Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
All Supervisory Board members participate in committees. Below is a list of general tasks, topics, and facts and figures typically
discussed by these Supervisory Board committees.
Audit Committee of the Supervisory Board
General task
The audit committee assists the Supervisory Board in its oversight of the activities of the Executive Board primarily relating to financial reporting, internal control,
compliance and audit, including the following:
a. the system of internal controls
b. the financial reporting system and processes
c. external reporting and the provision of financial information to regulators
d. compliance with internal codes, relevant legislation and regulations
e. the scope and activities of internal and external auditors
f. the follow-up of audit findings and recommendations, and
g. the functioning of the compliance organisation, internal auditors and external auditors.
Facts figures
Members on 31 December 2016 Other attendees throughout the year
Leo Graafsma, chairman Regular attendees:
Irene Asscher-Vonk Wiebe Draijer, Bas Brouwers, Petra van Hoeken
Leo Degle Head of Compliance, Angelique Keijsers
Petri Hofsté, as of 30 December 2016 Head of Group Control, Jan Bos
Jan Nooitgedagt, as of 14 September 2016 Head and deputy head of Audit Rabobank, Rudi Kleijwegt and Dick Duit
Ron Teerlink External auditors PwC
Marjan Trompetter
Wout Dekker, member until 14 September 2016
Erik van de Merwe, member until 14 September 2016
Other members of the Supervisory Board frequently attended the meeting as observers
Meetings
There were seven regular meetings and one extra meeting, with over 90% attendance
Two sessions on continuing professional education were held with the members of the risk committee (see overview below on educational efforts)
Topics
Regular topics of discussion
Annual Report and financial statements for 2015 and Interim report for 2016, including discussions on topics such as the valuation of financial instruments, hedge
accounting and the evaluation of equity investments;
Audit Report EY - FY 2015, Board Report PwC - HY 2016;
Allowance for loan losses/impairment of loans and advances to customers;
Legal claims and provisions (litigation, regulatory oversight and client care are also addressed in the risk committee);
Pillar 3 report;
Report on audit findings and Quarterly progress reports on audit findings;
Rabobank 'In Control' and Management Letter (In Control Statement);
Quarterly report Audit Rabobank;
Audit Charter;
Year Plans internal and external auditor;
Independence and costs external auditor;
Quarterly report Compliance;
Compliance Charter;
Year Plan Compliance;
Monthly Quarterly results Rabobank Group;
Situation on the financial markets and the potential impact thereof on Rabobank;
The development of the rating of Rabobank;
Mid-term Planning and Budget Rabobank Group for the upcoming year;
High-level benchmark comparing Rabobank to its peers;
Tax policy and developments;
Periodic updates on client integrity, privacy, various specific compliance themes and supervisory files.
Special topics
Preparations for the introduction of IFRS 9;
Initial Observations PwC concerning Control Financial reporting and
ECB on-site inspection Compliance.
The audit committee was involved in the appointment procedure of the new head of Compliance, Angelique Keijsers, and the new head of Audit Rabobank,
Rudi Kleijwegt.
In November 2016, the JST/ECB attended a meeting of the audit committee as an observer in the context of the second Thematic review on risk governance and risk
appetite (RIGA II). In the beginning of 2017 JST will attend another meeting of the audit committee and a meeting of the risk committee.
Additional comments
In 2015, the former General Meeting appointed PricewaterhouseCoopers Accountants N.V. (PwC) as the external auditor of Rabobank for a period of four years for the
book years 2016 up to and including 2019.
The Supervisory Board is of the opinion that the internal auditor, Audit Rabobank, had sufficient resources at its disposal to adequately perform its core duties in 2016.
Due to reorganisation and some voluntary staff departures, resourcing is a point of attention. The audit committee and the Supervisory Board will keep a close eye
on staffing in 2017. The principles underlying the Audit Plan 2017 will be assessed and externally benchmarked to ensure all necessary audits are in check and can be
performed on time.
The ECB/JST performed several on-site investigations in 2016. In the autumn of 2016 the ECB held an on-site investigation on Compliance. ECB observations showed
some points for improvement, including the functioning of the audit committee of the Supervisory Board. The ECB stressed that the audit committee must review the
Compliance Function in a more structured way at least once a year. Actions have been taken to implement the required improvements.
158 Rabobank Annual Report 2016
