PG&E 2014 Annual Report Download - page 137

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129
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of PG&E Corporation and Utility is responsible for establishing and maintaining adequate internal control
over financial reporting. PG&E Corporation’s and the Utility’s internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles, or GAAP. Internal control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of PG&E Corporation and the Utility, (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures
are being made only in accordance with authorizations of management and directors of PG&E Corporation and the Utility, and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of assets that
could have a material effect on the 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.
Management assessed the effectiveness of internal control over financial reporting as of December 31, 2014, based on the
criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission. Based on its assessment and those criteria, management has concluded that PG&E Corporation and the
Utility maintained effective internal control over financial reporting as of December 31, 2014.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited PG&E Corporation’s and the
Utility’s internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control —
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.