HDB Annual Report 2020/2021

Board Members The HDB Board derives its strength from its depth and diversity of expertise, providing the necessary guidance to HDB to navigate towards its mission. The Board Members are respected individuals in their fields with extensive public and corporate sector experience. All Board Members are non-executive members, except for the Chief Executive O cer. Internal Control Framework HDB’s internal control system ensures that assets are safeguarded, proper accounting records are maintained, and financial information is reliable. The overall control framework includes clearly defined authority, delegation limits, reporting mechanisms, appropriate terms of reference for management of core policy areas, comprehensive policies/ procedures relating to operations and financial controls, and an annual budgeting and monthly financial reporting system for all operating units. Audit and Risk Committee The Audit & Risk Committee assists the Board in maintaining a high standard of corporate governance, particularly in the areas of financial reporting, risk governance and the internal control systems of HDB. Consisting of members from the HDB Board, the Audit & Risk Committee considers any matter which, in its opinion, should be brought to the Board’s attention and has explicit authority to independently investigate any matter within its terms of reference. Fraud and Wrongful Practices Reporting Channel HDB has a Fraud and Wrongful Practices Reporting Channel (FWPC) to reinforce HDB's commitment to a culture of integrity and transparency within the organization. HDB sta can use the FWPC to report suspected fraudulent incidents and wrongful practices directly to the Chairman of the Audit & Risk Committee of the Board, who would oversee incidents reported and investigated. Internal Audit Function HDB’s Internal Audit Group advises all levels of management on the quality of HDB and its Subsidiary's operations with particular emphasis on systems of internal control. Reporting directly to the Audit & Risk Committee, it conducts risk-based audits and addresses its findings and recommendations to the appropriate level of management who are able to take the necessary action. It adheres to the Standards and Guidance of The Institute of Internal Auditors. Annual Audit The audit findings by the External Auditor in the course of the annual financial audit as well as audit findings from selective audit performed by the Auditor-General’s O ce are reported to the Audit & Risk Committee, the Board, and the Ministry of National Development (MND). The annual financial statements are endorsed by the Audit & Risk Committee for the Board’s approval. 47 HDB ANNUAL REPORT 2020/21 CORPORATE GOVERNANCE