The AC is governed by written terms of reference defining its authority and duties, with explicit authority to
investigate any matter within its term of reference. The AC has full access to and co-operation by management
and full discretion to invite any Director or employee of the Manager to attend its meetings.
Currently, the AC members are:
Mr Yong Kok Hoon (Chairman)
(Independent Director)
Mr Steven Lim Kok Hoong
(lndependent Director)
Ms Ng Shin Ein
(Non-executive Director)
The main duties of the AC includes reviewing and monitoring the effectiveness of the Manager’s internal
controls relating to financial, operational, compliance and risk management processes. The AC receives
regular updates by external auditors to keep abreast of changes to accounting standards and issues which
may have a direct impact on financial statements. The AC meets with internal and external auditors without
the presence of management at least once a year.
The AC meets at least once every quarter and the key activities include:
• Reviewing and recommending to the Board for approval, the quarterly and full year financial results and
related SGX announcements;
• Reviewing Related Party Transactions and any donations of income derived from non-Shari’ah compliant
sources or non-core activities to charities;
• Reviewing and approving the internal and external audit plans to ensure adequacy of the audit scope;
• Reviewing the adequacy and effectiveness of the internal audit function;
• Reviewing and evaluating with internal and external auditors, the adequacy and effectiveness of internal
control systems, including financial, operational and compliance controls, and risk management policies
and framework;
• Reviewing the internal and external audit reports and monitoring the timely and proper implementation of
any corrective or improvement measures;
• Reviewing the nature and extent of non-audit services performed by the external auditors.
• Reviewing the independence and objectivity of the external auditors, and recommending to the Board on
their re-appointment; and
• Reviewing whistle-blowing arrangements put in place by management.
The Board is of the view that all the members of the AC are suitably qualified with finance and legal backgrounds
to assist the Board in the areas of internal controls, financial and accounting matters, compliance and risk
management, including oversight over management in the design, implementation and monitoring of risk
management and internal control systems.
External Auditors
The AC makes recommendations to the Board on the appointment/re-appointment of the external auditors,
taking into consideration the scope, results of the audit, as well as the cost effectiveness, independence and
objectivity of the external auditors.
During the year, the AC has conducted a review of all non-audit services provided by the external auditors
to Sabana REIT and its subsidiaries and is satisfied that the extent of such services will not prejudice the
independence and objectivity of the external auditors. The amount paid and payable to external auditors for
audit and non-audit services fees were approximately S$184,000 and S$45,000 respectively, for the financial
year under review.
SABANA REIT
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ANNUAL REPORT 2014
79
