FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD HOW WE ARE GOVERNED 86 AUDIT COMMITTEE REPORT GOVERNANCE AT FGV: ACCOUNTABILITY c. Performed the following: • Reviewed and approved the revision of the internal audit plan for FYE 2017. • Reviewed and approved the internal audit plan for the FYE 2018 together with the scope, functions, resources, budget and key performance indicator of the Group’s internal audit function and reported to the Board accordingly. • Assessed the performance of the Chief Internal Auditor, which included assessment of the effectiveness of the Group's internal audit function with reference to the Institute of Internal Auditors' International Professional Practices Framework. • With reference to assessment of the Chief Internal Auditor's performance, proposed her promotion, increment, adjustment and renewal of her contract of employment. • Reviewed and approved co-source and out-source internal audit assurance work and investigations. • Approved the engagement of a subject matter expert in plantation to improve operational internal auditing on plantations. The Chairman of the Audit Committee held four private meetings and discussions with the Chief Internal Auditor and her management team to discuss developments which were relevant for the internal audit work, to give direction for a more effective audit plan, to be apprised of or give guidance on any major internal audit observations and any related matters towards improving the governance, risk and control processes of FGV Group. Reviewed recurrent related party transactions monitoring of the Group a. Reviewed the quarterly report on the recurrent related party transactions of the Group and took note that the related party transactions were within the mandate from the Shareholders. b. Reviewed the Recurrent Related Party Transactions Circular to seek mandate from shareholders at the 2017 Annual General Meeting. c. Reviewed the internal audit report on the annual recurrent related party transactions review. Reviewed statements included in the Company's Annual Integrated Report 2016 a. Reviewed the Report on the Audit Committee, the Statement on Risk Management and Internal Control, the Corporate Governance Statement, the Management Discussion & Analysis and the Chairman’s Statement to be included in the Company's Annual Integrated Report 2016 and recommended the same to the Board for approval. The Statement on Risk Management and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that have been brought to the Audit Committee and the Board during the related financial year. KEY MATTERS REPORTED TO THE BOARD The Audit Committee Chairman updated the Board on matters deemed to be of major importance deliberated at the Audit Committee Meetings and its recommendations. The copies of confirmed minutes of each of the Audit Committee Meeting were also circulated to the Board for noting at the next practicable Board Meeting. Amongst the significant matters considered by the Audit Committee during the year 2017 are as follows: Significant matters Changes in accounting policies • Deliberated and endorsed the changes of accounting policies and the proper accounting of related impact to the financial statements in transition to application of new accounting standards. Impairment and provisions • Reviewed the assessment of impairment and provision exposure of various assets, investments and onerous contracts by the external auditor based on applicable financial reporting standards. Payment of interim dividend • Reviewed and provided guidance on the solvency test for the payment of 5 sen interim dividend for the FYE 31 December 2017. Funding requirements across FGV Group • Reviewed and endorsed proposals relating to funding requirements across FGV Group. How these matters were addressed by the Audit Committee