Frontier Communications 2010 Annual Report Download - page 61

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The Board of Directors and Shareholders
Frontier Communications Corporation:
The management of Frontier Communications Corporation and subsidiaries is responsible for establishing
and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act
Rules 13a-15(f) and 15d-15(f).
Under the supervision and with the participation of our management, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As
a result of the Transaction, we have begun to integrate certain business processes and systems of the Acquired
Business. Accordingly, certain changes have been made and will continue to be made to our internal controls
over financial reporting until such time as this integration is complete. In reliance on interpretive guidance
issued by the SEC staff, as discussed in the accompanying Annual Report on Form 10-K for our fiscal year
ended December 31, 2010, management has chosen to exclude from its assessment of the effectiveness of our
internal control over financial reporting as of December 31, 2010, the Acquired Business’ internal control over
financial reporting associated with assets of $4.3 billion, representing 24% of consolidated assets, and revenue
of $1.5 billion, representing 40% of consolidated revenues, included in the consolidated financial statements of
Frontier Communications Corporation and subsidiaries as of and for the year ended December 31, 2010, and
will include its assessment of internal control over financial reporting for the Acquired Business in our Annual
Report on Form 10-K for our fiscal year ending December 31, 2011. Based on our evaluation our management
concluded that our internal control over financial reporting was effective as of December 31, 2010 and for the
period then ended.
Our independent registered public accounting firm, KPMG LLP, has audited the consolidated financial
statements included in this report and, as part of their audit, has issued their report, included herein, on the
effectiveness of our internal control over financial reporting.
Stamford, Connecticut
February 25, 2011
F-2