The Audit and Finance Committee formally meets with management a minimum of three times a year, in advance of scheduled Board of Trustees meetings. The AFC formally reports on the results of its meetings to the full Board. Additional meetings are scheduled as needed. The AFC Chair sets the meeting agenda based not only on issues of interest to the BOT, but also based upon the financial issues facing the organization resulting from Internet2’s fiscal calendar, which is January 1st through December 31st. In addition, the AFC engages independent outside auditors to conduct an annual, full-scope financial audit of Internet2’s accounting and financial records and practices as well as an annual “Uniform Guidance” compliance audit of all Federal Grant activity. The independent auditors meet with the AFC each fall to present an audit plan and then again in the spring to present the results of the audit. The AFC meets with the auditors in “Executive Session,” which excludes the participation of Internet2 management, in order to receive an unfiltered, unbiased view of Internet2’s financial management competency and practices. A third AFC meeting is held in the summer to review management-prepared budgets and to shape those budgets for recommendation to the full Board. (More on the budget process below.) As a 501(c)(3)corporation, Internet2 is obligated to prepare and file an annual Federal Form 990. The “990” is reviewed and approved for filing by the AFC, authority delegated to AFC by the Board. Upon completion of this process, the 990 is filed with the IRS. The financial records are prepared and audits of those records are conducted based upon accounting standards known as “Generally Accepted Accounting Principles” or GAAP. From the inception of the audit process for Internet2, starting in 1999, through the current year ended, Internet2 has received an “unqualified” or “clean” opinion from the external, independent auditors for each year’s financial report. An unqualified opinion certifies that the financial information presented in Internet2’s financial statements present fairly the financial position of the organization and is materially correct. The current auditors are PricewaterhouseCoopers. Two other duties delegated to the AFC by the Board are: 1.) Oversight of the management of the organization’s retirement plans, and 2.) oversight of Enterprise Risk. Internet2 retains the services of a professional fiduciary firm to advise and manage the retirement investment portfolio. An internal management committee meets with the consultant and a member of AFC on a quarterly basis to oversee the program. Enterprise Risk includes but extends beyond financial risk. The AFC engages the services of an outsourced “internal auditor” to look into different areas of risk within the organization. The "Internal Auditors" make recommendations to management, through a report to the AFC, to help mitigate organizational risk. The Internal Auditor’s activities are reviewed at least annually. The AFC then reports on the Risk to the full Board.