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MANAGEMENT’S REPORT
Management is responsible for all the information and representations contained in the consolidated
financial statements and other sections of this Form 10-K. Management believes that the consolidated
financial statements have been prepared in conformity with generally accepted accounting principles
appropriate in the circumstances to reflect, in all material respects, the substance of events and transac-
tions that should be included, and that the other information in this Form 10-K is consistent with those
statements. In preparing the consolidated financial statements, management makes informed judgments
and estimates of the expected effects of events and transactions that are currently being accounted for.
In meeting its responsibility for the reliability of the consolidated financial statements, management
depends on the Company’s system of internal accounting controls. This system is designed to provide
reasonable assurance that assets are safeguarded and transactions are executed in accordance with
management’s authorization, and are recorded properly to permit the preparation of consolidated finan-
cial statements in accordance with generally accepted accounting principles. In designing control proce-
dures, management recognizes that errors or irregularities may nevertheless occur. Also, estimates and
judgments are required to assess and balance the relative cost and expected benefits of the controls.
Management believes that the Company’s accounting controls provide reasonable assurance that errors or
irregularities that could be material to the consolidated financial statements are prevented or would be
detected within a timely period by employees in the normal course of performing their assigned functions.
The Board of Directors pursues its oversight role for these consolidated financial statements through
the Audit Committee, which is comprised solely of Directors who are not officers or employees of the
Company. The Audit Committee meets with management periodically to review their work and to monitor
the discharge of each of their responsibilities. The Audit Committee also meets periodically with KPMG
LLP, the independent auditors, who have free access to the Audit Committee or the Board of Directors,
without management present, to discuss internal accounting control, auditing, and financial reporting
matters.
KPMG LLP is engaged to express an opinion on our consolidated financial statements. Their opinion
is based on procedures believed by them to be sufficient to provide reasonable assurance that the
consolidated financial statements are not materially misleading and do not contain material errors.
By /s/ HAROLD L. COVERT
Harold L. Covert,
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
December 14, 1998
39