Purpose: The Audit and Risk Committee assists the Board of Trustees in fulfilling its oversight responsibilities for (1) the financial reporting process and system of internal control, (2) the external auditors’ qualifications, independence, and performance, (3) the adequacy and effectiveness of the process for monitoring compliance with laws, regulations, and the code of ethics, and (4) the adequacy and effectiveness of risk management practices.
Skills needed: Financial literacy is required; Experience in one or more of the following areas is helpful: audit committee experience; finance; enterprise risk management; technology/IT; investment/endowment management; publishing; health plans; strategic planning; diversity, equity and inclusion; human resources; law; not-for-profit industry knowledge; leadership roles; marketing/public relations; accounting; auditing
Length of term: 2 years (with a max. of 4 consecutive terms)
Meetings: 3 meetings per year, 4 hours each
Additional important info: There are pre-read materials for most meetings including audit firm communications, draft financial statements, and information from management about various risk management areas. It is expected that committee members will have reviewed the materials in advance and be prepared to discuss them at the meeting.
Under the charter, at least one member of the audit committee is to be a "financial expert" - which involves 1) an understanding of generally accepted accounting principles and financial statements; 2) the ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves; and 3) experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the Association's; 4) an understanding of internal controls and procedures for financial reporting and 5) an understanding of audit committee functions.