ACCOUNTABILITY AND AUDIT
Accountability
Principle 10:
The Board should present a balanced and understandable assessment of the company’s performance,
position and prospects.
The Board continually strives to present a clear, balanced and understandable assessment of PLife REIT’s financial
position, performance and prospects primarily through the audited financial statements, annual report and quarterly
announcements of results to the Unitholders through announcements via SGXNet, press releases, the PLife REIT’s
website and media and analyst briefings.
The management also provides the Board with complete and adequate information in a timely manner and on an on-going
basis through regular updates on financial results, market trends and business developments.
RISK MANAGEMENT AND INTERNAL CONTROLS
Principle 11:
The Board is responsible for the governance of risk. The Board should ensure that management
maintains a sound system of risk management and internal controls to safeguard shareholders’
interests and the company’s assets, and should determine the nature and extent of the significant
risks which the Board is willing to take in achieving its strategic objectives.
The Board acknowledges that it is responsible for the overall internal control framework and the maintenance of a sound
system of internal controls. The system includes, inter alia, enterprise risk management and internal auditing. However,
the Board recognises that no cost effective internal control system and risk management will preclude all errors and
irregularities, as a system is designed to manage rather than eliminate the risk of failure to achieve business objectives,
and can provide only reasonable and not absolute assurance against material misstatement or loss.
To ensure a robust risk management system is maintained, the Manager, with concurrence of the AC, has in place an
Enterprise Risk Management (“
ERM
”) framework and policies and ERM Committee which comprises senior management
personnel of the Manager from the operational, financial and technical areas, to identifying and managing the risks that
could arise in the course of managing PLife REIT. The responsibilities of the ERM Committee include the oversight of
matters relating to the management of risks. The Manager has engaged an external risk consultant to facilitate the ERM
process and to validate the sufficiency and adequacy of the internal controls put in place. Any material non-compliance
and internal control weakness, together with the recommendations to address them, the mitigating controls or gaps (if
any) are also presented to the AC and the Board accordingly.
The system of risk management is embedded in the internal control system of the Manager to address on-going changes
and challenges and to reduce uncertainties to PLife REIT. The ERM Committee, assisted by the external risk consultant,
will ensure the adequacy and efficiency of the internal controls. As such, the internal control system will also assist
the Board and the AC in compliance with the CG Code and the Listing Manual. The AC and the Board will review the
adequacy and efficiency of the risk management system and internal controls on an annual basis.
The internal control and risk management functions conducted by the auditors and the external risk consultant respectively
are evaluated by the Manager’s ERM Committee and executive director, and are reported to the AC for review. Based on
the up-to-date evaluation of the controls by the auditors and the external risk consultant, the Chief Executive Officer and the
Chief Financial Officer of the Manager have provided an assurance to the Board that the financial records of PLife REIT have
been properly maintained and the financial statements give a true and fair view of the operations and finances of PLife REIT,
and the Manager’s internal controls and risk management systems are effective and adequate for the year under review.
Nonetheless, the AC will:
(a)
satisfy itself, by such means as it shall consider appropriate, that adequate counter measures (i.e. mechanisms and
processes, such as sound internal control systems) are in place to identify and mitigate any material business risks
associated with the Manager and PLife REIT;
ParkwayLife REIT
Annual Report 2015
57
