Transaction, the ARC also carries out reviews at appropriate intervals to satisfy itself that the Manager has reviewed the property manager's compliance with the terms of the property management agreement and has taken remedial actions where necessary; and (g) reviewing the policy and arrangements for concerns about possible improprieties in financial reporting or other matters to be safely raised, and independently investigated, for appropriate follow up action to be taken. In addition to the above, the ARC also reviews the assurance from the CEO and the CFO on the financial records and financial statements. The ARC undertook a review of the independence of the external auditors, taking into consideration, among other factors, the non-audit services provided, CICT's relationships with the external auditors in FY 2023, as well as the processes and safeguards adopted by the Manager and the external auditors relating to audit independence. Based on the review, the ARC is satisfied that the independence of the external auditors is not affected by the provision of the non-audit services. The external auditors have also provided confirmation of their independence to the ARC. The fees paid or payable to the external auditors for FY 2023 amounted to S$961,289 of which audit (and audit-related fees) amounted to S$918,858 and non-audit fees amounted to S$42,431. As part of CICT’s ongoing good corporate governance initiatives, the Board has concurred with the ARC’s recommendation for the proposed appointment of Deloitte as the independent external auditors of CICT which is being tabled for approval at the upcoming AGM. Further details on the proposed appointment of Deloitte as external auditors is set out in the Notice of AGM dated 28 March 2024 under Ordinary Resolution 2 and in the Letter to Unitholders regarding the proposed change of external auditors dated 28 March 2024. The incumbent external auditors, KPMG will be retiring and will not be seeking re-appointment as external auditors of CICT for FY 2024. The ARC holds at least four scheduled meetings in a year and met six times in FY 2023. At all ARC meetings in FY 2023, the CEO and the CFO were in attendance. CICT adopts the practice of announcing its financial statements on a half-yearly basis and provides quarterly business updates in between such announcements or as and when necessary. Accordingly, during the ARC meetings scheduled in January and July each year, among other things, the ARC reviews the half-yearly financial statements, including the relevance and consistency of the accounting principles adopted and any significant financial reporting issues, and recommends the half yearly financial statements and corresponding announcements to the Board for approval. During the ARC meetings scheduled in April and October each year, the ARC reviews, among other things, the quarterly business and financial updates presented by Management. Such business updates contain, among other things, information on the CICT Group's key operating and financial metrics. In FY 2023, the ARC also reviewed and assessed the adequacy and effectiveness of the internal controls and risk management systems established by the Manager to address the material risks faced by the CICT Group, taking into consideration the outcome of reviews conducted by Management and both the internal and external auditors, as well as the assurances from the CEO and the CFO. The ARC also meets with the external auditors and internal auditors, without the presence of Management, at least once a year. In FY 2023, the ARC met with the external auditors and internal auditors twice, separately and without Management's presence, to discuss the reasonableness of the financial reporting process, the internal controls and risk management systems, and the significant comments and recommendations by the auditors. Where relevant, the ARC makes reference to the best practices and guidance for audit committees in Singapore including practice directions issued from time to time in relation to the Financial Reporting Surveillance Programme administered by the Accounting and Corporate Regulatory Authority of Singapore. Key Audit Matter In the review of the financial statements of CICT Group for FY 2023, the ARC has discussed with Management the accounting principles that were applied and their judgement of items that might affect the integrity of the financial statements and also considered the clarity of key disclosures in the financial statements. The ARC reviewed, amongst other matters, the following key audit matter as reported by the external auditors for FY 2023. Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 157
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