HR Block 2009 Annual Report Download - page 42

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
DISCUSSION OF FINANCIAL RESPONSIBILITY
We at H&R Block are guided by our core values of client focus, integrity, excellence, respect and teamwork. These
values govern the manner in which we serve clients and each other and are embedded in the execution and
delivery of our responsibilities to our shareholders. H&R Block’s management is responsible for the integrity and
objectivity of the information contained in this document. Management is responsible for the consistency of
reporting this information and for ensuring that accounting principles generally accepted in the United States are
used. In discharging this responsibility, management maintains an extensive program of internal audits and
requires the management teams of our individual subsidiaries to certify their respective financial information. Our
system of internal control over financial reporting also includes formal policies and procedures, including a Code
of Business Ethics and Conduct program designed to encourage and assist all employees and directors in living up
to high standards of integrity.
The Audit Committee of the Board of Directors, composed solely of outside and independent directors, meets
periodically with management, the independent auditors and the chief internal auditor to review matters relating
to our financial statements, internal audit activities, internal accounting controls and non-audit services provided
by the independent auditors. The independent auditors and the chief internal auditor have full access to the Audit
Committee and meet, both with and without management present, to discuss the scope and results of their audits,
including internal control, audit and financial matters.
Deloitte & Touche LLP audited our consolidated financial statements for fiscal years 2009 and 2008. Their audits
were conducted in accordance with the standards of the Public Company Accounting Oversight Board (United
States).
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in Exchange Act Rules 12a-15(f). Under the supervision and with the participation of
management, including our Chief Executive Officer and Chief Financial Officer, 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
(COSO) as of April 30, 2009.
Based on our assessment, management concluded that as of April 30, 2009, the Company’s internal control over
financial reporting was effective based on the criteria set forth by COSO. The Company’s external auditors,
Deloitte & Touche LLP, an independent registered public accounting firm, have issued an audit report on the
effectiveness of the Company’s internal control over financial reporting.
Russell P. Smyth
President and Chief Executive Officer
Becky S. Shulman
Senior Vice President, Treasurer and Chief Financial Officer
38 H&R BLOCK 2009 Form 10K