AUDIT COMMITTEE OF THE BOARD OF DIRECTORS

Terri Strait

Description

FIRST COMMUNITY CORPORATION FFIIRRSSTT CCOOMMMMUUNNIITTYY BBAANNKK AUDIT COMMITTEE OF THE BOARD OF DIRECTORS  Charter  Purpose  The Board of Directors of the Company has delegated to the Audit Committee, the Board’s responsibility for monitoring of the audit function of the Company, which includes the selection of independent auditors, determination of the independence of the independent auditors and internal auditing and internal accounting controls.  Members of the committee shall discharge their committee duties in accordance with rules adopted from time to time by the Securities and Exchange Commissions and with standards prescribed for directors by the South Carolina Business Corporation Act of 1988, as amended, and using their business judgment.  Committee Membership and Meetings The  shall be composed of at least three (3) members of the Board each of whom shall: a) meet the independence requirements of the NASDAQ Stock Market listing standards and any other applicable laws, rules, and regulations governing independence, as determined by the Board; b) qualify as “non‐employee directors” as defined in Section 16 of the Securities Exchange Act of 1934; and c) qualify as “outside  under Section 162(m) of the Internal Revenue Code.    The Chair and the members of the Committee shall be nominated by the Nomination and Corporate Governance Committee and approved by the Board.  However ...

Informations

• Publié par: Thoun
• Nombre de lectures: 95
• Langue: Español

Extrait

FIRSTCOMMUNITYCORPORATION FIRSTCOMMUNITYBANK AUDITCOMMITTEEOFTHEBOARDOFDIRECTORS Charter Purpose TheBoardofDirectorsoftheCompanyhasdelegatedtotheAuditCommittee,theBoard’sresponsibility formonitoringoftheauditfunctionoftheCompany,whichincludestheselectionofindependent auditors,determinationoftheindependenceoftheindependentauditorsandinternalauditingand internalaccountingcontrols. Membersofthecommitteeshalldischargetheircommitteedutiesinaccordancewithrulesadoptedfrom timetotimebytheSecuritiesandExchangeCommissionsandwithstandardsprescribedfordirectorsby theSouthCarolinaBusinessCorporationActof1988,asamended,andusingtheirbusinessjudgment. CommitteeMembershipandMeetings TheCommitteeshallbecomposedofatleastthree(3)membersoftheBoardeachofwhomshall:a) meettheindependencerequirementsoftheNASDAQStockMarketlistingstandardsandanyother applicablelaws,rules,andregulationsgoverningindependence,asdeterminedbytheBoard;b) qualifyas“non‐employeedirectors”asdefinedinSection16oftheSecuritiesExchangeActof1934; andc)qualifyas“outsidedirectors”underSection162(m)oftheInternalRevenueCode. TheChairandthemembersoftheCommitteeshallbenominatedbytheNominationandCorporate GovernanceCommitteeandapprovedbytheBoard.However,itisrecommendedthatatleastoneof themembersoftheCommitteemeetthedefinitionofa“FinancialExpert”asdefinedbytheSEC. MembersoftheCommitteeareencouragedtomakeuseoftrainingopportunitiesandconsultantsto enhancetheirabilitytoperformtheircommitteeresponsibilities. Thecommitteeshallmeetonaquarterlybasisandatsuchothertimesasshalldeterminednecessaryby theChairman. Thecommitteeisauthorizedtoemployandconsultwithaccountants,andotherprofessionalstoassistit incarryingoutitsresponsibilities. Thecommitteeshallhaveunlimitedaccesstoallemployees,booksandrecordsoftheCompany.

CommitteeAuthorityandResponsibility 1.RecommendtotheBoardofDirectorstheselectionoftheCompany’sindependentaccountants, whoshallbeaccountabletotheBoardofDirectorsandtheAuditCommittee,and,when appropriate,theirdismissal. 2.HavedirectaccesstotheCompany'sindependentauditorandprovideanopenavenueof communicationbetweentheindependentauditorandtheBoardofDirectors. 3.Reviewtheprofessionalservicesprovidedandfeeschargedbytheindependentauditorforboth auditandnon‐auditservices. 4.Meetwiththeindependentauditoratthecompletionoftheannualauditto: a.Reviewtheannualfinancialstatementsandtheresultsoftheaudit. b.Reviewanyreportsissuedrelativetointernalcontrolsmanagementletter)orothermatters thatcametotheattentionoftheindependentauditorduringtheaudit. c.Ensurethatthescopeoftheinternalandexternalauditprogramfortheyearhasbeen substantiallycompleted. 5.Meetwiththeindependentaccountantstoreview:(a)anyproblemsencounteredintheaudit includinganyrestrictionsimposedbymanagement;and(b)theadequacyandeffectivenessof administrative,operatingandaccountingpoliciesoftheCompany. 6.Reviewmanagement'sresponsesandcorrectiveactionstoanyfindingsnotedinthemanagement lettersorothercommunicationsissuedbytheindependentauditor,toensurethattheyare appropriate. 7.ReviewandapprovetheauditplanoftheinternalauditorsoftheCompany. 8.Receiveasummaryorreport,atleastquarterly,ofallinternalauditproceduresperformed togetherwithanyresponsesbymanagementrelativetointernalauditfindings. 9.Meetwiththeinternalauditorstoreview:(a)anyproblemsencounteredininternalaudits includinganyrestrictionsimposedbymanagement;and(b)theadequacyandeffectivenessof administrative,operatingandaccountingpoliciesoftheCompany. 10.Reviewandapprovetheappointment,anydisciplinaryactionordismissaloftheseniorinternal auditexecutive. 11.ReviewanddiscusswithmanagementandtheindependentauditortheCompany’squarterly financialstatementspriortothefilingofitsForm10‐Q,includingtheresultsoftheindependent auditor’sreviewofthequarterlyfinancialstatements. 12.ReviewdisclosuresmadetotheAuditCommitteebytheCompany’sCEOandCFOduringtheir certificationprocessfortheForm10‐KandForm10‐Qaboutanysignificantdeficienciesinthe

designoroperationofinternalcontrolsormaterialweaknessesthereinandanyfraudinvolving managementorotheremployeeswhohavesignificantroleintheCompany’sinternalcontrols. 13.ReviewandapproveanyAuditCommitteeReporttobeincludedintheCompany’sproxy statement. 14.Reviewandapproveallsignificantproposedaccountingchanges. 15.Investigateanymatter,whichthecommitteedeemstobeintheinterestoftheCompanyand reportitsfindingstotheBoardofDirectors. 16.Discusswithmanagementandtheindependentauditortheeffectofregulatoryandaccounting initiativesaswellasoff‐balancesheetstructuresontheCompany’sfinancialstatements. 17.DiscusswithmanagementtheCompany’smajorfinancialriskexposuresandthesteps managementhastakentomonitorandcontrolsuchexposures,includingtheCompany’srisk assessmentandriskmanagementpolicies. 18.Approveproceduresfor:(i)thereceipt,retention,andtreatmentofcomplaintsreceivedbythe FirstCommunityregardingaccounting,internalauditingcontrols,orauditingmatters;and(ii)the confidentialanonymoussubmissionbyemployeesofFirstCommunityofconcernsregarding questionableaccountingorauditingmatters. 19.Annuallyreview,recommendchanges,considerexceptions,andmonitorcompliancewiththe CodeofEthicsforDirectorsandOfficers. 20.AnnuallycommunicatetheCodeofBusinessConductandEthicstotheBoardofDirectorsandall officers. 21.ReviewandapproveComplianceandITpolicies.ReportapprovedpoliciestotheBoardof Directors.RecommendBoardapprovalonanysignificantrevisions. 22.DiscusswiththeCompany’sGeneralCounsellegalmattersthatmayhaveamaterialimpacton thefinancialstatementsortheCompany’scompliancepolicies. 23.AnnuallyreviewtheBank'sfidelitybondandotherinsurancecoverageandrecommend approvaltotheBoardofDirectors. 24.ThecommitteeshallreportitsactivitiesandrecommendationstotheBoardofDirectorsatany regularorspecialmeetingoftheBoardofDirectors. 25.TheAuditCommitteeshallannuallyreviewitsCharterandpresentittotheBoardforapproval.