Allegheny Power 2010 Annual Report Download - page 71

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56
MANAGEMENT REPORTS
Management's Responsibility for Financial Statements
The consolidated financial statements of FirstEnergy Corp. (Company) were prepared by management, who takes
responsibility for their integrity and objectivity. The statements were prepared in conformity with accounting principles
generally accepted in the United States and are consistent with other financial information appearing elsewhere in this
report. PricewaterhouseCoopers LLP, an independent registered public accounting firm, has expressed an unqualified
opinion on the Company’s 2010 consolidated financial statements.
The Company’s internal auditors, who are responsible to the Audit Committee of the Company’s Board of Directors, review
the results and performance of operating units within the Company for adequacy, effectiveness and reliability of accounting
and reporting systems, as well as managerial and operating controls.
The Company’s Audit Committee consists of four independent directors whose duties include: consideration of the
adequacy of the internal controls of the Company and the objectivity of financial reporting; inquiry into the number,
extent, adequacy and validity of regular and special audits conducted by independent auditors and the internal auditors;
and reporting to the Board of Directors the Committee’s findings and any recommendation for changes in scope,
methods or procedures of the auditing functions. The Committee is directly responsible for appointing the Company’s
independent registered public accounting firm and is charged with reviewing and approving all services performed for the
Company by the independent registered public accounting firm and for reviewing and approving the related fees. The
Committee reviews the independent registered public accounting firm's report on internal quality control and reviews all
relationships between the independent registered public accounting firm and the Company, in order to assess the
independent registered public accounting firm's independence. The Committee also reviews management’s programs to
monitor compliance with the Company’s policies on business ethics and risk management. The Committee establishes
procedures to receive and respond to complaints received by the Company regarding accounting, internal accounting
controls, or auditing matters and allows for the confidential, anonymous submission of concerns by employees. The Audit
Committee held nine meetings in 2010.
Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined
in Rule 13a-15(f) of the Securities Exchange Act of 1934. Using the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission in Internal Control – Integrated Framework, management conducted an
evaluation of the effectiveness of the Company’s internal control over financial reporting under the supervision of the
chief executive officer and the chief financial officer. Based on that evaluation, management concluded that the
Company’s internal control over financial reporting was effective as of December 31, 2010. The effectiveness of the
Company’s internal control over financial reporting, as of December 31, 2010, has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears
on page 134.