FGV Annual Report 2020

215 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders Summary of Work done by Group Internal Audit In 2020 Area Of Focus Matters Considered Assurance Consulting Investigation The assurance work during the year 2020 was a balance of governance, risk and control at the corporate centre level and business operational level. At the corporate centre level, the focus was on inculcating best and better practices in the following main areas: • Governance and risk management processes towards enhancing general governance and risk management practices and culture. • Recurrent related party transactions review with a view of advising the Audit Committee on the Group’s compliance with the Related Party Transactions and Recurrent Related Party Transactions Policy. • Assessment on the employee’s awareness and FGV’s readiness on Anti-Bribery and Corruption through FGV’s “Adequate Procedures” basing on the “T.R.U.S.T.” principles under the Ministerial Guidelines. • Information Technology (IT) governance and controls which include application review, user access control, system security and data integrity. At the business operational level, the key audit scopes were in the areas of sales and marketing on non-commodity, cost management, procurement management (with IT audit) and trading of CPO and PPO. For our main Business Cluster, i.e. Upstream, the key audit scopes were migrant workers welfare management, mechanisation, procurement, adverse weather mitigation management and initiatives under the model estate and mills programme. GIA also undertakes Control Self- Assessment for 18 selected estates in the year 2020. Group Internal Audit plays an active role in advising the Group on various matters. In 2020, this was done through the following platforms: • IT Project Steering Committee and Working Committee meetings to provide guidance on IT project management and system development or implementation processes. • Participation in policy development in working groups and reviewed draft documents. The focus of Group Internal Audit’s feedback on the documents was from the aspect of compliance with any regulatory requirements, incorporating practical best practices and enhancing governance and risk management. Group Internal Audit has undertaken investigative audits based on the request and information from Whistleblowing Committee, Management, Audit Committee and the Board. The outcome of the investigations has been reported to the Whistleblowing Committee, Management, Audit Committee and the Board respectively. The recommendations and resolutions arising from the investigation reports tabled have been communicated to Management for the necessary implementation. During the year, Group Internal Audit undertook several investigations and special review work. The special reviews identified improvements in the following areas: • Revenue and receivable management. • Expenditure and payable management. • Operations management. • Stock management. • Procurement management. • Project management. • Human resource management. • Data management. P E R FORMANC E R EV I EW During the financial year, the Board evaluated the Audit Committee’s performance and the extent to which the Audit Committee met the requirements of its Terms of Reference, including the term of office and performance of the Audit Committee and each of its members. This performance assessment constituted part of the annual Board effectiveness assessment, pertaining to the assessment of Board Committees. This Report was made in accordance with a resolution of the Board of Directors approved on 31 March 2021.