The Securities and Exchange Commission received the highest audit rating from the Commission on Audit for the third consecutive year, as it continues to champion good governance within and outside the organization.
State auditor Concepcion Reyes, in a report dated May 20, rendered an unmodified opinion, also known as unqualified opinion, on the fairness of the presentation of the commission’s 2020 financial statements.
“In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Securities and Exchange Commission as at Dec. 31, 2020, and its financial performance, changes in net assets/equity, cash flows, comparison of budget and actual amounts for the year then ended, and notes to the financial statements, in accordance with International Public Sector Accounting Standards,” the report said.
The audit was conducted in accordance with the International Standards of Supreme Audit Institutions, and in order to ascertain the level of assurance that may be placed on the management’s assertion on the financial statements; determine the propriety of transactions; recommend improvement opportunities; and determine the extent of the implementation of prior years’ audit recommendations.
An unqualified or unmodified opinion is given when auditors conclude that the financial statements as a whole are free from material misstatements, which could arise from either error or fraud, according to the IPSAS.
The SEC also received an unqualified opinion on the fairness of presentation of its financial statements for 2018 and 2019. This is the longest streak of unqualified opinions received by the commission over the past decade.
“The unmodified opinion of COA affirms our commitment to transparent and responsible use of public funds, especially at the height of a pandemic that required a massive and immediate government response to save millions of lives and livelihoods,” SEC Commissioner Emilio Aquino said.
“This three-year streak of unqualified opinions received by the commission further reflects our adherence to the highest standards of transparency and accountability. May it reinforce our advocacy for good governance among corporations, capital market participants, and other entities under our supervision toward the development of a safer and more vibrant business sector in the Philippines,” Aquino said.
The SEC was recognized for its efforts to improve ease of doing business in the country by eliminating red tape and other opportunities for graft and corruption as well as for its initiatives toward good governance.
The commission in May received the Global Good Governance Advocacy and Commitment to Corporate Governance Award from London-based Cambridge International Financial Advisory. The award is given to individuals and institutions who treat governance and sustainability as a strategic opportunity.
It also received special citations from the Anti-Red Tape Authority for its ease of doing business programs, which were instrumental in helping the country move up its ranking in the World Bank’s Doing Business 2020 Report.
Earlier in 2020, the commission received the ISO 9001:2015 Certification for its quality management system covering all core services across its main and extension offices.
The ISO 9001:2015 Certification covers 122 documented procedures related to the provision of regulatory services over the corporate sector, capital market participants, and the securities and investment instruments market in the Philippines, as well as the protection of the investing public.
The certification also covers procedures related to the provision of registration of partnerships and corporations in the SEC Extension Officers in Baguio, Tarlac, Legazpi, Cebu, Bacolod, Iloilo, Davao, Cagayan de Oro and Zamboanga.
The SEC also consistently landed in the top 10 best performing government agencies in surveys conducted by the Makati Business Club, in partnership with the Management Association of the Philippines, in previous years.