTAL 0
DUTIES TO STAKEHOLDERS
RESPECTING RIGHTS OF STAKEHOLDERS AND EFFECTIVE REDRESS FOR VIOLATION OF STAKEHOLDERS’ RIGHTS

Principle 13: The rights of stakeholders established by law, by contractual relations and through voluntary commitments must be respected. Where stakeholders’ rights and/or
interests are at stake, stakeholders should have the opportunity to obtain prompt effective redress for the violation of their rights.

13.1(a) Does the Board identify the organization’s List of Stakeholders/Strategic

Mandatory for All
various stakeholders? Plan
13.1(b) Does the Board promote cooperation
between the organization’s stakeholders and the Memorandum of
Microfinance NGO in carrying out its Vision, Agreement/Loans Agreement
Mandatory for All
Mission and Social, Financial and Governance with
Goals, and in promoting social welfare and Creditors/Donors/Community
sustainability?

13.2 Does the Board establish clear policies and Stakeholder Policies/ Manual on
programs to provide a mechanism on the fair Mandatory for All
treatment and protection of stakeholders? Good Governance

13.3 Does the Board adopt a transparent

framework and process that allow stakeholders - Mandatory for All Stakeholder Policies/ Manual on
Good Governance

(i) to communicate with the Microfinance NGO? Mandatory for All Stakeholder Policies/ Manual on
Good Governance
(ii) to obtain redress for the violation of their Stakeholder Policies/ Manual on
Mandatory for All
rights? Good Governance
SUB-TOTAL 0
ENCOURAGING STAKEHOLDERS’ PARTICIPATION
Principle 14: A mechanism for participation of various stakeholders should be developed to create a symbiotic environment with them in realizing the Microfinance NGO’s
Vision, Mission and Social, Financial and Governance Goals.

14.1 Does the Microfinance NGO endeavor to

create a good reputation by establishing policies,
programs and procedures consistent with its
Vision, Mission, and Social, Financial and
Governance Goals (VMSFGG) and applicable laws Mandatory for All Stakeholder Policies/ Manual on
Good Governance
to encourage donors and volunteers to contribute
their resources, network, time and industry for the
realization of the organization’s VMSFGG and to
ensure sustainability of the organization?

14.2 Does the Microfinance NGO enter into a

collaboration with a corporation or for profit MOA/Stakeholder
entity only when it would be advantageous to the Mandatory for All Policies/Manual on Good
organization’s Vision, Mission and Social, Financial Governance
and Governance Goals?

14.3 Is the organization accountable to its donors, MOA/Stakeholder

project partners and the local communities it Mandatory for All Policies/Manual on Good
serves? Governance
14.4 Does the organization consistently Attendance on Meetings/
communicate and cooperate with the government Mandatory for All Stakeholder Policies/ Manual on
and intergovernmental agencies? Good Governance
SUB-TOTAL 0

TOTAL POINTS 0

*LEGEND:
YES - 1 POINT
NO - 0 POINT

Certified by:

Chairman

President

Treasurer
Name of MF-NGO

Percentage
Rating (3)=
Full Points (1) Raw Score (2) [(2)/(1)]*100 Weight (4) Weighted Score (3)*(4)

Governance 97 0 0 0.3 0

Financial 100 #DIV/0! #DIV/0! 0.4 #DIV/0!

Social 30 0 0 0.3 0

TOTAL
SMALL MF-NGO #DIV/0!

Certified by:

Chairman

President
Treasurer