The board of directors is defined by statute and is comprised of nine voting members and one nonvoting member. Seven board members are elected by the Banks (three members are elected from among the chief executive officers or presidents of the Banks and four members are elected from among the current or former directors of the Banks). These seven board members, after receiving recommendations from and consulting with the Secretary of Treasury and the Chairman of the Board of Governors of the Federal Reserve System, appoint two members from outside the System. The president of the Funding Corporation serves as a nonvoting member of the board of directors.
System Audit Committee
The Funding Corporation board of directors has established a System Audit Committee and adopted a Charter for the Committee. The Committee's responsibilities include:
- the oversight of the Funding Corporation's system of internal controls related to the preparation of the System's quarterly and annual information statements,
- the integrity of the System's quarterly and annual information statements,
- the review and assessment of the impact of accounting and auditing developments on the System's combined financial statements,
- the appointment, compensation, retention and oversight of the System's independent accountants with the concurrence of the Funding Corporation board,
- the pre-approval of allowable non-audit services at the System level,
- the receipt of various reports from management on internal controls, off-balance sheet arrangements, critical accounting policies, and material alternative accounting treatments,
- the review and approval of the scope and planning of the annual audit by the System's independent accountants,
- the approval of policies and procedures for the preparation of the System's quarterly and annual information statements, and
- the review and approval of the System's quarterly and annual press releases and information statements after discussions with management and the independent accountants.
|
