Audit and Risk Management committee action shall be required for:

• Receipt and review of the university’s annual financial report.
  
• Receipt and review of all outside audit reports and management letters addressing the system of internal accounting controls.
• Receipt and review of specific internal audit reports.
• Assessing recommendations in all audit reports and evaluating the risk associated with conditions cited, versus the cost to implement recommended changes.
• Making recommendations to the full board regarding actions to be taken in response to findings in audit reports.
  
• Meeting at least annually with outside independent auditors.
  
• Receiving information on all contacts with state and federal auditors, including the internal revenue service.
  
• Reviewing changes in university accounting principles or reporting procedures that would have a major impact on the university’s reported financial condition.
• Reviewing changes in university conflicts, conduct and ethics, and compliance policies.
  
• Receipt and review of pending litigation.