1 CITIGROUP INC. AUDIT AND RISK MANAGEMENT COMMITTEE ...

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Duties and ResponsibilitiesThe Committee shall have the following duties and responsibilities:Meetings and Access• Meet as often as it determines, but not less frequently than quarterly.• Meet separately, periodically, with management, ARR, Risk Management and independent auditors.• Regularly report to the Board on the Committee’s activities.• Annually review and report to the Board on its own performance.• Review and assess the adequacy of this Charter annually and recommend any proposed changes tothe Board for approval.Financial Statement, Disclosure and Risk Management Matters• Review and discuss with management and the independent auditors the annual audited financialstatements, including disclosures made in “Management’s Discussion and Analysis of FinancialCondition and Results of Operations” (MD&A), and recommend to the Board whether the auditedfinancial statements should be included in Citigroup’s Form 10-K.• Review and discuss with management and the independent auditors the quarterly financialstatements, including disclosures made in MD&A and the results of the independent auditors’ reviewsof the quarterly financial statements, prior to the filing of Citigroup’s Form 10-Q.• Discuss generally Citigroup’s earnings press releases, as well as financial information and earningsguidance provided to analysts and rating agencies. The Committee need not discuss in advance eachearnings release or each instance in which Citigroup may provide earnings guidance.• Receive a disclosure from the Chief Executive Officer and Chief Financial Officer during theircertification process for the 10-K and 10-Q’s about (1) any significant deficiencies and materialweaknesses in design or operation of internal controls over financial reporting and (2) any fraud,whether or not material, involving management or other employees who have a significant role inCitigroup’s internal controls.• Review and discuss periodically reports from the independent auditors on, among other things,certain:º Critical accounting policies and practices to be used;º Alternative treatments of financial information within generally accepted accounting principles;º Other material written communications between the independent auditors and management, suchas any management letter and Citigroup’s response to such letter or schedule of unadjusteddifferences; andº Difficulties encountered in the course of the audit work, including any restrictions on the scope ofactivities or access to requested information, any significant disagreements with management,and communications between the audit team and the audit firm’s national office with respect todifficult auditing or accounting issues presented by the engagement.• Review and discuss with management and the independent auditors, at least annually:º Developments and issues with respect to reserves;2
º Regulatory and accounting initiatives, as well as off-balance sheet structures, and their effect onCitigroup’s financial statements; andº Accounting policies used in the preparation of Citigroup’s financial statements (specifically thosepolicies for which management is required to exercise discretion or judgment regarding theimplementation thereof).• Review with management its evaluation of Citigroup’s internal control structure and procedures forfinancial reporting and review periodically, but in no event less frequently than quarterly,management’s conclusions about the efficacy of such internal controls and procedures, including anysignificant deficiencies or material weaknesses in such controls and procedures.• Annually review and discuss with management and the independent Auditors (1) Management’sassessment of the effectiveness of Citigroup’s internal control structure and procedures for financialreporting and (2) the independent auditors’ attestation to, and report on, management’s controlassessment related to Section 404 of the Sarbanes-Oxley Act of 2002.• Discuss with management Citigroup’s major credit, market, liquidity and operational risk exposuresand the steps management has taken to monitor and control such exposures, including Citigroup’srisk assessment and risk management policies.• Establish procedures for the receipt, retention, and treatment of complaints received by Citigroupregarding accounting, internal accounting controls, or auditing matters, and the confidential,anonymous submission by employees of Citigroup of concerns regarding questionable accounting orauditing matters.Oversight of Citigroup’s Relationship with the Independent Auditors• Receive and discuss a report from the independent auditors at least annually regarding:º The independent auditors’ internal quality-control proceduresº Any material issues raised by the most recent quality-control review, or peer review (ifapplicable), of the independent auditors, or by any inquiry or investigation by governmental orprofessional authorities within the preceding five years respecting one or more independentaudits carried out by the independent auditors;º Any steps taken to deal with any such issues;º All relationships between the independent auditors and Citigroup, in order to assess theindependent auditors’ independence; andº Key staffing and lead audit partner rotation plans.• Approve guidelines for the retention of the independent auditors for any non-audit services anddetermine procedures for the approval of audit, audit-related, tax and other services in advance. Inaccordance with such procedures, the Committee shall approve in advance any audit, audit-related,tax, and other services provided to Citigroup by the independent auditors. Pre-approval authority maybe delegated to one or more members of the Committee.• Review and discuss the scope and plan of the independent audit.3
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