Citibank 2010 Annual Report Download - page 145

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The management of Citigroup is responsible for establishing and
maintaining adequate internal control over financial reporting. Citi’s
internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external reporting purposes in accordance with
U.S. generally accepted accounting principles. Citi’s internal control over
financial reporting includes those policies and procedures that (i) pertain
to the maintenance of records that in reasonable detail accurately and fairly
reflect the transaction and dispositions of Citi’s assets; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting
principles, and that Citi’s receipts and expenditures are being made only in
accordance with authorizations of Citi’s management and directors; and
(iii) provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use or disposition of Citi’s assets that could have
a material effect on its financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
Citigroup management assessed the effectiveness of Citigroup’s internal
control over financial reporting as of December 31, 2010 based on the
criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control-Integrated Framework.
Based on this assessment, management believes that, as of December 31,
2010, Citigroup’s internal control over financial reporting was effective. In
addition, there were no changes in Citigroup’s internal control over financial
reporting during the fiscal quarter ended December 31, 2010 that materially
affected, or are reasonably likely to materially affect, Citi’s internal control
over financial reporting.
The effectiveness of Citigroup’s internal control over financial reporting
as of December 31, 2010 has been audited by KPMG LLP, Citigroup’s
independent registered public accounting firm, as stated in their report below,
which expressed an unqualified opinion on the effectiveness of Citigroup’s
internal control over financial reporting as of December 31, 2010.