Duke Energy 2012 Annual Report Download - page 275

PART II
255
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES – DUKE ENERGY, DUKE ENERGY CAROLINAS, PROGRESS ENERGY, PROGRESS
ENERGY CAROLINAS, PROGRESS ENERGY FLORIDA, DUKE ENERGY OHIO AND DUKE ENERGY INDIANA
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required to be disclosed by the
Duke Energy Registrants in the reports they fi le or submit under the Securities
Exchange Act of 1934 (Exchange Act) is recorded, processed, summarized,
and reported, within the time periods specifi ed by the Securities and Exchange
Commission’s (SEC) rules and forms.
Disclosure controls and procedures include, without limitation, controls
and procedures designed to provide reasonable assurance that information
required to be disclosed by the Duke Energy Registrants in the reports they
fi le or submit under the Exchange Act is accumulated and communicated to
management, including the Chief Executive Offi cer and Chief Financial Offi cer,
as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of management,
including the Chief Executive Offi cer and Chief Financial Offi cer, the Duke Energy
Registrants have evaluated the effectiveness of their disclosure controls and
procedures (as such term is defi ned in Rule 13a−15(e) and 15d−15(e) under
the Exchange Act) as of December 31, 2012, and, based upon this evaluation,
the Chief Executive Offi cer and Chief Financial Offi cer have concluded that these
controls and procedures are effective in providing reasonable assurance of
compliance.
Changes in Internal Control over Financial Reporting
Under the supervision and with the participation of management,
including the Chief Executive Offi cer and Chief Financial Offi cer, the Duke Energy
Registrants have evaluated changes in internal control over fi nancial reporting
(as such term is defi ned in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) that occurred during the fi scal quarter ended December 31, 2012 and
have concluded no change has materially affected, or is reasonably likely to
materially affect, internal control over fi nancial reporting.
Management’s Annual Report On Internal Control Over Financial Reporting
The Duke Energy Registrants’ management is responsible for establishing
and maintaining an adequate system of internal control over fi nancial reporting,
as such term is defi ned in Exchange Act Rules 13a−15(f) and 15d−15(f).
The Duke Energy Registrants’ internal control system was designed to provide
reasonable assurance regarding the reliability of fi nancial reporting and the
preparation of fi nancial statements for external purposes, in accordance
with U.S. generally accepted accounting principles. Because of inherent
limitations, internal control over fi nancial 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 policies and
procedures may deteriorate.
The Duke Energy Registrants’ management, including their Chief
Executive Offi cer and Chief Financial Offi cer, has conducted an evaluation of the
effectiveness of their internal control over fi nancial reporting as of December
31, 2012 based on the framework in Internal Control — Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on that evaluation, management concluded that its internal
controls over fi nancial reporting were effective as of December 31, 2012.
Deloitte & Touche LLP, Duke Energy’s independent registered public
accounting fi rm, has issued separate attestation reports on the effectiveness of
Duke Energy and Progress Energy’s internal control over fi nancial reporting.