Allegheny Power 2011 Annual Report Download - page 76

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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 2011 consolidated
financial statements as stated in their audit report included herein.
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 eight
meetings in 2011.
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, 2011. The effectiveness of the Company’s internal control over financial reporting, as of December 31, 2011,
has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which
appears herein.