Western Union 2009 Annual Report Download - page 87

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Management’s Report on the Financial Statements
Our management is responsible for the preparation, integrity and objectivity of the accompanying
consolidated financial statements and the related financial information. The financial statements have been
prepared in conformity with accounting principles generally accepted in the United States of America and
necessarily include certain amounts that are based on estimates and informed judgments. Our management
also prepared the related financial information included in this Annual Report on Form 10-K and is
responsible for its accuracy and consistency with the financial statements.
As stated in their report included elsewhere in this Annual Report on Form 10-K, the consolidated
financial statements have been audited by Ernst & Young LLP, an independent registered public accounting
firm who conducted their audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States) as of December 31, 2009 and 2008, and for each of the three years in the
period ended December 31, 2009. The independent registered public accounting firm’s responsibility is to
express an opinion as to the fairness, in all material respects, with which such financial statements present our
financial position, results of operations and cash flows in accordance with accounting principles generally
accepted in the United States.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. The Western Union
Company’s (“Western Union” or the “Company”) internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated
financial statements for external purposes in accordance with generally accepted accounting principles.
Western Union’s internal control over financial reporting includes those policies and procedures that (i) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (ii) 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 are being made only in accordance with authorizations of our management and
Board of Directors; and (iii) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of our assets that could have a material effect on the consolidated
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 Western Union’s internal control over financial reporting as of
December 31, 2009, utilizing the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control-Integrated Framework. The Company completed its
acquisition of Custom House, Ltd. (“Custom House”) effective September 1, 2009. As permitted by the
Securities and Exchange Commission, management’s assessment did not include the internal control of the
acquired operations of Custom House, which are included in the Company’s consolidated financial statements
as of December 31, 2009 and for the period from September 1, 2009 through December 31, 2009. The assets
of Custom House, excluding goodwill, constituted approximately 5% of the Company’s total assets as of
December 31, 2009, and Custom House revenues constituted approximately 0.6% of our total revenues for the
year ended December 31, 2009. Based on the results of its evaluation, which excluded an assessment of the
internal control of the acquired operations of Custom House, the Company’s management concluded that, as of
December 31, 2009, the Company’s internal control over financial reporting is effective. Western Union’s
internal control over financial reporting as of December 31, 2009 has been audited by Ernst & Young LLP,
Western Union’s independent registered public accounting firm, as stated in their attestation report included in
this Annual Report on Form 10-K.
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