Principle 4 - Safeguard integrity in corporate reporting

Related key governance documents:

4.1 Board Audit Committee

To ensure the accurate presentation of each Trust’s financial position, DXFM has in place a structure of review and authorisation, where the Board Audit Committee reviews (among other matters):

  • Financial statements of each entity
  • Independence and competence of the external auditor
  • Semi-annual management representations to the Committee, affirming the veracity of each entity’s Financial Statements
  • Treasury and Tax related matters such as funding strategies, distribution payout ratio, periodic market guidance and tax risk policy

The Board Audit Committee’s Terms of Reference require that all members are Non-Executive Directors with financial expertise and an understanding of the industry in which Dexus operates. The Board Audit Committee:

  • Has access to management
  • Has unrestricted access to external auditors without management present
  • Has the opportunity to seek explanations and additional information as it sees fit
  • May also obtain independent professional advice in the satisfaction of its duties at the cost of the Group and independent of management

The Board Audit Committee meets as frequently as required to undertake its role effectively, but not less than four times a year, and the external auditor (PwC) is invited to attend all meetings. The Board also requests that the external auditor of DXFM and its related trusts and entities, attends the Annual General Meeting of the Group and is available to answer questions relating to the audit of the Group’s financial statements, preparation and content of the auditor’s report, the accounting policies adopted by the Group and auditor independence.

From 1 July to 24 October 2017, the members of the Board Audit Committee were:

  • Peter St George, Chair, Non-Executive Director
  • Elizabeth Alexander AM, Non-Executive Director
  • Tonianne Dwyer, Non-Executive Director
  • Mark Ford, Non-Executive Director

From 25 October 2017, John Conde joined as a member replacing Elizabeth Alexander and the Board Audit Committee now consists of the following members:

  • Peter St George, Chair, Non-Executive Director
  • John Conde AO, Non-Executive Director
  • Tonianne Dwyer, Non-Executive Director
  • Mark Ford, Non-Executive Director

The qualifications and experience of each of the Board Audit Committee members can be found at All of these directors are independent, including the Chair. During the Reporting Period, the Board Audit Committee met four times and all members attended all meetings of the Board Audit Committee.

The following are provided to the Board Audit Committee:

  • Representations from the Chief Executive Officer and the Chief Financial Officer on a semi-annual basis on the veracity, maintenance and compliance with laws of the Financial Statements and effectiveness of the financial risk management systems
  • A fraud risk questionnaire completed by the Group Risk Committee semi-annually to advise of any instances of actual or perceived fraud during the period

The Board Audit Committee Terms of Reference is available at

To ensure the independence of the statutory auditor, the Committee has responsibility for approving the engagement of the auditor for any non-audit service greater than $100,000. At 30 June 2018, fees paid to the external auditor for non-audit services were 7.7% of audit fees.

Dexus’s policy on the selection and appointment of the external auditor is outlined in the Auditor Independence Policy available at

During 2017, the Board Audit Committee also focused on:

  • Valuation of investment properties and indefinite life intangible assets
  • Investment property transfers to inventory
  • Capital management and derivative valuations
  • Financial risks and controls environment
  • Education sessions on current topics of interest
  • Financial forecasts and funding plans
  • Impact of the new Healthcare Wholesale Property Fund
  • Upgrade of FY18 guidance
  • Preparation work for new accounting standard for revenue recognition (AASB 15) and financial instruments (AASB 9)
  • Oversight (with Board Risk Committee) of a project led by management to review and enhance key business controls
  • Financial risks and controls environment