Ren Ci (“the Organisation”) recognises the importance of having a well-defined corporate governance system and processes, and is fully committed to upholding high standards of transparency and accountability within the Organisation to our stakeholders.
The Board has established Sub-Committees, each chaired by its Board members to assist in the execution of its responsibilities. The eight Sub-Committees are:
• Audit Committee
• Building Committee
• Community Engagement Committee
• Governance & Risk Committee
• Human Resource Committee
• Investment Committee
• Medical Advisory Committee
• Nominating Committee
The activities of each of the Sub-Committees during the financial year are as follows:
The Audit Committee (“AC”) has held four meetings since the date of the last directors’ report and carried out the functions of an audit committee as specified in the terms of reference approved by the Board of Directors. In carrying out its functions, the AC reviewed the overall scope of both the external and internal audits and met with the Hospital’s external and internal auditors to discuss the results of their examinations and their evaluation of the Hospital’s system of internal controls. The AC also reviewed the financial statements of the Hospital.
During the financial year, the internal auditor Ernst & Young Advisory Pte Ltd (“EY”) has conducted internal audit on the area of network security and guided the Hospital on the establishment of the control self-assessment (“CSA”) framework.
The CSA framework is an initiative by the Hospital to strengthen internal control processes, create a stronger awareness of risk practices and establish a clearer line of accountability for controls.
According to the framework, CSA questionnaires were developed, completed and validated by EY for the following key processes below:
• Donation Collection and Recording
• Patients’ Collection and Account Receivable Management
• Patients Admission and Ward Operations
The Building Committee reviewed the design of Ren Ci @ Woodlands, which is expected to commence operation in Q1 2022. The Committee provided valuable insights and proposed changes for better quality of design and space utilisation in areas such as the main lobby, household bathroom entrances, staff quarters’ lounge, single/double bed clustering, and the access to holding rooms. The Committee also visited the mock-up of a typical Nursing Home Household of Ren Ci @ Woodlands and provided valuable inputs on the design. The Committee met twice during the year.
Community Engagement Committee
The Community Engagement Committee reviews fundraising initiatives, management and development of volunteers as well as key corporate collaterals such as the annual report. The committee also played an active role during our 25th Anniversary Celebration. The committee worked closely with other key Board Members to solicit funds for our major fundraising activities during each financial year and at the same time carried out oversight over these regular fundraising events.The Community Engagement Chairman, Co-Chairman and its committee members also attended dialogue sessions and events involving volunteers’ development. The Committee met formally twice during the year.
Governance & Risk Committee
The Governance & Risk Committee reviewed the [Terms of Reference for Board of Directors] policyto ensure that itremains relevant to support a strong governance and enhance theoperating performance and efficienciesof the organisation.
The Committee also provided guidance over the review of Ren Ci 2019 Risk Register, as well as endorsed the Governance Statement and the online governance evaluation submitted to the Charity Portal for which all areas in the checklist were met.
For the 4th consecutive year, the Hospital was awarded the Charity Transparency Awards to recognise its efforts in continually improving governance and transparency.
The Committee met once during the year.
Human Resource Committee
The HR Committee met quarterly and reviewed human resources policies and processes, and aligned some of the best practices from the sector. The Committee reviewed and endorsed the Management’s proposal for remuneration adjustments and bonus pay out on annual basis. To further enhance talent attraction and retention, the Committee reviewed and endorsed Management’s proposal for benchmarking of salary structure initiatives and market adjustments for all family groups.
As part of leadership development, the committee endorsed Management’s update on the Succession Planning and Development for critical positions in the organisation.
During the year, the Investment Committee, which was appointed by the Board, has provided guidance and feedback on matters relating to investments and investment policies for the Hospital.
The Investment Committee with approval from the Board has:
• Reviewed the investment strategy, policy and guidelines.
• Expanded the mandate to an existing fund manager.
• Replaced the existing 2 fund managers with a new fund manager to achieve the desired strategic assets allocation, risk diversification and investment outcomes.
The Investment Committee also evaluated the appointed fund managers’ strategies and assessed their performances on a quarterly basis to ensure the investment portfolios meet the overall investment objectives and guidelines of the Hospital.
Medical Advisory Committee
The Medical Advisory Committee endorsed the waiver of competition for both proprietary and non-proprietary pharmaceuticals, and clinical services. Patient care-related incidents and complaints were reviewed, with particular emphasis on recommendations for improvement, as well as recommendations to explore good practices. Besides review of the clinical quality indicators, the Committee encouraged continuing collaboration amongst staff and healthcare partners. Collaborative research projects with acute hospital like TTSH and, tertiary education institution like NUS were reviewed by the committee. The Committee met four times during the year.
By referencing the Charity Council’s Code of Governance, the Nominating Committee supports succession planning, and maintains an energised and effective Board through the policy for Board renewal and Performance Evaluation. The policy included the following key requirements:
• Nomination and renewal of board every 2 years,
• Board skills matrix as part of succession planning,
• Orientation and induction within 2 months for new Board members, and Annual Board Self-Assessment exercise to gauge the effectiveness of the Board’s performance. The results were discussed at the subsequent Board meeting to identify areas of improvement.
The Board and Sub-Committees renewal exercise for the term 1 July 2019 to 30 June 2021 were conducted. The key changes are follows:
• 7 Board members have stepped down
• 7 new Board members were recruited
• New Audit Committee and Investment Committee Chairpersons were appointed respectively as the past immediate Chairpersons have served four consecutive years
All Sub-Committees are empowered to decide matters within their Terms of Reference ansuch decisions shall be referred to the Board of the Hospital for ratification.