Bank of Montreal 2010 Annual Report Download - page 110

108 BMO Financial Group 193rd Annual Report 2010
Statement of Management’s Responsibility
for Financial Information
The management of Bank of Montreal (the “bank”) is responsible
for preparation and presentation of the annual consolidated financial
statements, Management’s Discussion and Analysis (“MD&A”) and
all other information in the Annual Report.
The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles
(“GAAP”) and the applicable requirements of the Securities and Exchange
Commission (“SEC”) in the United States. The financial statements
also comply with the provisions of the Bank Act and related regulations,
including interpretations of GAAP by the Office of the Superintendent
of Financial Institutions Canada, our regulator.
The MD&A has been prepared in accordance with the requirements
of securities regulators, including National Instrument 51-102 of
the Canadian Securities Administrators (“CSA”) as well as Item 303
of Regulation S-K under the United States Securities Act of 1933
and the Securities Exchange Act of 1934, and their related published
requirements.
The consolidated financial statements and information in the
MD&A necessarily include amounts based on informed judgments and
estimates of the expected effects of current events and transactions
with appropriate consideration to materiality. In addition, in preparing
the financial information we must interpret the requirements described
above, make determinations as to the relevancy of information to
be included, and make estimates and assumptions that affect reported
information. The MD&A also includes information regarding the impact
of current transactions and events, sources of liquidity and capital
resources, operating trends, risks and uncertainties. Actual results in
the future may differ materially from our present assessment of this
information because events and circumstances in the future may
not occur as expected.
The financial information presented in the bank’s Annual Report
is consistent with that in the consolidated financial statements.
In meeting our responsibility for the reliability and timeliness
of financial information, we maintain and rely on a comprehensive
system of internal controls and internal audit, including organizational
and procedural controls, disclosure controls and procedures, and
internal control over financial reporting. Our system of internal controls
includes written communication of our policies and procedures
governing corporate conduct and risk management; comprehensive
William A. Downe Russel C. Robertson Canada
President and Chief Executive Officer Chief Financial Officer December 7, 2010
business planning; effective segregation of duties; delegation of
authority and personal accountability; escalation of relevant information
for decisions regarding public disclosure; careful selection and training
of personnel; and accounting policies that we regularly update.
This structure ensures appropriate internal controls over transactions,
assets and records. We also regularly audit internal controls. These
controls and audits are designed to provide us with reasonable assurance
that the financial records are reliable for preparing financial statements
and other financial information, assets are safeguarded against
unauthorized use or disposition, liabilities are recognized, and we
are in compliance with all regulatory requirements.
As at October 31, 2010, we, as the bank’s Chief Executive Officer and
Chief Financial Officer, have determined that the bank’s internal control
over financial reporting is effective. We have certified Bank of Montreal’s
annual filings with the CSA as required in Canada under National
Instrument 52-109 (Certification of Disclosure in Issuers’ Annual and
Interim Filings) and with the SEC as required in the United States
under the Securities Exchange Act of 1934.
In order to provide their audit opinions on our consolidated
financial statements and on the bank’s internal control over financial
reporting, the Shareholders’ Auditors audit our system of internal
controls and conduct work to the extent that they consider appropriate.
Their audit opinion on the bank’s system of internal controls is set
forth below.
The Board of Directors, based on recommendations from its Audit
Committee, reviews and approves the financial information contained
in the Annual Report, including the MD&A. The Board of Directors and
its relevant Committees oversee management’s responsibilities for
the preparation and presentation of financial information, maintenance
of appropriate internal controls, compliance with legal and regulatory
requirements, management and control of major risk areas, and
assessment of significant and related party transactions.
The Audit Committee, which is comprised entirely of independent
directors, is also responsible for selecting the Shareholders’ Auditors
and reviewing the qualifications, independence and performance of both
the Shareholders’ Auditors and internal audit. The Shareholders’ Auditors
and the bank’s Chief Auditor have full and free access to the Board of
Directors and its Audit and other relevant committees to discuss audit,
financial reporting and related matters.