Bursa Malaysia Annual Report 2015

GOVERNANCE

Bursa Malaysia •

Annual Report 2015

f. In February 2015, the AC reviewed and approved the 2014

GIA Divisional Scorecard results. The AC also assessed the

performance of the Head of GIA based on the performance of

the Corporate Scorecard, GIA Divisional Scorecard results and

competencies. The outcome of the Head of GIA’s performance

assessment was then submitted to the Nomination and

Remuneration Committee (“NRC”) for determination of her

reward allocation.

g. At the meeting on 16 April 2015, the AC reviewed the results

of GIA’s Customer Satisfaction Survey for 2014, based on the

responses of the AC members and senior management via

questionnaires, which aimed to gauge the level of satisfaction

with the IA roles and services, Internal Auditors’ competency and

professionalism in governance, risk and controls, as well as their

independence and objectivity. The results indicated that GIA’s

customers were generally satisfied with the performance of the

IA function.

h. During the same meeting, GIA presented to the AC the 2014

Control Risk Assessment report which provided the mapping of

several key risks from the Corporate Risk Profile (“CRP”) of Bursa

Malaysia to the auditable areas or risk location covered in 2014.

This was to assess the adequacy and effectiveness of the internal

control systems to manage the key risks within the Group.

Based on the engagements carried out in 2014, GIA reported

that the overall internal control assessment for Bursa Malaysia

was adequate with reference to the elements of the Committee

of Sponsoring Organisations of the Treadway Commission

(“COSO”), i.e. control environment, risk assessment, control

activity, information and communication as well as monitoring.

The revised Project Assurance Framework (“PAF”) was

presented to the AC for approval on 16 April 2015. The main

purpose of the PAF is to ensure the robustness of the project

assurance framework in meeting the GIA mission to provide

objective assurance and value added services from the project’s

perspective.

On 14 July 2015, GIA presented to the AC the half-yearly updates

on its activities comprising the progress of the 2015 Annual Audit

Plan, ad hoc assignments and project assurance reviews, and

GIA’s key initiatives for 2015.

k. At the meeting on 20 October 2015, the AC deliberated on and

approved GIA’s 2016 Business Plan which would be the final

year of the 2014-2016 Strategic Plan. The key focus of the 2016

Business Plan is to enhance the alignment between the three lines

of defence in Bursa Malaysia Group to optimise risk management

across the organisation and to access a global network of relevant

exchanges, regulators and standard setters which will enable GIA

to deliver to the business, tangible benefits through comparisons,

benchmarking and networking opportunities.

At the same meeting, GHR presented the mid-year results of the

2015 GIA’s Scorecard for the AC’s notation.

m. On 17 November 2015, the AC deliberated on and approved

GIA’s revision of the Audit Charter in line with the changes to

the International Professional Practices Framework (“IPPF”) for

Internal Auditing by the Institute of Internal Auditors (“IIA”), Inc.

n. At the same meeting, the AC reviewed and approved the GIA’s

Audit Plan for 2016, having regard to the adequacy of scope and

coverage of all auditable areas in the final year of a three-year

cycle, and the allocation of Internal Auditors’ man-days to the

respective audit categories.

o. The AC on 17 November 2015 reviewed the verification of share

grants under Bursa Malaysia’s Share Grant Plan (“SGP”), which

comprises two components: the Restricted Share Plan (“RSP”)

for employees at Grade E7 and above, and the Performance

Share Plan (“PSP”) for key management personnel. The AC

concurred that the award of shares under the SGP complied with

the criteria approved by the NRC pursuant to Paragraph 8.17(2)

of the MMLR, which included the following:

The award of Bursa Malaysia Plan Shares to eligible

employees of the Group on 1 July 2015 for the 2015 RSP

Grant based on their job grades and performance ratings

for 2014;

ii. The vesting of Plan Shares for the 2012, 2013 and 2014

RSP Grants on 15 July 2015; and

iii. The award of Plan Shares to selected executives of the

Group on 1 July 2015 for the 2015 PSP Grant based on

performance targets for the period 2015 to 2017.

AUDIT COMMITTEE

REPORT