CORPORATE GOVERNANCE
(c) Internal Audit
The 3-year Internal Audit Rotational Plan for Year 2015
to 2017 was approved by the ARCC during the year.
The ARCC reviewed the scope of internal audit work
and its audit programme; it reviewed the findings
during the year and Management’s responses
thereto; and it satisfied itself as to the adequacy of
the internal audit function.
(d) IPT
The ARCC reviewed IPT to ensure compliance with
internal procedures, provisions of the Listing Manual
and the Property Funds Appendix.
(e) Whistle Blowing
The ARCC ensures that the Whistle Blowing Policy
put in place provides an avenue through which
staff and external parties may raise, in good faith
and in confidence, any concerns about possible
improprieties in matters of financial reporting or
other matters to the Chairman of the ARCC and
that there will be independent investigation and
appropriate follow-up action taken.
External parties can raise their concerns by
submitting the prescribed form found on
/
whistleblowing.html, to whistleblowing@
cambridgeitm.com.
The ARCC meets at least four times a year. It has full
access to the external and internal auditors and meets
with the auditors, without the presence of Management,
at least once a year.
The number of ARCC meetings held and corresponding
attendances for the financial year ended 31 December
2014 are set out on page 33.
INTERNAL AUDIT
Principle 13: The company should establish an internal
audit function that is adequately resourced and
independent of the activities it audits.
Given the Manager’s size and scale of operations,
the Manager outsources the internal audit function.
PricewaterhouseCoopers (PwC) has been appointed as
the internal auditor for another 3-year period from 2015
to 2017. PwC adopts the Standards for the Professional
Practice of Internal Auditing set by the Institute of Internal
Auditors.
The internal auditor primary reporting line is to the
Chairman of ARCC and administratively to the CEO. The
ARCC reviews and approves the annual internal audit
plan, and ensures that the internal auditor has adequate
resources to perform its functions. The ARCC also reviews
the results of internal audits and Management’s actions in
resolving any audit issues reported.
The ARCC is satisfied with the suitability of the internal
auditors and is of the view that the internal audit function
is adequately resourced to perform its functions, and has
appropriate standing within the Manager.
UNITHOLDERS RIGHTS AND RESPONSIBILITIES
UNITHOLDERS’ RIGHTS
Principle 14: Companies should treat all unitholders fairly
andequitably, andshould recognise, protect and facilitate
the exercise of unitholders’ rights, and continually review
and update such governance arrangements.
Communications with Unitholders
Principle 15: Companies should actively engage their
unitholders and put in place an investor relations policy
to promote regular, effective and fair communication
with unitholders.
Conduct of Unitholder Meetings
Principle 16: Companies should encourage greater
unitholders participation at general meetings of
unitholders, and allow unitholders 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, the investing community and other
stakeholders. The Manager has developed a disclosure
policy which requires timely and full disclosure of financial
reports and all material information relating to CIT by
way of public releases or announcements through the
SGX-ST via SGXNET. This will be subsequently followed
up with the release on CIT’s website at
.
cambridgeindustrialtrust.com.
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
42
