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The Fund takes seriously its role as custodian of members’ hard-earned savings ... Board, Management and staff continue to be coached and guided on ethical standards required for the achievement of key objectives.
These measurements are based on standards of right and wrong, principles of conduct, behaviour, fairness and integrity, accountability, professionalism, innovation and excellence. Awareness programmes were conducted for staff to reinforce ethical standards. Policy-Based Governance The Board, in accordance with its overarching philosophy of good corporate governance, approved nine policies during the financial year. These include:
and the risk management system and processes for the Fund. A review of the Fund’s risk profile was carried out in November 2011 that included a risk management workshop for the Management Team. A revised risk profile was endorsed by the Board Audit and Risk Committee to implement risk treatment plans. Progress reports on the implementation of treatment plans are tabled to the Management Taskforce on Audit and Risk and the Board Audit and Risk Committee on a quarterly basis. A Business Continuity Plan is in place to ensure that FNPF can restore its business in minimal time should a disaster or crisis occur. Simulation tests were carried out to evaluate the effectiveness of the plan. On disaster preparedness and management, FNPF staff undertook fire drill exercises and disaster evacuation drills to prepare them for such calamities. Compliance Management The Fund continued to meet its regulatory and statutory requirements provided under the laws of Fiji and the Reserve Bank of Fiji (RBF) Prudential Supervision Policy Statements. The FNPF established a Compliance Unit under the Corporate Governance department. A Compliance Management Framework is in place to enforce, monitor and report compliance in the Fund. Compliance checks on the regulatory and statutory requirements were carried out and reported to the Board Audit and Risk Committee. Action plans with specific timelines were identified to address areas of non-compliance. Reserve Bank Of Fiji Prudential Supervision The Fund strengthened its relationship with the RBF
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ANNUAL REPORT 2012 - FIJI NATIONAL PROVIDENT FUND
through monthly meetings to discuss prudential matters and updates on the reforms. The Bank conducted an on-site examination in November 2011 and provided a report of its findings and recommendations for implementation by the Fund, which is managed by the Management Taskforce on Audit and Risk and the Board Audit and Risk Committee. Quality Assurance And Complaints A quality assurance framework was established to assist in the successful implementation of a quality system for the Fund, benchmarked to the ISO standards. Action plans have been identified to set the platform for the ISO project to be undertaken. Business units continued to standardize and document operational procedures to ensure consistency in service delivery throughout the organisation.
• FNPF Corporate Governance Policy – this policy establishes the key principles that form the basis of the Fund’s governance framework to deliver good governance, sound business practices and stakeholder confidence at all levels of the organization, benchmarked to international standards. • Finance Manual – this sets out the financial and accounting policies and procedures necessary to control and record members’ funds, properties, assets and liabilities. It also establishes the financial responsibility and commitment of the Fund and the necessary controls to ensure that financial risks are mitigated. • Pension Policy – the policy sets standard guidelines for the changes that were implemented through the pension reform beginning 26 November 2011 to 29 February 2012 and the new pension scheme that came into effect on 01 March 2012. • Conflict of Interest Policy – this will ensure good governance through effective management of conflict of interest in the Fund and proper disclosure of interest as required under section 21 of the FNPF Decree 2011. • Policy on Audit of Subsidiaries – the policy allows the Internal Audit Department to carry out internal audits of all those entities in which the Fund holds 51 per cent or more of the equity shareholding.
Member complaints were also managed and resolved through the Fund’s complaints management system within the targeted processing time of 5 working days. The system includes an escalation process to ensure the complaints are resolved on time. Monthly complaints reports are circulated to the management team and quarterly reports RBF. During the year, the Fund registered a total of 131 complaints, which was a 49 per cent reduction from last year.
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he audit planning methodology was revised from activity-based high-risk areas to departments with high risk being prioritized in the annual work plan for assurance audits. Changes in audit conduct were made in departmental audits with emphasis placed on compliance, internal control, risk management and administration areas. A grading system supported by an Audit Grading Policy was also introduced, with rewards for high achievers and penalties for those whose grade was below satisfactory. Necessary changes arising from these changes were effected in the Internal Audit Policy and Procedures Manual. Fraud and Corruption Plan During the year, a Fraud and Corruption plan was developed and endorsed by BARC, in accordance with the Australian Standard (AS) 8001-2008 Fraud and Corruption Control and modified to suit the requirements of the Fund. The plan is driven by a detailed Action Plan and the establishment of a Fraud and Corruption Control Management and Ethics Committee, which is chaired by the Chief Executive. It allows the Fund to deal with fraud and corruption issues from prevention, detection and investigation, and process improvement perspectives. Pension Reform Internal Audit played a consulting role in the planning and management of the the pension reform project. This role was performed on agreed-upon procedures with the project sponsor. Audit reviews were carried out on data migration to the Pension Counselling Application and Pension Administration Systems, which were built inhouse by the Fund’s Systems Development team. The Fraud and Corruption team also provided assurance on cases that were classified as critical during the pension registration process.
Subsidiaries and Controlled Entities The formalisation of the policy on audit of subsidiaries led to assurance audits of the majority of the whollyowned subsidiaries and reviewed monthly bank reconciliations. The audits were also graded in accordance with the Audit Grading Policy of the Fund.
Ethical Standards The Fund continued to coach and guide staff on ethical standards required of all employees, which defines the behaviour required for the achievement of key objectives.
INTERNAL AUDIT
Audit Consultations Audit consulting activities such as review of monthly bank reconciliations, prudential reports, observing stocktakes and cash surveys, review of withdrawals from the Unclaimed Deposits Accounts prior to payment and carried out follow-up audits. Executive and Management Balance Score Cards, staff job-fit index rewards, finance manual and draws for the Fund’s SUPERTxt promotion also came under review.
Meetings and brainstorming sessions were carried out with Business Units to ensure reduction in recurring complaints and improvements to service delivery.
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FIJI NATIONAL PROVIDENT FUND ANNUAL REPORT 2012
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