A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 116 STATEMENT ON RISK MANAGEMENT & 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 and the trustee as required by the Trust Deed 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 BARC and 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. During the year under review a company briefing was carried out on 13 September 2021. 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. This is carried out via the weekly Management Committee Meetings and ad-hoc meetings to discuss progress of high-risk corporate projects and exercises. 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. During the year under review, four (4) meetings with the Trustee were carried out on 22 February, 1 July, 28 October, and 28 December 2021. 11. The Manager tabled its succession planning framework at the Board meeting and obtained approval of the Board at the Board meeting on 2 December 2021. The framework includes 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 was 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, with a goal to facilitate the provision of a safe working environment for employees. Two (2) designated officers have been appointed to be responsible and act as OSH Officers to ensure compliance with the requirement to Act 514 Occupational Safety and Health Act 1994. 14. In the new normal brought about by the COVID-19 pandemic the REIT Manager has taken a prudent approach in ensuring that where employees are to Work from Home (WFH), where applicable, proper equipment, safety training and policies are provided or be in place, to ensure the employee’s health, safety and welfare are accordingly protected in the course of their work. With the MCO being lifted and working at office was allowed, the Manager has looked at indicators for risk assessment indicators at the workplace and the associated control measures: ‐ scanning upon entry to office building or daily temperature check ‐ daily attendance report to the supervisory division of the Securities Commission ‐ office sanitisation ‐ monitor vaccination status of employees 15. 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. 16. 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. 17. 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. 18. Evaluations of outsourced service providers on critical business functions are carried out on a yearly basis and presented to the Board.
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