AL-SALAM REIT ANNUAL REPORT 2020

101 ANNUAL REPORT 2020 7) Timely company briefings with analysts are conducted to apprise the shareholders, stakeholders and general public of the Fund’s performance while promoting transparency and open discussion. However, during the year under review no company briefings were carried out due to the restrictions under the MCO. 8) The Chief Executive Officer is involved in the running of the day-to-day business operations by meeting up with both management and operation on a weekly basis to monitor the performance and profitability of the Fund’s businesses. 9) Quarterly meetings on management accounts results against prior periods are conducted with significant variances explained and appropriate actions taken or plans put in place. 10) Quarterly meetings with the Trustee are carried out to discuss operational and financial performance of the Fund and the properties. Due to the MCO both the Trustee and REIT Manager were only able to hold the meeting only once in 2020. 11) The Manager has a succession planning programme in place which include identification of future successors and leadership training for candidates of critical positions. 12) Guidelines on employment, 360 degrees performance appraisal are currently in practice to ensure the Manager’s ability to operate in an effective and efficient manner. A comprehensive performance management system that link succession planning with elements of core competencies, training needs analysis and training plan, appraisal and reward system is expected to be formalized in 2021. 13) The Human Resource Unit is in charge of the safety & health issues at the operating level to address and ensure compliance with occupational safety and health policies and procedures as required by the various authorities. 14) The Manager undertakes adequate insurance coverage on both its employees and assets to ensure both are sufficiently insured against any losses arising from various perils faced in the Manager’s/Fund’s operations. 15) The Manager has, in place the KPI reporting to drive awareness of shared management responsibility on their contribution towards enhancing the operating performance in achieving the business objectives. 16) Internal audit is outsourced to ensure independence in audit function, which include performing regular reviews of business processes to assess the effectiveness of the internal control system and to highlight significant risks impacting the Company with recommendations for improvement. The internal audit team reports directly to the BARC. 17) Evaluations of outsourced service providers are carried out on a yearly basis and presented at the management committee. 18) Senior management team conducts regular discussions with property, maintenance and service managers to discuss issues for improvement and to promote better understanding to facilitate cognizance in decision-making capability. Due to the MCO, the Property Management meetings were only able to be held once in 2020 19) The Manager launched its Anti-Bribery & Corruption Framework and the Whistleblowing Policy effective 1 June 2020, which is guided by the Guidelines on Adequate Procedures issued under section 17A(5) of the MACC Act. INTERNAL AUDIT The Manager outsources its Internal Audit Function, which reports independently to the BARC to provide the Board with adequate assurance it requires regarding the adequacy and effectiveness of risk management, internal control and governance processes. The Internal Audit Team (IAT) adopts a risk-based approach in executing the annual audit plan that focuses on major business units and/or operations. The annual audit plan is reviewed and approved by the BARC. The IAT reports directly to the BARC on the outcome of its appraisal of the operational activities. Significant audit findings are presented and deliberated by the BARC on a quarterly basis or as appropriate. The IAT also monitors the implementation of audit recommendations in order to obtain assurance that all major risks and controls measures identified have been reasonably addressed by the management in an effective and timely manner. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL