The primary function of the Audit Committee is to assist the Architect by performing the services identified in this Charter, including reviewing and making recommendations regarding all matters relating to the Independent Public Accountant who will perform the financial audit of the Architect of the Capitol for fiscal year 2003 and in subsequent fiscal years, including any annual report issued in connection therewith. The Audit Committee provides open avenues of communication among the Inspector General, the Independent Public Accountant, and the management of the Architect regarding the financial statement audit process. The Audit Committee must report its actions to the Architect and may make recommendations it considers appropriate to its functions. The Audit Committee will meet at least four times each year and more frequently if circumstances make that preferable in the opinion of the Architect. Also, the Audit Committee Chairman may call a Committee meeting whenever he or she thinks there is a need. An Audit Committee member shall not vote on any matter in which he or she is not independent. The Committee may ask members of management or others to attend the meeting and is authorized to receive all pertinent information from management.

1. The Independent Public Accountant for the audit of the Architect's fiscal year 2003 financial statements will be selected in accordance with the competitive procurement procedures of the Architect. One or more members of the Audit Committee may be selected by the Architect to participate in the evaluation process, which will consider past experience, past performance, independence, potential conflicts of interest, and price. Under any procurement process, the Architect will be the Source Selection Authority.
2. The Audit Committee may recommend to the Architect that there is a need to engage firms to provide additional expertise related to matters that arise during the financial statement audit process.
3. The Audit Committee will facilitate coordination of internal and external audit activity by reviewing the audit plans of the Independent Public Accountant and the Inspector General, and shall make recommendations to the Architect to assure completeness of coverage, reduction of redundancy and effective use of audit resources.

1. The Audit Committee will ask management, the Inspector General, and the Independent Public Accountant about significant risks and exposures and will assess management's steps to minimize them.
2. The Audit Committee will review the following with the Independent Public Accountant and the Inspector General:
   1. The adequacy of the Architect's internal controls, including computerized information system controls and security.
   2. Any significant findings and recommendations made by the Independent Public Accountant or Inspector General, together with management's responses to them.
   3. The need for additional standards, policies, and procedures related to financial management processes.
3. As part of the annual financial statement audit, the Audit Committee will review the following with management and the Independent Public Accountant:
   1. The annual financial statements and related footnotes.
   2. The Independent Public Accountant's audit of and report on the financial statements.
   3. The auditor's qualitative judgments about the appropriateness, not just acceptability, of accounting principles and financial disclosures and how aggressive (or conservative) the accounting principles and underlying estimates are.
   4. Any serious difficulties or disputes with management encountered during the course of the audit.
   5. Anything else about the audit procedures or findings that Generally Accepted Government Auditing Standards requires the auditors to discuss with the Committee.
   6. Internal control weaknesses that were detected during the audit.
   7. The status of previously identified findings and recommendations.
4. The Audit Committee will consider and review with management and the Inspector General:
   1. Any significant findings during the year and management's responses to them.
   2. Any difficulties the Inspector General or the Independent Public Accountant encountered while conducting audits, including any restrictions on the scope of their work or access to required information.
5. The Audit Committee will review any published documents containing the agency's financial statements and will consider whether the information in the reports is consistent with the information in the financial statements.
6. The Audit Committee will review the interim financial statements and reports.
7. The Audit Committee will prepare a letter for inclusion in the annual report that describes the Committee's composition and responsibilities and how the responsibilities were fulfilled.
8. The Audit Committee charter shall be included on the Architect's website.
9. The Audit Committee Chair shall report annually to the Architect on the Committee's activities and recommendations.
10. The Audit Committee shall take into consideration the existing workload of staff of the Architect of the Capitol in making and scheduling requests for information, attendance at meetings, and other demands upon staff time, which shall be kept to a minimum consistent with the Audit Committee's responsibilities. The Audit Committee shall not request redundant information from the Architect's staff.
11. The Audit Committee may receive sensitive financial and other information regarding the Office of the Architect of the Capitol, to which it owes its fiduciary duties. All information received by the Audit Committee shall be held in strict confidence and shall not be divulged outside of the Office of the Architect of the Capitol except upon the express written approval of the Architect. Failure to maintain strict confidentiality shall be cause for dismissal.

1. Review and make recommendations to the Architect regarding updating the Committee's charter annually.
2. Prepare a draft letter report for the Architect's use in the annual report accompanying the Independent Public Accountant's opinion.
3. Review legal and regulatory matters that may have a material effect on the agency's financial statements, compliance policies and programs and reports.
4. Meet with the Independent Public Accountant, management, the Inspector General, in separate executive sessions to discuss any matters the Committee or these groups believe should be discussed privately with the Audit Committee. For the purpose of these meetings the voting members of the Committee may excuse nonvoting members as deemed appropriate.
5. Require that the Independent Public Accountant provide a copy of its latest peer review.
6. Based on the peer review report and the firm's performance during the audit just concluded, the Audit Committee shall evaluate the qualifications, performance, independence and capability of the Independent Public Accountant and make an appropriate recommendation to the Architect regarding his continuing the engagement for the following year within the contractual time for performance.

The members of the Audit Committee who are not current government employees will receive an honorarium as determined by the Architect, which shall include all travel and incidental expenses.

The Audit Committee shall include at least two non-voting members, the Inspector General and the Chief Financial Officer of the Architect. Also, the Architect may permit a representative of the General Accounting Office to attend Audit Committee meetings as a resource.

The voting members of the Committee generally serve in staggered terms for periods not-to-exceed 3 years. However, to achieve staggered terms initially, the Architect may elect to extend any term of an initial member for an additional year. The Architect will fill vacancies that occur. The Chair shall recommend at least two candidates for each vacancy on the Committee and selections shall be made by the Architect.

All members of the Audit Committee shall have substantial financial management expertise or provide other required expertise. The Audit Committee shall report to the Architect of the Capitol. The CFO's office shall provide staff support as necessary, including designation of an individual to serve as the Executive Secretary to facilitate the Audit Committee's scheduling, meetings, and other administrative functions.