CORPORATE GOVERNANCE
(C)
ACCOUNTABILITY AND AUDIT
Principle 10:
Accountability
The Board is responsible for presenting a balanced and comprehensive assessment of A-REIT’s performance, position and
prospects, including interim and other price sensitive public reports and reports to the regulators (if required). To assist the
Board in this regard, Management provides timely, complete, adequate information to the Board through the most expedient
means, including emails.
Financial reports and other price sensitive information are disseminated to Unitholders through announcements via SGXNet,
press releases, the A-REIT website and media and analyst briefings.
Management provides all members of the Board with management accounts and such explanation and information on a quarterly
basis and as the Board may require from time to time to enable the Board to make a balanced and informed assessment of the
performance, position and prospects of A-REIT.
Principle 11:
Risk Management and Internal Controls
Risk Management
The Board recognises its responsibility for the governance of risks and ensures that the Management maintains a sound system
of risk management and internal controls for good corporate governance. The Management maintains a structured Enterprise
Risk Management (“ERM”) framework for A-REIT and its subsidiaries (“Group”). In addition, the Management and the Board
review key transactions, and the Group’s external and internal auditors review financial statements and internal controls covering
key risk areas.
The AC reviews and guides Management in the formulation of risk policies and processes to effectively identify, evaluate and
manage any material risk and ensure that a robust risk management and internal control system is maintained.
The ORMC assists both the AC and the Board on matters relating to the operational aspects of risk management. The main
duties of the ORMC are (i) overseeing the adequacy and effectiveness of the operational aspects of risk management; (ii)
monitoring the effectiveness of the Group and its out-sourced Property Manager’s risk management system to ensure that
a sound and robust risk management system is maintained; (iii) evaluating the adequacy of the effectiveness of the Group’s
disclosure controls and procedures; and (iv) assessing the materiality of specific events, developments and risks to the Group
and the impact on the unit price of A-REIT.
Ownership of risks lies with the Management with overall oversight by the Board. The Management regularly assesses the
nature and extent of risks and maintains and updates a risk register which identifies risks and the internal controls in place to
mitigate those risks. This register is submitted to the AC, the ORMC and the Board on a quarterly basis. The AC and the ORMC
report to the Board on material findings and make recommendations in respect of any material risk issues. The risk reports will
be relied upon as part of the basis for the Board and the AC to assess the adequacy and effectiveness of the risk management
and internal control systems.
.103
A-REIT ANNUAL REPORT
2015/2016
