BWP TRUST ANNUAL REPORT 2015
27
RISK CONTROL AND COMPLIANCE
As a registered managed investment scheme, the responsible
entity has a compliance plan that has been lodged with the
Australian Securities and Investments Commission (ASIC) and a
copy of the compliance plan can be obtained from ASIC.
The compliance plan is reviewed comprehensively every year
to ensure that the way in which the responsible entity operates
protects the rights and interests of unitholders and that business
risks are identified and properly managed.
In particular, the compliance plan establishes processes for:
>> identifying and reporting breaches of, or non-compliance with, the
Corporations Act, the compliance plan, the constitution of the Trust
and the responsible entity’s Australian Financial Services Licence;
>> complying with the ASX Listing Rules;
>> protecting Trust property;
>> ensuring proper acquisition and disposal practices are followed
in regard to Trust property;
>> ensuring the timely collection of Trust income;
>> completing regular valuations of Trust property;
>> the maintenance of financial and other records to facilitate
preparation of audited/reviewed financial reports;
>> ensuring proper and timely distributions to unitholders;
>> complying with the Trust’s investment objectives;
>> managing investment risk;
>> managing potential conflicts of interest with the various related
parties of the Trust;
>> holding and maintaining adequate insurance cover;
>> ensuring that borrowing occurs only within permitted limits and
ensuring that borrowing terms are complied with; and
>> handling complaints relating to the Trust.
KPMG, the external auditor of the compliance plan, has completed
its annual audit for the year ended 30 June 2015. No material
breaches of the plan were identified as a result of this audit.
The Audit and Risk Committee is also responsible for assisting
the board in overseeing the Trust’s risk management framework.
The committee is responsible for reviewing the effectiveness of
the framework at least annually to satisfy itself that it continues
to be sound. A review was conducted during the reporting period.
In addition to the compliance plan, the responsible entity has in
place a number of risk management controls which include the
following:
>> risk management policy and risk register, with regular risk
reviews;
>> guidelines and limits for the approval of capital and operating
expenditure;
>> policies and procedures for the management of financial risk,
including exposure to financial instruments and movement in
interests rates; and
>> an insurance and risk management programme.
INTERNAL AUDIT
The Audit & Risk Committee periodically assesses the
requirement for an internal audit function. The Committee
considers such factors as complexity, diversity and scale of the
Trust’s activities, the number of employees and corporate culture,
as well as organisational activities or unacceptable trends that
would indicate a requirement for an internal audit function. The
Board also takes into account other service providers providing
assurances to the responsible entity, such as independent
experts, independent valuers, legal advisers, external and
compliance auditors, quarterly compliance manager reviews
and environmental specialists. A review was conducted during
the reporting period, and it was determined that an independent
audit function was not warranted.
Manly West, QLD
