Bank of Montreal 2014 Annual Report Download - page 107

Statement of Management’s Responsibility
for Financial Information
Management of Bank of Montreal (the “bank”) is responsible for the
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 International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board and meet the
applicable requirements of the Canadian Securities Administrators
(“CSA”) and the Securities and Exchange Commission (“SEC”) in the
United States. The financial statements also comply with the provisions
of the Bank Act (Canada) and related regulations, including
interpretations of IFRS by our regulator, the Office of the Superintendent
of Financial Institutions Canada.
The MD&A has been prepared in accordance with the requirements
of securities regulators, including National Instrument 51-102,
Continuous Disclosure Obligations of the CSA, as well as Item 303,
Management’s discussion and analysis of financial condition and results
of operations 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, and 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, 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 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. Our internal controls are
designed to provide reasonable assurance that transactions are
authorized, assets are safeguarded and proper records are maintained,
and that we are in compliance with all regulatory requirements. The
system of internal controls is further supported by a compliance
function, which is designed to ensure that we and our employees
comply with securities legislation and conflict of interest rules, and by
an internal audit staff, who conduct periodic audits of all aspects of our
operations.
As of October 31, 2014, 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 and with the SEC pursuant to
National Instrument 52-109, Certification of Disclosure in Issuers’ Annual
and Interim Filings and 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 over
financial reporting and conduct work to the extent that they consider
appropriate. Their audit opinion on the bank’s internal control over
financial reporting as of October 31, 2014 is set forth on page 122.
The Board of Directors, based on recommendations from its Audit
and Conduct Review 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 and Conduct Review Committee, which is comprised
entirely of independent directors, is also responsible for selecting the
Shareholders’ Auditors and for 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, its Audit and Conduct
Review Committee and other relevant committees to discuss audit,
financial reporting and related matters.
The Office of the Superintendent of Financial Institutions Canada
conducts examinations and inquiries into the affairs of the bank as are
deemed necessary to ensure that the provisions of the Bank Act, with
respect to the safety of the depositors, are being duly observed and that
the bank is in sound financial condition.
William A. Downe Thomas E. Flynn Toronto, Canada
Chief Executive Officer Chief Financial Officer December 2, 2014
120 BMO Financial Group 197th Annual Report 2014