REPORT OF AUDIT COMMITTEE
FCS Financial, ACA
The Consolidated Financial Statements were prepared under the oversight of the Audit Committee. The Audit Committee is composed of a subset of the
Board of Directors of FCS Financial, ACA (the Association). The Audit Committee oversees the scope of the Association’s internal audit program, the
approval, and independence of PricewaterhouseCoopers LLP (PwC) as independent auditors, the adequacy of the Association’s system of internal
controls and procedures, and the adequacy of management’s actions with respect to recommendations arising from those auditing activities. The Audit
Committee’s responsibilities are described more fully in the Internal Control Policy and the Audit Committee Charter.
Management is responsible for internal controls and the preparation of the Consolidated Financial Statements in accordance with accounting principles
generally accepted in the United States of America. PwC is responsible for performing an independent audit of the Consolidated Financial Statements in
accordance with auditing standards generally accepted in the United States of America and to issue their report based on their audit. The Audit
Committee’s responsibilities include monitoring and overseeing these processes.
In this context, the Audit Committee reviewed and discussed the audited Consolidated Financial Statements for the year ended December 31, 2018, with
management. The Audit Committee also reviewed with PwC the matters required to be discussed by Statement on Auditing Standards AU-C 260, The
Auditor’s Communication with Those Charged with Governance, and both PwC and the internal auditors directly provided reports on any significant
matters to the Audit Committee.
The Audit Committee had discussions with and received written disclosures from PwC confirming its independence. The Audit Committee also reviewed
the non-audit services provided by PwC, if any, and concluded these services were not incompatible with maintaining PwC’s independence. The Audit
Committee discussed with management and PwC any other matters and received any assurances from them as the Audit Committee deemed
appropriate.
Based on the foregoing review and discussions, and relying thereon, the Audit Committee recommended that the Board of Directors include the audited
Consolidated Financial Statements in the Annual Report for the year ended December 31, 2018.
Troy D. Norton
Chairperson of the Audit Committee
FCS Financial, ACA
Additional Audit Committee members:
Daniel Hulse
David Meneely
Beth Schnitker
Charles Steck
March 11, 2019
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