Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 14811 The Committee, in turn, reports to the Board of Directors, which provides oversight and guidance over risk management matters in NEA. *With effect from 1 February 2016, the Enterprise Risk & Safety Steering Committee has been chaired by NEA’s Deputy Chief Executive Officer. Code Of Conduct The Board of Directors is guided by a set of key principles to ensure fairness and impartiality in carrying out its responsibilities, as well as to uphold the integrity and reputation of the Public Service. NEA also has an internal code of conduct that applies to all employees. Called the NEA Person Code, the code of conduct sets out NEA’s vision, mission and values, appropriate conduct, procedures concerning conflicts of interest, confidentiality guidelines and proper financial stewardship. The Code also sets out principles to guide employees in discharging their duties and responsibilities to the highest standards of personal and corporate integrity. In the event of a breach of discipline, an NEA Disciplinary Policy details the appropriate procedures to deal with the breach. Audit Internal Audit The Internal Audit Department advises NEA’s management and the Audit Committee on the system of internal controls in NEA. Reviews performed by the Internal Audit Department assist the Board in promoting good corporate governance by assessing the design and operating effectiveness of controls. The reviews also focus on compliance with NEA’s policies and procedures. External Audit ExternalauditorsprovidetheBoardwithanindependent opinion on NEA’s Financial Statements, offering reasonable assurance that the Financial Statements are free from material misstatements and highlighting areas where NEA’s system of internal controls and accounting procedures can be strengthened. The Audit Committee assesses the external auditors based on factors such as the quality of their audit and the independence of the auditors, and recommends their appointment to the Board. In order to maintain the independence of the external auditors, the external auditors are required to declare their state of independence to the Audit Committee prior to appointment. 10 CORPORATE GOVERNANCE Board of Directors The Board provides strategic direction and oversight of NEA’s functions and goals, and steers the organisation in fulfilling its vision and mission. In 2015, the Board comprised 13 members with diverse and extensive experience from both the private and public sectors. All members are appointed by the Minister for the Environment and Water Resources. Led by Board Chairman Mr Liak Teng Lit, the Board set up three Board Committees to assist it in the execution of its responsibilities for FY15/16. The Committees are: Audit Committee The Audit Committee assists the Board in maintaining a high standard of corporate governance, particularly in the areas of financial accounting and reporting, and internal control systems. Chaired by Mr Ong Chao Choon, the Audit Committee comprises Mr Lee Chuan Seng, Ms Lynette Leong and Mr Sim Gim Guan. The Committee reviews the annual accounts, audit plans, internal control systems and audit reports of NEA with NEA’s external and internal auditors. Human Resource Committee The Human Resource Committee assists the Board in ensuring an objective and fair performance management process for NEA. Chaired by Mr Liak Teng Lit, the Human Resource Committee comprises NEA’s Chief Executive Officer and Mr Tan Peng Yam. Board Strategy Committee Formed in 2009, the Board Strategy Committee, chaired by Mr Liak Teng Lit, provides strategic guidance to NEA’s management. The Committee comprises NEA’s Chief Executive Officer and Board Members Mr Zainal bin Sapari, Mr Ashvinkumar s/o Kantilal, Professor Chia Kee Seng and Mr Han Fook Kwang, Ms Lee Huay Leng and Dr Chitra Rajaram. Management Management Committee In addition to these three Board Committees, NEA also has a Management Committee (MC) made up of NEA’s Chief Executive Officer and senior management. The MC meets regularly to review and direct management and operational policies and activities. It also plays a pivotal role in leading NEA’s transformational efforts. Through strategically themed meetings and projects, the MC guides the agency in becoming more effective in its dual roles of regulator and champion for the environment. These efforts are aimed at improving how NEA is organised, enabling it to achieve better results by working smarter, by winning hearts and minds and by operating at its best. Enterprise Risk & Safety Steering Committee The Enterprise Risk & Safety Steering Committee is chaired by NEA’s Chief Executive Officer and is made up of the Deputy Chief Executive Officer*, Director- Generals, Group Directors, Divisional Directors and Chairpersons of selected Safety Committees, with Head (Internal Audit) serving as an observer. The Committee meets every quarter to review key strategic and operational risks facing NEA and the progress of risk treatment plans for these identified risks. It reviews and ensures that relevant risks have been highlighted and prioritised by the relevant departments, and that these risks are being adequately addressed and followed up upon. The Committee also reviews the effectiveness of these risk treatment plans as well as studies trends and emerging issues that may have an impact on the risks threatening NEA. NEA ANNUAL REPORT 2015 / 2016 NEA ANNUAL REPORT 2015 / 2016