Attached files
file | filename |
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10-K - FORM 10-K - Federal Home Loan Bank of New York | c14331e10vk.htm |
EX-10.06 - EXHIBIT 10.06 - Federal Home Loan Bank of New York | c14331exv10w06.htm |
EX-12.01 - EXHIBIT 12.01 - Federal Home Loan Bank of New York | c14331exv12w01.htm |
EX-10.14 - EXHIBIT 10.14 - Federal Home Loan Bank of New York | c14331exv10w14.htm |
EX-99.01 - EXHIBIT 99.01 - Federal Home Loan Bank of New York | c14331exv99w01.htm |
EX-32.01 - EXHIBIT 32.01 - Federal Home Loan Bank of New York | c14331exv32w01.htm |
EX-31.02 - EXHIBIT 31.02 - Federal Home Loan Bank of New York | c14331exv31w02.htm |
EX-31.01 - EXHIBIT 31.01 - Federal Home Loan Bank of New York | c14331exv31w01.htm |
EX-32.02 - EXHIBIT 32.02 - Federal Home Loan Bank of New York | c14331exv32w02.htm |
EX-10.05 - EXHIBIT 10.05 - Federal Home Loan Bank of New York | c14331exv10w05.htm |
Exhibit 99.02
FEDERAL HOME LOAN BANK OF NEW YORK
AUDIT COMMITTEE CHARTER
AUDIT COMMITTEE CHARTER
Approved by the Board of Directors on May 13, 2010
Effective as of May 13, 2010
Effective as of May 13, 2010
I. INTRODUCTION
The charter of the Federal Home Loan Bank of New Yorks (Bank) Audit Committee (Committee) has
been adopted and approved by the Banks Board of Directors (Board) and is intended to comply with
applicable laws, rules and regulations of the Federal Housing Finance Agency (FHFA) and the
Securities and Exchange Commission (SEC). The Committee has committed to adopt to the extent
possible those best practices that pertain to audit committees of public companies and which are
relevant to the Bank, taking into account the cooperative structure of the Bank and the
congressionally-mandated and regulatory requirements applicable to the Bank.
II. PURPOSE OF THE AUDIT COMMITTEE
The purpose of the Committee shall be to assist the Board in fulfilling its oversight
responsibility relating to:
| The integrity of the Banks financial statements and financial reporting process and
systems of internal accounting and financial controls; |
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| The Banks compliance with applicable laws and regulations; |
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| The Banks consistency with the FHFAs Examination Guidance for Accounting Practices; |
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| The establishment, maintenance, and performance of the Internal Audit function; |
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| The annual independent audit of the Banks financial statements; and |
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| The independence, qualifications, and performance of the Banks Independent Registered
Public Accounting Firm. |
It is not the duty of the Committee to plan or conduct audits of the financial statements as these
are the responsibilities of the Independent Registered Public Accounting Firm. It is also not the
duty of the Committee to determine that the Banks financial statements and disclosures are
complete and accurate and in accordance with generally accepted accounting principles (GAAP) as
these are the responsibilities of management.
III. AUTHORITY
The responsibility of the Committee is limited to matters upon which the Board of Directors has the
authority to make a final determination. The Committee shall have the authority to establish other
rules and operating procedures in order to fulfill its obligations under this charter.
The Committee shall utilize resources to conduct or authorize investigations into any matters
within their duties and responsibilities. This includes retaining, and obtaining advice from,
independent counsel, accountants, and other advisers, as it determines necessary to carry out its
duties.
The Bank shall provide for appropriate funding, as determined by the Committee, for payment of
compensation to the Independent Registered Public Accounting Firm and any counsel, accountants or
other advisers retained by the Committee.
At its discretion, the Committee shall have direct access to the Independent Registered Public
Accounting Firm, Chief Financial Officer, Chief Audit Officer (CAO) and upon request, any other
officer or employee of the Bank. The Committee shall maintain an open and unrestricted
communication channel with all Bank personnel, including internal and external auditors.
IV. DUTIES AND RESPONSIBILITIES OF THE AUDIT COMMITTEE
The Committees responsibilities will be discharged through reviews of audit universe, annual
internal audit plan, audit reports, and discussions with internal and external auditors and Bank
management.
