NTUC Income AR 2019

CORPORATE GOVERNANCE BOARD COMMITTEES The Board has established six Board Committees to assist it in carrying out its oversight of the operations and business affairs of the Co-operative. The six Board Committees are the Audit, Investment, Risk Management, Nominating, Human Resource and Remuneration, and Digital & Technology Committees. The Board has delegated authority and powers to these Committees to monitor and have oversight over specific areas. The composition of the Board Committees satisfies the independence requirements stipulated in the Guidelines on Corporate Governance and the ICGR. Each Committee has its own clearly defined terms of reference which describe its objectives, composition, and key duties and responsibilities. The respective terms of reference are reviewed periodically to ensure alignment to the Notices and Guidelines issued by the MAS, where applicable. Audit Committee The Audit Committee (AC) comprises four members as follows: Chairperson Sim Hwee Cher Members Richard Shermon Pang Wai Yin Sim Hwee Hoon The AC operates within the Board-approved written terms of reference which set out the AC’s authority and responsibilities as prescribed in the Guidelines on Corporate Governance issued by MAS for all major insurers. The key duties and responsibilities of the AC are to: • Review the financial statements of the Co-operative with management and the external auditors • Review the effectiveness of material financial, operational, compliance and information technology controls, including the corporate fraud risk management policy/framework and whistle-blowing arrangements which staff and other parties may in confidence raise concerns about possible improprieties relating to financial reporting, controls or any other matters • Assess the adequacy and effectiveness of the Internal Audit (IA) function in terms of its organisational independence, resources, capability, practices and work plans • Review the audit plan and results of external audits, as well as the independence and objectivity of external auditors, on both audit and non-audit services and recommend to the Board on the appointment, re-appointment or removal of external auditors • Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up (including disciplinary action) of any instances of non-compliance • Review all material related party transactions and keep the Board informed of such transactions The AC met five times during the year. Internal auditors, the Chief Executive and certain senior management executives attended these meetings. The external auditors attended all five meetings. During the year, the AC reviewed with management the quarterly management reports, financial statements, significant accounting policies and estimates. The external auditors’ audit plan, themanagement letter andmanagement’s response were presented to the AC and discussed with both the management and the external auditors. The AC also reviewed the internal audit plan, scope of internal audit activities, reports of internal audits and follow up reviews performed by internal audit. The AC ensures that there are processes in place for ensuring that recommendations made by internal audit, external audit and MAS are effectively dealt with on a timely manner. 22 HERE FOR SURE