United Healthcare 2005 Annual Report Download - page 69

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None
ITEM 9A.CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
As of December 31, 2005, an evaluation was carried out under the supervision and with the participation of the
company’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer
and the Chief Financial Officer concluded that the design and operation of these disclosure controls and
procedures were effective.
Internal Control Over Financial Reporting
Report of Management
The management of UnitedHealth Group is responsible for establishing and maintaining adequate internal
control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of
1934. The company’s internal control system is designed to provide reasonable assurance to our management and
board of directors regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. The company’s internal control
over financial reporting includes those policies and procedures that:
• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and
• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use
or disposition of the company’s 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 the company’s internal control over financial reporting as of
December 31, 2005. In making this assessment, we used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on our
assessment and those criteria, we believe that, as of December 31, 2005, the company maintained effective
internal control over financial reporting.
Management excluded from its assessment of the effectiveness of the Company’s internal control over financial
reporting the internal controls of PacifiCare Health Systems, Inc. (PacifiCare) which was acquired by the
Company on December 20, 2005, and is included in the Company’s consolidated financial statements for the
period from that date through yearend. Such exclusion was in accordance with Securities and Exchange
Commission guidance that an assessment of a recently acquired business may be omitted in management’s report
on internal controls over financial reporting in the year of acquisition. Total assets and total liabilities of
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