FGV Annual Report 2020

209 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders In 2020, the Audit Committee undertook the following principal activities in discharging its responsibilities: Summary of Work Area of Focus Matters Considered Evaluation of the Internal Audit Process and Outcome a. Received and reviewed all 54 reports issued to all members of the Audit Committee by Group Internal Audit during FY2020. These are reports from assignments undertaken from the internal audit plan and any unplanned investigation and special assignments undertaken by Group Internal Audit. b. Presented with and reviewed the following at every quarterly meeting during FY2020: • A report summarising the main observations from the internal audit reports issued during the quarter. The Audit Committee gave direction to Management on key matters requiring the Management’s special and immediate attention. The Audit Committee reported to the Board on these key matters. • A report on the progress of implementation of the approved internal audit plan for the FY2020, including the status of internal audit resources to support the implementation of the approved internal audit plan and development progress of the internal audit staff. • A report on the progress of implementation of the recommendations from the internal audit reports issued. There were no matters requiring the attention of the Board from the progress reported. c. Performed the following: • Reviewed and approved the internal audit plan for FY2020 together with the scope, functions, resources, budget and KPI of the Group’s internal audit function and reported to the Board accordingly. • Assessed the performance of the Chief Internal Auditor, which included assessment of the effectiveness of the Group’s internal audit function with reference to the Institute of Internal Auditors’ International Professional Practices Framework. • Assessed the Chief Internal Auditor’s performance, increment, bonus adjustment and renewal of her contract of employment. The Chairman of the Audit Committee held one (1) private meeting and discussion with the Chief Internal Auditor and her Management team to discuss developments which were relevant for the internal audit work, to give direction for a more effective audit plan, to be apprised of or give guidance on any major internal audit observations and any related matters towards improving the governance, risk and control processes of FGV Group. Reviewed Recurrent Related Party Transactions Monitoring of the Group Reviewed statements included in FGV’s Annual Integrated Report 2019 Reviewed and considered the findings of investigations and related legal opinion. a. Reviewed the quarterly report on the recurrent related party transactions of the Group and took note that the related party transactions were within the mandate from the shareholders. b. Reviewed the circular to shareholders for the purpose of seeking mandate for recurrent related party transactions at the 2020 Annual General Meeting. c. Reviewed the internal audit report on the annual recurrent related party transactions review. d. Reviewed justifications of the FGV Group’s major recurrent related party transactions which were not supported with contemporaneous pricing. Reviewed the Report on the Audit Committee, the Statement on Risk Management and Internal Control, the CGOS, the Management Discussion & Analysis, the Chairman’s Statement and the GCEO’s Message to be included in the Annual Integrated Report 2019 and recommended the same to the Board for approval. The Statement on Risk Management and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that have been brought to the Audit Committee and the Board during the financial year. a. Considered the investigation reports, valuation reports, legal opinion and related information from forensic and internal investigations. b. The Committee deliberated the findings and sought relevant clarification to satisfy themselves that the investigations and legal opinion are comprehensive.