Proctor and Gamble 2003 Annual Report Download - page 24

22The Procter & Gamble Company and Subsidiaries
Management’s Responsibility for Financial Reporting
Clayton C. Daley, Jr.
Chief Financial Officer
At Procter & Gamble, our actions – the actions of all employees – are
governed by our Purpose, Values and Principles. These core values set a
tone of integrity for the entire Company – one that is reinforced consis-
tently at all levels and in all countries. We have maintained strong gov-
ernance policies and practices for many years.
The management of Procter & Gamble is responsible for the objectivity
and integrity of the accompanying Consolidated Financial Statements.
The Board of Directors has engaged independent auditors, Deloitte &
Touche LLP, to audit our financial statements and they have expressed
an unqualified opinion.
We are committed to providing timely, accurate and understandable
information to investors. This encompasses:
Maintaining a strong internal control environment. Our system of inter-
nal controls includes written policies and procedures, segregation of
duties and a careful selection and development of employees. The sys-
tem is designed to provide reasonable assurance that transactions are
executed as authorized and accurately recorded, that assets are safe-
guarded and that accounting records are sufficiently reliable to permit
the preparation of financial statements that conform in all material
respects with accounting principles generally accepted in the United
States of America. We maintain disclosure controls and procedures de-
signed to ensure that information required to be disclosed in reports
under the Securities Exchange Act of 1934 is recorded, processed, sum-
marized and reported within the specified time periods. We monitor
these internal controls through self-assessments and an ongoing pro-
gram of internal audits. Key employee responsibilities are reinforced
through the Company’s “Worldwide Business Conduct Manual,” which
sets forth management’s commitment to conduct its business affairs
with high ethical standards.
Focusing on financial stewardship. We maintain a specific program to
ensure that employees understand their fiduciary responsibilities to
shareholders. This ongoing effort encompasses financial discipline in our
strategic and daily business decisions and brings particular focus to
maintaining accurate financial reporting through process improvement,
skill development and oversight.
Exerting rigorous oversight of the business. We continuously review our
business results and strategic choices. Our Global Leadership Council is
actively involved – from understanding strategies to reviewing key
initiatives and financial performance. The intent is to ensure we remain
objective in our assessments, constructively challenge the approach
to business opportunities and potential issues and monitor results
and controls.
Engaging our Disclosure Committee. Last fall, we formalized a Disclo-
sure Committee, a group of senior level executives responsible for
ensuring that significant business activities and events are appropriately
identified, reported to management and the Board of Directors and dis-
closed, as appropriate.
Encouraging strong and effective Corporate Governance from our Board
of Directors. We have an active, capable and diligent Board that meets
the required standards for independence, and we welcome the Board’s
oversight as a representative of the shareholders. Our Audit Committee
comprises independent directors with the financial knowledge and ex-
perience to provide appropriate oversight. We review key accounting
policies and financial reporting and internal control matters with them
and encourage their independent discussions with Deloitte & Touche
LLP, our independent auditors.
Providing investors with financial results that are complete and under-
standable. The Consolidated Financial Statements and financial infor-
mation included in this report are the responsibility of manage-
ment. This includes preparing the financial statements in accordance
with accounting principles generally accepted in the United States
of America, which require estimates based on management’s best
judgment.
P&G has a strong history of doing what’s right. We know great compa-
nies are built on strong ethical standards and principles. Our financial
results are delivered from that culture of accountability, and we take
responsibility for the quality and accuracy of our financial reporting.
A.G. Lafley
Chairman of the Board,
President and Chief Executive