Chief Audit Executive

The Office of Finance (OF) is a joint office of the eleven FHLBanks established to issue and service FHLBank System bonds and discount notes and prepare the FHLBank System Combined Financial Report (CFR). The Office of Finance’s (OF) Internal Audit Division provides an independent appraisal of the OF, the Financing Corporation (FICO), and the Resolution Funding Corporation (REFCORP) by examination, evaluation and verification of operating procedures, internal controls and recorded data; and communication of audit results for appropriate action.

SUMMARY OF POSITION

The Chief Audit Executive will report directly to the Audit Committee of the OF’s Board of Directors and administratively to the Chief Executive Officer (CEO). This person will be a key member of the CEO management team and will work closely in partnership with senior managers throughout the OF to assess the OF’s processes for identifying and managing business risk and delivering organizational effectiveness and efficiency.

The Chief Audit Executive is responsible for supervising and directing all activities of the Internal Audit Department in accordance with the Department’s Charter. The Chief Audit Executive assists the Audit Committee (Directorate for REFCORP) and management in the discharge of its responsibilities by furnishing them with analyses, appraisals, recommendations, and information concerning the activities of the OF and REFCORP. In addition, the Chief Audit Executive is responsible for overseeing the compliance with established internal controls as it relates to the impact of the OF’s operations on the FHLBanks, including debt issuance, debt servicing, combined financial reporting, the OF Operating Fund and REFCORP.

The Chief Audit Executive may provide assistance on a consultative basis within the OF on internal controls related matters, special assignments, or for other developmental projects within the OF, in compliance with the independence standards promulgated by the Institute of Internal Auditors. In addition, the Chief Audit Executive will work closely with OF’s CRO on risk assessments for OF's key functional processes and related internal controls.

PRINCIPAL ACCOUNTABILITIES

• Understand the risk profile of the OF.

• Develop a flexible annual audit plan, based on a comprehensive audit universe and using dynamic risk-based methodology, and submit that plan to the Audit Committee for review and approval.
• Supervise, direct, and review the planning, execution, and development of conclusions of internal audits, comprising the following:
  • Determine the adequacy and effectiveness of the systems of internal accounting, information technology, and operating controls
  • Review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information
  • Review the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations that could have a significant impact on operations and reports
  • Review functions within the OF and REFCORP at appropriate intervals to determine whether responsibilities are being carried out in accordance with management instructions, written policies and procedures (both internal as well as written guidance issued by the FHFA or other administrative office), and in a manner that is consistent with high standards of administrative practice
  • Incorporate value added aspects to the audit process to assist management in attainment of organization wide strategic goals
  • Report the results of audits and related recommendations to management for appropriate corrective action
  • Follow up and appraise management’s implementation of corrective actions.

• Ensure that all audit activity is performed at a Best Practices level in accordance with the Institute of Internal Audit Global Standards and FHFA input, including guidelines in Advisory Bulletin 2016-05, especially in the areas of risk assessment, audit process development, utilization of automated audit tools, and development of the function.
• Own the relationship with the independent service auditor and manage the execution of audit processes related to the annual SOC 1 / Type 2 review.
• Review the economy and efficiency with which resources are employed, identify opportunities to improve operating performance, and recommend solutions to problems, where appropriate.
• Coordinate internal audit activities with those of the external auditors and FHFA examiners.
• Determine Internal Audit projects that could leverage or benefit from external technical expertise and contract for those resources in a manner consistent with established OF budget review and approval processes
• Review the controls of new systems and services prior to implementation.
• Report the following to the Audit Committee periodically during the audit year as applicable, generally no fewer than four times per year:

1. Progress versus the annual audit plan
2. Significant audit findings prioritized by audit risk assessment
3. Open audit items
4. Any concerns of internal audit

• Conduct special examinations and projects at the request of the Board of Directors, Audit Committee, or senior management.
• Assist the Audit Committee in the fulfillment of its duties and responsibilities with respect to:

1. Internal controls and compliance, financial reporting, and disclosures,
2. The bi-annual Audit Committee self-assessment requirement,
3. Audit Committee members’ continuing education plans
4. Periodic independent quality assessment of the internal audit function.

• Manage and grow a talented team of professionals, utilizing outside expertise as necessary.
• Maintain a system that provides adequate staff training to meet established and projected needs and to comply with applicable Continuing Professional Education requirements.
• Develop strong relationships with the FHFA review team, ensuring open dialogue and communication on exam and emerging issues.
• Partner with the legal, compliance and risk management organizations on the investigation of whistleblower complaints and other matters.
• Partner with the business, legal, compliance and risk management organizations on the execution of the three lines framework.
• Operationalize the diversity and inclusion (D&I) strategy by developing and prioritizing actions that ensure opportunities for employees and diverse business partners and consistently and frequently communicating the importance of diversity and inclusion to employees and business partners.

PRINCIPAL JOB REQUIREMENTS

• A bachelor’s degree from an accredited college or university and designation as a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), Certified Information Systems Auditor (CISA), Chartered Accountant, Chartered Bank Auditor, or other appropriate professional credential.
• Minimum of ten years relevant work experience including financial/operational auditing, IT controls auditing, supervision of staff, and overall management of an Internal Audit function.
• Ability to build and maintain close and constructive working relationships with Audit Committee, acting in an advisory capacity to help improve the effectiveness and efficiency of internal controls and business processes as well as making value added recommendations
• Knowledge of the financial markets including securities issuance and operations; and relevant industry regulation is preferred.
• Knowledge of IT controls and automated audit techniques is preferred.
• Sound judgement and ability to facilitate productive dialogue and outcomes, where differences of opinion and interpretation may exist.
• Ability to listen and integrate ideas from diverse views, build and maintain respectful relationships and collaborate with others, advocate and influence, and resolve conflicts constructively within the OF and in conjunction with the unique environment in which the FHLBanks operate.
• Ability to create a vision for the future of the internal audit function and create appropriate action plans.
• Ability to identify emerging issues with potential to affect performance of the OF and the internal audit function.
• Ability to communicate effectively both orally and in writing with Audit Committee, senior management team, FHFA, and other key stakeholders.
• Demonstrated ability to recruit, manage, and develop staff resources.
• Demonstrated commitment to diversity and inclusion.
• Strong capacity for motivating people and building a high-performing team within an inclusive work environment.

EQUAL EMPLOYMENT OPPORTUNITY

The Federal Home Loan Banks Office of Finance is committed to equal employment opportunity without regard to race (including traits historically associated with race, such as hair texture, hair type and protective hairstyles), color, religion, sex, pregnancy (including childbirth, lactation, and related medical conditions), national origin or ancestry, age, physical or mental disability, veteran status, uniformed service member status, military status, sexual orientation, gender identity, status as a parent, marital status, genetic information (including testing and characteristics), citizenship status, or any other characteristic protected by applicable federal, state, or local law.