To fulfill its duties and responsibilities the Committee shall:
A. | Oversight of Financial Reporting |
| Timely obtain and review reports delivered from the Independent Registered Public
Accounting Firm; |
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| Review the Banks financial statements and the Independent Registered Public
Accounting Firms opinion rendered with respect to the financial statements, including
the nature and extent of any significant changes in accounting principles or the
application therein; |
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| Review and discuss the annual audited financial statements with management, the
internal auditors and the Independent Registered Public Accounting Firm, including the
Banks disclosures under Managements Discussion and Analysis of Financial Condition
and Results of Operations, prior to announcement, publication or filing, and obtain
explanations from management for any significant variances from the prior periods.
Recommend to the Board that the audited financial statements be included in the Banks
SEC Form 10-K; |
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| Discuss with the Independent Registered Public Accounting Firm the requirements of
Statement of Auditing Standards (SAS) 114, which supersedes SAS 61, regarding
communications with audit committees and SAS 89, pertaining to uncorrected
misstatements and the quality of the Banks accounting principles and underlying
estimates in the financial statements; |
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| Review and discuss, with the Independent Registered Public Accounting Firm and
management representatives, Bank quarterly financial information provided for the
Federal Home Loan Bank Systems combined financial reports, and the Banks SEC Form
10-Q. The review will include a discussion of any significant changes to the Banks
accounting principles and standards, significant changes to laws and regulations, and
any concerns the Independent Registered Public Accounting Firm may have with
managements accounting methods, estimates and/or financial statement disclosure; |
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| Meet periodically with the Banks management, Internal Audit staff, and the
Independent Registered Public Accounting Firm in respect of any audit report by the
Independent Registered Public Accounting Firm to discuss significant accounting and
reporting principles, practices and procedures applied by the Bank in preparing its
financial statements. This includes alternative treatments of financial information
within GAAP and developments and issues with respect to reserves; and |
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B. | With Regard to Internal Audit |
| Select, evaluate the performance of, determine the compensation of and, where
appropriate, approve the removal of, the CAO. Approve the Incentive Compensation Plan
and award for the Internal Audit employees; |
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| Provide that the CAO report directly to the Committee on substantive matters and be
ultimately accountable to the Committee and the Banks Board; |
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| Provide that the CAO have unrestricted access to the Committee without the need for
any prior management knowledge and approval; |
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| Review significant issues arising from Internal Audit that are reported to the
Committee by the CAO; |
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| Provide an independent, direct channel of communication between the Banks Board and
the CAO; |
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| Discuss with management, Internal Audit staff, and the Independent Registered Public
Accounting Firm the Internal Audit function activities, the adequacy, and scope of the
Internal Audit plan, budget and staffing and any recommended changes in the planned
scope of the Internal Audit function; |
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| Review and approve the Internal Audit annual budget; |
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| Review and approve the Internal Audit charter on an annual basis; and |
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| Review and approve the Internal Audit universe and annual plan. |
C. | With Regard to Independent Registered Public Accounting Firm |
| Review with the Independent Registered Public Accounting Firm and approve, prior to
the beginning of the audit, the scope of the audit plan and, all engagement fees, and
terms; |
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| Make recommendations to the Banks Board of Directors regarding the appointment,
compensation, renewal or termination of the Independent Registered Public Accounting
Firm. The Independent Registered Public Accounting Firm shall report directly to the
Committee; |
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| Pre-approve all audit and non-audit services performed by the Banks Independent
Registered Public Accounting Firm and not engage the Independent Registered Public
Accounting Firm to perform the specific non-audit services proscribed by law or
regulation. The Committee may delegate pre-approval authority to a member of the
Committee; however, any decisions made by the designated member must be presented to
the full Committee at the next scheduled Committee meeting; |
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| Require the Independent Registered Public Accounting Firm to rotate the lead audit
partner, and the partner responsible for reviewing the audit at least every five years; |
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| Resolve any disagreements between management and the Independent Registered Public
Accounting Firm regarding financial reporting; |
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| Evaluate the performance of the Independent Registered Public Accounting Firm; |
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| Provide that the Independent Registered Public Accounting Firm have unrestricted
access to the Committee without the need for any prior management knowledge and
approval; |
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| Provide an independent, direct channel of communication between the Board and the
