Western Union 2011 Annual Report Download - page 92

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, 2011 and 2010, and for each of the three years in the period ended
December 31, 2011. 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 of America.
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, 2011, 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 Travelex Global Business Payments (“TGBP”) effective November 7, 2011. As permitted by the
Securities and Exchange Commission, management’s assessment did not include the internal control of the
acquired operations of TGBP, which are included in the Company’s consolidated financial statements as of
December 31, 2011 and for the period from November 7, 2011 through December 31, 2011. The assets of TGBP,
excluding goodwill and other intangible assets, net, constituted approximately 3% of the Company’s total assets
as of December 31, 2011, and TGBP revenues constituted approximately 0.6% of our total revenues for the year
ended December 31, 2011. Based on the results of its evaluation, which excluded an assessment of the internal
control of TGBP, the Company’s management concluded that as of December 31, 2011, the Company’s internal
control over financial reporting is effective. Western Union’s internal control over financial reporting as of
December 31, 2011 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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