audit committee operating statement approved 5.04.10

NORTHWEST FARM CREDIT SERVICES BOARD OF DIRECTORS Audit Committee Operating Statement Board Approved: May 2010 Members: Christy Burmeister-Smith, Chair Herb Karst, Vice Chair Jim Farmer Karen Schott Kevin Riel Dave Nisbet Coordination of Committee Activities. The agenda and activities of each board committee may overlap or impact that of other committees. To ensure effective committee and board operations, each committee will through communications, minutes and board reporting endeavor to ensure the close and effective coordination of all committee activities. Purpose—Key Objectives. To assist the board of directors in fulfilling its oversight responsibilities for internal controls, the integrity of the association's financial statements, the association's compliance with legal and regulatory requirements, the external auditor's qualifications and independence, and the performance of the association's internal audit function and external auditors. 1. Promote Northwest FCS’ awareness of, and commitment to, establishing a strong internal control environment. 2. Determine the adequacy of Northwest FCS’ internal controls and evaluate adherence to them. 3. Provide independent and objective review of the reliability and integrity of financial information presented to stockholders, regulators and the general public. 4. Maintain, by scheduling regular meetings, open lines of communication among the Board, internal auditor and external ...