Eversource 2004 Annual Report Download - page 49

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47
To the Board of Trustees and Shareholders of Northeast Utilities:
We have audited the accompanying consolidated balance sheets and
consolidated statements of capitalization of Northeast Utilities and
subsidiaries (a Massachusetts Trust) (the “Company”) as of December
31, 2004 and 2003, and the related consolidated statements of income,
comprehensive income, shareholders’ equity and cash flows for each of
the three years in the period ended December 31, 2004. These financial
statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in
all material respects, the financial position of Northeast Utilities and
subsidiaries as of December 31, 2004 and 2003, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 2004, in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Note 1 to the consolidated financial statements, in
2003, the Company adopted Financial Accounting Standards Board
Interpretation No. 46, Consolidation of Variable Interest Entities.
As discussed in Note 16, the Company has restated the consolidated
balance sheet as of December 31, 2003 and the related consolidated
statement of cash flows for the year then ended.
We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the effectiveness
of the Company’s internal control over financial reporting as of
December 31, 2004, based on Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated March 16, 2005 expressed an unqualified
opinion on management’s assessment of the effectiveness of the
Company’s internal control over financial reporting and an adverse
opinion on the effectiveness of the Company’s internal control over
financial reporting because of a material weakness.
DELOITTE & TOUCHE LLP
Hartford, Connecticut
March 16, 2005