Westjet 2009 Annual Report Download - page 69

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WestJet 2009 Annual Report 39
Because of its inherent limitations, ICFR can provide only
reasonable assurance and may not prevent or detect
misstatements. Furthermore, projections of an 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 and procedures
may deteriorate.
Management, under the supervision of the CEO and the CFO, has
evaluated the effectiveness of our ICFR using the framework and
criteria established in Internal Control – Integrated Framework,
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on this evaluation,
management has concluded that as at December 31, 2009, the
design and operating effectiveness of our ICFR was effective to
provide reasonable assurance regarding the reliability of fi nancial
reporting and its preparation of fi nancial statements for external
purposes in accordance with Canadian GAAP.
Changes in internal controls over fi nancial reporting
During the quarter ended December 31, 2009, WestJet and Sabre
Airline Solutions implemented our new SabreSonic reservation
system as previously discussed. In conjunction with the migration
to our new reservation system, a new revenue accounting system
was also implemented.
The change in reservation and revenue accounting systems and
related processes has resulted in a change that materially affects
our ICFR.
Management has designed and implemented controls to ensure
that all reservation and revenue accounting transactions have
received the relevant designation requirements; a reasonable
methodology has been established to determine the effectiveness
of the reservation and revenue accounting systems; all related
transactions have been accurately measured, reviewed
and recorded; and all relevant presentation and disclosure
requirements have been included in the fi nancial statements in
accordance with Canadian GAAP.
Other than as described previously, there have not been any
other changes in our ICFR, during the quarter ended December
31, 2009, that have materially affected, or are reasonably likely
to materially affect, our ICFR.
MANAGEMENT’S ANNUAL REPORT ON DISCLOSURE
CONTROLS AND PROCEDURES AND INTERNAL
CONTROLS OVER FINANCIAL REPORTING
Disclosure controls and procedures
Disclosure controls and procedures (DC&P) are designed to
provide reasonable assurance that all relevant information
is gathered and reported to management, including the Chief
Executive Offi cer (CEO) and the Chief Financial Offi cer (CFO), on a
timely basis so that appropriate decisions can be made regarding
public disclosure.
An evaluation of the effectiveness of the design and operation
of our DC&P was conducted, as at December 31, 2009, by
management under the supervision of the CEO and the CFO.
Based on this evaluation, the CEO and the CFO have concluded
that, as at December 31, 2009, our DC&P, as defi ned by the
CSA in National Instrument 52-109, Certifi cation of Disclosure
in Issuers’ Annual and Interim Filings, are effective to provide
reasonable assurance that information required to be disclosed
in reports that we fi le or submit under Canadian securities
legislation is recorded, processed, summarized and reported
within the time periods specifi ed therein.
Internal controls over fi nancial reporting
ICFR is designed to provide reasonable assurance regarding the
reliability of fi nancial reporting and the preparation of fi nancial
statements in accordance with Canadian GAAP. Management is
responsible for establishing and maintaining adequate ICFR.
Our ICFR includes policies and procedures that pertain to the
maintenance of records that provide reasonable assurance that
transactions are recorded as necessary to permit preparation of
the fi nancial statements in accordance with Canadian GAAP, and
that receipts and expenditures are being made only in accordance
with authorizations of management and directors; pertain to the
maintenance of records that in reasonable detail accurately and
fairly refl ect our transactions and dispositions of our assets;
and are designed to provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use
or disposition of our assets that could have a material effect on
our annual and interim consolidated fi nancial statements.