Red Lobster 2005 Annual Report Download - page 27

Darden Restaurants 35
Report of Management Responsibilities
Financial Review 2005
The management of Darden Restaurants, Inc. is
responsible for the fairness and accuracy of the consoli-
dated financial statements. The consolidated financial
statements have been prepared in accordance with account-
ing principles generally accepted in the United States of
America, using management’s best estimates and judgments
where appropriate. The financial information throughout this
report is consistent with our consolidated financial statements.
Management has established a system of internal
controls that provides reasonable assurance that assets
are adequately safeguarded and transactions are recorded
accurately, in all material respects, in accordance with
management’s authorization. We maintain a strong audit
program that independently evaluates the adequacy and
effectiveness of internal controls. Our internal controls
provide for appropriate segregation of duties and respon-
sibilities and there are documented policies regarding uti-
lization of our assets and proper financial reporting. These
formally stated and regularly communicated policies set
high standards of ethical conduct for all employees.
The Audit Committee of the Board of Directors meets
at least quarterly to determine that management, internal
auditors and the independent registered public accounting
firm are properly discharging their duties regarding internal
control and financial reporting. The independent registered
public accounting firm, internal auditors and employees
have full and free access to the Audit Committee at any time.
KPMG LLP, an independent registered public accounting
firm, is retained to audit our consolidated financial statements.
Their report follows.
Clarence Otis, Jr.
Chief Executive Officer
Management is responsible for establishing and main-
taining adequate internal control over financial reporting
(as defined in Rule 13a-15(f) under the Exchange Act).
The Company’s internal control over financial reporting
is designed to provide reasonable assurance to the
Company’s management and Board of Directors regard-
ing the preparation and fair presentation of published
financial statements.
Because of its inherent limitations, internal control
over financial reporting may not prevent or detect mis-
statements. Therefore, even those systems determined to
be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.
Management assessed the effectiveness of the
Company’s internal control over financial reporting as of
May 29, 2005. In making this assessment, our manage-
ment used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission
(COSO) in Internal Control-Integrated Framework.
Management has concluded that, as of May 29, 2005, the
Company’s internal control over financial reporting was
effective based on these criteria.
The Company’s independent registered public
accounting firm, KPMG LLP, has issued an audit report
on our assessment of our internal control over financial
reporting, which follows.
Management’s Report on Internal Control Over
Financial Reporting