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CORPORATE
GOVERNANCE
to reasonable resources to enable it
to discharge its functions. The Audit
Committee has also reviewed all non-
audit services provided by the external
auditor and is satisfied that the nature
and extent of such services will not
prejudice the independence and
objectivity of the external auditor. The
aggregate amount of fees paid and
payable to the external auditor for
FY 2016/17 and the breakdown into
audit fees and non-audit fees are
set out on page 124. Pursuant to Rule
1207(6)(c) of the listing manual of the
SGX-ST, the Manager confirms that
Starhill Global REIT has complied with
Rules 712 and 715 of the listing manual
in relation to the appointment of the
external auditor.
The Audit Committee has reviewed
the procedures in place to ensure
that employees of the Manager and
any other persons are provided with
well-defined and accessible channels
to report on potential or actual
improprieties in financial or other
operational matters, in confidence,
and for the independent investigation
of any reports by employees and any
other persons and appropriate follow
up action. Reports may be made to
the compliance officer and to the
Chairman of the Audit Committee via
email at
whistleblowing@ytlstarhill.com.
The Audit Committee meets at least
once every quarter.
As part of its oversight role over
financial reporting, the Audit
Committee has reviewed the following
key audit matter identified by the
external auditor:
SIGNIFICANT MATTER HOW THE AUDIT COMMITTEE REVIEWED THE MATTER AND WHAT DECISIONS WERE MADE
Valuation of
investment
properties
The Audit Committee reviewed the outcomes of the annual external valuation process and
discussed the details of the valuation of Starhill Global REIT’s investment properties with the
Management and the external auditor.
The Audit Committee had a robust discussion with Management and the professional valuers to
review the methodology, bases and assumptions used in arriving at the valuation of the Singapore,
Australia and Malaysia investment properties (the “key investment properties”). The work performed
by the external auditor was considered by the Audit Committee, including their assessment of the
appropriateness of the valuation methodologies and assumptions applied in the valuation of the
key investment properties.
No significant matter came to the attention of the Audit Committee in the course of the review.
Internal Audit
Principle 13:
The company should establish an
effective internal audit function
that is adequately resourced and
independent of the activities it audits.
The Audit Committee has appointed
PricewaterhouseCoopers LLP to
perform the internal audit functions.
The internal auditor subscribes to,
and is guided by the Standards for
the Professional Practice of Internal
Auditing developed by the Institute
of Internal Auditors, Inc (“IIA”) and has
incorporated these standards into its
audit practices and meets with the
standards set by the IIA. To ensure
that the internal audits are performed
effectively, the internal auditor recruits
and employs suitably qualified
professional staff with the requisite skill
sets and experience. For FY 2016/17,
the Audit Committee has reviewed
the adequacy and effectiveness
of the internal audit function and
was satisfied that the internal audit
function was adequately resourced
and has appropriate standing within
Starhill Global REIT and the Manager.
The internal auditor provides risk
assessment services and controls
assurance in order to ensure internal
controls are aligned to business
objectives and address related
risks, and reports directly to the
Audit Committee. Management is
responsible for addressing issues
identified by the internal auditor.
The internal auditor will also audit
and report on the appropriateness
and effectiveness of processes for
the management of Related Party
Transactions at least once a year. In
addition, the Trustee also has a right to
review the internal audit reports so as
to ascertain that the Property Funds
Appendix has been complied with. The
internal auditor has unrestricted access
to the Audit Committee, and access to
the Manager’s and Starhill Global REIT’s
documents, records, properties and
personnel, where relevant to their work.
(D) UNITHOLDER RIGHTS AND
RESPONSIBILITIES
Principle 14:
Companies should treat all shareholders
fairly and equitably, and should
recognise, protect and facilitate the
exercise of shareholders’ rights, and
continually review and update such
governance arrangements.
Principle 15:
Companies should actively engage
their shareholders and put in place
an investor relations policy to
promote regular, effective and fair
communication with shareholders.
Principle 16:
Companies should encourage greater
shareholder participation at general
meetings of shareholders, and allow
shareholders the opportunity to
communicate their views on various
matters affecting the company.
The Manager upholds a strong
culture of continuous disclosure
and transparent communication
with Unitholders and the investing
community. The Manager has in place a
dedicated team performing the investor
relations function and has developed a
communications policy, the cornerstone
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STARHILL GLOBAL REIT ANNUAL REPORT FY 2016/17