Report of the audit committee

for the year ended 30 June 2014

The audit committee has pleasure in submitting its report, as required by section 94(7)(f) of the Companies Act, for the period under review.

The committee is governed by a formal charter that codifies its role and responsibilities, including the responsibility for reviewing accounting, auditing and financial reporting matters. The committee reviews adherence to Hyprop’s systems of internal controls and, where necessary, monitors improvements.

Members

The committee comprises only independent non-executive directors, in compliance with King III requirements and the South African Companies Act. The external and internal auditors and executive management are invited to attend every meeting.

Functions

During the period, the audit committee:

	Monitored any proposed changes to accounting policies
	Advised the board on any accounting implications of major transactions
	Reviewed the internal audit function
	Recommended the appointment of external auditors for approval by unitholders
	Established guidelines for recommending the use of external auditors for non-audit services to maintain independence
	Monitored compliance with REIT requirements, in accordance with JSE Listings Requirements

The audit committee is satisfied:

	With the independence of the external auditor, Grant Thornton, after considering the report to the audit committee motivating its independence and has recommended its reappointment at the forthcoming annual general meeting
	With the terms, nature, scope and proposed fee of the external auditor for the year ended 30 June 2014
	With the financial statements and accounting practices used in their preparation and will recommend the integrated report, including the financial statements, to the board for approval
	With the company’s continuing viability as a going concern, which it has reported on to the board for the board’s deliberation
	That the company’s financial director, Laurence Cohen, had the necessary expertise and experience to carry out his duties, as required by the JSE Listings Requirement 3.84(h)

All concerns and complaints received from within or outside the group relating to accounting practices and internal financial controls, and the content or auditing of the company’s financial statements were considered by the audit committee and dealt with as appropriate.

Lindie Engelbrecht
Audit committee chairman

29 August 2014