FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 116 HOW WE ARE GOVERNED SUMMARY OF WORK DONE BY GIA IN 2016 Assurance The assurance work during the year 2016 was on 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 of the following main areas: • Governance and Risk Management processes towards enhancing general governance and risk management practices and culture. • Merger and Acquisition processes. • Treasury management processes, particularly foreign exchange and cash management. • The Human Resource processes, particularly on rewards management, staffing and manpower planning and performance management. • The Group Procurement processes, particularly vendor management, procurement transactions and procurement system. • Recurrent Related Party Transactions review with a view of advising the Audit Committee on the Group's compliance to the Related Party and Recurrent Related Party policy of the Group. At the business operational level, the key audit scopes were in the areas of procurement, asset and inventory management, production or service delivery and information technology. For our main business cluster, i.e. Palm Upstream, the key audit scope was on harvesting and transportation of Fresh Fruit Bunches (FFB), purchasing of FFB from third parties, fertiliser management and workforce management. Consulting GIA plays an active role in advising the Group on various matters. In 2016, this was through the following platform: • Information Technology (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 GIA's feedback on the documents was from the aspect of compliance with any regulatory requirements, incorporating practical best practices, enhancing governance and risk management. During the financial year 2016, GIA provided feedback on policies developed in the areas of board governance, human resource, Stakeholder communication, information technology, sustainability and integrated reporting. Investigation GIA has undertaken investigative audits based on the request and information obtained from the Management, Board and Audit Committee. The outcome of the investigations has been reported to the Audit Committee, which the Audit Committee has accordingly reported to the Board. The Audit Committee's recommendations and resolutions arising from the investigation reports tabled have been communicated to the Management for the necessary implementation. PERFORMANCE REVIEW During the financial year, the Board evaluated the Audit Committee's performance, 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 is made in accordance with a resolution of the Board of Directors and approved at the Board Meeting dated 29 March 2017. CORPORATE GOVERNANCE STATEMENT