GOVERNANCE 04 Sect ion Ranhi ll Ut i l i t i es Berhad 124 SUMMARY OF INTERNAL AUDIT ACTIVITIES IN FY2022 In line with the approved Internal Audit Plan for FY2022, GCAD had performed key audits based on the Group’s Business Division i.e. Environment, Energy and Engineering & Services. GCAD had performed reviews on Ranhill SAJ Sdn Bhd’s Mechanical & Electrical Department, water quality monitoring program, Finance Department, Business Continuity Management as well as the Non-Revenue Water (“NRW”) reduction program at Ranhill Water Services Sdn Bhd and project management at Ranhill Water Technologies Sdn Bhd. Under the Energy Sector, the effectiveness of operations and maintenance at Ranhill Powertron II Sdn Bhd and Ranhill Power II O&M Sdn Bhd were reviewed. Also, GCAD focused on the effectiveness of corporate governance aspects at both the newly acquired companies, Ranhill Bersekutu Sdn Bhd and Ranhill Worley Sdn Bhd. The advisory services rendered by GCAD include provided awareness briefing on bribery and corruption which emphasized on Section 17A of the MACC Act to all employees of the Group, reviewed policies and procedures, performed follow-up on outstanding audit issues and reviewed related party transactions. Internal Audit reports were issued to the management and they contained key operational analysis, insights, improvements opportunities, audit observations, management response on action steps and responsible person as well as targeted date of completion of those actions. Main issues that required significant improvement were highlighted to the AC for deliberation. GCAD provides quarterly updates to management and the AC regarding the progress and status of the corrective actions. Majority of GCAD’s employees are members of relevant professional bodies such as Institute of Internal Auditors Malaysia (“IIA”) and Malaysia Institute of Accountants (“MIA”). The internal auditors are encouraged to continuously enhance their knowledge, skills and competencies through a combination of external and in-house training. There are seven (7) internal auditors in GCAD which incurred a total cost of RM1.47 million for the financial year ended 31 December 2022. Audi t Commi ttee Report
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