Independent Registered Public Accounting Firm; |
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| Establish policies for the hiring of employees or former employees of the
Independent Registered Public Accounting Firm; |
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| Obtain annually a formal written statement from the Independent Registered Public
Accounting Firm regarding their independence for consistency with Independence
Standards Board Standard 1; and |
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| Obtain and review annually a report by the Independent Registered Public Accounting
Firm, describing i) the auditors internal quality control procedures, ii) any material
issues raised by the auditors most recent internal quality control review or by its
most recent peer review or raised within the preceding five years by any investigation
or inquiry by governmental or professional authorities of an independent audit carried
out by the firm and any steps taken to deal with such issues, and (iii) in order to
assess the auditors independence, all relationships between the Independent Registered
Public Accounting Firm and the Bank. |
D. | With Regard to Senior Management |
| Direct senior management to establish, implement, and maintain accounting policies
and procedures that are in compliance with applicable law, regulation, guidance, and
industry standards, including GAAP and other applicable reporting and disclosure
standards and to maintain the reliability and integrity of the financial reporting and
disclosure practices of the Bank; and |
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| Ensure that senior management has established and is maintaining an adequate
internal control system in the Bank. |
E. | With Regard to Audit Committee Processes |
a) | Committee Charter |
| Adopt a formal written Committee Charter. Annually assess the adequacy of the
Committee Charter, and, where appropriate, recommend to the Board amendments to the
Committee Charter. |
b) | Financial Reporting and Governance |
| Ensure policies are in place that are reasonably designed to achieve disclosure
and transparency regarding the Banks true financial performance and governance
practices. |
c) | Internal Control |
| Review on an annual basis the adequacy of internal controls, resolution of
identified material weaknesses and reportable conditions including the prevention
or detection of management override or compromise of the internal control system
and ensure that appropriate corrective actions are instituted; |
| Review the policies and procedures established by senior management designed to
ensure compliance with applicable laws and regulations and monitor the results of
these compliance efforts; and |
| Establish procedures for the receipt, retention, and treatment of complaints
received by the Bank regarding accounting principles and practices, internal
accounting controls, or auditing matters, and the confidential, anonymous
submission by employees of concerns regarding questionable accounting or auditing
matters. |
d) | Committee Report |
| Prepare a written Committee report as required by the applicable rules of the
FHFA and SEC to be included in the Banks SEC Form 10-K. |
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e) | Risk Management |
| Review and discuss with management the Banks major financial risk exposures and
the steps taken by management to monitor and control such exposures. |
f) | Performance Evaluation |
| Conduct a self-evaluation of the Committees performance of its responsibilities
and provide a report to the Board. |
V. AUDIT COMMITTEE STRUCTURE
The Committee shall consist of at least five directors of the Board. The Committee shall include a
balance of representatives from Community Financial Institutions and other members and will also
include a balance of independent and member directors. In order to provide continuity and
experience, Committee members shall serve staggered terms.
VI. MEMBERSHIP REQUIREMENTS
All members of the Committee shall be independent1 as determined in accordance with
applicable rules. Each member shall be financially literate as this qualification is interpreted
by the Board in its business judgment, or shall become financially literate within a reasonable
period of time after appointment to the Committee. At least one member must have extensive
accounting or related financial management experience. The Committee will comply with the Sarbanes
Oxley Act of 2002 under Section 407 regarding rules for Disclosure of Audit Committee Financial
Expert for filing periodic reports with the SEC.
Subject to the foregoing, the members of the Committee shall be appointed and replaced by the
Board. One Committee member shall be designated as the Chairman and one Committee member shall be
designated as the Vice Chairman.
The only compensation a Committee member may receive from the Bank shall be compensation determined
by the Board in compliance with applicable rules.
VII. AUDIT COMMITTEE MEETINGS
The Committee shall keep written minutes and other relevant records of each Committee meeting. The
minutes shall be approved by the Committee and then reviewed and approved by the Board. The CAO
will compile this documentation and shall act as Secretary to the Committee. Following each of its
meetings, the Chairman of the Committee shall report to the Board regarding the activities of the
Committee.
The Committee shall meet at least four times annually.
The Committee shall meet separately, from time to time, by itself, with management, the Independent
Registered Public Accounting Firm, and/or the CAO.
1 | To be considered independent, a director must not have a
disqualifying relationship with the Bank or its management that would interfere
with the exercise of that directors independent judgment. This includes being
employed by the Bank in the current year or any of the past five years,
receiving any compensation (other than for service as a Board director), or
serving as a consultant, advisor, promoter, underwriter, or legal counsel of,
or to, the Bank in the past five years. An immediate family member who is, or
has been in any of the past five years, employed by the Bank as an executive
officer also disqualifies a Committee member from being independent. |
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