Citibank 2012 Annual Report Download - page 156

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MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
Citi’s management 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 transactions 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 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.
In addition, given Citi’s large size, complex operations and global footprint,
lapses or deficiencies in internal controls may occur from time to time.
Citi management assessed the effectiveness of Citigroup’s internal control
over financial reporting as of December 31, 2012 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, 2012, Citi’s
internal control over financial reporting was effective. In addition, there were
no changes in Citi’s internal control over financial reporting during the fiscal
quarter ended December 31, 2012 that materially affected, or are reasonably
likely to materially affect, Citi’s internal control over financial reporting.
The effectiveness of Citi’s internal control over financial reporting as
of December 31, 2012 has been audited by KPMG LLP, Citi’s independent
registered public accounting firm, as stated in their report below, which
expressed an unqualified opinion on the effectiveness of Citi’s internal
control over financial reporting as of December 31, 2012.