ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 52 In line with the approved annual review schedule by the ARMC, the internal audit team completed three routine audits, two study and progress reports, and two follow-up audits. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Resource, Operations, Procurement, Inventory, General IT, Sales, Marketing, Fraud Assessment and Project Management. CONTROL ENVIRONMENT AND STRUCTURE Apart from the above, the other key elements of the Group’s internal control system include: STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL a. Policies, procedures and limits of authority make up the Control Activities and Authority. • Formally documented internal policies, standards and procedures are in place and periodically updated to reflect and enhance operational efficiency. Cases of non-compliance with policies and procedures are reported to the ARMC. • Formally defined delegation of responsibilities to committees of the Board and to Management including organisation structures and appropriate authority levels. b. Strategies, business planning, budgeting and reporting fulfills the Monitoring role. • Bi-weekly comprehensive information provided to Management for monitoring through the Management Committee Meeting and monthly Management Financial Review meetings on performance against strategic plans covering all key financial, operational, oil & gas and property venture indicators. • Detailed budgeting process requiring all business units to review their budgets periodically. The budgets are discussed and approved by the President & Group Chief Executive Officer and subsequently the Board. • The Group Chief Financial Officer provides the Boardwith quarterly financial information. This effective reporting system exposes significant variances against the budget. Key variances are followed up by Management and reported to the Board. c. Risk assessment ensures that all are in Compliance and meet the Ethical requirements of the ethics code. • The President & Group Chief Executive Officer, with the input from the ERMC, reviews with the ARMC on any significant changes in internal and external environment, which affects the Group’s risk profile. CODE OF BUSINESS ETHICS SIGN OFF BY EMPLOYEES AND EXCO The Group communicates the Code of Business Conduct to its employees upon their employment. The Code of Business Conduct reinforces the Group’s core value on integrity by providing guidance on moral and ethical behaviour that is expected from all employees in following applicable laws, policies, standards and procedures. Every six months or half yearly, the employees and EXCO of the Group confirm compliance via the Code of Business Conduct Questionnaire for disclosure of any irregularities or breach of the Code of Business Conduct. The feedback from the Code of Business Conduct Questionnaire is considered by the EXCO and further deliberated by the ARMC. There were no irregularities or breaches in this financial year. CONTROL ACTIVITIES MONITORING AUTHORITY ETHICS & COMPLIANCE KEY ELEMENTS