Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 92 Statement on Risk Management and Internal Control 5. Strategic Planning and Annual budgets are prepared by the REIT’s operations. Analysis and reporting of variances against budget are presented to the Board which act as a monitoring mechanism and reviewed half-yearly. 6. Quarterly and annual financial statements containing key financial results as well as operational performance results of the Fund are prepared and reported to the Board. 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 links 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 cognisance in decision-making capability. Due to the MCO, Property Management meetings were only able to hold the meeting 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.