This excerpt taken from the VLG DEF 14A filed Oct 2, 2006.
Audit Committee Pre-Approval Policies and Procedures
The Audit and Finance Committee is responsible for appointing, setting compensation for and overseeing the work of the independent auditors. The Audit and Finance Committee has established a policy for pre-approving the services provided by the Companys independent auditors in accordance with the auditor independence rules of the SEC. This policy requires the review and pre-approval by the Audit and Finance Committee of all audit and permissible non-audit services provided by the independent auditors and an annual review of the financial plan for audit fees.
To ensure that auditor independence is maintained, the Audit and Finance Committee annually pre-approves the audit services to be provided by the independent auditors and the related estimated fees for such services, as well as the nature and extent of specific types of audit-related, tax and other non-audit services to be provided by the independent auditors during the year.
As the need arises, other specific permitted services are pre-approved on a case-by-case basis during the year. A request for pre-approval of services on a case-by-case basis must be submitted by the Companys Chief Financial Officer, providing information as to the nature of the particular service to be provided, estimated related fees and managements assessment of the impact of the service on the auditors independence. The Audit and Finance Committee has delegated to its Chairman pre-approval authority between meetings of the Audit and Finance Committee. Any pre-approvals made by the Chairman must be reported to the Audit and Finance Committee. The Audit and Finance Committee will not delegate to management the pre-approval of services to be performed by the independent auditors.
All of the services provided by the independent auditors in fiscal 2006, including services related to the Audit-Related Fees and Tax Fees described above, were approved by the Audit and Finance Committee under its pre-approval policies. None of the services provided by the independent auditors in fiscal 2006 were rendered pursuant to the de minimis safe harbor exception from the pre-approval requirements of the auditor independence rules of the SEC.