Bank of Montreal 2007 Annual Report Download - page 94

Statement of Management’s Responsibility
for Financial Information
90 BMO Financial Group 190th Annual Report 2007
planning; effective segregation of duties; delegation of authority
and personal accountability; escalation of relevant information for
decisions regarding public disclosure; careful selection and training
of personnel; and accounting policies that we regularly update.
This structure ensures appropriate internal controls over transactions,
assets and records. We also regularly audit internal controls. These
controls and audits are designed to provide us with reasonable assur-
ance that the financial records are reliable for preparing financial
statements and other financial information, assets are safeguarded
against unauthorized use or disposition, liabilities are recognized,
and we are in compliance with all regulatory requirements.
As at October 31, 2007 we, as Bank of Montreal’s Chief Executive
Officer and Executive Vice-President, Finance and Treasurer and
Acting Chief Financial Officer, have determined that the Bank’s internal
control over financial reporting is effective. We have certified Bank of
Montreal’s annual filings with the CSA and the SEC as required in Canada
by Multilateral Instrument 52-109 (Certification of Disclosure in Issuers’
Annual and Interim Filings) and in the United States by the Securities
Exchange Act of 1934.
In order to provide their opinions on our consolidated financial
statements and on the Bank’s internal control over financial reporting,
the Shareholders’ Auditors review our system of internal controls and
conduct work to the extent that they consider appropriate.
The Board of Directors, based on recommendations from its
Audit and Risk Review Committees, reviews and approves the financial
information contained in the Annual Report, including the MD&A.
The Board of Directors and its relevant Committees oversee management’s
responsibilities for the preparation and presentation of financial infor-
mation, maintenance of appropriate internal controls, compliance with
legal and regulatory requirements, management and control of major
risk areas and assessment of significant and related party transactions.
The Audit Committee, which is comprised entirely of independent
directors, is also responsible for selecting the Shareholders’ Auditors
and reviewing the qualifications, independence and performance of both
the Shareholders’ Auditors and internal audit. The Shareholders’ Auditors
and the Bank’s Chief Auditor have full and free access to the Board
of Directors and its Audit and other relevant Committees to discuss audit,
financial reporting and related matters.
The management of Bank of Montreal (the “Bank”) is responsible for
preparation and presentation of the annual consolidated financial state-
ments, Management’s Discussion and Analysis (“MD&A”) and all other
information in the Annual Report.
The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles
(“GAAP”) and the requirements of the Securities and Exchange
Commission (“SEC”) in the United States, as applicable. The financial
statements also comply with the provisions of the Bank Act and
related regulations, including interpretations of GAAP by our regulator,
the Superintendent of Financial Institutions Canada.
The MD&A has been prepared in accordance with the requirements
of securities regulators, including National Instrument 51-102 of
the Canadian Securities Administrators (“CSA”) as well as Item 303
of Regulation S-K of the Securities Exchange Act, and their related
published requirements.
The consolidated financial statements and information in the
MD&A necessarily include amounts based on informed judgments and
estimates of the expected effects of current events and transactions
with appropriate consideration to materiality. In addition, in preparing
the financial information we must interpret the requirements described
above, make determinations as to the relevancy of information to
be included, and make estimates and assumptions that affect reported
information. The MD&A also includes information regarding the
impact of current transactions and events, sources of liquidity and capital
resources, operating trends, risks and uncertainties. Actual results in
the future may differ materially from our present assessment of this
information because future events and circumstances may not occur
as expected.
The financial information presented elsewhere in the Annual
Report is consistent with that in the consolidated financial statements.
In meeting our responsibility for the reliability and timeliness of
financial information, we maintain and rely on a comprehensive system
of internal controls and internal audit, including organizational and
procedural controls, disclosure controls and procedures and internal
control over financial reporting. Our system of internal controls includes
written communication of our policies and procedures governing
corporate conduct and risk management; comprehensive business
William A. Downe Thomas E. Flynn Canada
President and Chief Executive Officer Executive Vice-President, Finance and Treasurer November 27, 2007
and Acting Chief Financial Officer