Pg 147 - Berjaya Corporation Berhad

of and adhere to the policies and procedures that are outlined inthe respective divisions’ system of internal control. Among suchprocesses are the Daily Morning briefing meetings and customerfeedback evaluation at the Leisure Division’s hotels, and variousSite and Project meetings with Consultants and the TenderCommittee’s review and recommendation of contractors at theProperty Division.The Group’s Gaming Division operates through its associatedcompanies, Berjaya Sports Toto Berhad (“BToto”) and MatrixInternational Berhad (“Matrix”). The Board has a process in placewhereby representatives of the Group sit on the Boards of BTotoand Matrix respectively, to serve the Group’s interests.The Board does not regularly review the internal control system ofits other associated companies although management accountsare provided for information, as the Board does not have anydirect control over their operations.Key Features of the Internal Control SystemSome of the identified key features of the Group’s system ofinternal control include:• Timely financial and operations reports• Scheduled operations and management meetings• Standard operating procedures for the Leisure Division• Clear organisation structure and delineated reporting lines• Defined levels of authority• Capable workforce with ongoing training efforts• Formal employee appraisal system which enables appraisal ofemployees and rewarding employees based on performance• Centralised procurement function that ensures approvalprocedures are adhered to, as well as to leverage on theGroup’s purchasing power• Payment functions controlled at Head Office• Independent assurance on the system of internal control fromregular internal audit visitsAssurance MechanismThe Board has assigned the Audit Committee with the duty ofreviewing and monitoring the effectiveness of the Group’s internalcontrol. The Audit Committee receives assurance reports fromboth the internal and external auditors. The Internal Audit functionfurnishes the Audit Committee with reports from visits conducted atvarious operating units. The external auditors provide assurance inthe form of their annual statutory audit of the financial statements.Further, any case for improvement identified during the courseof the statutory audit by the external auditors are brought to theattention of the Audit Committee through management letters, orare articulated at Audit Committee meetings.The Board also reviews the minutes of meetings of the AuditCommittee. The Report of the Audit Committee is set out onpages 22 to 24 of the Annual Report.The Board remains committed towards operating a sound systemof internal control and therefore recognises that the systemmust continuously evolve to support the type of business andsize of operations of the Group. As such, the Board, in strivingfor continuous improvement will put in place appropriate actionplans, when necessary, to further enhance the Group’s system ofinternal control.Berjaya Land Berhad (201765-A) Annual Report 200629